This research paper‟s is to illustrate the relationship between the customer loyalty derived through the satisfaction and enlargement of profitability of firm. The loyalty can be increased through the various services and strategies adopted by the firm for proper satisfaction of their customers. Many authors are proposed to loyal customer as competitive assets to be preserved and one of the way...

Previous studies of online stores have concentrated on identifying various attribute and benefit dimensions important to customers and neglected delving into underlying motives of customers engaging in shopping online. The current study identified personal values as underlying motivations, which have received less attention but carry important meanings in explaining customers loyal behavior. Fr...

Loyalty of customers to a supermarket can be measured in a variety of ways. If a customer tends to buy from certain categories of products, it is likely that the customer is loyal to the supermarket. Another indication of loyalty is based on the tendency of customers to visit the supermarket over a number of weeks. Regular visitors and spenders are more likely to be loyal to the supermarket. Ne...

We consider a game between two capacity providers that compete for customers through a broker who works on commissions and sells to both loyal and non-loyal customers. The capacity providers compete by selecting commission margins and sales thresholds at which commissions on all sales increase. We show that in equilibrium, contracts require positive sales thresholds. The threshold requirement c...

An empirical regularity in the price-promotion behavior of retailers of homogenous goods is explained theoretically. Based on this, a model is proposed for price competition in a market for a homogenous good with many asymmetrically positioned retailers. Asymmetry in this context refers to firms having potentially dissimilar loyal and switcher customer numbers that shape their pricing behavior ...

In opaque pricing certain characteristics of the product or service are hidden from the consumer until after purchase, transforming a differentiated good into somewhat of a commodity. Opaque pricing has become popular in service pricing as it allows firms to sell their differentiated products at higher prices to regular brand loyal customers while simultaneously selling to non loyal customers a...

This paper studies electoral competition in a model of redistributive politics with deterministic voting and heterogeneous voter loyalties to political parties. We construct a natural measure of “party strength” based on the sizes and intensities of attachment of a party’s loyal voter segments and demonstrate how party behavior varies with the two parties’ strengths. In equilibrium, parties agg...

We present a Hotelling model of price and advertising competition between prescription drugs that differ in quality/side effects. Promotional effort results in the endogenous formation of two consumer groups: brand loyal and non-brand loyal ones. We show that advertising intensities are strategic substitutes, with the better quality drugs being the ones that are most advertised. This positive a...