The Influential Factors on Customer Loyalty Based on Marketing Mix Theory

Abstract

With the rapid growth of China's luxury market, many luxury brands have shifted their sales focus to China, in which resulting in many brands taking root in China one after another. The purpose of this report was to explore how Hermes utilized its marketing methods to influence customers' loyalty. A good marketing strategy can not only bring better benefits to the company but also reflect the influence of a brand in the market to a great extent. And this paper was based on SWOT analysis by adding 4Ps into the model, and it was appropriate to analyze which sectors will affect loyalty more. Based on SWOT analysis, the paper can find that product and price are the biggest factors affecting customer loyalty because product and price are the faces of a brand, and play a very important role. Even though product and price are very important, promotion and location in 4Ps also have little impact on customers. However, if compared with price and product, its impact is less obvious.

Konference doktorandů na Vysoké škole finanční a správní 2023: Prezentace výsledků společenskovědního výzkumu s ekonomickými a finančními efekty (10. ročník) = Doctoral Student Conference at the University of Finance and Administration 2023: Results presentation of social science research with economic and financial effects (10th annual conference)

“…Here, if one investor withdraws their deposit, they get amount of 2R -D, and the other one gets only D back. If both investors make the same decision either to get their investment back, or keep in the back, both of them get amount of R (Sun 2023). Since the model doesn't assume any of discounting, the payment matrix can be presented as in the table 1, where R > D > r > 2r -D. The game has two Nash equilibria when both depositors either withdraw or keep deposits invested.…”