Customer loyalty is closely related with satisfaction. Customer loyalty is the result of a company providing its customers with high level of satisfaction from its product and service offerings. “The marketing literature has produced two schools of thought on the cause of customer loyalty in services industries. The service quality perspective puts forward that service quality evaluations substantially drive customer loyalty in services industries.
The relationship marketing perspective puts forward that customer commitment to the service provider substantially drives customer loyalty in services industries” (Fullerton, 2005). A loyal customer of a retailer is a customer who sticks to the retailer and comes back again and again for repeat purchase. The lifetime value and contribution of the loyal customers is significantly high in the revenue potential of the retailers and similar business. “Customer loyalty has been suggested as the most important indicator of a firm’s advantageous position relative to competitors” (Chao et al, 2007). An example of the customer loyalty being significant to retailers can be seen in the food retail industry where creating store loyalty has been one of the objectives of the marketing campaigns. “Although shoppers will often patronize many stores, they typically have a primary affiliation to a ‘main’ food store that captures the majority of their food purchases” (Doherty & Roy, 2008). As a result retailers have stared to focus on achieving customer loyalty through marketing programs and innovative customer rewarding strategies.