Define the concepts and explain the relationship between customer ...

[mpobi80]

Define the concepts and explain the relationship between customer loyalty and customer retention.

Question 2

With respect to customer expectations, which of the following best describes the zone of tolerance?
 A) It explains situations where customer expectations will be higher than normal.
  B) It represents the degree to which customers recognize and are willing to accept variability in performance.
  C) It explains situations where customer satisfaction will be exceptionally low.
  D) It explains why customers tolerate weak performance when performance is beyond the control of the firm.
  E) It explains situations where customers will hold lower than normal expectations.

[abro1885]

Answer to Question 1

Although many business people may use the terms loyalty and retention interchangeably, for our purposes customer loyalty reflects an emotional attachment as well as a business attachment to the service firm. Ultimately, customer loyalty is a deeper conviction to the firm than pure retention alone. It is intuitively appealing to believe that customer satisfaction leads to customer loyalty which leads to customer retention. Customer retention refers to focusing the firm's marketing efforts toward the existing customer base. Firms engaged in customer retention efforts work to satisfy existing customers in hope of further developing the customer-provider relationship.

Answer to Question 2

B