Customer loyalty in the means of continued subscriptions is key to sustain within a limited market. Where an organisation cannot attract new customers, it must focus on it’s competitors and entice customers away. Getting this right depends among others on the retention of customers and therefore, understanding the reasons that make magazine readers cancel their subscriptions.
Based upon a review of related theories on customer loyalty and customer retention, and experience from practitioners, a contextual model for the German magazine publishing industry could be created. The magazine reader loyalty model incorporates the generic customer loyalty model (Dick and Basu, 1994) and reflects the typical customer life cycle of magazine subscribers.
Focusing on the effect of attitudinal changes, this study utilises related studies, real world databases and brainstorming sessions to create a list of presumed factors that lead to abating customer loyalty towards magazine subscriptions. Within a qualitative-quantitative survey, data on the importance of these factors was collected.
From a comparison of former and actual subscribers, the effectiveness of these attributes is investigated. An analysis method based upon probabilities is utilised to overcome the limitations that affected related studies. This novel analysis method enables substantiated statements on the commonness and effectiveness of attitudinal factors and thus, their relevance towards customer loyalty.
From this, the most significant factors that lead to a drop out of magazine subscribers could be identified to be i) the time that is available to a reader, ii) the actual reading behaviour, iii) the entertainment value of a magazine, iv) the perceived time savings and v) the availability of alternative magazines and other media.
Further, evidence was found that i) the compilation of a magazine, ii) overall satisfaction, iii) fast access to information, iv) delivery satisfaction and v) the discussion of articles with friends and colleagues are of limited use as measurements. Those factors are unlikely and when present, found among former subscribers as well as actual subscribers.
This study concludes that some factors are more important than others, especially those that deal with available time and perceived time savings. Decision-makers and marketers should focus on these factors in the first place. Additional, suggestions for further research are given.
Inhaltsverzeichnis (Table of Contents)
- Abstract
- 1 Introduction
- 2 Aims and Objectives
- 3.1 Customer Loyalty
- 3.2 Customer Retention
- 3.3 Consolidation of Theories
- 3.4 Previous Related Studies
- 4 Literature Review
- 5 Research Methodology
- 4.1 Research Philosophy
- 4.2 Research Strategy
- 4.3 Theoretical Framework
- 4.4 Operationalisation of Major Variables
- 4.5 Data Collection Techniques
- 4.6 Data Analysis
- 4.7 Research Implementation
- 6 Findings
- 5.1 Demographic Data and Buying Behaviour
- 5.2 Attitudinal Changes
- 5.3 The Factors that Affect Attitude
- 5.3.1 Time
- 5.3.2 Compilation
- 5.3.3 Interests
- 5.3.4 Substitute Goods
- 5.3.5 Pricing
- 5.3.6 Advantage
- 5.3.7 Convenience
- 5.3.8 Sharing
- 5.3.9 Other Findings
- 7 Discussion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This study examines the factors that contribute to declining customer loyalty towards magazine subscriptions in the German publishing industry. The primary goal is to identify the key attitudinal changes that lead to customers cancelling their subscriptions and to understand the relative importance of these factors.- Customer loyalty and its impact on magazine subscriptions
- The influence of attitudinal changes on customer loyalty
- Factors contributing to declining customer loyalty, including available time and perceived time savings
- The role of alternative media and competing magazines in customer retention
- The effectiveness of various customer loyalty strategies
Zusammenfassung der Kapitel (Chapter Summaries)
- Chapter 1 introduces the topic of customer loyalty in the context of magazine subscriptions and outlines the study's objectives. It provides a brief overview of the importance of customer loyalty in a competitive market and the need to understand why customers discontinue their subscriptions.
- Chapter 2 presents a literature review of relevant theories on customer loyalty and customer retention. It examines existing models and studies related to the German magazine publishing industry, focusing on the customer life cycle of subscribers.
- Chapter 3 delves into the research methodology employed in the study. It describes the research philosophy, strategy, theoretical framework, and operationalisation of key variables. It outlines the data collection techniques, data analysis methods, and the implementation of the research project.
- Chapter 4 presents the findings of the study, including demographic data, buying behaviour, and the identified factors influencing customer attitudes. It examines the impact of time constraints, substitute goods, and other factors on customer loyalty.
Schlüsselwörter (Keywords)
This study focuses on the following key concepts and themes: customer loyalty, customer retention, magazine subscriptions, attitudinal changes, time constraints, perceived time savings, alternative media, substitute goods, and the German publishing industry. It uses empirical data and a probabilistic analysis method to investigate the effectiveness of various factors impacting customer loyalty.Frequently Asked Questions
What are the main factors leading to magazine subscription cancellations?
The study identifies five significant factors: available time, reading behavior, entertainment value, perceived time savings, and the availability of alternative media.
Is overall satisfaction a good predictor of customer loyalty?
The research suggests that factors like overall satisfaction and fast access to information are of limited use as measurements, as they are found among both former and current subscribers.
How does the "time" factor influence subscribers?
Available time and perceived time savings are critical; if readers feel they don't have enough time to read the magazine, they are highly likely to cancel.
What model was used to analyze reader loyalty?
The study utilizes a contextual model for the German magazine industry based on Dick and Basu’s generic customer loyalty model (1994).
What should publishers focus on to improve retention?
Decision-makers should primarily focus on factors related to the reader's available time and the perceived efficiency or time savings provided by the content.
- Quote paper
- Benjamin Schweizer (Author), 2007, An examination of factors leading to abating customer loyalty towards magazine subscriptions, Munich, GRIN Verlag, https://www.grin.com/document/88136
