Fuzzy logic evaluation of customer loyalty in local, community, and international cafes in Hong Kong
Abstract
It is a company’s paramount goal to achieve customer loyalty and expand its business. The effectiveness of these business strategies is relative to customer loyalty which is often pursued through a binary approach. This paper primarily focuses on a non-binary approach using Mamdani Fuzzy logic to measure customer loyalty and compares the outcomes with a binary approach. Also, the customer loyalty factors, including repeat patronage and relative attitude, are explored. Further, a comparison of loyalty towards various cafe categories in Hong Kong is presented. Customer Loyalty Matrix has been used to classify the above cafes based on the loyalty factors. A sociological study has been conducted where responses recorded from an online questionnaire are used to measure the above loyalty factors. With the help of the questionnaire and parameter touchpoints, the authors hope that companies will employ the dynamic loyalty factors in practice to improve value creation and differentiation strategies.
Keywords
customer loyalty, repeat patronage, relative attitude, fuzzy logic
DOI
https://doi.org/10.21606/drs.2022.745
Citation
Das, B., and Liu, S.X. (2022) Fuzzy logic evaluation of customer loyalty in local, community, and international cafes in Hong Kong, in Lockton, D., Lenzi, S., Hekkert, P., Oak, A., Sádaba, J., Lloyd, P. (eds.), DRS2022: Bilbao, 25 June - 3 July, Bilbao, Spain. https://doi.org/10.21606/drs.2022.745
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Research Paper
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Fuzzy logic evaluation of customer loyalty in local, community, and international cafes in Hong Kong
It is a company’s paramount goal to achieve customer loyalty and expand its business. The effectiveness of these business strategies is relative to customer loyalty which is often pursued through a binary approach. This paper primarily focuses on a non-binary approach using Mamdani Fuzzy logic to measure customer loyalty and compares the outcomes with a binary approach. Also, the customer loyalty factors, including repeat patronage and relative attitude, are explored. Further, a comparison of loyalty towards various cafe categories in Hong Kong is presented. Customer Loyalty Matrix has been used to classify the above cafes based on the loyalty factors. A sociological study has been conducted where responses recorded from an online questionnaire are used to measure the above loyalty factors. With the help of the questionnaire and parameter touchpoints, the authors hope that companies will employ the dynamic loyalty factors in practice to improve value creation and differentiation strategies.