Model for measuring customer loyalty towards a service provider

Abstract

The paper aims to create a valid model for measuring customer loyalty towards a service provider. Principal solutions for designing a model of loyalty measurement have emerged from the clarified role of customer loyalty and evaluation problems. The worked out solutions include selecting a proper concept (1), loyalty specification (2), determining a period necessary for loyalty measurement (3), differentiation of loyalty measurement depending on accessible data (4) and measuring a stage of loyalty (5). The conducted research referred to an example of a catering company, thus adopting an original mathematical model for the empirical measurement of customer loyalty. The obtained results have revealed that the loyalty of the customers of the investigated service provider is of an intermediate level. The findings have also showed the superiority of the proposed model for measuring the state of customer loyalty and for obtaining better solutions to the development of customer loyalty in the service industry.

Keywords:

• customer loyalty
• measurement of customer loyalty
• service loyalty
• service business
• purchase value
• purchase frequency

JEL Classification:

• M31

Additional information

Notes on contributors

Ilona Skačkauskienė

Ilona SKAČKAUSKIENĖ. Doctor of Social Sciences, Associate Professor, Head of the Dept of Social Economics and Management, Vilnius Gediminas Technical University. She has published over 30 publications and presented reports in Lithuanian and international conferences. Her research interests: taxation, tax system evaluation, budget revenue formation, social and economic development.

Neringa Vilkaitė-Vaitonė

Neringa VILKAITĖ-VAITONĖ. Doctor of Social Sciences, the Dept. of Social Economics and Management, Vilnius Gediminas Technical University. She has published over 10 publications concerning customer loyalty and its measurement. Her research interests: customer loyalty, service business, marketing planning, integrated marketing communications.

Sergej Vojtovic

Sergej VOJTOVIC. Doctor of Social Sciences, Professor, the Dept. of Management and Development of Human Resources, the University of Alexander Dubcek in Trencin. He has published more than 145 scientific publications in Slovakia and abroad (Austria, China, Czech Republic, Germany, Lithuania, Poland, Russia, Serbia, Ukraine). His research interests: marketing research, human resources management, personnel management, microeconomic regularities of economic development, economic sociology, labour market, mobility and labour force migration.