Customer Loyalty Intention Research Articles

The Influence of Service Recovery on Customer Revisit and Loyalty Intentions: A Case Study of Hotel Services in Vientiane, Lao PDR

The Influence of Service Recovery on Customer Revisit and Loyalty Intentions: A Case Study of Hotel Services in Vientiane, Lao PDR

Measuring service quality in telematics service: development and validation of multidimensional TeleServQ scale

The extensive use of telematics system in the new generation of automobiles contributed to the rising trend of using automobiles as a channel to provide remote service. Yet the measurement of telematics service quality (TeleServQ) is not well established. This paper aims to identify the dimensions of TeleServQ. In-depth interviews are used to investigate the initial items in measuring telematics service. Conceptual framework of TeleServQ scale is proposed based on items sorting. Then the multidimensional scale is refined and validated with questionnaire survey. As a result, six dimensions including efficiency, system reliability, information quality, security, customisation and call centre service are identified. Some of the dimensions are consistent with the literature related to technology-based services, and others are specific in telematics context. Among six dimensions, efficiency and system reliability have the strongest relationship with customer satisfaction and loyalty intention. The scale demonstrates good psychometric properties based on the findings of reliability and validity tests. Finally, theoretical contributions and managerial implications about our TeleServQ scale are further discussed.

The moderating impact of emotions on customer equity drivers and loyalty intentions

PurposeThe purpose of this paper is to investigate the significant contribution of emotions along with other conventional loyalty drivers on the loyalty intentions.Design/methodology/approachThe influence of three conventional loyalty drivers, i.e., value equity, brand equity, relationship equity on loyalty intentions was investigated by further exploring the moderating effects of negative and positive emotions. A sample of 834 Pakistani consumers in the supermarkets and banking industries was studied employing store-intercept survey design.FindingsConsumer behavior is driven by emotions in both the supermarkets and banking context. Thus, in order to better predict customer loyalty intentions, the emotional component is crucial and should be included along with other cognitive components.Practical implicationsSince customers’ emotional responses throughout service delivery are strongly linked to loyalty, therefore supermarkets and bank service managers need to make sure that the customers experience with their services as pleasurable as possible and for this purpose, customer service employees need to be trained in order to better understand the customers’ emotional responses during the course of service delivery process.Originality/valueThe present study complements the existing literature regarding the role of emotions in service settings and offers a new point of view for the linkage among emotions, customer equity drivers and customer loyalty intentions.

Make a loyal visitor: a study of leisure experience at Farglory corporate museum in Taiwan

ABSTRACT Modern museum operation has evolved from simply providing the public with cultural and historical information to becoming a part of the tourism and leisure industry that provides “edutainment.” In response to intense competition and challenges, museums now place a strong focus on customer experience to elevate their appeal. Targeting newly established corporate museums, this study investigates the relationship between customer leisure motivation, leisure experience, and customer loyalty intention by using a structural equation modelling method. The results show that leisure experience mediates the effect of leisure motivation on loyalty intention. In other words, customer leisure motivation can lead to customer loyalty intention through leisure experience. The results further reveal that act experience dimension provided by corporate museums had significant effects. The theoretical and practical implications of these findings are discussed.

Customer delight: universal remedy or a double-edged sword?

PurposeOver the last years, the concept of customer delight has moved into the focus of attention. The necessity of surprise for achieving customer delight and the problem of increased customer expectation (spiral of expectations) have been controversially discussed in the literature. The purpose of the paper is therefore to investigate whether customer delight necessarily requires surprise and whether a misdirected delight strategy can backfire by creating disloyal customers.Design/methodology/approachThis study employs a 2 (after-sales extra value: yes vs no)×2 (knowledge about the extra value: yes vs no) between-subject, scenario-based experiment (n=472) in a hotel environment and partial least squares structural equation modeling to analyze the data.FindingsStudy results show that surprise is not a necessary prerequisite for achieving customer delight, but its presence strengthens the delight experience for the customer, positively impacting customer loyalty intentions. Conversely, a surprising nonoccurrence of an expected delight measure causes anger, inducing negative word of mouth and reduced repurchase intentions.Practical implicationsTo pursue a sustainable customer delight approach, companies should recognize that they do not need to surprise their customers on every occasion, but rather ensure that customers do not fall short of anticipated delightful events.Originality/valueThe current research strives to contribute to the theory and practice by shedding light on two so far not appropriately addressed research areas of customer delight: the necessity of surprise to evoke customer delight and the consequences of absent but expected delight measures.

Electronic commerce marketing-based social networks in evaluating competitive advantages using SORM

Electronic commerce (e-commerce) base on social networks marketing in the highly competitive environment that must improve service quality and customer loyalty to impact on their competitive advantage, which is most important. Therefore, this study will explore the different dimensions of service quality that affect the antecedents of customer loyalty and behaviour in electronic store (e-store). The framework of study is constructed based on the stimulus-organism-response (S-O-R) theory, wherein dimensions of service quality correspond to stimulus, antecedents of customer loyalty to an operation, and customer loyalty to response that explore the influence of the dimensions between. Our study found that: 1) the result of the DEMATEL-based ANP (DANP) research method shows that the service quality dimension of the quality of electronic services (QES) is a driving factor that affects the service quality dimensions of SERVQUAL, as well as the antecedents of customer loyalty and behaviour intention; 2) a customer's affective commitment can influence their satisfaction with a service.

A Study on the Impact of Social Commerce Purchase Decision Factors on Customer Satisfaction, Customer Loyalty and Repurchase Intention

Background/Objectives: The purpose of this study is to investigate the impact of Social Commerce users’ purchase decision factors on customer satisfaction, customer loyalty and repurchase intention. Methods/Statistical Analysis: Sample selection method was used convenience sampling methods. Among 258 total questionnaires, 226 were used as the data for analysis. 32 questionnaires were excluded either because the respondents did not have experience with the social commerce or because they responded without care. The main analysis was used as cronbach’s alpha coefficient, factor analysis and regression analysis. Findings: The total respondents were 226: 116 were male (51.3%), and 110 were female (48.7%). In terms of age group, 55.3%, 21.7% and 23.0% of respondents are in their 20s, 30s and 40s, respectively. After analyzing the purchase decision factors of social commerce, 22 factors were extracted, and were categorized into five groups. The total explanatory power of the extracted 5 factors was 68.2%. The values for cronbach’s α were all above 0.6, implying enough credibility. In addition, the values for cronbach’s α for the factors of customer satisfaction, loyalty and repurchase intention were all above 0.6 as well. The results after testing the first hypothesis, the p-value were .000, which is smaller than the .05 significance level, indicating statistically significant regression. Also, user convenience, price rationality, communication availability, information usefulness has statistically significant positive relationship. The result of testing the second and third hypothesis, customer satisfaction had a statistically significant positive relationship with customer loyalty, and customer satisfaction and customer loyalty have a statistically significant positive relationship with the repurchase intention, respectively. Application/Improvements: Through deeper review of previous literature and research, one must suggest factors that affect the Social Commerce and analyze them through the establishment of the elaborate research model in future studies.

Modeling Heterogeneity in the Satisfaction, Loyalty Intention, and Shareholder Value Linkage: A Cross-Industry Analysis at the Customer and Firm Levels

This study examines the relationship between customer satisfaction, loyalty intention, and shareholder value at the firm and individual customer levels. The authors also explore industry differences by using a multilevel and random-effects approach in which individual customer scores are nested within firm-level data and the estimated interrelationships are treated as random coefficients that are explained by industry characteristics. They compile a unique and detailed data set, which covers 10 years of information on 137 firms and includes a matched sample of 189,069 customers from multiple sources, such as the American Customer Satisfaction Index, the Center for Research in Security Prices, and Compustat, to yield three important insights. First, aggregate firm-level effects may overestimate the impact that satisfaction has at the individual customer level. Second, a consideration of loyalty intention or repurchase intention as the mediator can improve our understanding of the satisfaction–shareholder value relationship and the fact that this relationship can vary across firms. Finally, the influence of satisfaction and loyalty intentions on shareholder value varies by industry. The authors discuss implications of findings for researchers, managers, and investors.

The Influence of Service Quality on Customer Loyalty Intentions: A Study in the Vietnam Retail Sector

<p>There is a paucity of knowledge relating to retail service quality and customer loyalty intentions in emerging markets, and especially in Vietnam. The purpose of this study is to investigate the relationship between these two variables in the Vietnam retail sector. Survey data are collected from 502 respondents who are current customers of eight retail stores in the city of Hanoi. The results support five dimensions of retail service quality, namely personal interaction, store policy, physical aspects, reliability and problem solving. Out of these, three dimensions of reliability, personal interaction and problem solving are significantly associated with customer loyalty intentions. This study contributes to the evolving literature and suggests that local and foreign retailers should particularly invest time and effort to increase stores’ reliability, quality of customer interaction and effectiveness in solving customer problems. </p>

The Structural Relationship between CSR, Trust, Customer Loyalty, and Purchase Intention as Perceived by Consumer: Mediating Roles of Trust

The Structural Relationship between CSR, Trust, Customer Loyalty, and Purchase Intention as Perceived by Consumer: Mediating Roles of Trust

Customer responses to CSR in the Pakistani banking industry

Purpose– The purpose of this paper is twofold: to empirically analyse how customer corporate social responsibility (CSR) perceptions impact on the perceived service quality (PSQ)-loyalty relationship in the banking industry of Pakistan; and to evaluate the mediating role of customer trust in that model.Design/methodology/approach– Based on a field survey of 408 customers of five different banks of Pakistan, the hypothesized model is tested through partial least squares based structural equation modelling.Findings– The findings demonstrate that banking customers in Pakistan recognise CSR as a multidimensional construct that serves as a direct determinant of PSQ, trust, repurchase and word of mouth (WOM) intentions. PSQ also influences customer trust directly and positively and trust has a direct and positive impact on repurchase and WOM intentions. On the contrary, PSQ does not influence repurchase and WOM intentions directly. Its effect is mediated by customer trust.Practical implications– Contrary to the previous mixed findings reported in the literature, this research confirms the explicit contribution of CSR towards customer perceptions and intentions in the context of the banking industry. The findings suggest that banking companies should take great care over preparing their CSR initiatives and include them in their marketing plans in order to improve customer loyalty intentions. In this way, CSR can enhance PSQ and customer trust, which are two key constructs in the loyalty model proposed in this paper.Originality/value– The originality of the paper lies in the context in which the research was developed. The banking industry of Pakistan had not previously been extensively researched. The proposal for a comprehensive model that evaluates the role of customer trust is another key contribution of the paper. Previous research has not extensively studied the role of trust in loyalty models that evaluate CSR perceptions along with PSQ.

The Effects of Brand Image on Customer Satisfaction and Loyalty Intention in Retail Super Market Chain UK

The main purpose of this research is to examine the effects of brand image on customer satisfaction and loyalty intention. It also examines the relationships between the brand image and customer satisfaction, brand image and loyalty intention as well as customer satisfaction and loyalty intention on the context of retail supermarket chain in UK. The hypotheses were formed on the basis of existing literatures and data was collected to test the hypotheses so it is deductive research. The survey strategy is used to collect information from the customers of the main six retailers based on London through structured closed ended questionnaires at a point of time and so it is cross-sectional research. A sample of 120 customers was selected through convenience sampling technique. The statistical and mathematical tools such as percentage analysis, correlation and regression analysis are used for data analysis through SPSS 20.This study asserts that the overall brand image has significant effects (P = 0.000 and β = 0.880) on customer satisfaction. Similarly, the overall brand image has significant effects (p = 0.000 and β = 0.780) on overall customer loyalty intention; and also customer satisfaction has significant positive effects (p = 0.000 and β = 0.859) on customer loyalty intention in an organisation.However, this study considered just five variables of brand image and five variables of customer satisfaction. There may have other important factors which may influence the findings. A small sample size of just 120 customers from just six stores of the main retailers may not represent the vision of all retail customers. Thus, it is recommended that a large scale research with more variables, large sample size with more stores from different parts of the UK to validate these findings.DOI: http://dx.doi.org/10.3126/ijssm.v2i1.11814 Int. J. Soc. Sci. Manage. Vol-2, issue-1: 9-26

It’s just not fair: exploring the effects of firm customization on unfairness perceptions, trust and loyalty

Purpose – The purpose of this study is to (a) develop a conceptual framework exploring the relationships between perceived negative firm customization, unfairness perceptions, and customer loyalty intentions, and (b) investigate the moderating effects of trust in these relationships. The study explores how customizing offers to match customers’ individual needs and how treating customers differentially provoke unfairness perceptions among those not being considered most important. While the literature discusses unfairness perceptions of pricing, promotion, and service, less is known about unfairness in customization practices. Design/methodology/approach – Using a survey approach, 443 completed questionnaires we collected. Following validation of our item measures, a hierarchical linear regression analysis was conducted to test the conceptual model and hypothesized linkages between our constructs. Findings – The results demonstrate that customers’ negative perceptions of customization increase their unfairness perceptions. Unfairness perceptions drastically reduce customer loyalty intentions with trust acting as a significant moderator. Trust increases loyalty intentions even when unfairness perceptions are present. Our findings provide a foundation for understanding how firms may improve their perceived fairness. This increase in perceived fairness creates positive attributions, reduces negative customer experience perceptions and increases loyalty intentions. Originality/value – Key contribution is the development and validation of a conceptual model explaining the linkages between firm customization and unfairness perceptions, firm customization and customer loyalty intentions and the moderating role of trust between these relationships. This study extends the understanding of how customization practices impact unfairness perceptions and, subsequently, influence consumers’ perceptions, intentions and behavior.

Loyalty intentions

Purpose – This article aims to present a model linking loyalty intention, brand commitment, brand credibility and brand awareness. The model shows the mediating role of brand commitment and brand credibility on loyalty intention. The researchers also investigated the changes in the given model under high and low involvement conditions, explicitly considering involvement as between-subject differences rather than between-product differences. The change in customer loyalty intention under varying levels of product involvement is a highly debated topic among researchers. Design/methodology/approach – The model was tested on a sample of 318 executives who have bought and are using deodorants. The respondents had given responses for loyalty intentions, brand commitment, brand credibility, brand awareness and involvement towards the brand of deodorant that they use. Confirmatory factor analysis was used to validate the tool for measurement of constructs and multi-group structural equation modelling for testing the hypotheses and comparing the nested models. Findings – The difference between high and low involvement groups in the given model supports the hierarchy-of-effects view. We found that attitude precedes behaviour for highly involved individuals but followed a different hierarchy among the individuals with low involvement. Research limitations/implications – This research investigates the proposed model for a single product category and so the scope of generalisability is limited to the product selected. This research has considered behavioural intention rather than the behaviour in this study. Practical implications – The study demonstrates the differences in the hierarchy-of-effects among low/high involvement groups. Thus, the findings will have an impact on the approach of practitioners, as different strategies will have to be adopted for the enhancement of loyalty intentions based on the difference in perceived involvement of consumers. Originality/value – This paper shows the need to differently target consumers with different levels of perceived involvement, within the same product class and thus between-subject involvement can be used as a segmentation variable.

The Effect of Antecedent Mood on Customer Loyalty Intentions: A Mood by Gender Interaction

This study suggests that induced antecedent moods may, in a systematic manner, influence subsequent levels of loyalty intention within consumer scenarios. Furthermore, this research finds that there exists differential responses to induced mood states by gender, which fall in line with research on the underlying gender differences in cognitive processing, levels of risk aversion, motivation, and the experience of emotion while shopping. Past studies in this area have shown only a mild connection between induced antecedent mood state and loyalty intentions, which may be due in part to the issue of an emotion by gender interaction. This paper reinforces previous work and extends this relationship to include gender as moderator. With a better understanding of the way in which different mood states influence customer loyalty intentions, a new approach to managing customer mood-states emerges.

An investigation of service quality assessments across retail formats

Purpose– The purpose of this paper is to investigate the existence of differences in service quality assessments across distinct retail store formats. We address customers’ quality assessments for physical aspects, personal interactions, reliability and policies dimensions in hypermarkets and supermarkets to analyse the impacts for satisfaction and loyalty.Design/methodology/approach– The study builds on previous scales for service retail quality to develop a survey addressing customers of hypermarkets and supermarkets in Portugal. Data analysis addressed 248 complete questionnaires and involved statistical testing to explore differences in service quality expectations across retail store formats. The regression analysis was used to estimate impacts of each service quality dimension for customer satisfaction and loyalty intentions.Findings– The results support the existence of differences in customers’ service quality assessments across retail store formats, notably for the expectations about different quality dimensions. Differences were also observed on the impacts for customer satisfaction and loyalty, in particular for the dimensions of reliability and personal interaction.Research limitations/implications– The results suggest that managerial decisions regarding service in stores should be adjusted to the characteristics of each retail format. The generalizability of the results should be assessed by means of further investigation in other retail contexts.Originality/value– Retail customers patronize multiple types of retail stores that compete on diverse service attributes. Building on existing service measurement scales, this paper provides a contribution to understand customer’s quality assessments across distinct store types to inform retail quality and service differentiation strategies.

How customers respond to the assistive intent of an E-retailer?

Purpose– The purpose of this paper is to investigate how an E-retailer's assistive intent impacts the perceptions and behaviours of online shoppers. The paper introduces a model that explains and examines the process through which the perceived assistive intent of an E-retailer leads to improved patronage intentions towards the web site.Design/methodology/approach– A survey on the most recent e-purchase experiences of more than 600 individuals in North America was conducted. Structural equation modelling based on EQS 6.1 was used to assess the measurement and structural models.Findings– Results indicated that customers’ impressions of an E-retailer's assistive intent positively impact web site patronage intentions both directly and indirectly through two key constructs of e-shopping, including web site involvement and web site attitudes.Research limitations/implications– The student sample is not representative of the population. Students are familiar with internet and feel less need for assistance online. Another shortcoming might be its settings. Since the survey was on the respondents’ most recent online experiences, the data quality depends on the amount and accuracy of the information they could retrieve from memory.Practical implications– The findings suggest that E-retailers would highly benefit from investing in the development of an assistive image. To do so, E-retailers should leverage the interactive nature of the web and provide supportive tools that facilitate the e-shopping task of clients.Social implications– Developing impressions of the site's assistive intent is highly rewarding for E-retailers that are new to the business.Originality/value– This paper represents the first effort to link the newly developed construct of E-retailer's assistive intent to two fundamental variables of online shopping, including web site involvement and web site attitudes. This work would also be an extension of the past studies that call for further investigation of the link between customer orientation and customer's loyalty intentions.

FFECT OF BRAND IMAGE ON CUSTOMER SATISFACTION & LOYALTY INTENTION AND THE ROLE OF CUSTOMER SATISFACTION BETWEEN BRAND IMAGE AND LOYALTY INTENTION: A STUDY IN CONTEXT OF COSMETIC PRODUCT

AbstractThe Purpose of the study was to investigate the effect of brand image benefit on customer satisfaction and Loyalty intention directly and indirectly based upon hypothetical model in the current study for a cosmetic brand (Fair lovely) at Gwalior (M.P) in India. The measures were reconstructed and re-standardized to make it suitable for the purpose of the study. Numbers of factors were identified through exploratory factor analysis for all the variables. The results of multiple regression revealed that there is a strong positive relationship between brand image and loyalty intention, While, the relationship between customer satisfaction and loyalty intention was found to be less weak. This indicates that there might be a mediation effect of customer satisfaction between brand image and loyalty intention. For evaluating the mediation effect Sobel test was applied and the result of the Sobel test was found to be positive. Hence, a mediating effect of customer satisfaction was found between Brand Image and Loyalty Intention. The measure of brand image was constituted of Functional, Social, Symbolic, experiential and appearance enhance. A survey was carried out on 200 respondents. The results also indicated that overall satisfaction does influence customers' loyalty which implies that marketers should focus on brand image benefits to achieve customer loyalty.

Who needs delight?

Purpose– The aim of this study is to determine whether the cumulative effects of satisfaction, trust, and perceived value may, under certain conditions, provide more explanatory power for customer loyalty intentions than the often studied and more elusive customer delight. Herzberg's two-factor theory is used to explain why the frequent nature of grocery shopping, a primarily utilitarian experience, might introduce considerations that have not yet been addressed in the study of delight.Design/methodology/approach– A survey is administered to a quota sample of Portuguese supermarket shoppers via phone, using a CATI system.Findings– Research findings suggest that perceived value, trust, and satisfaction have a greater impact on behavioural outcomes than customer delight in the grocery shopping setting. In such a setting, cognitive drivers may be even more important for customers who are primarily concerned with hygiene factors (rather than motivators).Research limitations/implications– Retailers are encouraged to focus on the more mundane factors that influence consumers' perceptions of value and trust rather than trying to invest in the substantial resources required to continually delight consumers. Future research may explore other determinants of loyalty intentions and test the extended model in different service sectors, cultural contexts and countries.Originality/value– This study applies Oliveret al.'s consumer delight model in a utilitarian, frequent-use setting, finding previously undiscovered limitations to its validity.

Effect of Customer Satisfaction on Brand Image & Loyalty Intention : A Study of Cosmetic Product

The Purpose of the study was to investigate the effect of customer satisfaction on brand image and Loyalty intention directly and indirectly based upon hypothetical model in the current study for a cosmetic brand (Fair lovely) at Gwalior (M.P) in India. The measures were restandardized to make it suitable for the purpose of the study. Number of factors were identified through Exploratory factor analysis for all the variables. Structual Equation Modeling was used in the current study through AMOS 16. The results of SEM indicate that there is strong relationship between customer satisfaction and brand image. The result of SEM also indicates that there is strong relationship between Brand Image and Loyalty intention and the relationship between Customer satisfaction and Loyalty intention was found little weak. While the indirect relationship between customer satisfaction and loyalty intention via brand image was found to be very strong. The measure of benefit of brand image was constituted of Functional, Social, Symbolic, experiential and appearance enhance. A survey was carried out using 250 respondents. The results also indicated that overall satisfaction does influence customers' loyalty which imply that marketers should focus on brand image benefits to achieve customer loyalty.