CUSTOMER LOYALTY IN SMALL BUSINESS-TO-BUSINESS

Abstract

The high costs of attracting new customers has made customer loyalty the focus of many leading companies. Small businesses that operate in the business-to-business market often rely on relatively fewer customers than larger businesses. The loss of only a few customers can have a severe impact on profitability. This makes the issue of customer loyalty even more important to small business than institutionalised business. The purpose of this research has been to determine the perceptions associated with customer loyalty in small business-to-business relationships. The main findings of the research were that small business owners have a positive attitude toward loyalty and intent to remain loyal to their small business suppliers. They believe there are number of positive outcomes associated with loyalty and that these outcomes are important to their business. Loyal customers will spread positive word of mouth and refer new customers to the supplier