Loyalty Behaviour among Malaysian Customers †Free Sample

Question: Discuss about the Determinants Influencing Pharmacy Loyalty Behaviour among Malaysian Customers. Answer: Introduction: This section of the research aims to concentrate on discussing the various dimensions or concepts of the research. As discussed in the first chapter, the research dimensions here include satisfaction, trust, perceived service quality and perceived value. After identification of the above-mentioned variables, this section intends to describe the overview and definitions of these variables. After that, the previous researches related to each variable have been evaluated to identify the factors affecting pharmacy loyalty behaviour among the customers of Malaysia. In addition, the chapter aims to evaluate the guiding framework based on the independent and dependent variables of the research. Finally, this chapter aims to discuss the relationship between the independent and dependent variables by formulating relevant hypotheses. Research dimensions/concepts: The dimensions of the research include satisfaction, trust, perceived service quality and perceived value. These dimensions have been discussed in terms of the following factors: Overview: Trust: In the words of Athavale et al., (2015), trust could be considered as belief and confidence that the customers have with the organisations by taking into account the aspects to be delivered. In other words, trust is an association that links the customers with an organisation. In addition, it is associated between the staffs of an organisation. The greater level of trust relies upon each other in corporate organisations along with the level of commitment. Hence, the pharmaceutical businesses in Malaysia need to develop trustworthy relationships with their customers for ensuring success in the operating market. Therefore, the successful business is formed on a simple and significant business concept, which is trust. With the help of trust, it is possible to form a lifetime customer base. However, developing this trust needs plenty of time and hard work (Ariff et al., 2013). Hence, customer trust could be obtained with the help of the following points: Transparency of the products or services: The pharmacy industry of Malaysia need to identify the wants of the customers and the way they look for it while selling products both in online and offline platforms. In this context, Blut et al., (2014) stated that it is the responsibility of the organisations to abstain from misrepresenting the advantages of the products or services offered. Thus, the Malaysian pharmacy industry is required to provide accurate information to the customers to determine whether it meets their specific challenge. In addition, the organisations in this industry could encourage and offer reviews to portray on the products and landing pages or including a section of testimonials to their websites. Such sort of impartial information is highly important for the purchasers. It has been observed that above half of the online customers look for reviews to undertake smart decisions. Finally, the organisations need to provide proper response to both positive and negative reviews. Thus, accurate and near accura te reviews could set off red flags for most customers. Overview of the target audience and way of communicating with them: It is of utmost importance for an organisation to gain an understanding of the customer base, since it is the key to ensure business success (Cantallops Salvi, 2014). Thus, the pharmacy companies of Malaysia are needed to devote time by listening to their needs and wants. These organisations could use the applications of free analytics tools online for better understanding of the audience behaviour. These tools could take the form of Micro Poll, Survey Monkey and Google Analytics (Cetin Dincer, 2014). In addition, the pharmacy firms of Malaysia could develop open communication routes with the help of social media like Twitter, Facebook and Instagram. This would help the firms to understand about their lifestyles, the products used and the missing features from their daily lives. The customers would share their opinions, in case; the organisations seek the same from them. Offering effective services to the customers: In the words of Chou, Lu Chang (2014), when a brand earns the trust of the customers, 83% of the customers would recommend the same to their acquaintances, while 82% of the customers would carry on by using the products of the brand. Thus, obtaining customer trust initiates with delivery of effective quality services. Such services would comprise of responsiveness, timeliness and capability to surpass the desires of the customers. Hence, the pharmacy industry of Malaysia could depict authentic concern and keenness in helping its customers go a long path. The greater time the organisations devote on planning for providing effective customer services, the lower time is needed to deliver the same. This would ultimately result in attaining brand loyalty. Making and keeping promises: As commented by Chen (2015), the customers desire for consistency that includes offering products to satisfy the customers coupled with excellent services. These would take into account the following: Clearly depicted and developed policies in terms of service, return and shipping Post-purchase follow-ups through e-mail Follow-up on the service issues that are already resolved Quick responses to the comments on websites, blogs, social media, calls and e-mails Thus, with the help of consistency, business growth could be assured and it would help in enhancing the profit margin of the organisations. The organisations are required to maintain transparency and reliability by keeping the promises that are intended to meet the customer expectations. Finally, marinating effective business associations implies that the Malaysian pharmacy firms could deliver according to the promises made each time. This needs considerable effort; however, such hard work would be beneficial to the organisations at the time the customers begin trusting their products and services. This is because delivering effective services beyond customer expectations would result in increased repeat purchases (Fall Diallo et al., 2013). Satisfaction: Customer satisfaction is a marketing concept, as it gauges the way the products or services of an organisation surpass the expectations of the customers. In the current era, customer satisfaction is considered as a significant aspect for any business, as it provides the marketers and owners with a metric for managing and improving the same. Customer satisfaction is important for the pharmacy industry of Malaysia due to the below-stated reasons: Indicator of loyalty and repurchase intentions: With the help of customer satisfaction level, the pharmacy companies of Malaysia would obtain an overview of the customer behaviour regarding their future purchase decisions. In order to ascertain this level, the organisations could seek feedbacks from the customers with the help of rating scale to determine the possibility of repeat purchases or advocates. For instance, if a customer provides a rating of 7, the organisation could expect the same to visit again for repeat purchases. In a similar fashion, a customer rating the organisation as 9 or 10, are the potential advocates that could leverage for becoming evangelists for the organisation. On the other hand, a score of 6 or below 6 could be considered as a warning sign regarding the satisfaction of the customers and hence, they might leave the organisation. Therefore, the pharmacy firms of Malaysia need to keep track of these customers through adequate follow-up to determine their low level of satisfaction. Point of differentiation: In the existing competitive environment, the organisations compete to increase their overall customer base and thus, customer satisfaction is considered as a major differentiator. Hence, in such cutthroat environment, the successful businesses are the ones that consider customer satisfaction as a major constituent of their business strategies. It is crucial for the pharmacy industry of Malaysia to deliver excellent customer experiences by creating environments to increase the level of satisfaction and customer advocates. Minimisation of customer churn: In the words of Kim et al., (2014), price is not the primary reason for customer turnover; instead, the poor quality of customer service is the major cause. Thus, with the help of customer satisfaction metric, the pharmacy firms of Malaysia could be able to minimise the turnover of the customers. This is because with the help of gauging and detecting customer satisfaction, these organisations could place new processes for increasing the overall customer service quality. The monitoring of these new processes need to be conducted to determine the effect of new initiatives on the level of customer satisfaction. Rise in lifetime value of the customers: According to the research of Lee (2013), a fully satisfied customer contributes revenue, which is 2.6 times greater in contrast to a partially satisfied customer. Moreover, the research has also identified that am entirely satisfied customer contributes revenue, which is 14 times greater in contrast to a partially dissatisfied customer. Hence, customer satisfaction is the key to generate revenues for the pharmacy industry of Malaysia. In order to be successful, the pharmacy organisations of Malaysia need to gain an insight regarding the importance of lifetime value of the customers. This is because with the rise in lifetime value, the returns on marketing could be increased as well. Minimisation of negative word of mouth: According to the research work of Liu Zhang (2014), a unsatisfied customer shares experience among 9-15 people. In addition, 13% of the unsatisfied customers share their experience to over 20 people. This implies negative word of mouth. It has been observed that customer satisfaction is tightly associated with revenue and repeat purchases. Most of the organisations often tend to forget the effects of negative customer satisfaction on their businesses. Thus, in order to eradicate negative word of mouth, the pharmacy companies of Malaysia are required to gauge customer satisfaction on ongoing basis. Observing the variations in satisfaction would help them in identifying whether the customers are happy with their products or services. Perceived service quality: Perceived service quality could be described as the perception of the customers regarding the overall quality of a product or service related to the purpose and alternatives. The perceived service quality could help the pharmacy industry of Malaysia in the following ways: Satisfied shareholders: By increasing the service quality, the business organisations could obtain satisfactory responses from the customers, which would result in increased sales. With such rise in sales, there is an increase in satisfaction level of the shareholders and they would tend to make increased investments (Pratminingsih, Lipuringtyas Rimenta, 2013). As a result, the organisations would experience an increased return on investments. Increased business growth: The quality of service would help in boosting the business growth of the pharmacy industry of Malaysia. Thus, with the help of quality services, these organisations could diversify their customer base. However, customer service needs to be increased further, as this is the key in retaining the existing clients and stand out of the crowd. Effective business strategies: With the help of perceived service quality, the pharmacy companies of Malaysia could encourage the customers for encouraging the customers to obtain feedback and comments are a major part of the quality customer service. Thus, by following the feedback of the customers for evaluating the strengths and weaknesses is to gain an overview of the customer expectations with effective business strategies (Lee, 2015). Perceived value: Perceived customer value is a concept associated with branding, which represents that the product success is heavily based on the beliefs of the customers regarding their satisfaction of needs. In other words, when a firm creates its brand and promotes its products, the customers ascertain the way of interpreting and reacting to marketing messages. Thus, the pharmacy industry of Malaysia is needed to devote additional time in market research to gain an overview of the thoughts and feelings of the customers. Perceived value could be better understood with the help of the following points: Value proposition: As commented by Segoro (2013), value proposition is the contrast of benefits offered on the part of a firm to its customers in relation to the product prices. Therefore, the pharmacy firms of Malaysia could impact the value proposition in two ways. Firstly, they could utilise long-term brand development advertising for emphasising the key attributes of the products and brand. Secondly, they could lower down the cost structure for increasing value. Research: The marketers develop advertising messages and deliver the same o different customers with the help of media tools. With the help of market research, the pharmacy companies of Malaysia could gain an insight of the responses of the customers relative to media. Thus, focus groups, test markets and surveys are the options that the pharmacy industry of Malaysia could use to ascertain the needs and wants of the customers. Messages: In order to affect the value perceptions, the organisations attempt to deliver messages indicated in the research to develop the desired sense of value with the customers (Picn, Castro Roldn, 2014). Therefore, low costs could be given priority, since it only needs regular communication associated with the benefits of low cost and commitment delivery. Definition: Trust: According to Liao, Wang Yeh (2014), customer trust is a firm belief or confidence in honesty, reliability, integrity and confident expectations of the customers. Most of the organisations are of the belief that they could be trusted; however, the needs and preferences of the customers tend to change from time to time. As commented by Rabbanee, Burford Ramaseshan (2015), these organisations expect their products to meet the expectations and in case, they feel that they are unable to meet the same, the customers are treated equitably. It has been observed that trust is considered as a belief of a party that the other party would conduct transactions in accordance with the expectation of the first party under uncertain conditions (Gursoy, S. Chen G. Chi, 2014). Thus, customer trust in the pharmacy industry is the willingness of the customers to trust the products and websites of the organisations. Customer loyalty could be regarded as the commitment to utilise products or services in future. In the context of the pharmacy industry of Malaysia, loyalty could be considered as the intention of the customers for purchasing from online and offline sources. In addition, another intention of the organisations is to provide effective services to the customers so that the customers do not switch over to the other brands offering identical products and services. Hence, in order to build customer loyalty, it is crucial for the Malaysian pharmacy industry to earn the trust and confidence of the customers. Satisfaction: According to Kandampully, Zhang Bilgihan (2015), customer satisfaction gauges the customer expectations involving a product or service in meeting the same. It is an abstract concept, which takes into account different factors like product quality, service quality, location environment from which the product or service is purchased and the pricing structure of the same. The business organisations often conduct surveys in order to measure the level of customer satisfaction. The major areas, which are taken into account in such surveys, include the following: Product quality Product value in relation to price Time issues like availability of products, sales assistance and time of delivery Store ambience like cleanliness and shopping environment Issues of service personnel like politeness, helpfulness and attentiveness Convenience comprising of parking, location and operating hours It has been observed that the global firms incur millions of dollars each year to develop new products, create effective brands and promote new products. However, these activities are of no significance, if the customers are not purchasing the marketed products or services. Thus, obtaining the customers in the door to purchase is a crucial challenge and concentration of each marketing department across Malaysia. However, the activities related to satisfaction and loyalty change into gear once the customers purchase the products once. This is because finding a customer to try the products of an organisation is a big challenge. However, making the customer to conduct repeat purchases is a more complicated task (Liat, Mansori Huei, 2014). This is the main linkage between customer satisfaction and brand loyalty. The main aim of customer satisfaction is to assure that the needs of the customers are achieved with effective management of their problems through improved experience after using the products and services of the organisation. Customer loyalty is making a customer to engage in repeat purchases and thus, these two activities go hand-in-hand. Thus, assuring customers are pleased and satisfied with experience is the foundation for the pharmacy industry of Malaysia to come back and spend more money in purchasing the business products and services. Perceived service quality: Perceived quality is a perception of the customers, which differs from various related concepts. The objective or actual reality is the degree to which the product or service provides greater service. The product-based quality denotes the quantity and nature of ingredients, services and features included. The manufacturing quality refers to conformance to specifications. It could be ascertained objectively, as it is a perception and judgement regarding the importance of involved customers (Shi, Prentice He, 2014). Thus, perceived service quality is described as the output of comparison between the expectations of the customers regarding the services and their perceptions regarding the way of performing the service. The delivery of superior or excellent service in relation to the customer expectations as well as the interpretation of the customers regarding their experience could be viewed as a multidimensional construct. Thus, service quality acts as a vital ingredient for forming and maintaining profitable and loyal customer base. Thus, it cats as the driving force for profitability and productivity of the organisations. Accomplishing the right quality could be made through customer education, individual perceptions and preferences. Thus, the data of service quality is extremely useful to achieve improvement of service. Perceived value: As remarked by Mouakket (2015), perceived value is the worth of a service or product, which is in the minds of the customers. It has been observed that the customers often lack in knowledge about the actual cost of production for the products or services they purchase. Instead, the customers possess an internal feeling about the worth of certain products. In order to obtain higher product prices, the producers might undertake marketing strategies for delivering greater perceived values for their products (Oliver, 2014). It has been observed that the perceived quality of the customers and brand loyalty have been the most significant success factors in relation to business competition for different types of organisations. Thus, investigating the perceived value issue is significant. This is because perceived value is more directly associated with the consumer willingness to purchase the products in contrast to perceived service quality. Thus, the pharmacy firms of Malaysia are required to deliver constant value to their customers in order to retain the. Past research: Trust: Nguyen, N., Leclerc, A., LeBlanc, G. (2013). The mediating role of customer trust on customer loyalty.Journal of service science and management,6(1), 96. This research aims to reveal different associations among consumer trust, identity and loyalty. Such outcomes result in questioning the conceptual structure nature, which would comprise these constructs and interrelationships in a structural model. Based on this perspective, the aim of this study is to dissect the role of customer trust on customer loyalty in the context of financial institutions. The researchers have accumulated data from the members of the credit unions. Based on the results obtained, it has been evaluated that customer trust acts a mediating variable, which increases the influence of corporate image, identity and form goodwill on customer loyalty. The research implications have been explained from the perspectives of both managers and research. Lee, D., Moon, J., Kim, Y. J., Mun, Y. Y. (2015). Antecedents and consequences of mobile phone usability: Linking simplicity and interactivity to satisfaction, trust, and brand loyalty.Information Management,52(3), 295-304. This research intends to associate the interactivity and simplicity with customer trust, satisfaction, customer trust and brand loyalty in mobile phone usability. The researchers have provided a holistic view of the causal associations between the features of user interface and significant firm variables for developing and maintaining long-term associations. The research has been carried out with the help of research questionnaire data obtained from 310 mobile phone users residing in South Korea. The outcomes obtained suggest that interactivity and simplicity are two important determinants and simplicity of interface is a necessary precondition for positive interactivity and usability experience. In addition, it has been found that usability is a determinant of brand loyalty, which has influence indirectly through the mediators of trust and satisfaction. Satisfaction: Awan, A.G., Rehman, A. (2014). Impact of customer satisfaction on brand loyalty: an empirical analysis of home appliances in Pakistan. British Journal of Marketing Studies, 2(8), 18-32. According to the researchers, customer satisfaction and brand loyalty are considered as the major goals of marketing for many organisations. This is because loyalty is considered as a multidimensional phenomenon on the part of marketing professionals. The current research is intended to examine the influence of customer satisfaction on brand loyalty for the durable goods. The researchers have used primary data in this study, which has been carried out in the form of a survey by designing a structured questionnaire. For carrying out the survey, the researchers have obtained responses from 300 middle class customers. The findings reveal that customer satisfaction is an important influential dynamic that influence brand loyalty. Tu, Y.T., Wang, C.M. Chang, H.C. (2012). Corporate brand image and customer satisfaction on loyalty: An empirical study of Starbucks coffee in Taiwan.Journal of Social and Development Sciences,3(1), 24-32. According to the researchers, corporate image is evaluated as a significant antecedent of customer satisfaction and brand loyalty. The brand image is crucial because positive brand image enables the organisations to accomplish better performance in terms of sales. By developing a loyal customer base, the organisations could accomplish greater market share and minimise the overall cost of operations. This is because an improvement of 5% in terms of customer retention would lead to a rise of 25% to 75% in terms of profit. The current research aims to evaluate the impact of corporate brand image and customer satisfaction on brand loyalty of Starbucks Coffee in Taiwan. The researchers have conducted survey and responses have been obtained from 199 customers of the organisation. Descriptive statistics, validity, reliability and SEM model have been employed to arrive at the outcome of the study. The results obtained suggest that customer satisfaction has strong influence on brand loyalty o f Starbucks in Taiwan. Perceived service quality: Khan, M. M., Fasih, M. (2014). Impact of service quality on customer satisfaction and customer loyalty: Evidence from banking sector.Pakistan Journal of Commerce and Social Sciences,8(2), 331-354. The objective of this research is to ascertain the satisfaction level of the banking consumers about the quality of various services and loyalty with the banks. The perceived service quality has been evaluated with the help of various dimensions. Thus, the researchers have attempted to determine whether the dimensions of service quality might increase the customer satisfaction and customer loyalty. The respondents are selected from a variety of demographic characteristics with the help of stratified random sampling. The researchers have obtained responses form 270 customers of both public and private banks and the response have been interpreted with the help of descriptive statistics, correlation and regression. The findings signify that service quality and its related dimensions have positive association with consumer loyalty and satisfaction. Blut, M., Beatty, S. E., Evanschitzky, H., Brock, C. (2014). The impact of service characteristics on the switching costscustomer loyalty link.Journal of Retailing,90(2), 275-290. This research examines the association between switching costs and service characteristics. In order to have a better understanding of the effectiveness of switching costs, the research suggests a two-dimensional typology related to switching costs, which comprise of both internal and external switching costs. In addition, the impact of switching costs on consumer loyalty is contingent on the features of four services. The researchers have conducted a review related to meta-analytics of literature on the costs of switching and they have developed a linear model that is hierarchical with a sample of 1,694 customers. From the results obtained, it has been found that service quality has direct impact on the brand loyalty. Perceived value: Eid, R. (2015). Integrating Muslim customer perceived value, satisfaction, loyalty and retention in the tourism industry: An empirical study.International Journal of Tourism Research,17(3), 249-260. According to the researcher, the customer value has become the favourable theme for various tourism reports in current years. The current research aims to examine the effects of the perceived value of Muslim customers on satisfaction, loyalty and retention. The researcher has obtained responses from 221 Muslim tourists for framing 13 hypotheses. In addition, exploratory research design has been used to arrive at the actual outcome of the research. The findings imply that the traditional value dimension would help in satisfying the Muslim customers at the time of purchasing a tourism package. Yeh, C. H., Wang, Y. S., Yieh, K. (2016). Predicting smartphone brand loyalty: Consumer value and consumer-brand identification perspectives.International Journal of Information Management,36(3), 245-257. With the development and competition of smart phone industry, this research aims to get a better insight of the factors driving customer loyalty. The current research emphasises on the factors influencing smart phone brand loyalty from the viewpoints of perceived value and brand identification. The researchers have accumulated data from 157 respondents and they have applied the partial least squares approach. The findings obtained suggest that social value, emotional value and brand identification have strong and positive influence on the brand loyalty. Guiding framework and theory used: Figure 1: Guiding framework of the research (Source: As created by author) The following theories have been used to fit the purpose of this research: Theory of planned behaviour: In the words of Tukej, Golob Podnar (2013), theory of planned behaviour is a theory, which associates behaviour and beliefs. According to the theory, the subjective norms behavioural attitude and control of perceived behaviour frame the behavioural intentions and behaviours of an individual. This theory takes into account the following key variables: Normative belief is the perception of an individual related to social normative pressures or pertinent other beliefs to perform or refrain from performing such behaviour Subjective norm is the perception of an individual regarding the specific behaviour, which is affected by review of other individuals. Control belief is the belief of an individual about the presence of factors, which might progress or restrict the behavioural performance. Perceived behavioural control is the ease or complexity to conduct specific behaviour. Behavioural intention is the depiction of the readiness of an individual in performing a provided behaviour (Yoo Bai, 2013). Behaviour is the observable response of an individual in a provided situation relative o a provided target. The theory of planned behaviour takes into account the non-volitional behaviour of the individuals, which the theory of reasoned action fails to explain. The behavioural intention of an individual could not be the sole factor of behaviour, in which the control over behaviour of an individual is not complete. Thus, by incorporating perceived control of behaviour, this theory helps in describing the association between actual behaviour and behavioural intention. With the help of this theory, the predictability of intention in various fields could be improved like exercise, diet and leisure. Figure 2: Theory of planned behaviour (Source: Awan Rehman, 2014) Theory of reasoned action: According to Zhang et al., (2013), the theory of reasoned action aims to depict the association between attitudes and behaviours related to human actions. In addition, it is used to estimate the behaviours of the individuals related to their behavioural intentions and pre-existing attitudes. This theory is based on two factors, which include subjective norms and attitudes to ascertain intention. The former is the social pressure that an individual experiences to perform or abstain from performing a specific behaviour. The latter, on the other hand, is the opinion of an individual to determine the positivity and negativity of behaviour. With the help of this theory, the behaviour of the customers could be evaluated in terms of coupon usage and brand loyalty. Figure 3: Theory of reasoned action (Source: Zhang et al., 2014) Hypotheses development: Based on the variables chosen and the theories discussed, the following hypotheses have been developed to arrive at the desired outcome of the research: H1: There is a positive relationship between satisfaction and loyalty H2: There is a positive relationship between trust and loyalty H3: There is a positive relationship between perceived service quality and H4: There is a positive relationship between perceived value and loyalty Chapter summary: From the above discussion, it has been found that the major determinants affecting the brand loyalty of the Malaysian pharmacy industry include trust, satisfaction, perceived service quality and perceived customer value. Trust could be considered as belief and confidence that the customers have with the organisations by taking into account the aspects to be delivered. In other words, trust is an association that links the customers with an organisation. In addition, it is associated between the staffs of an organisation. Customer satisfaction is a marketing concept, as it gauges the way the products or services of an organisation surpass the expectations of the customers. In the current era, customer satisfaction is considered as a significant aspect for any business, as it provides the marketers and owners with a metric for managing and improving the same. Perceived quality is a perception of the customers, which differs from various related concepts. The objective or actual reality is the degree to which the product or service provides greater service. Perceived value is the worth of a service or product, which is in the minds of the customers. All the above-mentioned factors seem to have strong and positive influence on the brand loyalty of the Malaysian pharmacy industry. 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