Relationship Customer Loyalty Research Articles

The moderating role of high- and low-involvement product types on customer loyalty and satisfaction in banking: an Australian perspective

PurposeThe study aims to develop a holistic model identifying the constructs that impact customer loyalty in retail banking and introduce product type as a moderating variable to the model.Design/methodology/approachA conceptual model of customer loyalty is introduced and empirically tested with 416 valid samples obtained from Australian retail banking customers. The data were analysed using partial least squares structural equation modelling and multigroup analysis.FindingsThis study confirms the moderating effect of high- and low-involvement products on the relationship between customer loyalty and satisfaction, trust, service quality, commitment and perceived value. Surprisingly, the effect of satisfaction on loyalty was much stronger with low-involvement product types and the effect of commitment on loyalty was much stronger with customers who utilise high-involvement products.Research limitations/implicationsThe study uses a sample population in Australia who utilise one of the top four banks and investigates three product types. Further research could expand the product selection and include customers who use credit unions and other banks not in the top four categories.Originality/valueThis study is the first to confirm the moderating effect product type has on the customer loyalty relationship in retail banking in regard to high- and low-involvement product categories. The research provides a deeper understanding of the factors that influence customer loyalty and identifies which types of products influences customer loyalty the most. Additionally, this study highlights the importance of understanding the different needs and priorities of customers using different product types in order to effectively influence their loyalty.

Revisiting brand performance metrics and its impact on customer loyalty in Indian banking sector: role of relational quality and duration

PurposeThe purpose of this study is to revisit brand performance metrics (BPMs) (brand affinity, brand content and knowledge, brand image, brand ethics and brand value) and evaluate the moderated mediation effect of relationship quality (mediator) and relationship duration (moderator) in brand performance and customer loyalty relationship in an Indian banking context.Design/methodology/approachThe research model was tested in the Indian banking sector. The primary data was collected from the 1,000 account holders of five Indian public and private banks. The data was analysed and validated using exploratory factor analysis and confirmatory factor analysis. Structural equation modelling and the Hayes process were used for testing the hypotheses.FindingsThe study results established BPMs as a four-dimensional structure comprising brand affinity, brand content and knowledge, brand image, brand ethics and brand value. The BPMs significantly positively impact relational quality (RQ) and customer loyalty. Further results also prove the existence of moderated mediation effect on BPMs and customer loyalty link and portray that the impact of BPMs on customer loyalty is mediated by the RQ and influenced by relationship duration.Research limitations/implicationsThe study is confined to the Indian banking sector. It did not examine the dimension-wise impact of brand performance indicators on RQ and customer loyalty. Future research is required to explore their influence in banking and other sectors.Practical implicationsThe study findings suggest that to enhance brand performance, banks need to follow excellence in every conduct, take immediate actions against inappropriate behaviour, consistently update their relevant and valuable contents (news, videos, white papers, e-books, case studies, FAQ’s, photos, etc.) on their websites and also introduce loyalty schemes to reimburse customers’ interests with some substantial benefits such as rebates, discounts, annual gifts and extraordinary or additional services. These strategies can pave the way for enhancing long-term quality relationships between customers and their service providers and increasing customer loyalty.Originality/valueTo the best of the authors’ knowledge, the study is a maiden attempt to assess the effect of BPMs on customer loyalty in the presence of RQ and at the value of relationship duration/length. Besides, the study results also prove the existence of moderated mediation effect and portray that the impact of customer equity and relational benefits on customer loyalty is influenced by relationship duration and mediated by RQ.

The effect of corporate reputation on customer loyalty in the Ghanaian banking industry: the role of country-of-origin

PurposeCustomer loyalty is of growing interest to many service firms due to the many tangible and intangible benefits it offers them. However, building customer loyalty is challenging for many service firms. This study aims to examine the impact of corporate reputation on customer loyalty. It also assesses the moderating role of the firm's country of origin in this relationship.Design/methodology/approachSurvey research design was used to collect data from 367 universal banks' customers. Data were analysed using structural equation modelling.FindingsThe findings shed light on several crucial aspects of corporate reputation that influence customer loyalty. Specifically, signals of corporate social responsibility, corporate credibility, product attributes and relationship marketing were found to have a substantial impact on customer loyalty. Additionally, the study uncovers a noteworthy insight that the firm's country of origin plays a moderating role in the relationship between corporate reputation and customer loyalty, particularly in the context of the banking sector.Originality/valueThis research stands out due to its utilisation of signalling theory, making it one of the pioneering works in the bank brand management literature. It presents a comprehensive corporate reputation framework and its profound implications for customer loyalty. Furthermore, the study underscores the significance of considering the strength of the country-of-origin effect in shaping customer loyalty relationships.

Impact of Quality of Service on Customer Loyalty: A Critical Study of Cellular Mobile Broadband Sector in Pakistan

Quality of Service (QoS) is the degree to which a service provided by an operator promotes customer satisfaction. In telecommunications sector service quality is a set of specific parameters provided by service providers to their customers, which are necessary for achieving the required functionality of the requested service. In current global competitive telecommunication business market, the quality of a service is being considered as a differentiator for users if service features or price of services of service providers are similar. The potential of growth and scope for telecommunication services in general and mobile broadband services in developing countries like Pakistan is encouraging. The objective of this research work is to analyze the impact of service quality gaps with customer loyalty in the mobile broadband sector of Pakistan. The cellular mobile operators in Pakistan are facing issue of declining customer loyalty and increasing churn rate of customers in search of their expected quality of service. In this research the service quality gaps will be considered as independent variables while customer loyalty as dependent variable. The SERVQUAL model proposed by Parasuraman, Zeithaml and Berry (1988) will be used to probe the effects of five dimensions of service quality viz. tangibility, assurance, responsiveness, reliability, and empathy on consumer loyalty. Data of 200 current LTE broadband consumers using mobile service of four cellular mobile operators of Pakistan (Jazz-PMCL, Ufone-PTML, Zong-CMPak and Telenor) will be collected through structured questionnaires. The response received from end users of broadband services through these questionnaires will be analyzed through SPSS to determine the causal relationship of service quality dimensions and customer loyalty. The results of analysis will depict that the service quality dimensions will have significant and positive impact on customer loyalty.

Brand Equity, Offering Equity, and Relationship Equity (BOR) Influence toward Customer Loyalty of Lombok Paradise Pearl Product

The research was conducted with the aim of proving the influence of Brand Equity, Offering Equity, and Relationship Equity on Customer Loyalty for Mutiara Lombok Paradise Products, with a sample of 104 samples. The method in this paper is non-probability sampling and the samples are randomly selected by means of stratified random sampling. The primary data used in this research is primary funds. This study has a hypothesis, namely Brand Equity, Offering Equity, and Relationship Equity on Customer Loyalty for Mutiara Lombok Paradise Products. Data was collected with the help of a questionnaire with a differential semantic scale for the dependent variable and a binary scale for the independent variable. The research results were analyzed using the SPSS (Statisical Program for Social Science) method. The study found that (1) Brand Equity has a significant effect on customer loyalty (2) Offering Equity has a significant effect on customer loyalty (3) Relationship equity has a significant effect on customer loyalty (4) Brand equity, Offering Equity, and Relationship equity both have an effect significant effect on customer loyalty.

Ride-sharing platforms: the effects of online social interactions on loyalty, mediated by perceived benefits

PurposeThis study examines how customer loyalty among DiDi users in China is affected by two types of online social interaction (transactional and interpersonal) and how the online interaction–customer loyalty relationship is mediated by three kinds of perceived benefits (functional, social-hedonic and safety).Design/methodology/approachThis study empirically examines research hypotheses based on a questionnaire survey of 428 DiDi consumers.FindingsThe results reveal that transactional interactions significantly enhance customer loyalty among DiDi users via the partial mediating effects of customers' perceived functional, social-hedonic and safety benefits. By contrast, interpersonal interactions do not directly influence customer loyalty, and only social-hedonic benefits fully mediate the positive influence of interpersonal interactions on loyalty.Originality/valueThis study contributes to the theoretical development of interactive marketing management by examining how two types of online social interactions contribute to customer loyalty on sharing economy platforms by influencing the perception of benefits. It also provides useful managerial insights to help ride-sharing platforms design online social interaction functions that improve customer perceptions and loyalty.

Moderating Effect of Quality Delivery on Customer Satisfaction and Loyalty Relationship of Multiple-Use Hotels

The main objective of this study was to determine the moderating effect of quality delivery on the relationship between customer satisfaction and loyalty of multiple-use hotels in Davao City, Philippines. Adopted survey questionnaires were given to a sample of 300 customers from various multiple use three star hotels in Davao City. This study employed non-experimental design utilizing descriptive correlation technique. The statistical tools used were mean, Pearson r and hierarchical logistic regression modgraph. Results revealed that the level of customer satisfaction and quality delivery are very high whilst the level of loyalty are found to be high. Further finding revealed that customer satisfaction is related to loyalty. Quality delivery also showed a positive significant relationship to positive significant relationship to loyalty. In determining the moderating effect of quality delivery, results revealed that the quality delivery demonstrated a significant moderating effect on the relationship between customer satisfaction and loyalty of multi-use hotels. The multiple-use hotels who have higher quality delivery to their customers have also higher level of customer satisfaction and loyalty.

Understanding passengers’ satisfaction and loyalty towards ridesharing services

AbstractThis study examines the ridesharing services in a developing economy, with the aim of revealing the factors influencing passengers’ satisfaction and loyalty. This study is important as the ridesharing industry is growing at a tremendous rate and will ultimately attract many new players in the market. Offered abundant choices, consumers are exploring the best ridesharing services that meet their satisfaction. As the switching costs and brand loyalty are lower for on‐demand services, it is pertinent to understand ridesharing passengers’ satisfaction and loyalty. The findings of this study are based on a questionnaire survey of 200 ridesharing passengers. The results reveal that both brand image and price significantly influence customer satisfaction. However, in terms of customer loyalty, only brand image is statistically significant. Price did not have a significant impact on customer loyalty. Overall, this research corroborated previous studies on the positive relationship of customer satisfaction and customer loyalty. The paper concludes by providing numerous theoretical and practical implications based on the findings of the study

Addressing service profit chain with artificial and emotional intelligence

ABSTRACT In view of the prevalence of artificial intelligence (AI) – powered applications in service organizations, this paper draws on service profit chain theory and proposes these applications as a service product for employees (referred to as internal customers) and customers. The outcome of which is to examine the influence of AI service quality on internal and external customer loyalty. Customer satisfaction and engagement are modeled as mediators, whereas emotional intelligence (EI) is a moderator in AI – customer loyalty relationships. Two studies were undertaken with employees and customers in Australian-based hotels to examine these relationships. The results show that AI service quality is significantly related to internal and external customer satisfaction and engagement. Both internal and external customer engagement have significant effects on customer loyalty and play a significant mediation role in the service quality – customer loyalty relationship. EI has only a significant moderation effect on the relationship between AI service quality and customer engagement for internal and external customers. Discussion and implications of the research findings are provided for researchers and practitioners.

RELATIONSHIP OF CUSTOMER SATISFACTION AND CUSTOMER LOYALTY IN ONLINE BANKING CONSUMERS IN GUJARAT, INDIA.

Online banking is growing in the world and India. This paper examines the relationship of customer satisfaction and customer loyalty among online banking customers in Gujarat state of India. Customer satisfaction and customer loyalty is measured on the basis of several factors affecting online banking customers. A sample of 281 customers through convenience sampling method was surveyed using structured questionnaire. The analysis is done using descriptive analysis, pearson correlation coefficient, regression analysis, t test and ANOVA test. Positive correlation is found using pearson correlation method and regression model is formed. Comparing various demographic groups like gender, age, education and income, significant difference is found in customer satisfaction between male and female and among few income groups. For formulating marketing strategies, further research is required but, the research has thrown light on relationship and demographic group comparisons.

What’s behind a scratch card? Designing a mobile application using gamification to study customer loyalty: An experimental approach

The use of game design elements (often called gamification) by firms to engage the customers has attracted attention in recent times. These game elements contribute to shaping up customer’s motivation and loyalty. Gamification is explored from the lens of both empirical as well as an experimental methodological standpoint. There still lacks substantial evidence that explains how and which types of rewards help to understand the customer's motivation. The study addresses this gap by designing an experimental study of 2x2 to address how gamified mobile apps used for making payments can help capture customer’s loyalty by offering them rewards. Data is collected from 385 customers who have been using mobile apps to make payments in the past. The data were tested to check if gamification positively helps the user hedonic and utilitarian motivation, which then positively impacts their loyalty. The study is also moderated by type of rewards (direct cash rewards v/s indirect third party partnered rewards) on the relationship of gamification and customer loyalty mediated through motivation. The results confirm that mobile payment apps' cash rewards are more useful, especially when the degree of uncertainty in the game element is high (scratch card). Additionally, they contribute to a higher degree of utilitarian benefits to the customers. The results contribute to the extension of the self-determination theory and stimulus organism response framework as well.

The Mediation Effect of Customer Satisfaction in Relationship between Product Quality and Service Quality towards Customer Loyalty In Fuzee Sushi

<p>Food and beverage industry in Indonesia has been growing constantly every year and also contributed to manufacture and economy growth in both current and the next following years. The important role of food and beverage industry is transparent through the consistent contribution and significant impact toward Gross Domestic Product and food and beverage startup businesses has been experiencing growth every year due to the growth of population in Indonesia. This study was made to know the effect of product quality and service quality towards customer loyalty of Fuzee Sushi. There is also customer satisfaction as a mediator between product quality and service quality to customer loyalty. This research aims on Fuzee Sushi’ customers that has bought the product more than once. An online questionnaire was distributed to the entire sample and used five points Likert scale as a measurement method. The data are analyzed using Partial Least Square. The result of this research showed that product quality has positive relationship toward customer loyalty directly however, service quality does not have positive impact directly toward customer loyalty. Product quality and service quality mediated by customer satisfaction has positive impact towards customer loyalty. The findings purpose is to understand more about product quality, service quality, customer satisfaction, and customer loyalty relationship in start-up food and beverage business in Indonesia.<strong></strong></p><p><strong> </strong></p>

Complaints Handling Satisfaction mediates between Complaints Handling to Customer Loyalty for the Indonesian Banking Industry

This study aims to explain and investigate the effect of complaint handling on complaints handling satisfaction, consequently impacting customer loyalty. This study uses 110 respondents at Conventional Commercial Banks and Indonesian Shariah banking in the DKI Jakarta – Indonesia. Path analysis modeling and mediation test using PROCESS Macro and SAS 3 with SPSS 26. The research findings explain that complaints handled correctly and adequately can increase complaint handling satisfaction. Handling customer complaints can increase customer loyalty. Complaint handling satisfaction can also increase customer loyalty. Complaint handling satisfaction acts as a mediator between the relationship of complaint handling and customer loyalty. In terms of its positive effects, customer complaints are inputs and strategic assets that provide essential knowledge for the bank to improve its performance. For this reason, the bank can manage relationship management with customers to better respond to customer complaints. The research results can act as an input for the bank’s management to develop efforts to handle complaints and expand service recovery strategies, creating satisfaction in handling complaints and customer loyalty.

Let’s get acquainted: an empirical study on takaful customer-service provider relationships from Saudi Arabian perspectives

PurposeThis study aims to examine a proposed model based on a combination of relationship marketing and service quality dimensions as a significant predictor of corporate image. More importantly, it attempts to identify whether corporate reputation mediates the relationship between and customer loyalty and corporate image in the takāful (Islamic insurance) context, from the viewpoint of Saudi Arabian customers.Design/methodology/approachAn online survey was conducted through an adopted questionnaire from 362 family takāful policyholders from Saudi Arabia. Also, structural equation modelling was used to test the proposed model on the direct relationships of the related constructs, as well as the establishment of corporate reputation as a mediator concerning its relationship between corporate image and customer loyalty.FindingsThis study discovered that only two dimensions of service quality (i.e. reliability and assurance) and three aspects of relationship marketing (i.e. Islamic ethical behaviour, financial and structural bonds) have a significant impact on the corporate image of the takāful providers. This study further concluded that corporate reputation mediates the relationship between corporate image and customer loyalty.Research limitations/implicationsThis study has presented and tested the perceived service quality using the PAKSERV model in the takāful (Islamic insurance) industry, particularly in the Saudi Arabian context. This research identified the dimensions of PAKSERV (i.e. reliability and assurance) that influence the corporate image and simultaneously, the aspects of relationship marketing (i.e. Islamic ethical behaviour, financial and structural bonds) are also connected to the corporate image. Corporate reputation acts as a mediator between the relationship of corporate image and customer loyalty. This study, nevertheless, only focused in the takāful industry alone, and these findings could also be tested for its validity to different services in other potential studies because of the diversity of the service industry.Originality/valueThe findings of this study highlight the specific components of PAKSERV measures in influencing the corporate image. Furthermore, relationship marketing addressing Islamic ethical behaviour, as well as the three facets of bonding – structural, financial and social bonds are also incorporated and connected to corporate image. Hence, this study will increase the understanding of the impact of service quality concerning the PAKSERV model and relationship marketing on corporate image, reputation and customer loyalty of the takāful operators in Saudi Arabia.

The relationship between CRM and customer loyalty: the moderating role of customer trust

PurposeThe present study investigates the moderating role of customer trust in customer relationship management (CRM) components and customer loyalty relationships in the context of the baking sector in Bangladesh.Design/methodology/approachData were collected through a survey using a structured questionnaire from 350 customers of commercial banks in Bangladesh.FindingsThe key finding is that all CRM components (customer orientation, customer advocacy and customer knowledge) except customer engagement have positive impact on customer loyalty. Moreover, customer trust only moderates the relationship between customer knowledge and customer loyalty, whereas other CRM components and customer loyalty do not moderate by trust.Originality/valueThe findings of the study add to the substantial pool of knowledge on CRM components, customer trust and customer loyalty literature. More specifically, the moderating role of customer trust between customer knowledge and customer loyalty is the novel contribution of this research which will enrich the existing CRM literature particularly in the banking sector of Bangladesh.

Islamic Banking Service Innovation in Customer Co-Creation: Its Impact on Customer Trust, Satisfaction, and Loyalty

This study examines the impact of co-creation on customer trust, satisfaction, and loyalty in the context of Islamic banks, the relationship between co-creation and customer satisfaction and loyalty mediated by trust and customer satisfaction. 379 Islamic bank customers data were analyzed using variance-based structural equation modeling to test the nine hypotheses proposed. The study results found that customer co-creation positively influences customer trust and satisfaction, which further implicates loyalty. However, surprisingly co-creation does not affect Islamic bank customer loyalty. Islamic bank managers in Indonesia need to involve customers to participate in value co-creation. Because Islamic bank's customer loyalty relationship with co-creation is mediated in full by trust and satisfaction, this research is the first empirical investigation that tests customer co-creation in an integrated manner and its implications on trust, satisfaction, and customer loyalty in the Islamic bank industry.

ARE YOU LOYAL IF SATISFIED WITH MEAL OUTSIDE ? : A RELATION BETWEEN CUSTOMER SATISFACTION AND LOYALTY IN RESTAURANTS.

The restaurants business is growing at it's own pace in the world as well as in India. This paper examines the relationship of customer satisfaction and customer loyalty among customers of restaurants in Gujarat state of India. Various factors are used to measured customer satisfaction and customer loyalty among customers of restaurants via a structured questionnaire. A sample of 381 respondents using convenience sampling was surveyed. The analysis is done using descriptive analysis, pearson correlation coefficient, linear regression analysis, t test and ANOVA test. The positive correlation is found between customer satisfaction and customer loyalty and thus, coefficients of regression and adjusted R2 are calculated. Among demongraphics, gender, age and income groups have shown a significant difference of customer satisfaction and customer loyalty while education groups didn't show a significant difference of customer satisfaction and customer loyalty. Females are more satisfied and loyal compared to males while less than 25 years of age group is the most satisfied and loyal among all age groups. As income increases the satisfaction and loyalty decreases upto the yearly income of rs. 12,00,000. For formulating marketing strategies, further research is required but, the research has thrown light on relationship and demographic group comparisons and may be helpful for marketers and further researchers.

Customer Equity as Mediator of Customer Experience and Loyalty Relationship

Customer Equity as Mediator of Customer Experience and Loyalty Relationship

The impact of marketing deception in the e-procurement decision / exploratory study of students of the Business Department at the Faculty of Administration and Economics at Iraqi universities

The effects of marketing phishing practices in the e-purchase decision have been verified in a pilot with students from the Business Administration Department of Iraqi Universities through this study. The main contribution of this study is to investigate the customer's loyalty relationship with perceived deception under the moderate impact of the company's image and the mediating effect of the customer's trust. The study was held in the context of a sample of students in the Department of Business Administration in the Faculty of Administration and Economics in Iraqi universities. Current research is insufficient to explain marketing deception and a relationship in the decision to purchase electronic goods, and since social media channels have become an important social media platform that is widely used for marketing in the Arab world in general and Iraq in particular. Its purpose is to illustrate students' perception of fraudulent social media practices that led to the adoption of quantitative research as needed for our study. A total sample of 617 respondents was achieved with the help of self-managed resolution and we were able to collect 512 full resolutions. Measurement of marketing deception was taken from Chaouachi & Rached (2012), and for e-purchase decision and student loyalty, the standard of Aydin & Özer (2005) was adopted. Descriptive and evidentiary statistical tools were used for analysis and correlation analysis, and simple and multiple regression analysis under the deductive statistical section. The suggested hypothetical results that marketing deception is negatively related to the customer's trust and loyalty were rejected. We found the customer's confidence as a broker between marketing deception and customer loyalty. The study could not achieve a highly representative sample or exclusive interview from the total student population due to the conditions of home isolation, as social media was selected for the survey due to lack of time The results confirmed that there is marketing deception for all the elements of the marketing mix in social media, and these results confirm that social media sites and the Internet marketers most practice marketing deception on consumers with a high degree of marketing in their services. The four dimensions of marketing deception negatively affect consumer behavior. The study found a set of conclusions based on the results of the sample study responses, according to which a set of recommendations could be guided, including the need to activate the role of audit, control the implementation of marketing ethics and its role in creating positive images for the customer. Marketers should review the organizational structure and create a special section that monitors the phishing process in social media.

Investigation into waiting time, self‐service technology, and customer loyalty: The mediating role of waiting time in satisfaction

AbstractThis study examines customer satisfaction with waiting time (WT) and customer loyalty (CL) relationships in the airline industry. The mediating influence of waiting time satisfaction (WTS) in the self‐service technology (SST) and CL relationship was also examined. Seven hundred fifty structured questionnaires were administered at Sabiha Gökçen, and Instabul international airports in Turkey and partial least square–structural equation modeling were employed for the model analysis. The findings reveal that SST, perceived, retrospective, and prospective WTs are major determinants of WTS. Furthermore, SST and WTS were found to have a linear and significant positive influence on CL. Therefore, this study suggests that the airport management should identify the causes of WT, make the waiting environment conducive for the customers, make the WT inconsequential to the customers, and enhance their loyalty to the airport.