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2720 million in emergency aid to fight the coronavirus. . In addition, the country had access to medical equipment and devices worth 30 million euros allocated to partner countries. Georgia was the first country to receive increased funding for a pandemic from the International Monetary Fund under its current program. It was on the basis of successful negotiations with the IMF that the country was able to attract additional significant cash resources from other donors, totaling 1.5 billion USD. between them:
- IMF, $ 200.0 million
- Asian Development Bank ADB, $ 400.0 million
- World Bank MB, $ 250.0 million
- French Development Agency AFD, $ 200.0 million
- German Reconstruction Credit Bank KIW, $ 250.0 million
- EU, $ 200.0 million
- Asian Infrastructure Investment Bank AIIB, $ 100.0 million
Donations from individuals, private companies, public institutions, and others were also made to the StopCov Foundation. The anti-crisis program developed by the Georgian government against covidium initially proved relatively effective with the announcement of Lockdown, as the spread of the virus was significantly reduced at the expense of the restrictions and bans adopted. However, this painfully affected all sectors, sectors, and areas of the national economy.
The lightening of restrictions was soon followed by an aggravation of the situation and this process was bitterly felt by the country in the form of a second wave of pandemics. No less important was the country facing the vaccination process. Unfortunately, the introduction of the vaccine in the country started late. The harmful practice of protectionism in global processes has already manifested itself here. Vaccines were "grabbed"
and received primarily by developed and affluent countries. The world could not avoid the policy of inequality and injustice this time either. As one of the developing and transition economies, Georgia has been "oppressed" alongside other countries in this process. Unfortunately, such are the shadows of globalization.
As a result of partnership and mutual assistance of international organizations, countries like the Georgian economy will not be able to solve quite important and problematic challenges independently. Whether we like it or not, we also become participants in both the positive and negative processes of these global events.
The pandemic has seen a lot of new things for humanity. The values have been revised and a lot has changed. Even more serious and profound changes are expected, because reckless, extreme, radical decisions to use the nature and the world mercilessly to improve the conditions of life, and to master in your favor, always have a negative resonance.
Covid-19 is not over! He offers new "surprises" to the world and has repeatedly assured us that we are all equally responsible to the earth, because we all still live on earth.
References
1. Papava (L.2019). The solution is to build a knowledge-based economy., "Banks and Finance", Tbilisi, 17.10.
2. Chitanava N. (2020). Trials should enable us to take thoughtful steps, Iverion, Information Analytical Agency, Tbilisi 23.03.
3. Report on the measures taken by the Government of Georgia against COVID-19., Government of Georgia, 2020.
4. COVID-19, Economic Outcomes, World and Georgia., EPRC, 2020.
CUSTOMER LOYALTY PROGRAMS IN GEORGIAN COMPANIES
Valishvili T.
Associate Professor of Akaki Tsereteli State University Associate Professor of Kutaisi University Lukhutashvili N.
Assistant Professor of Akaki Tsereteli State University Associate Professor of Kutaisi University
Abstract
Having loyal customers who will bring a stable income to the company is especially important for any organization. It can surely be said that consumer loyalty is one of the most important factors for the stable and sustainable development of any company. Nowadays, the companies that offer well- planned and carefully thought-out customer loyalty programs to their customers, are the ones that appear to succeed and become market leaders. Based on the above, the aim of the paper is to study the customer loyalty programs offered by Georgian companies.
Keywords: loyalty, customer, loyalty programs.
In the modern marketing literature there are far more definitions of the concept of "loyalty" or "faithfulness". However, both practitioners and scientists are well aware that customer loyalty and satisfaction are inextricably linked. They also understand that this relation is asymmetric. While loyal customers are usually highly satisfied, satisfaction in itself does not imply
loyalty. Attracting and retaining customers becomes especially important for any company in case of intensified competition. This is the main goal of introducing customer loyalty programs.
According to the material we have analyzed, we can distinguish the behavioral, emotional, and rational
components of loyalty. The first component "behavioral" is based on the volume and frequency of purchases, as well as on the duration of the relationship with the brand. The emotional component of loyalty discusses the positive feelings and emotions perceived by the customer in relation to the brand. And the rational component implies the voluntary, conceptualized decision of a person to become the customer of a given company and product, as the latter best meets his/her needs. The decision of a person which brand or company to choose, is based on the different characteristics of a product and also on the estimation of costs in case they switch to another product.
Consumer loyalty can be considered to be a system consisting of two components: behavior and attitudes (i.e. perceived loyalty). By behavior we mean constant (repeated) purchases over a long period of time, and by attitude - a positive attitude towards a brand, product, company. The advantages of perceived loyalty imply the fact that the companies can predict their business strategies on the bases of a customer's future behavior since it deeply and thoroughly examines the processes going on in the mind of the consumer. However, it is difficult and expensive to carry out as it requires numerous customer surveys.
As for behavioral loyalty, its measurement and observation is relatively simple and does not involve large costs, as this information is usually stored in the internal databases of companies and does not require expensive surveys. Nevertheless, this method has a significant drawback. It does not answer why the customer behaves one way or another, or why the company loses customers.
The process of forming loyalty programs includes 5 main stages, these are:
Stage I - Environmental and competitor analysis and analysis of existing potential customers;
Stage II - Development of a preliminary strategy for forming loyalty;
Stage III - Specifying loyalty formation programs;
Stage IV - Implementation of the program;
Stage V - Evaluation of the obtained results and modification of the program.
Turning consumers into brand loyalists is not an easy task. But with the right initiative it is possible to turn primary buyers into repeat buyers and loyal customers of the company. Customer loyalty programs have long been one of the most effective marketing tactics. Their effectiveness has been confirmed by numerous studies. 84% of consumers say they are more likely to try to buy the brands that offer a loyalty program. We are well aware that attracting new customers is much more expensive than retaining existing ones. This is why brands invest in customer loyalty and reward programs.
Let us look at the examples of customer loyalty programs from the best brands, the modeling of which, in our opinion, will allow Georgian companies to increase sales, improve customer retention and establish close, long-term and profitable relationships with their customers. One example is Sephora Beauty Insider loyalty program which is very popular among users. The
program includes more than 17 million loyal members, who account for 80% of Sephora's annual sales. Customers are rewarded for each purchase, based on a traditional cashback system. The innovative part is that members can choose how to use their accumulated points. One of the biggest barriers for Sephora customers is the price - Sephora products are quite expensive. Beauty Insider members can exchange their bonus points for gift cards or discounts. This allows them to compensate for the price paid without reducing prices. Program members can also exchange points for more exclusive products, such as limited edition / exclusive products or masterclasses. With such a flexible cash-back system, Sephora offers loyal customers exactly what they really need and value in a way that does not reduce the perceived value of their product.
Loyalty programs are not new to Georgian companies either. Almost every second company offers its customers a loyalty card, however, issuing their own card and the process of managing it is quite an considerable pleasure and requires significant resources. Apart from designing and delivering the card to the customer, the companies need to constantly update and administer the customer databases, analyze customer behavior, plan various campaigns, and monitor and evaluate results.
Commercial banks and microfinance organizations, retailers, pharmacy chains, petrol stations and other areas usually offer loyalty programs. We all will probably find the loyalty cards of many companies in our wallets and you will probably agree that most of us will go to the institution in which we are involved in the loyalty program, if necessary. The loyalty programs of most Georgian companies are mainly based on the use of physical cards or e-wallets. On any purchase, the customer can shuffle a card on which the corresponding bonus points of the paid amount will be accumulated. With the accumulated bonus points, the customer can buy a product of appropriate price or receive gifts. Naturally, any company hopes that with the points accumulated in the company, the consumer will buy the product s/he wants in the company. However, as the study assures us, unfortunately, the loyalty programs offered by Georgian companies are much more monotonous and less tailored to the real needs of consumers.
To studythe attitude of users towards loyalty programs, we conducted an online survey in which 750 respondents participated. The majority of respondents say they are involved in at least one loyalty program. Most of the respondents participate in loyalty programs offered pharmacy chains, banks, retailers, gas stations and others.
Most respondents like loyalty programs and expect to receive gifts, discounts, and special offers. They are also attracted by the opportunity to receive a large prize. When asked what they do not like about loyalty programs, users' opinions goes as follows: they don't like that it takes a long time to get an award, they also say that they get a lot of spam from companies; quite many consumers think that the prizes and offers are useless. Unfortunately, 29% of respondents are not sure that their personal information is protected.
We also got interested to know what is the most convenient way for the customer to receive bonuses. For most of them it is more attractive to automatically receive points with each purchase.
Finally, we can summarize that attracting and retaining customers becomes especially important for any company in the face of intensified competition. This is the main goal of introducing customer loyalty programs.
The best loyalty programs should be customer focused, offering real value to them. The experience of the world's leading companies shows that even with limited resources, it is possible to create a program that will be financially sustainable and, at the same time, quite interesting and attractive to customers.
In recent years, customer incentive and loyalty programs have proven their effectiveness in retaining customers, stimulating their value and loyalty. However, as the examples we have reviewed reassure us, a truly innovative and creative approach is essential so that our loyalty program is not lost among many other similar offerings.
We believe that the study and introduction of modern methods of designing and implementing customer loyalty programs will help Georgian companies to establish long-term profitable relationships with customers; the loyalty programs will also help the companies to gain additional competitive advantages in the market. Establishing and implementing loyalty programs will enable companies to strengthen their market position, competitiveness and, ultimately, revenue growth.
References
1. Berman, B. (2006). Developing an Effective Customer Loyalty Program. California Review Management. 49 (1)
2. Booms, B.H. & Bitner, M.J.( 1981), "Marketing Strategies and Organization Structures for Service Firms" in Marketing of Services, eds. J.H. Donnelly & W.R. George, American Marketing Association, Chicago
3. Glowik, Smyczek, Engel-Haas. (2011). International Marketing Management: Strategies, Concepts and Cases in Europe Chapter 8: Consumer behavior application in international marketing; 235-278
4. Lewis Michael. 2004. "The Influence of Loyalty Programs and Short-Term Promotions on Customer Retention". Journal of Marketing research. Vol. 16, 281-292
5. McCall, M., & Voorhees, C. (2010). The Drivers of Loyalty Program Success: An Organizing Framework and Research Agenda. Cornell Hospitality Quarterly, 51(1), 35-52
6. Oliver, Richard L.(1999) Whence Consumer Loyalty? Journal of Marketing. Volume: 63 issue: 4_suppl1, page(s): 33-44
7. Peacock, Lindsey (2020) 10 Examples of Innovative Customer Loyalty Programs. https://www.shopify.com/blog/loyalty-program
8. Ranabhat, Durga (2018) CUSTOMER LOYALTY IN BUSINESS. https ://www.theseus.fi/bitstream/handle/10024/14288 3/Ranabhat%20Durga%20.pdf?sequence=1&isAllowe d=y
9. Reichheld, F.F. (1993) "Loyalty-Based Management", Harvard Business Review, vol. 71 no.2
10. Thomsen, Rikke Berg (2019) 7 Proven Customer Loyalty Programs That Work. https://sleeknote.com/blog/customer-loyalty-programs
11. Virginie Bruneau, Valérie Swaen. 2016. What drives customer participation in loyalty programs? Louvain School of Management; 1-71
ОЦ1НКА ЕФЕКТИВНОСТ1 УПРАВЛ1ННЯ РОЗВИТКОМ ФIНАНСОВОÏ Д1ЯЛЬНОСТ1
АГРАРНИХ П1ДПРИСМСТВ
Барбтягра О.М.
кафедра менеджменту iнженерно-економiчний факультет Одеський державний аграрний yнiверситет, аспiрант
EFFECTIVENESSEVALUATION FOR THE FINANCIAL ACTIVITIES DEVELOPMENT MANAGEMENT OF AGRICULTURAL ENTERPRISES
Barbiniahra O.
Department of Management, Faculty of Engineering and Economics Odessa State Agrarian University, postgraduate
Анотащя
У сгатл обrpyнтовaно, що зa умови пpоведення дiaгностики ф^нтово! дшльносп mдпpиeмствa тшьки га основi внyтpiшнiх дaних доцшьно викоpистовyвaти покaзники фантового CTany, для яких юну-ють всгановлеш зaгaльнi aбо гaлyзевi ноpми. У pезyльтaтi aнaлiзy пiдходiв piзних aвтоpiв обpaно двaдцять покaзникiв. Haведено фоpмyли pозpaхyнкy тa ноpмaтивнi згачення для дaних покaзникiв. Пpоведено ощ-нку покaзникiв фiнaнсового стaнy Деpжaвного пiдпpиeмствa «Дослвдне господapство «Южний» Селек-цiйно-генетичного iнститyтy - Haцiонaльного цен^у нaсiннeзнaвствa тa соpтовивчення (ДП «ДГ «ЮЖНИЙ» СГ1-НЦНС») пpотягом 2015-2020 pокiв. Пpоaнaлiзовaно динaмiкy вiдхилень покaзникiв фь нaнсового стaнy вiд ноpми. Зaпpопоновaно методику оцiнки ефективностi yпpaвлiння pозвитком ф^нто-во! дiяльностi aгpapних пiдпpиeмств, якa rpyнтyeться нa обчисленнi piзницi мiж одиницею тa сеpеднiм
