The authors suggest level of customer indifference which leads to the development higher level of repurchase intentions. Those people who have a positive perception of the service and show certain level of indifference, are more likely to leave as their service expectations are filled, and at the same time, they see no gains from switching. The author further states that literature on measuring customer indifference is rather scarce and has sometimes been used in the marketing literature in relation to consumer’s attitude towards advertising, described as neither positive nor negative.
Theories Regarding customer retention strategies and retention Customer relationship as it was mentioned previously is an area that has gained more interest through the recent years. According to ( Pananond & Zeithaml, 1998) this has led to many studies focusing on metrics for example customer retention rates and customer share in customer relationship management. At the same time, the ways organizations retain their customers are highly dependent on the goals, philosophies, and the context of each firms and once the firms knows who their customers are, they tend to use specific tactics in order to accomplish the goal and retaining the customers. Value Process One of the most essential things for an organization is being able to sell credible promises to its clients. In professional services, credibility is very important as it is hard for customers to evaluate their services. The credibility of the promise which is made by the organization is affected by the reputation, the ability of being able to present documented success from previous projects, and also by the professionals assigned to the projects. In the first process, the negotiations of the contract takes place as well as the evaluated efforts which are employed in order to develop appropriate levels of expectations in the client firm. Service providers need to only make promises which they know they can be able deliver. In the third process, learning from the projects and institutionalizing this learning to the extent that it can be used for both improved service quality and improved efficiency with future clients is viewed. This process has commonly been neglected by the professional service firms. ( Haanes & Lowendahl, 1997) argues that the processes which have been discussed, exist within all the service sectors. Nonetheless, the complexity of the processes increases substantially in professional service firms mainly because of the fact that such services are highly customized, require deep interaction with the client and also because of the asymmetric
information, the credibility of the promises are difficult for the client to evaluate. Such kinds of services needs substantial dependence on the individual and non-interchangeable professionals in all three processes.
- Spring '16
- SOSPETER ODHIAMBO
- Customer relationship management, Customer retention