I have searched what our good friend Wikipedia has to say about customer loyalty. Wikipedia talks about 'a loyalty business model', the quality of a product or service leads to customer satisfaction, which leads to customer loyalty, which leads to profitability.
Customer satisfaction is first based on a recent experience of the product or service. This assessment depends on prior expectations of overall quality compared to the actual performance received. Customers are said to have a 'zone of tolerance' corresponding to a range of service quality between 'barely adequate' and 'exceptional'. In general, customer loyalty is determined by three factors: relationship strength, perceived alternatives and critical episodes.
Liesbet Gillis (Wikipedia)
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