Marketing Strategy Implications
To have long term success in the quick service restaurant industry it is necessary to build loyal
consumers through a strategy of relationship marketing. The core of the relationship marketing approach
is that resources are directed toward strengthening ties to existing customers on the proven premise that
maintain existing customers is less costly that is attracting new ones (Bagozzi 1995). A key component to
building a relationship is customer satisfaction with market transactions. Anderson and Sullivan (1993)
state that consumer satisfactions lead to increased probabilities of purchasing a particular brand. They
contend that satisfied consumers are more likely to be retained. According to Wallace (1995), for fast
food restaurants, it costs three to five times as much to attract a new customer as it does to retain an
existing customer. Wallace further argues that by reducing consumer defection by 5%, a fast food
restaurant can increase it profits by 25%. In short, consumer satisfaction is an important element in
building a marketing relationship between a quick service restaurant and its customers. According to our
findings, the keys to customer satisfaction for quick service restaurants are (in order) price, service speed,
convenient locations, food quality and cleanliness.
Marketing Strategy Implications To have long term success in the quick service restaurant industry it is necessary to build loyalconsumers through a strategy of relationship marketing. The core of the relationship marketing approachis that resources are directed toward strengthening ties to existing customers on the proven premise thatmaintain existing customers is less costly that is attracting new ones (Bagozzi 1995). A key component tobuilding a relationship is customer satisfaction with market transactions. Anderson and Sullivan (1993)state that consumer satisfactions lead to increased probabilities of purchasing a particular brand. Theycontend that satisfied consumers are more likely to be retained. According to Wallace (1995), for fastfood restaurants, it costs three to five times as much to attract a new customer as it does to retain anexisting customer. Wallace further argues that by reducing consumer defection by 5%, a fast foodrestaurant can increase it profits by 25%. In short, consumer satisfaction is an important element inbuilding a marketing relationship between a quick service restaurant and its customers. According to ourfindings, the keys to customer satisfaction for quick service restaurants are (in order) price, service speed,convenient locations, food quality and cleanliness.
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