Measuring consumer loyalty in competition

The aim of the article. to undertake an in-depth analysis of existing methods and techniques for measuring loyalty and to develop a new method for calculating customer loyalty. The results of the analysis. Customer loyalty is the most important economic and socio-psychological component of a company's success in an intensively changing market environment. Not only the companies want to build loyalty, but also to manage this indicator. Since the necessary condition for managing loyalty is systematic research and measurement of this indicator, this article is devoted to the issue of research and measurement of customer loyalty indicator. The article systematizes and reviews existing approaches and methods for measuring customer loyalty. The author carried out a comparative analysis of the approaches, highlighted the main advantages and disadvantages of each of them. A special vector in the study and analysis of approaches and methods has become the ability to put the method into practice, since a very frequent problem occurs in case when the method cannot be applied in the practical activities of the company or, the effect of its application does not justify the effort spent on research and measurement. The author pays special attention when analyzing the issue of the global consideration of loyalty, namely, taking into account all the factors and indicators that affect loyalty. Based on the analysis of methods that are systematized according to four approaches: behavioral loyalty; relationship loyalty; intent loyalty; an integrated approach to loyalty, the author highlighted gaps in the existing scientific literature on the issue under study: 1) the impossibility of applying many methods in practical activities; 2) insufficient review when calculating loyalty, as a result of which many important factors affecting loyalty are not taken into account. Based on the analysis, the author developed a new methodology for measuring and calculating loyalty. The final indicator, according to the proposed methodology, is the integral loyalty indicator (InLI). For its calculation, it is necessary to carry out a series of successive measurements of indicators, which are grouped into three components: “market component”, “internal environment of the enterprise”, “consumer”. Conclusions and direction for further research. An important advantage of the method is that it allows the company to see the results for each of the indicators that affect loyalty, and, therefore, to manage them. This technique is absolutely applicable for any type of enterprise, regardless of industry, market type, company size, competition intensity, etc. The author believes that this technique will be used by marketers, managers, company executives. As a goal for further development, the author underlines a moderate adaptation of the methodology to practical application in order to reduce this method’s time of use. Keywords: loyalty, methodology, behavioral model, market component, integral indicator DOI: 10.15276/mdt.3.4.2019.4 Jacoby J. (1978) Brand Loyalty. Measurement and Management. New York, 120. Bush P. S. (1985) Marketing Strategic Foundations. Homewood. Babenko A. A. (2016) Analiz riznomanitnykh metodiv ocinky spozhyvacjkoji lojaljnosti [Analysis of various methods of consumer loyalty assessment]. Voprosyi ekonomiki i upravleniya [Economics and governance issues]. vol. 1., pp. 36‒39. (in Ukrainian) Hofmeyr J., Rice B. (2000) Commitment-Led Marketing. Goboken: John Wiley and Sons, p. 25. Lamben G. G. (1996) Strateghychnyj marketyngh. Jevropejsjka perspektyva [Strategic Marketing. The European perspective]. St. Petersburg: Spb Nauka, p. 146. (in Ukrainian) Cisar A. V. (2002) Lojaljnistj pokupciv: osnovni vyznachennja, metody vymirjuvannja, sposoby upravlinnja [Customer loyalty: basic definitions, measurement methods, management methods]. Marketing i marketingovyie issledovaniya [Marketing and marketing research]. vol, 5, p. 57. (in Ukrainian) Dimshic M. (2007) Spozhyvacjka lojaljnistj: mekhanizmy povtornoji kupivli [Consumer loyalty: redemption mechanisms]. Moscow: Vershina. (in Ukrainian) Doil P. Menedzhment: Strateghija i taktyka [Management: Strategy and tactics]. St. Petersburg: Spb Nauka. (in Ukrainian) Kolobova E. P., Oiner O. K. (2013) Suchasni spozhyvacjki trendy ta zadovolennja [Modern consumer trends and consumer satisfaction]. NIC Infra-М. (in Ukrainian) Informacijni systemy lojaljnosti [Loyalty Information Systems Monograph]. RFM-analiz [RFM-analysis]. Available at: https://stud.com.ua/49902/marketing/analiz. (in Ukrainian)