The paper examines the role of customer loyalty in maximising opportunity, and will argue that loyalty, as measured by customer spending, is simply a reflection of short-term behaviour and can only be sustained by one of two routes: building the customer relationship with the brand; and buying sustained loyalty through price and/or promotions. In order to build sustained loyalty it is necessary to first build brand commitment, a precursor (and hence predictor) of loyalty. In order to maximise the return from customers it is necessary to obtain a clear understanding of customers relationship with the retail brand and the degree of their involvement in the shopping process. The findings also illustrate the importance of understanding which segments offer the most potential value to the retailer: particularly where different marketing strategies might be needed for different segments. Only by understanding the dynamics of the market in this way can it be possible to effectively prioritise marketing expenditure.
This paper is based upon the experience of the authors in researching general and specialized retailing and consumer behaviour, on related research projects in other countries and on a research program regarding the Internet Consumer, whose aim was to study family members relations with the Internet and consumer acceptance, barriers, and expectations towards various electronic commerce formats. The paper describes the conclusions and reflections on the above mentioned research experiences, allowing a global but also a specific perspective (about the Portuguese market status) on the developing changes and trends at the retailing scene. It presents a qualitative research theoretical and methodological approach on the characterisation of the transition mechanisms from traditional retailing places to virtual on-line environments.