Re-Positioning Customer Loyalty in a Fast Moving Consumer Goods Market

Abstract

In the fast moving consumer goods (FMCG) market much of the customer loyalty operations are carried out with a short-term perspective, which often result in weak customer loyalty. Besides this, the one-sided view of customer loyalty and how to work with customer relationships, further adds to the challenges and there is a need to promote new insights and practices into customer loyalty in FMCG markets. In an attempt to broaden the view of customer loyalty, the authors take an organizational human resource perspective and present a conceptual framework and model built on human resource literature. Many companies face the exact challenge with high employee turnover, as it is associated with costs of recruiting and training, suggesting that customer loyalty becomes a question of organizing the customer as an external human resource. A practical contribution with the conceptual model is the suggestion to learn from the experiences of successful employee recruitment, and employee motivation, when viewing and working with customer loyalty.

The effect of humanitarian logistics service quality to customer loyalty using Kansei engineering: Evidence from Indonesian logistics service providers

“…Customer loyalty has been defined by Oliver (1999) and Sundström and Hjelm-Lidholm (2019) because customers' commitment to purchase or reuse a selected item or service remains consistent in the future. Thus, the selection of the same LSP is repeated, even though marketing influences and efforts have the potential to cause a shift in behavior.…”

“…The nature of staff that could trigger the emergence of customer loyalty is care personnel to make customers feel comfortable, the consistency of personnel, flexibility, and suitability shown by the personnel. Sundström and Hjelm-Lidholm (2019) also mentioned the vital role of staff in customer loyalty. In gaining loyalty, there needs to be a good relationship between the customer and the personnel.…”

“…In terms of the measurement performance indicators, customer satisfaction on products or services provided by logistics service providers (LSP) has an impact on the customers' willingness to reuse the service (El-Adly, 2019). Other studies have also found a model of the relationship between logistical service satisfaction and customer loyalty to use logistical services (Oliver, 1999;Sundström & Hjelm-Lidholm, 2019). Meanwhile, customer intentions and trust in logistics services have a positive effect on organizational performance as measured by customer satisfaction and loyalty of logistics service users (Dubey et al, 2015;Masudin et al, 2018;Setiawan & Sayuti, 2017;Yeon et al, 2019).…”

Marketing–Quality Interface: An Empirical Analysis of FMCG Customers

“…However, in FMCG sector, customer loyalty is attained for a very shorter period of time which makes it weak over time. Businesses must try to build loyal customers for a longer period of time (Sundström & Hjelm-Lidholm, 2020). Therefore, word of mouth is used as a mediating variable in this research which influences the relationship between marketing variables and quality perception.…”

Study of Customer Loyalty in Small and Medium-Sized Enterprises in the Field of Trade in Bulgaria

“…Sundström and Hjelm-Lidholm consider loyalty from a conceptual point of view. According to them, it is a complex concept based on devotion, trust, subservience, social relations and mutual dependence [8]. Some authors emphasize that customer loyalty is a complex concept that involves two dimensions: instrumental (repurchase intention) and expressive (advocacy intention) [9].…”