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The relation between customer satisfaction and loyalty

Category: Marketing Paper Type: Report Writing Reference: HARVARD Words: 1800

        The study, objectives is to examine the arbitrating of consumer satisfaction effects in connection among brand loyalty for the Adidas for the consumer-based brand equity (Lee, 2008). There is a strong relationship between the customer satisfaction and customer loyalty, and if the management of the Adidas wants to enhance the customer loyalty, they must enhance the satisfaction of the customer by making the quality of their product best. Adidas also can enhance the satisfaction levels of their customer by applying proper and good marketing strategies.

        Loyalty and customer satisfaction is considered as one of the top priority of the success of the Adidas, and this also can enhance the profitability of the Adidas. Satisfaction can lead to the loyalty of the customer step by step rather than automatically. The customer goes from different phases; these are described in the steps of satisfaction and customer loyalty. These different phases are dissolution, commitment, awareness expansion, and exploration. A byproduct of customer satisfaction is required to considering the customer loyalty. The satisfaction of the customers of the Adidas leads toward customer loyalty (Deng, 2010).

            The loyalty of the customer will be increased significantly if the level of the satisfaction of the Adidas will be increased. By declining the levels of the customer satisfaction of the Adidas the loyalty of the customer will also declare. It means there is a direct relationship among customer satisfaction and customer loyalty. Furthermore, highly satisfied customers are tending to be more loyal than customers who are simply satisfied. It can be said generally that there is a positive significant relationship between customer satisfaction and customer loyalty and customer loyalty is the best factor in enhancing the profitability of the Adidas (Shankar, 2003).


Source: https://core.ac.uk/download/pdf/161421179.pdf

The relationship between Customer Satisfaction and Loyalty

Marketing strategies of the Adidas

        Firm’s strategies are all about retaining most consumers and develop a strong marketing relations with consumers. The management of the Adidas can enhance the loyalty of the customer of the Adidas by developing the marketing plan and the several marketing strategies (Adidas, 2018).

Products and services of Business

            The products and services which are offering by the Adidas are the apparels which include dresses, foot wears, and sports dressing. It also includes various dresses according to the seasonal effects. The company has a huge range of dresses. These are those products which every customer required to fulfilling their basics needs. Their wide ranges of the products consist of the Apparels. The products of the Adidas are commonly known as the brand name of the Adidas and Reebok. It means that the company has huge potential to generate a huge amount of sales. In the future, the company can add further products so that it can meet the demand efficiently.

            The products and services analysis of the Adidas is considered as the best because it is involved in providing the friendly and warm services which are expected for the lifestyles of the families, The informal and comfortable environment is created in the Adidas, and the staff of the restaurant is providing superb services for accommodating their customers.

                These all good services can enhance the satisfaction level of their valued customers. Their products and services can be analyzed by taking the feedback from their customers as well as this feedback will use to measuring the satisfaction level of their customers. The inventories are the mange by the company cares for the products of the apparels. This inventory is necessary for reducing the loss of spoilage of the products.

Target Customers

            The main target customers of the business are the youngsters of the nations who believe in wearing quality products.  The Asian society or people who are lived in the United States are also considered as the target audiences of the Adidas. Because in the United States of America there is the huge amount of Asian community which means that the company can generate the huge amount of sales by focusing on the Asian community as we4ll as by considering them as their target customers.

            The other people who live in the Middle East can also buy products from the company, and they enjoyed the quality products of the Adidas. The Company will target the working class who have a tough schedule and does not have time to buy the apparels from the supermarket, and they can fulfill them. The Strategy of the home delivery of the Adidas is enough to targeting the disabled and senior citizen as well which cannot buy the cloths physically from stores and shopping mall. Their customers are satisfied with their product quality.

 4 Ps of marketing of Customer satisfaction and customer loyalty in Adidas

Products

            The product of the Adidas is according to the needs and preferences of the customers. Adidas is commonly producing Shoes, Kid's Apparel, Clothing, Men's Apparel, Accessories, and Women’s Apparel. The product of the company is the Apparels and the products which are required by every individual on the almost daily basis. The product of the business has huge sales potential due to its nature. The apparels which are offering by the Adidas are categorized as; originals, sports performance, technologies, sizing, international shoe size chart, international clothing size chart, women, man and pantsuit (Adidas, 2019).

Price

        The price of the Adidas will be kept competitive so that customers can be attracted. The price of the foods especially the apparels of the Athletes will be a bit lesser than the stores so that they can be attracted toward the online business. The customers of the business will also be given a discount on different occasions and events.

Place

            The Adidas is already located in the prominent locations of the entire world, but it is also located at the prominent location of the Middle East. The stores will be located in such areas where a huge amount of Asian people resides. The location of the stores plays an important role in the profitability of the business. Therefore the business stores must in such locations where many customers can easily reach them. The customers do not have to worry about Athol house of pizza food stores because they will be situated in different locations hence will provide convenience to a lot of customers.

Promotion

            The customers will be given special discounts and promotional offers so that they can be attracted to the products. The discount deals will be given on a weekly basis and promotions will be done for special events or occasions. The Adidas send promotional emails to the customers along with discount vouchers so that they can be attracted toward the products. The Adidas will remain highly active on social media where it will not only perform the advertisement of its website.  Along with that, the business will perform an attractive advertisement as well in which customers will be informed regarding the clothing of the business.

Marketing & promotional strategies
Email marketing strategies

        The Adidas will send promotional emails to the customers along with discount vouchers so that they can be attracted toward the products. The company will also consider the ethical aspects as well when sending the emails to the customers

Social media marketing strategies

            The Adidas will remain highly active on the social media where it will not only perform the advertisement of its website but also take feedbacks from different customers regarding the services and quality of the Products. Through feedback, the business can improve itself and can meet the requirements of the customers more efficiently.

Linking strategies

            The Adidas will develop various linking strategies so that it can perform the business professionally. Customer satisfaction will be given utmost priority, and it will be considered in the adoption of strategies.

Paid advertising

The Adidas will give advertisement in the newspaper, on another website, and on billboards. For this, the company will pay a significant amount.

Traditional marketing strategies like TV etc. and other

            The Adidas will definitely give advertisement on the television because it is a huge source to attract the customers. The advertisement will be given in the magazines and radio as well so that people will know about the business and what food it is offering to the customers.

Competition Analysis of Customer satisfaction and customer loyalty in Adidas

            The competition is quite high because many companies are providing the same services and working in the business of the clothing industry. Adidas have huge competition with their competitors. The most important companies are included as Nike, and it is involved in the business of the apparels particular who are involved in providing the Athletes kit. The Adidas group is always struggling to achieve the target sales for making their customer satisfied for enhancing the profitability of the Adidas. By implementing the marketing strategies ineffective, the Adidas can generate more profit, but their outlet in the Middle East region are earning handsome amount.

References of Customer satisfaction and customer loyalty in Adidas

Adidas, 2018. STRATEGY of adidas. [Online]
Available at: https://www.adidas-group.com/en/group/strategy-overview/

Adidas, 2019. Adidas At A Glance About. [Online]
Available at: https://www.adidas-group.com/en/group/profile/

Adidas, 2019. ADIDAS PRODUCTS. [Online]
Available at: https://www.adidas.ca/en/help-topics-adidas_products.html

Armstrong, G. K. P. H. M. B. R., 2012. ‘Marketing: An Introduction’, 2nd Edition,. s.l.:Pearson..

Athol House of Pizza, 2019. Athol House Of Pizza Restaurant. [Online]
Available at: https://www.atholhouseofpizza.com/

Carl McDaniel, J. R. G., 2016. Marketing Research Essentials, 9th Edition. s.l.:Wiley.

Deng, Z. L. Y. W. K. K. &. Z. J., 2010. Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China.. International journal of information management,, 30(4), pp. 289-300..

Kamalakumati Karunanithy, A. P., 2013. A study on the effect of Stress on performance of employees in Commercial Bank of Ceylon in the Eastern Province. European Journal of Marketing, pp. Vol 5, No 27 .

Kandampully, J. &. S. D., 2000. Customer loyalty in the hotel industry: the role of customer satisfaction and image.. International journal of contemporary hospitality management,, 12(6), pp. 346-351..

Lee, Y. K. L. C. K. L. S. K. &. B. B. J., 2008. Festivalscapes and patrons' emotions, satisfaction, and loyalty.. Journal of business research,, 61(1), pp. 56-64.

N. Torres, E. &. K. S., 2013. From customer satisfaction to customer delight: Creating a new standard of service for the hotel industry.. International Journal of Contemporary Hospitality Management,, 25(5), pp. 642-659.

Osborne, S. P. R. Z. &. N. G., 2013. A new theory for public service management? Toward a (public) service-dominant approach. T. he American Review of Public Administration, 43(2), pp. 135-158.

Shankar, V. S. A. K. &. R. A., 2003. Customer satisfaction and loyalty in online and offline environments.. International journal of research in marketing,, 20(2), pp. 153-175.

 

 

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