Answer :
Customer loyalty significantly enhances competitive advantage through reducing marketing costs, creating barriers to entry for competitors, and securing repeat purchases and a sustainable customer base. Thus option b, c and d are correct.
How does customer loyalty contribute to competitive advantage? Customer loyalty contributes significantly to competitive advantage. Firstly, it helps in reducing marketing expenses because loyal customers are likely to continue buying without the need for heavy advertising efforts.
These customers essentially become free advocates for the brand through word-of-mouth. Secondly, it creates barriers to entry for new competitors, as established brands with loyal customers can deter other firms from entering the market due to the strong preference already present for the incumbent's products or services.
Finally, customer loyalty ensures repeat purchases and a sustainable customer base, which provides consistent revenue and can be crucial for the long-term success of a company. These aspects combined create a strong competitive edge for businesses. Thus option b, c and d are correct.
