Determination of Customer Loyalty Levels by Using Fuzzy MCDM Approaches

Abstract

Customer loyalty is an important issue for business enterprises to improve their market performance. It can be defined as the outcome of a customer's belief in a particular company and customer satisfaction with the company's products or/and services. Business enterprises can make strategic marketing decisions by using customer loyalty levels and manage customer relations. This research will mainly focus on determination of loyalty criteria. The second objective of the research is to prioritize the criteria set. In the proposed model, fuzzy multi-criteria decision making approaches consisting of fuzzy analytic network process and fuzzy decision making trial and evaluation laboratory methods were used to determine the customer loyalty level. A case study has been conducted in a small-medium enterprise to improve the understanding of how companies establish a customer selection strategy with customer loyalty degree. The results from this study indicate that "resistance to change", "purchase frequency" and "switching cost" are the most important criteria to determine customer loyalty.