Price fairness can never be neglected in Pakistan’s culture because people always compare what they are receiving with what they are paying.
In the recent times, a viewpoint has evolved locally that customer loyalty is declining in Pakistan. Due to the large number of competitors operating in the market, customers have got so many choices. In the prevailing situation, it is getting very difficult for the companies to retain customers as they are lacking with new strategies to create customer loyalty in Pakistan. Actually, they need to develop such strategies which may help them build customer loyalty.
If we look at the service industry in Pakistan, the contribution of the service industry in the GDP of Pakistan is increasing. According to the latest available data, the service industry is contributing around 60% of the total GDP of Pakistan. Despite the fact that the service industry is contributing much more than as before, still it is unable to build customer loyalty. As per a lot of discussion going around the world, it has been observed that customers spend 67% more money if they become loyal with the particular company.
Price factor can never be neglected in Pakistan’s culture because people always compare what they are receiving with what they are paying. If we look internationally, mostly companies are using sensory marketing to stimulate the five senses (sight, smell, hear, touch and taste) of the customers in real time transactions. Marketers want to free themselves from the traditional marketing and now they are switching towards sensory marketing.
In Pakistan, especially the restaurant industry must try to adopt sensory marketing to create loyalty among restaurants because this marketing strategy helps the restaurants stimulate the five senses of the customers. So, they can spend more energy and time in the restaurant and that will increase their chances of revisiting.
Sensory marketing and perceived price fairness has a strong positive relationship as most of the international scholars investigated that by using sensory marketing companies can create a positive perception about the price fairness in the customer’s mind. Sensory marketing is a tool that can be used to influence all the five senses. Good internal environment in the restaurants, selection of pleasant colors, and catchy themes may develop a strong connection with sight. Nice aroma can stimulate the sense of smell; great music can influence customer’s sense of hearing. Themed furniture or any other physical item placed at the retail point or even temperature may also provide a great sense of touch to the customers. Lastly, a free sample of food or the taste of food can leave a strong impact on the customer’s sense of taste.
If the restaurants are able to create a positive image in the customer’s mind by using sensory marketing, they can create a positive influence of customers on their perception regarding fair prices. When restaurants are able to create an image of perceived price fairness in the customer’s mind, it ultimately connects sensory marketing, customer satisfaction and customer loyalty with one another.
Hence, it may be concluded that sensory marketing and perceived price fairness are strongly related to customer loyalty and customer satisfaction. So, it is highly recommended that the restaurant industry must focus on these links and researchers in this field must investigate the links between sensory marketing, perceived price fairness, customer satisfaction and customer loyalty empirically, so the restaurant industry may be able to create loyalty among the customers.