EFFECTIVE FACTORS ON CONSUMER LOYALTY AND SATISFACTION

Abstract

All managers are aware of the importance of keeping customers. As we know, keeping previous customers is four to six times less expensive than attracting new customer (Moon and Minor; 2007). Recently, companies increasingly have been concentrated on customer loyalty and keeping them. According to many researchers, one of most important factors to make customers loyal is their satisfaction. So that, many people believe satisfaction is equal to loyalty. Several years ago, this great mistake (i.e. equating customer satisfaction and loyalty) led to General Motors bankruptcy. The purpose of this paper is investigating various aspects of the relationship between satisfaction and loyalty; as well as determining and evaluating effective factors on this relationship; so that provide strategies which through them managers take advantages, efficiently, from customer satisfaction, to keep them and make them loyal.