ABSTRACT
Brand and customer loyalty have recently been termed the “holy grail” of marketing. They represent not only the most desired goal but also the most challenging one for chief executive officers today. In fact, managing loyalty effectively has been identified as one of the biggest challenges facing chief executive officers. A review of the literature reveals three major factors leading to loyalty: performance, connections, and incentives. The performance set of factors is based on consumers’ experience with the brand. Positive and consistent performance is known to result in the development of brand trust, leading to experience-based loyalty. The consumer’s experience with the brand’s performance over time leads to the development of brand trust and is also reflected in the level of satisfaction with the brand. The concept of exceeding the expectations of the consumer or the notion of “delight” and positive emotion have also been considered in relation to building loyalty.
