1] Experience- Trust, Customer Service, Branding message, Nostalgia
2] Practicality/ Feasiblity – Budget, Points from company, Discounts and offers
“Customer loyalty is viewed as the strength of the relationship between an individual’s relative attitude and repeat patronage.”
A primary attribute of loyalty is the frequency at which customers consume the product. Thus, in the case of Dunkin Donuts, we will attempt to assess the number of times a customer …show more content…
The establishment of a form of service that provides satisfaction is seen to be key in avoiding the phenomena of a consumer moving on to another competitive brand. A study by Hallowell and Roger [1996] demonstrates within the banking sector how increased customer satisfaction affects customer loyalty such that this loyalty will lead to an increase in profitability of the company. Conversely, a study conducted in 2015 across nine countries showed that 76% of people are able to easily recall a failure in customer service. Thus, by measuring the attitude towards consumer service, we may assume that people more satisfied with the service are more likely to be loyal consumers in the …show more content…
It could manifest in the form of ‘loyalty’ or ‘reward’ points or in the form of a digital or physical card registered under the name of the consumer. “Kannan and Bramlett (2000) found that members of the loyalty program of a financial services company were generally less sensitive than other customers to perceptions of lower service quality from their company and any price disadvantage relative to competitors”. In the case of Dunkin Donuts, their DD Perks & Rewards program has been highly successful, earning more than 4.3 million members with its attractive perks. Thus, we may believe that a member of the loyalty program may be more likely to purchase goods from the company in order to increase their points.
3] Nostalgia - “Nostalgia is a bittersweet feeling that consists of a longing for yesterday, evoking fond memories of the past” [Werman, 1977] In the case of brands established for a long period of time, such as Dunkin Donuts, it is possible the product may have been consumed considerably over time in a variety of situations by loyal customers. This may lead to loyalty and attachment in the attitude of the consumer stemming from