Satisfaction & Loyalty of Customer in Cosmetic Industry

ACADEMIC WRITING

END OF SEMESTER REPORT

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VIVI CARINA

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TITLE:

Satisfaction & Loyalty of Customer in Cosmetic Industry

Table of Contents

Front Cover                 1

Table of Contents                 2

CHAPTER I

Introduction                3

CHAPTER II

The Satisfaction & Loyalty of Customer in Cosmetic Industry                 4

Brand Image                 5

Satisfaction Response                 6

Loyalty Intention                 9

CHAPTER III

Conclusion                10

References                11

CHAPTER I

Introduction

Used as a marketing benchmark for performance of the company is called as customer satisfaction that is an important issue for many companies nowadays (Bennett & Rundle-Thiele, 2004). Customer satisfaction is about measuring how products and services supplied by an enterprise meet or surpass customer expectation (Wikipedia, 2016). The amount of customers, or percentage of total customers, whose reported experience with an organization, its products, or its services surpass specified satisfaction goals is also called as definition of customer satisfaction. Moreover, it is believed and known that a customer that has the satisfaction is more tend to give their loyalty behavior such as repeat purchase and the willingness to spread positive information about the company. In this case, Taylor (1998) stated that “companies began to aware that they keep losing customers rather than high satisfaction” (pg. 41).

“A marketer Holy Grail” is called as brand loyalty (Kapferer, 2005) which is measured the health and status of a company. Brand loyalty means as positive feelings in a brand and dedication to buy the same product or service repeatedly on the same brand without notice on competitors’ movements or changes in the market (Wikipedia, 2016).

Customer satisfaction and loyalty is one of the key inside a business. If the customer is not loyal to the company then the company hardly regenerates revenues and the company must find another customer by attracting them in their product which is not an easy thing to do. This report will discuss mainly on the relationships among brand image perception in terms of image based benefits, customer satisfaction and loyalty intention in cosmetic industry.

CHAPTER II

The Satisfaction and Loyalty of Customer in Cosmetic Industry

        Customer is the most important thing to run a business because customer plays an important role with the function to regenerate revenues for the company. In attracting customers, company must able to make customer satisfy and loyal to them. The points that are important in maintaining customers’ relationship with the company are brand image, satisfaction response, and loyalty intention.

1. Brand Image

The current view of the customers on a brand is called as brand image that can be defined as the minds of target customers with a unique pack of associations. According to Hsieh, Pan, and Setiono (2004) that “a successful brand image enables customers to identify the needs that the brand satisfies and to differentiate the brand from its competitors, and consequently increases the likelihook that customers will buy the brand” (pg. 252). If a company with their product or services that constantly holds a favorable image by the public, would absolutely gain a better position in the market rather than their competitors, increase market share or performance, and have competitive advantage on the market. Brand image is a character of the company itself that able to highlight a company’s mission and vision. The main points of positive brand image are unique and different logo that shows the company’s image, slogan describing company’s business in short and the tools for supporting the key values is called as brand identifier.

Brand image is essential because it is the overall impression of customers’ mind that is created from all sources. They expand various connections or link with the brand. With this link then formed brand image. An image is formed about the brand on the basis of subjective perceptions of links bundle that the customers have about the brand. Brand image should be unique, different, and positive than other companies’ brand because it the main tool in a company to promote their products. Brand image can be strengthened with using power of mouth, advertisements, packaging, and other promotional tools.  Brand image creates and delivers the product’s identity in a unique manner and different from other brands. It consists of several connections in customers’ mind such as attributes and benefits. Brand attributes known as core values of the brand that represents the essence of the brand. Brand attributes are a combination of characteristics that identify the physical, character and personality traits of the brand, similar to the attributes that allow us to consistently identify individuals.

Brand image can not be created purposely but it is formed automatically based on the brand itself. It includes ease of use of the product, products’ appeal, the function of a product, fame, and overall value of the product. Brand image also can be say as the content of the brand because when the customers buy the product, they also buy the image of it. Brand image is the mental feedback and objective of the customers when they buy a product. A positive brand image will satisfy customers, increase goodwill, and the value of the company.

Brand image has been conceptualized and operationalized in some different ways that is based on attributes, brand benefits/values, or using brand image scale. It would help marketers to identify the strengths and weaknesses of their brand as well as consumers’ perceptions in their product or services if measuring image based on the above definition.

Based on Keller’s (1993) conceptualization of brand image, it is mentioned a perception about a brand as reflected by the brand connections held in customers’ memory that suggested brand associations cover of brand attributes, brand benefits, and overall brand attitudes.

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