Maintaining Customer Loyalty in Competitive Market: The Role of Perceived value

With Globalization and emergence of number of small and large player across the world, generated for large alternatives for customers to purchase any product or service, the same has become challenge for business firms to retain their existing customers and get new customers also. It has been said that loyal customers provide firms a consistent source of revenue (repeat and increased purchases) and for cost reduction (less promotional expenses) that leads to increased profits. Customer loyalty is the result of successful marketing strategy in competitive markets that creates value for consumers. This study examines the mediating role of consumer perceived value in the marketing strategy-customer loyalty relationship. A theoretical framework is established that is supported by empirical evidence. Based on the literature, the findings indicate an inconsistent measure for perceived value that does not fully explain its mediating role. The conclusion is to be valid perceived value should be measured by specific non-monetary scale items.