Evaluation of buyer‘s loyalty process in retail companies in Latvia under the conditions of globalization

Abstract

Retail sector has always played an important role in the Latvian economy. The success of a profitable retail business depends on meeting the needs of buyers and, in the long run, building relationships with the buyer. Process of attracting new buyers always involves spending more money, time and energy. In order for a company to retain existing buyers, it is necessary to develop a set of marketing activities that promote and ensure customer loyalty. The globalization of the market is also having a greater impact on retail companies, which makes them to look for solutions for competitiveness and development. In order to identify factors for competitiveness, the authors of the study have set out to investigate the customer loyalty-formation activities in Latvian retail companies. To reach a goal the authors of the paper will study theoretical basis of loyalty formation employing the monographic or descriptive method, the next step will be analysis of the retail development tendencies in Latvia and loyalty-creation activity level of the Latvian retail companies. This study will give retailers an understanding of the importance of loyalty and the need to build it for the competitiveness of retail businesses. The authors have summarized these theoretical aspects and have defined a common approach to loyalty building and provisions for it. After completing the research, the authors conclude that by understanding the essence and formation of loyalty, the company can manage this process and maybe loyalty can be one of the tools for ensuring competitiveness.