The cultivation of customer loyalty is a challenge (and an important opportunity) that businesses face today. It is a challenge because there has been a steady erosion of loyalty in almost every product market because of increased competition. However, cultivating customer loyalty is also an opportunity since loyal customers are believed to contribute to increased revenue and profitability (Chaudhuri and Holbrook 2001; Gupta and Lehmann 2003), provide more predictable sales and profit streams (Dick and Basu 1994), and show greater propensity to favor the firm's extensions and product enhancements (Reichheld 1996).
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