Discussion board 3 - Research Design Class Essay

Discussion board 3 - Research Design Class - Essay Example According to Chathoth and Olsen (2003), creation of value from coalition has led to customer loyalty because loyal customers base their decisions on value-creation that results from strategic alliance. Coalition allows customers to operate in a business circle made up of their preferred service providers. Customers who were initially loyal are further motivated because they are able to earn points and benefits from the business coalition. This is because some loyalty programs give visa cards in which customers are able to get rewards for their purchases within the alliance. Loyal customers make more purchases as compared to those who are non-loyal and have low tendencies of shifting to a competitor brand. Therefore, it is advisable for business owners in the hotel industry to apply strategic alliance as a way of maintaining their customer loyalty. Creation of value is the main driving factor behind the success of businesses coalitions thus hotel owners should get to know business par tners who are able to appeal and satisfy their customers. When seeking to determine how strategic alliances impact customer loyalty, a specific hotel can be used for case study. Based on the results of a case study, it may always be assumed that under almost similar conditions, the results would apply to other hotels.