Loyalty programs for consumers in the regional primary real estate market


  • N.R. Baluk
  • N.F. Basij
Keywords: loyalty, consumer, loyalty program, primary real estate, real estate market of Lviv region, indicators of estimation of loyalty efficiency

Abstract

A company’s long-term and partnerly relations with consumers can be achieved by formation and maintenance of customer loyalty. The conducted research has allowed to interpret the basic theoretical foundations of the concept of «loyalty», and determine the main types of loyalty and characteristic features of loyal consumers. Loyalty is classified according to different types, the main of which are the behavioral (transactional) and the emotional (perceptual) ones. Criteria for assessing consumer behavioral (transaction) loyalty, in addition to re-purchasing, may be the frequency of purchases, the time of the last transaction, the total period of consumer’s cooperation with the enterprise, the volume of all consumer’s purchases, the number of assorted positions in one-time purchase, the average amount of each purchase. As the criteria for assessing emotional (perceptual) loyalty, besides the insensitivity of consumers to the actions of competitors, one can mention their attitude towards the brand enterprise, the popularity of the enterprise loyalty program, the willingness to advise the brand enterprise to their friends, other consumers, the intention to make re-purchases. Loyalty is being best revealed in combination with three main elements: trust, commitment to values, and long-term relationships. A loyal consumer must have the following characteristics: to do multiple re-purchases; to buy different assortment positions of the enterprise; to encourage other consumers to buy products of the enterprise; to not react to the actions of competitors, including very attractive offers; to testify a positive attitude towards the enterprise of its goods; to cooperate with the company for a long period of time; to recommend to his/her social circle to use the goods and services of the given enterprise, and, thus, to voluntarily become agitators, «advocates» or «partners» of the company. Having analyzed the use of loyalty programs in the consumer and industrial markets, the experience of implementing programs for buyers of goods with specific characteristics, such as primary real estate, has been characterized. In recent years, the domestic real estate market has suffered a total decline in sales and construction due to military, political, economic, financial and social factors. In almost all segments of residential real estate sales have decreased, with the exception of economy class housing, which enjoyed a diminished but stable demand, and its purchase became one of the best ways to save savings in conditions of economic instability. The primary real estate market in the Lviv region, and in the city of Lviv in particular, is developing according to factors specific to the region, namely: an increase in housing objects, the number of developers, an increase in demand for housing coming from the part of a solvent resettled population from the occupied territories, an increase in property investing in order to protect savings from exchange rate fluctuations, a dynamic growth in the volume of performed construction work for all types of construction products. The regional market employs more than 60 construction companies (developers, investors, housing companies), which are engaged in the construction of residential real estate from a zero cycle. Under severe competition, most companies practice the use of marketing tools, and in particular loyalty programs, which, under a detailed analysis, are being stimulation measures. «ZhBK «Your House» Ltd. has an extensive experience working in the regional primary real estate market and, for a long time, has been practicing innovative loyalty programs with regard to its customers, who have already become buyers of residential real estate. The emphasis on working with clients, whose probability of re-purchase is no more than 5%, ensures their loyalty, which manifests itself in the powerful promotion of the company and its products by its customers. A key aspect of loyalty programs for real estate buyers LLC «ZBK «Your House» was their extension for owners and residents of apartments built by the company. The process of formation, maintenance, and increase of loyalty of buyers of primary real estate in LLC «ZHBK «Your house» is being submitted. A system of indicators for estimating the efficiency of real estate buyers loyalty, taking into the account the necessity of increasing their perceptual loyalty, is being proposed.

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PDF Downloads: 91
Published
2017-10-08
How to Cite
Baluk, N., & Basij, N. (2017). Loyalty programs for consumers in the regional primary real estate market. Scientific Messenger of LNU of Veterinary Medicine and Biotechnologies. Series Economical Sciences, 19(81), 26-31. https://doi.org/10.15421/nvlvet8104
Section
Economic efficiency of production and agricultural products alteration