Table of Contents
Task 1. Critical Evaluation of Key Concepts and Theories 2
1.1 Literature Review on Customer Experience (CE) & Customer Loyalty (CL) 2
1.2 Creating a favourable CE & Strong CL based on Conceptual Framework 2
1.3 Linkage between Customer Experience Vs Customer Loyalty 4
1.4 Conclusion 5
Task 2. Application of Key concepts and Framework 5
2.1 Cooperate Profile / background 6
2.2 Review of existing CE & CL 6
2.3 Recommendation for Improvement for Weakness 7
2.4 Recommendation for sustaining the Customer Loyalty 8
2.5 Conclusion 9
References 10
Task 1. Critical Evaluation of Key Concepts and Theories
1.1 Literature Review on Customer ...view middle of the document...
1.2 Creating a favourable CE & Strong CL based on Conceptual Framework
The topic of this paper “Creation of favourable CE “will be discussed based on this existing model and conceptual articles particularly in retail environments and then the most constructive key findings will be summarized. The package of CE comes with CL hence understanding of CE will be primarily reviewed in details.
Customer experience management represents a business strategy designed to manage experience to results in a win-win value exchange between retailer and its customer. The paper reviewed mainly on conceptual framework (diagram A below) developed by (Dhruv Grewal, Michael Levy, V.Kumar, 2009) which discussed primarily how the retail drivers create superior customer experience. These retails drivers are in turn affected by macro factors such as political factors and economic and technological (eg. gasoline prices, Inflation, recession, increasing unemployment, interest rates, and decline in stock price and technological changes) Below are key five retails drivers :-
* Promotion
* Price and competitive effects
* Merchandise Management
* Supply Chain Management
* Location
Diagram A. Organising Framework for Customer Experience Management
Whether the prior research on the above drivers are stable, we will review on different views of the literature.
* Promotion experience
To create excitement in order to attract the customer attention to stores, several retailers interested have expended their assortment of offering as form of “Promotion”. Using this method, retailers enhance their own performance (Van Heerde and Neslin 2008), monetary savings for consumers and low switching cost. Although price promotion is short-term beneficial and main driver of retailer profitability (Bolton, Shankar and Montoya 2007), It indicates favourable for the retailers if they draws the consumers into the store, who then purchase non-promoted merchandise. Other studies do indicate also that promotion increases store traffic (e.g., Lam et al. 2001). Additionally another promotional tools as Marketing Public Relation should combined as integrated marketing for long term purpose as it is array of marketing tools in building brand awareness and brand knowledge and it complements advertising by increasing the credibility of messages. MPR is also made cost-effective by an increase in media advertising costs. (Duncan, 1985).
* Pricing Experience
From the traditional marketing 4P, the “Price, P” create not only value for consumers also revenue for sellers. However, setting the right price is considerably crucial as it might misinterpret by buyer due to too low or high price. Research argues that retailers should carry high price merchandise to extract rent from the loyal customers and low price merchandise to attract new customers (Kopalle et al, 2009). According to him, sudden emerge of discount stores selling the luxury products can...
