Customer Loyalty 1
Discussion Board: Customer Loyalty
Diana Carolina Roman
BUSI 520: Strategic Marketing Management
Dr. Lorna Deshay
April 05/2022
Customer Loyalty 2
1. Customer Loyalty
Customers aim for services/products that harvest a positive customer relationship.
Customer loyalty is built through purchases and interactions experience between the service
provider and the client. “Customer loyalty can be understood from attitudinal and behavioral
perspectives” (Oliver, 1999; Zeithaml, 2000). Customers can also become loyal due to how the
service or products facilitate their lives. As a customer, I am interested in receiving good
attention, having reliable service, receiving good deals, and having a quality service/product.
Thus, an interesting question can be formulated; How are loyal customers formed? What
motivates a person to keep using the same service/product? “Customer loyalty is concerned with
the likelihood of a customer returning, making business referrals, and providing strong word-of-
mouth references and publicity (Bowen & Shoemaker, 1998). For a customer to become loyal,
customer satisfaction and trust must be present.
In addition, customer satisfaction keeps customers coming back to buy our product or use
our service. “Customer satisfaction can also impact switching behaviors, preventing customers
from switching to the competitors (Chowdhury, 2011). Thus, a satisfied customer will spread the
good news to others like friends, relatives, and coworkers to try the product or service.
“Satisfaction also relates to customers’ feelings toward the service (Bhattacherjee, 2001a). Word
of mouth is also an important tool to recruit new customers; customers usually share their
positive and negative experiences. When a customer is dissatisfied, it will keep potential
customers from trying our products or services. “Loyal customers motivate potential customers
to use a specific provider’s services by spreading positive word of mouth” (Shankar &
Jebarajakirthy, 2019, p.1119).
Customer Loyalty 3
2. Customer Loyalty Bank Industry
Consumers prefer banks with e-banking services that facilitate transactions without
stepping into a physical store. It is very convenient the use e-banking services since technology
is approachable to every customer. “Online banking services can be defined as providing
information or services by a bank to its customers via the computer, cellular phone, or other
Internet-oriented devices (Daniel, 1999).
Banks started offering online banking features to their customers to maintain customer
loyalty. “Loyal e-banking customers tend to spread positive word of mouth through electronic
devices and social media pages, thereby giving a positive impression of e-banking to other
customers” (Shankar & Jebarajakirthy, 2019, p.1119). This research discusses how Capital One
has been ranked as a top bank with consistent customer satisfaction. There are two components
to create customer loyalty in the bank industry: “Reliability and privacy and security-enhanced
customer loyalty to e-banking” (Shankar & Jebarajakirthy, 2019, p.1120). In addition to e-
banking services, the bank also creates loyalty through benefits like credit card rewards, credit
card incentives like cash back, or credit card that accumulates travel miles. One example of a
successful case of a bank with a loyalty program is Capital one with its program Capital one
purchase erasure.
Banks usually offer a credit card in which you can accumulate miles for traveling, but in
this case, Capital one went a step above this offer to create a unique service; Capital one
purchased erasure. “Capital One's Purchase Eraser feature does exactly what its name suggests:
It allows you to use your accumulated rewards (miles, in this case) to "erase," or offset, eligible
travel purchases that you make with your card” (What Is the Capital One Purchase Eraser?
March 30, 2022, p.1). This service allows the customer to use the miles to erase the debt and
how exclusive this service can be for people who love to travel.
Another excellent service offer is entertainment, a very desirable product; the product is
called “the Capital One Entertainment ticketing platform; eligible Capital One cardholder has
access to select “Capital One Cardholder Exclusive” tickets. The number of “Capital One
Cardholder Exclusives” or “Capital One Exclusives” available for purchase on the Capital One
Customer Loyalty 4
Entertainment ticketing platform may vary by venue, capacity, and other circumstances” (Capital
one, Capital one entertainment, 2022, p.7).
Customer loyalty is earned through positive experiences with a product or company. A
negative interaction with a customer can have an impactful future for the company. Whenever I
have a bad interaction with a company or product, I will warn my friends or family not to use it,
so we must understand that clients bring another client to our business. We must treat each
customer with respect and dignity.
3. Question for classmates
How do e-banking services have changed your life?
Customer Loyalty 5
References
Bowen, J. T., and Shoemaker, S. 1998. Loyalty: A strategic commitment. Cornell and Hotel
Restaurant Administration Quarterly, 39(1): 12–25
Bhattacherjee, A. (2001a), “An empirical analysis of the antecedents of electronic commerce
service continuance,” Decision Support Systems, Vol. 32 No. 2, pp. 201-214.
Capital One entertainment. March 2022. https://www.capitalone.com/credit-
cards/benefits/entertainment/
Daniel, E. (1999), “Provision of electronic banking in the UK and the Republic of
Ireland,” International Journal of Bank Marketing, Vol. 17 No. 2, pp. 72-82.
Kaura, V. (2013). Service convenience, customer satisfaction, and customer loyalty: Study of
Indian commercial banks. Journal of Global Marketing, 26(1), 18-
27. https://doi.org/10.1080/08911762.2013.779405
Shankar, A., & Jebarajakirthy, C. (2019). The influence of e-banking service quality on customer
loyalty: A moderated mediation approach. International Journal of Bank
Marketing, 37(5), 1119-1142. https://doi.org/10.1108/IJBM-03-2018-0063
Oliver, R.L. (1999), “Whence consumer loyalty?”, Journal of Marketing, Vol. 63, Special Issue,
pp. 33-44.
What Is the Capital One Purchase Eraser? March 30, 2022. Nerd Wallet.
https://www.nerdwallet.com/article/credit-cards/what-is-the-capital-one-purchase-eraser
Zeithaml, V.A. (2000), “Service quality, profitability, and the economic worth of customers: what
we know and what we need to learn,” Journal of the Academy of Marketing Science,
Vol. 28 No. 1, pp. 67-85.
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