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Why do satisfied customers switch? Focus on the restaurant patron variety-seeking orientation and purchase decision involvement
Abstract
Company efforts to make customers switch from competitive brands to their own or induce them to repurchase their own brands are very important in their marketing activities and in this regard studies of customer variety-seeking orientation and level of involvement in decision making play a crucial role in explaining customers’ product selection activities. The purpose of this study intends to examine interrelationships among customer satisfaction, loyalty, and switching intent in family restaurants and verify the moderating effect of customer variety-seeking orientation and purchase decision involvement. A total of 305 patrons in Korea participated. The results showed a positive relationship between customer satisfaction and loyalty. Participants expressing a high level of satisfaction were more likely to switch restaurants. Whether customers feel loyalty determines their switching intent. There were moderating effects related to customer variety-seeking orientation in the causal relationships between customer loyalty and switching intent. Limitations and future research directions are also discussed.
... Literature has explored various factors that influence consumer loyalty in the context of professional sport teams (Biscaia et al., 2013;Chun and Kaplanidou, 2020), which may play a crucial role in shaping consumers' switching intention (Jung and Yoon, 2012;Mosavi et al., 2018). However, evidence suggests that the relationship between loyalty and switching among sport consumers is more complex than initially assumed. ...
... Similarly, Moreno et al. (2015) reported that spectators' satisfaction and perceived value were strong predictors of behavioral loyalty. Although limited research has examined the relationship between behavioral loyalty and switching intention among sport consumers, insights from studies involving restaurant and banking service consumers (Jung and Yoon, 2012;Mosavi et al., 2018) can illuminate this connection. In the context of the current study, we posit that sport consumers' behavioral loyalty to an alternative team serves as a predictor of their switching intention to that team. ...
... For example, in a study of airline customers, push factors such as service quality, satisfaction, and perceived price were found to be important predictors of their intention to change airline service providers (Jung et al., 2017). Although research has not yet examined the role of behavioral loyalty in the relationship between push factors and switching intention, existing evidence suggests that behavioral loyalty to an alternative service can contribute to switching intention, depending on the quality, customers' satisfaction, and perceived value with the current service provider (Jung and Yoon, 2012;Mosavi et al., 2018). In the context of professional sport, if customers perceive their current favorite team to be of higher quality, are satisfied with their favorite team, and perceive the ticket price to be fair, they are less likely to be loyal to an alternative team and unlikely to switch. ...
Purpose
Drawing upon a push-pull-mooring model and the literature on behavioral loyalty, this research aims to examine the underlying factors and mechanisms that influence switching intention in the context of professional sport in Japan.
Design/methodology/approach
Using a two-wave survey design (pregame and postgame surveys), we collected data from 367 fans of a professional soccer team in Japan. Our data included three push factors (quality, satisfaction, and perceived value of the current favorite team), a pull factor (alternative team attractiveness), a mooring factor (team identification), and behavioral loyalty and switching intention to the alternative team. We used structural equation modeling to test our hypotheses.
Findings
A mediation analysis revealed that perceived value of an individual’s current favorite team was negatively associated with behavioral loyalty to an alternative team, whereas attractiveness of the alternative team was positively associated with behavioral loyalty, which, in turn, resulted in fans’ switching intention. Latent moderated structural equation modeling further revealed the negative moderating effect of team identification with the current team on the relationship between behavioral loyalty and switching intention.
Originality/value
The findings provide new evidence about the role of behavioral loyalty in understanding sport consumers’ switching intention and highlight the importance of team identification that can foster a sustainable and long-term relationship between fans and their favorite sport teams.
... Some consumers are more eager to experience different products, services, and brands and to seek variety in their consumption [15][16][17]. They tend to be less loyal to certain brands even if they find the brand satisfactory and trustworthy [15,18]. In the common purchasing context, consumer's variety seeking weakens the effect of consumer satisfaction, perceived value, and brand trust on brand switching intention [19,20]. ...
... Interestingly, not only those who are unsatisfied will switch brands but also those who are satisfied, especially for hedonic products [18,45]. This may be even more true in the context of sharing apparel. ...
... They are eager to try new brands even though the current brand is trustworthy. Even if they have switched to other brands, it does not necessarily mean that they are not satisfied; instead, they may keep spreading positive word about the current brand and repurchase it later [18,49]. Therefore, we argue that variety seeking weakens the negative relationship between brand trust and brand switching intention and weakens the mediating effect of brand trust. ...
Previous studies have found that consumer satisfaction is negatively associated with brand switching intention in the common purchasing context; is this still true in the context of sharing apparel? This study aims to investigate the effect of consumer satisfaction on the brand switching intention of sharing apparel and to reveal the mechanism by exploring the mediating effects of brand trust and platform trust, integrating the moderating effect of variety seeking. Data were acquired from 346 consumers of sharing apparel through an online questionnaire survey. Hypotheses were tested in a moderated mediation model, with the bootstrapping method using the PROCESS program in SPSS. The empirical results demonstrated that the overall impact of consumer satisfaction on brand switching intention was not significant, while the mediating effect of brand trust was significantly negative, and the mediating effect of platform trust was significantly positive. The moderating effect of variety seeking on the relationship between brand trust and brand switching intention was not significant, while the positive effect of platform trust on brand switching intention was stronger at higher levels of variety seeking. In addition, the mediating effect of platform trust on the relationship between consumer satisfaction and brand switching intention was also stronger at higher levels of variety seeking. Therefore, there are dual effects of consumer satisfaction on brand switching intention of sharing apparel through the different mediating effects of brand trust and platform trust. Based on these findings, we recommend that sharing apparel platforms could enlarge their return by fostering emerging brands or private brands, while premium brands should be cautious about fostering potential competitors when cooperating with sharing platforms.
... A study by Calvo-Porral (2015) stated that customer satisfaction was negatively connected to brand switching intention. Regarding switching intention behaviour, previous research shows that various factors significantly influence consumer switching intention, such as customer satisfaction and loyalty (Jung & Yoon, 2012). Calvo-Porral (2015), Jung and Yoon (2012), and Nikhashemi et al. (2017) all reached contradictory findings of brand switching. ...
... Regarding switching intention behaviour, previous research shows that various factors significantly influence consumer switching intention, such as customer satisfaction and loyalty (Jung & Yoon, 2012). Calvo-Porral (2015), Jung and Yoon (2012), and Nikhashemi et al. (2017) all reached contradictory findings of brand switching. To date, there has not been any research on the direct and indirect effects of perceived product quality, brand personality, and loyalty on switching intentions. ...
... When customers establish this degree of commitment to the brand, they will be less likely to move to competitor products and thus will show reduced switching behaviours (Bowen & Chen McCain, 2015). The research of Jung and Yoon (2012) stated that loyalty reduces switching intention. Therefore: ...
Research Aims: Laptops are essential in people’s everyday lives. Since laptop utilization has been very high during the COVID-19 pandemic because of the restrictions imposed by the pandemic, many laptop manufacturers have made efforts to drive consumers to switch to their laptop brands. The main objective of this research is to examine how perceived product quality, brand personality, and loyalty affect brand switching intention.
Design/methodology/approach: The data were collected online from 216 consumers. Structural Equation Modelling (SEM) was employed to analyse the data.
Research Findings: The result demonstrates that perceived product quality, brand personality, and loyalty have both direct and indirect negative effects on consumers’ switching intention. It is revealed that variables play a pivotal role in consumers’ evaluation of laptop products and their subsequent switching intention.
Theoretical Contribution/Originality: There is currently a dearth of studies testing the impact of brand personality dimensions on consumer brand identification, perceived product quality, loyalty, and switching intention. Our findings provide more insight into switching intention as a means to achieve a competitive edge in global laptop shipments during the Covid-19 pandemic.
Managerial Implications in the South East Asian context: This study can serve as a comprehensive guideline for businesses to position their brands successfully to reduce any consumer switching intentions affecting their products. However, consumers’ perspectives on brand personality with a laptop product affect their critical evaluations. Global laptop manufacturers should leverage brand personality to engender positive consumer evaluation and reduce switching intention.
Research Limitations & Implications: Other factors beyond the scope of the research, such as brand-related factors, have many different inherent attributes (e.g., specifications, functions, designs, prices, and advancements) whose influence on switching intention needs to be considered in future research.
... Seminal work in consumer psychology unveils that some customers exhibit variety-seeking behavior, which drives them to switch from one brand to another regardless of their level of satisfaction (Jung & Yoon, 2012;Sang et al., 2018). Regardless of the reasons for customers switching intention, the undeniable truth is that service organizations cannot survive unless measures have been taken to combat any reasons for switching behavior (Nagengast et al., 2014). ...
... The instrumental brand relationship is attributed to characteristics that cannot stimulate customers to uphold a relationship with the brand for a long period. Thus, the fact that a good number of satisfied customers tend to switch implies that satisfaction, as the outcome of the instrumental brand relationship, is no longer powerful to enhance to dictate customers switching barriers towards intention to stay (Jung & Yoon, 2012). ...
... Chuah et al. (2017); Evanschitzky et al. (2021) suggest that, given the importance of customer retention, evidence that even satisfied customers tend to switch put marketers in confronted environments in practices that require special scholarly attention. Theoretically, switching intention among satisfied customers could suggest that customer retention is no longer determined by conventional approaches, particularly customer satisfaction (Jung & Yoon, 2012;Sang et al., 2018). It implies that service organizations should seek alternative ways of enhancing customer retention instead of relying only on customer satisfaction (Liu et al., 2011). ...
Recently, business organizations have been including customers’ switching barriers as part of their strategic plans for retaining customers. For decades, customer switching barriers have been the most important business strategy developed by achieving customer satisfaction. However, evidence from consumer psychology indicate that the majority of satisfied customers switch, and many dissatisfied customers do not switch, implying that satisfaction and dissatisfaction alone cannot fix the problem of customers switching behavior. Therefore, the study developed and tested a model that proposes a relational-based mechanism, i.e., brand love, as the determinant factor in circumventing customers’ switching behavior. Data were collected from 401 customers of five telephony companies in the telecommunication industry in Tanzania, using a cross-sectional survey and analyzed using Structural Equation Modeling (SEM). The findings show that the dimensions of brand love suggested by Sternberg’s triangular theory of love significantly energize customers’ switching barriers. Therefore, service organizations should invest in developing a loving relationship with their customers to reduce the intention to switch
... A study by Calvo-Porral (2015) stated that customer satisfaction was negatively connected to brand switching intention. Regarding switching intention behaviour, previous research shows that various factors significantly influence consumer switching intention, such as customer satisfaction and loyalty (Jung & Yoon, 2012). Calvo-Porral (2015), Jung and Yoon (2012), and Nikhashemi et al. (2017) all reached contradictory findings of brand switching. ...
... Regarding switching intention behaviour, previous research shows that various factors significantly influence consumer switching intention, such as customer satisfaction and loyalty (Jung & Yoon, 2012). Calvo-Porral (2015), Jung and Yoon (2012), and Nikhashemi et al. (2017) all reached contradictory findings of brand switching. To date, there has not been any research on the direct and indirect effects of perceived product quality, brand personality, and loyalty on switching intentions. ...
... When customers establish this degree of commitment to the brand, they will be less likely to move to competitor products and thus will show reduced switching behaviours (Bowen & Chen McCain, 2015). The research of Jung and Yoon (2012) stated that loyalty reduces switching intention. Therefore: ...
Research Aims: Laptops are essential in people's everyday lives. Since laptop utilization has been very high during the COVID-19 pandemic because of the restrictions imposed by the pandemic, many laptop manufacturers have made efforts to drive consumers to switch to their laptop brands. The main objective of this research is to examine how perceived product quality, brand personality, and loyalty affect brand switching intention. Design/methodology/approach: The data were collected online from 216 consumers. Structural Equation Modelling (SEM) was employed to analyze the data. Research Findings: The result demonstrates that perceived product quality, brand personality, and loyalty have both direct and indirect negative effects on consumers' switching intention. It is revealed that variables play a pivotal role in consumers' evaluation of laptop products and their subsequent switching intention. Theoretical Contribution/Originality: There is currently a dearth of studies testing the impact of brand personality dimensions on consumer-brand identification, perceived product quality, loyalty, and switching intention. Our findings provide more insight into switching intention as a means to achieve a competitive edge in global laptop shipments during the Covid-19 pandemic. Managerial Implications in the South East Asian context: This study can serve as a comprehensive guideline for businesses to position their brands successfully to reduce any consumer switching intentions affecting their products. However, consumers' perspectives on brand personality with a laptop product affect their critical evaluations. Global laptop manufacturers should leverage brand personality to engender positive consumer evaluation and reduce switching intention. Research Limitations & Implications: Other factors beyond the scope of the research, such as brand-related factors, have many different inherent attributes (e.g., specifications, functions, designs, prices, and advancements) whose influence on switching intention needs to be considered in future research.
... Many studies have identified determinants of switching behaviors (Antón et al., 2007;Han and Hyun, 2013;Jung and Yoon, 2012), including dissatisfaction, prices, inconvenience, core service failures, service encounter failures, responses to service failures, competition, ethical problems, and involuntary switching. Dissatisfaction with service failures has traditionally been regarded as the most critical factor influencing the decision to switch providers (Ganesh et al., 2000;Liu and Jang, 2009;Oliver, 1993). ...
... Factors that inhibit switching intentions include service quality and performance (e.g., core service and service encounters), satisfaction, and barriers to switching (e.g., switching costs, relational investment, and lack of attractive alternatives) (Colgate and Lang, 2001). On the other hand, dissatisfaction with a service failure encounter, price, inconvenience, competition, ethical problems, and involuntary switching promote switching intentions (Antón et al., 2007;Jung and Yoon, 2012). ...
... Existing literature has made very useful contributions concerning the factors influencing staying behaviour and has identified several relational constructs, such as trust (van Esterik-Plasmeijer and van Raaij, 2017), satisfaction (Fornell, 1992;Taylor and Baker, 1994;Bansal and Taylor, 1999;Veloutsou et al., 2004), commitment (Hansen and Hem, 2004;Jones et al., 2010;Bansal and Taylor, 1999), attitudinal loyalty (Jung and Yoon, 2012;Calvo-Porral and Lévy-Mangin, 2012) and behavioural loyalty (Bansal and Taylor, 1999;Dabholkar and Walls, 1999), as drivers of staying behaviour. However, to the best of the researchers' knowledge, no previous research in Cyprus managed to demonstrate why customers choose to stay with their current retail banking provider. ...
... Mitra and Lynch (1995) connected attitudinal loyalty with a strong preference for a particular service provider. Several studies have found that customers with attitudinal loyalty are more likely to remain with a service provider (e.g., Jung and Yoon, 2012;Calvo-Porral and Lévy-Mangin, 2012). The attitudinal bond that comes with this type of loyalty binds customers to their bank. ...
The research goal of this article is to identify the risks in Bulgarian chemical industry that most need to be managed according to the chosen innovation management approach. The authors have set the following tasks: to make critical literature review about innovation management approaches and risk management in innovation activities; to conduct own empirical study using questionnaire for expert assessments and to systematise and analyse the results from the survey by using average scoring, grouping, structuring the results. The main results are: the main types of innovations produced and the two most used innovation management approaches in Bulgarian chemical companies; detailed assessment of likelihood and impact of innovation risks; relationship between innovation management approaches and risks and identifying a list of risks that most need to be managed in accordance with the chosen innovation management approach. Finally, the paper presents a proposal for risk response according to innovation management approach.
... Bekar ve Gövce, (2019) çalışmasında; çeşitlilik arama niyetinin genellikle hedonik tüketim ile ilgili bir durum olduğunu (Ratner vd., 1999) ve bu yüzden de hem gastronomi turizmi (Shenoy, 2005) hem de restoran seçiminde etkili bir faktör (Ha & Jang, 2013;Lenglet & Giannelloni, 2016) olduğunu ifade etmektedir. Dolayısıyla, yiyecekte çeşitlilik arayışıyla ilgili hedonik çalışmaların yanı sıra, restoran seçimine etkisiyle ilgili bazı çalışmalar da (Ha, 2011;Jung & Yoon, 2012;Ha & Jang, 2013ve Bekar & Gövce, 2019 bulunmaktadır. ...
... Yiyecekte çeşitlilik arama ile ilgili alanyazında; yiyecek tutumu (Hoyer & Ringway, 1984;Van Trijp & Steenkamp, 1992;Menon & Kahn, 1995;Lähteenmäki & Van Trijp, 1995;Baumgartner, 1998 Ha, 2011;Jung & Yoon, 2012;Kwun, Hwang & Kim, 2013;Ha & Jang, 2013;Ha & Jang, 2015;Martinez, 2015;Bekar & Gövce, 2019), konularıyla ilgili araştırılan çalışmaların varlığı tespit edilmiştir. Bununla birlikte; yiyecekle ilgili kişilik özellikleri kısmında yiyecekle ilgili kişilik özellikleriyle ilgili belirtilen çalışmaların içerisinde yiyecekte çeşitlilik arayışı kavramıyla alakalı araştırmalar da mevcuttur. ...
YİYECEKTE ÇEŞİTLİLİK
ARAMAYA YÖNELİK KAVRAMSAL
BİR İNCELEME
... Jika konsumen merasa puas terhadap sebuah produk, maka ia akan melakukan pembelian ulang, bahkan mempromosikan produk tersebut kepada orang lain atau calon konsumen berdasarkan pengalaman dalam menggunakan produk tersebut (Diza dkk., 2016). Penelitian Jung & Yoon (2012), Sari (2020), serta Rivai & Zulfitri (2021) menunjukkan adanya pengaruh positif dari kualitas sebuah produk pada keputusan pembelian dengan kepuasan konsumen sebagai variabel mediasi. ...
... Penelitian terdahulu dari Chiou & Shen (2006), Kautsar dkk. (2012), serta Jung & Yoon (2012) mendukung hasil penelitian ini bahwa adanya pengaruh positif dari kepuasan konsumen terhadap keputusan pembelian. ...
The study aims to determine whether customer satisfaction mediates the relationship between product quality and purchasing decisions (Study on Economics Faculty Students And Business Ekstansion Class in the YARSI University). The sampling technique of this study used the non-probability sampling method, which is the purposive sampling technique through distributing questionnaires to 100 respondents. The data analysis method was conducted in several statistical testing: the research instrument test (validity and reliability testing), descriptive analysis, classical assumption test, path analysis, and single test. The result of this study shows that: (1) product quality has a positive effect on purchasing decisions, (2) product quality has a positive effect on customer satisfaction, (3) customer satisfaction has a positive effect on purchasing decisions, (4) customer satisfaction mediates the effect of product quality on purchasing decisions.
... Yiyecekte çeşitlilik arama ile ilgili alanyazında; yiyecek tutumu (Hoyer & Ringway, 1984;Van Trijp & Steenkamp, 1992;Menon & Kahn, 1995;Lähteenmäki & Van Trijp, 1995;Baumgartner, 1998 Ha, 2011;Jung & Yoon, 2012;Kwun, Hwang & Kim, 2013;Ha & Jang, 2013;Ha & Jang, 2015;Martinez, 2015;Bekar & Gövce, 2019), konularıyla ilgili araştırılan çalışmaların varlığı tespit edilmiştir. Bununla birlikte; yiyecekle ilgili kişilik özellikleri kısmında yiyecekle ilgili kişilik özellikleriyle ilgili belirtilen çalışmaların içerisinde yiyecekte çeşitlilik arayışı kavramıyla alakalı araştırmalar da mevcuttur. ...
... hem de restoran seçiminde etkili bir faktör(Ha & Jang, 2013; Lenglet & Giannelloni, 2016) olduğunu ifade etmektedir. Dolayısıyla, yiyecekte çeşitlilik arayışıyla ilgili hedonik çalışmaların yanı sıra, restoran seçimine etkisiyle ilgili bazı çalışmalar da(Ha, 2011;Jung & Yoon, 2012;Ha & Jang, 2013 ve Bekar & Gövce, 2019 bulunmaktadır. ...
... Yiyecekte çeşitlilik arama ile ilgili alanyazında; yiyecek tutumu (Hoyer & Ringway, 1984;Van Trijp & Steenkamp, 1992;Menon & Kahn, 1995;Lähteenmäki & Van Trijp, 1995;Baumgartner, 1998 Ha, 2011;Jung & Yoon, 2012;Kwun, Hwang & Kim, 2013;Ha & Jang, 2013;Ha & Jang, 2015;Martinez, 2015;Bekar & Gövce, 2019), konularıyla ilgili araştırılan çalışmaların varlığı tespit edilmiştir. Bununla birlikte; yiyecekle ilgili kişilik özellikleri kısmında yiyecekle ilgili kişilik özellikleriyle ilgili belirtilen çalışmaların içerisinde yiyecekte çeşitlilik arayışı kavramıyla alakalı araştırmalar da mevcuttur. ...
... hem de restoran seçiminde etkili bir faktör(Ha & Jang, 2013; Lenglet & Giannelloni, 2016) olduğunu ifade etmektedir. Dolayısıyla, yiyecekte çeşitlilik arayışıyla ilgili hedonik çalışmaların yanı sıra, restoran seçimine etkisiyle ilgili bazı çalışmalar da(Ha, 2011;Jung & Yoon, 2012;Ha & Jang, 2013 ve Bekar & Gövce, 2019 bulunmaktadır. ...
... Guido (2015) mendefinisikan kepuasan pelanggan sebagai status psikologis setelah proses pembelian yang mewakili evaluasi pengalaman penggunaan suatu produk/layanan. Jung & Yoon (2012) menyatakan bahwa kepuasan adalah target yang dinamis dan bergerak dan terus berkembang dari waktu ke waktu yang dipengaruhi oleh banyak faktor. Lovelock & Writz (2007: 86-87) menyatakan kepuasan akan sangat bervariasi tergantung pada titik dimana dalam siklus penggunaan atau pengalaman menjadi fokus. ...
One type of competence that is crucial that must be managed by the banking industry is service. Future challenges will be increasingly severe and increasingly rapid technological advances require the banking sector to provide the best services in order to be able to compete in an increasingly tight business environment. The purpose of this study is to explore the factors that influence customer satisfaction in the banking industry in Indonesia. This research focuses on evaluating service quality, customer loyalty and security in improving customer satisfaction. This research is an empirical research built with primary data by distributing a questionnaire survey and getting 204 bank customers involved in the research. Furthermore, the data was processed using the SPSS program version 25 through validity and reliability testing. The findings showed that all variables studied affected customer satisfaction in the banking sector in Central Java. This research produced findings that show there is a positive and significant influence between service quality and customer loyalty to customer satisfaction; The findings also showed a negative correlation between security and customer satisfaction. The findings in this study provide additional new insights into studies related to service quality assessment in the banking sector in Central Java and Indonesia.
... Accordingly, this study addresses a significant gap in the research, particularly insofar as it explores the impact of each dimension of motivation on the process of cocreation experience value in museum spaces. Moreover, in line with the extant literature, this study confirms the important role of participation and interaction in the process of experiencing value (Anto´n et al., 2018a;Bilgihan et al., 2015;Jung & Yoon, 2012;Vega-Vazquez et al., 2013), and verifies the mediating effect of participation and interaction in the relationship between motivation and experience value. This study also confirms the importance of visitors' knowledge and the moderating role of visitor knowledge in the relationship between motivation and experience value (Anto´n et al., 2018a;Mourali et al., 2005;Teichmann, 2011). ...
Marketing and tourism research emphasizes the importance of the co-creation of experience value in creating and maintaining sites of cultural consumption. However, the role of visitor motivation has been relatively overlooked, as have the dynamics of this process in museum space. Addressing these gaps, this study examines the co-creation of museum experience value from the perspective of visitor motivation in seven museums in Chengdu, China. The survey was used to collect 549 valid samples. Using survey questionnaire data and regression and structural equation analysis, this study reveals the significant relationship between visitor motivation, participation, interaction, and experience value in the co-creation of museum experience value. More specifically, participation and interaction play a mediating role in the relationship between visitor motivation and experience value, while visitor knowledge plays a moderating role in the relationship between visitor motivation and experience value. Expanding the literature on experience value co-creation by museum visitors, the results of this study have important implications for museum management.
... The higher the Purchase Decision level of airplane tickets at the discounted price, the higher the satisfaction given by the customer to the company. The results of this study are supported by the results of research from Muiszudin and Sista (2016), Kautsar et al., (2012) and Jung & Yoon (2012), that there is a positive influence of consumer satisfaction on purchase decisions. ...
The aim of this study is to investigate the influence of Product Quality and Brand Image on the Purchase Decision of houses in Bali Surya Residence real estate, mediated by Customer Satisfaction. This study is an associative type of research to determine the relationship between two or more variables. The variables used are exogenous variables, mediating variables, and endogenous variables. This study uses probability sampling method and simple random sampling technique, with 140 respondents who have purchased a house in Bali Surya Residence as the sample. Validity and reliability tests are conducted to ensure the instrument's quality. Four data analysis methods are used, including descriptive statistical analysis, inferential statistical analysis in the form of Partial Least Square (PLS), hypothesis testing with resampling bootstrapping method, and testing of mediating variables in SEM-PLS mediation model. Purchase Decision is a sequence of related processes in satisfying consumers' desires and needs. Product Quality is an important factor that influences consumers' decision in purchasing a product. Brand Image is a set of memories that consumers have about a brand. The results indicate that Customer Satisfaction partially mediates the influence of Product Quality and Brand Image on Purchase Decision, indicating that Product Quality and Brand Image, accompanied by satisfaction, will affect customers' Purchase Decision in a product.
... Numerous studies about customers' switching have examined the factors of customer switching in the power market [19], telecommunication industry [20], retail bank [21], restaurant [22], and online takeout service [23] by empirically analyzing general survey data. Taking banking services in China as an example, Lu et al. claimed that elements such as motivators and the inhabit that influence consumers' propensity to switch their usage [24]. ...
Customers are either eager or obliged to switch from a physical consultation firm to an online consultation platform. Considering customers' switching behavior and competition effect on bilateral users, the paper developed a three-echelon Stackelberg game framework where two consultation companies decide bilateral "pricing" (the service price and the wage), and the servicer decides service investment. In four scenarios combining two salary strategies (Employment or Sharing strategy) and two game sequences (firm as leader or follower), stakeholders' optimal decision-making and revenue were proved. We then theoretically analyzed the influence of some parameters on the equilibrium status and the gap between them and numerically simulated the joint effect of switching rate and parameters on the equilibrium revenue of stakeholders. It is deduced that in the consultation service market: (a) there is equilibrium status in all four scenarios when the switching rate, the servicer's sensitivity to current revenue, and the service cost coefficient on the firm satisfy certain conditions; (b) the servicer's potential market and the service investment cost coefficients negatively affect the optimal fixed wage set by the two companies and the servicer's revenue; (c) two consultation companies can achieve greater revenue when both adopt Sharing strategy; (d) servicer with higher perceived service cost are incented to devote more to servicing when both employ Employment strategy.
... The findings showed that variety-seeking positively and directly affected consumers' decisions (Chen & Lobo, 2012). In addition, Jung and Yoon (2012) found that consumers with a high variety-seeking orientation tend to look for new stimuli, and they are ready to switch providers even if there were not facing any issues with it. However, the concept of variety-seeking is still scarce in green products (Wu et al., 2017). ...
This paper examined the roles of consumption values in the green automotive industry. Unlike previous studies, this paper added resale price, variety-seeking, and fuel prices as the new dimensions of Sheth’s theory of con�sumption values. Also, this paper is one of the few studies that introduced the impact of green self-dentity and self-expressive benefits in Malaysian society. All variables were measured using a 7-point Likert-scale. Three hundred and sixty-eight questionnaires were collected from the respondents in Malaysia. Partial least squares structural equation modelling (SmartPLS) was applied. Five hypotheses were tested by assessing the measure�ment and structural models. From the results, conditional value is the most significant predictor of Malaysian consumers’ attitudes toward green cars, followed by functional and epistemic values. However, the symbolic value did not show a significant effect on consumers’ attitudes toward green cars. The implications, limitations, and future research directions were also included.
... Protecting the existing customer pool and maintaining a customer loyalty level appears to be a very vital competitive advantage and a major component for a brand long term survival in the market (Burnham et al., 2003). Retaining the existing customer pool presents a great challenge because it not only fosters organisations customer loyalty but also protects organisation from getting influenced by the fluctuation in customer demands (Jung and Yoon, 2012). Customer loyalty is a key outcome of the relationship marketing which is associated with the factors such as customer expectations, service quality perceptions, and customer satisfaction (Ryan and Ployhart, 2003) Hotel industry in U.K. has presence of all major brands such as Hilton, Carlson group, Ritz hotels, Starwood hotels etc. and with the upcoming London Olympic games 2012 and Commonwealth games, (2014), these groups are going to introduce more hotel rooms within U.K. It will make the market hugely competitive. ...
In this globalised and intensely competitive world, it is very necessary to retain existing customers. Thus customer loyalty has become need of the hotel organisations. But to gain customer loyalty, it is necessary for the organisations to know about the factors which are influencing customer loyalty. So, the aim of this research is to explore the factors which influence customer loyalty and to analyse the performance of the budget and luxury U.K. hotels in those factors. To achieve the aim of the research, first those factors were being explored by using existing literature. The factors which are influencing customer loyalty are customer service, hotel cleanliness, room quality, value for money, food quality and family friendliness. To analyse the performance of the hotels in terms of these factors quantitative method was being used. Data for primary research was collected from laterooms.com. Ramanathan and Ramanathan, (2011) is being used as framework for the research. Results are being presented by using graphs. After carefully analysing data, customer service, hotel cleanliness and room quality are found the major influencing factors.
... Mehrabian and Russell (1974)] and three items measure cognitive evaluations of service quality. Items in block 3 relate to "on-board dining behaviour" and "overall dinescape satisfaction" measuring passengers' dining behaviour in terms of variety seeking and loyalty and overall cruise ship dinescape satisfaction [seven scale items by Jung and Yoon (2012) and Ha and Jang (2013)]. Passengers can choose between a wide range of restaurants being an indication of variety seeking behaviour. ...
Purpose–This study examines how cruise ship dinescapes, as a specific type of organized and staged service environment, influence customers’ attitudes, on-board behaviour, satisfaction and behavioural intentions.
Design/method/approach–Data was collected using a cross-sectional survey from 552 passengers on-board one of the big cruise ships with a Caribbean itinerary.
Findings–Cruise ship dinescape, as an on-board food experience platform, is built on three dimensions: restaurant atmospherics, interactions with other guests and restaurant staff. The findings show how these dimensions influence passengers’ emotional experiences and quality perceptions. The results also show how travellers’ cruise ship dinescape satisfaction affect their overall vacation satisfaction and future travel behaviour.
Practical implications–The findings imply that cruise companies should pay extra attention to organised food service environments like dinescapes staged for passengers. Through these scapes cruise companies may provide favourable platforms enabling dining satisfaction, but also social interaction and co-creation of memorable experiences.
Originality–This study builds a comprehensive model in cruise ship context, which links dinescape experiences to overall cruise ship dining experiences and dining behaviour mediated by emotional and perceived quality outcomes with further consequences.
Keywords: atmospherics, cruise ship, customer satisfaction, dinescape, foodscape
... Furthermore, according to Jung and Yoon (2012) and Mosavi et al. (2018), the customers' perceived value significantly impacts their brand switching intentions. As noted earlier, the higher the consumers' perceived value, the higher would be their likelihood to switch (Merli et al., 2019;Mosavi et al., 2018). ...
The modern generation is almost addicted to social media. Businesses including Ecotel aim to harness this medium to promote green practices and gain travellers’ patronage. However, limited studies have focused on the role of social media communications in inspiring travellers to choose an Ecotel thus far. To address this gap in the extant literature, we examine the effect of social media communications on travellers’ perceived value and online community engagement, resulting in the travellers’ brand switching intentions. We also examine the mediating role played by perceived value and online community engagement. The results disclose the increasing role of social media communications, online community engagement, and perceived value in shaping travellers’ green choices.
... Three items measure emotions [pleasure-arousal scale by Mehrabian and Russell (1974)] and three items measure cognitive evaluations of service quality. Items in block 3 relate to "on-board dining behaviour" and "overall dinescape satisfaction" measuring passengers' dining behaviour in terms of variety seeking and loyalty and overall cruise ship dinescape satisfaction [seven scale items by Jung and Yoon (2012) and Ha and Jang (2013)]. Passengers can choose between a wide range of restaurants being an indication of variety seeking behaviour. ...
Purpose
This study aims to examine how cruise ship dinescapes, as a specific type of organized and staged service environment, influence customers’ attitudes, on-board behaviour, satisfaction and behavioural intentions.
Design/methodology/approach
Data was collected using a cross-sectional survey from 552 passengers on-board one of the big cruise ships with a Caribbean itinerary.
Findings
Cruise ship dinescape, as an on-board food experience platform, is built on three dimensions: restaurant atmospherics, interactions with other guests and restaurant staff. The findings show how these dimensions influence passengers’ emotional experiences and quality perceptions. The results also show how travellers’ cruise ship dinescape satisfaction affect their overall vacation satisfaction and future travel behaviour.
Practical implications
The findings imply that cruise companies should pay extra attention to organised food service environments like dinescapes staged for passengers. Through these scapes cruise companies may provide favourable platforms enabling dining satisfaction, but also social interaction and co-creation of memorable experiences.
Originality/value
This study builds a comprehensive model in cruise ship context, which links dinescape experiences to overall cruise ship dining experiences and dining behaviour mediated by emotional and perceived quality outcomes with further consequences.
... Han et al. (2011) found that the switching relationship between satisfaction and a user's switching behaviour were moderated by switching cost. Also, customer loyalty and switching intention was demonstrated to be moderated by orientation towards variety-seeking (Jung and Yoon, 2012). Moreover, in a study on cloud healthcare service, mooring effects, which consist of low privacy and security, switching cost, low trust, and government support, moderate the relationship between the pull, push effects and switching intention. ...
... As per Yoon & Jung (2012), customer satisfaction is one of the most important antecedent factors that leads to loyalty. Research on this topic suggests it is easier for a restaurant to generate sales from repeat customers than it is to attract new ones. ...
... Most researchers such as ( Van Trijp et al., 1996) argue that consumers show higher variety-seeking with low-involvement product categories. Jung and Yoon (2012) reported that consumers in high-involvement purchase situations (in comparison with lowinvolvement purchase situations) showed a stronger relationship between satisfaction, loyalty, and switching intention. Trijp et al. (1996) explained that in highinvolvement situations, the role of extrinsic motivations is more prominent than intrinsic ones such as variety-seeking. ...
This study explores the impact of consumers’ impulsiveness and variety-seeking traits on self-brand and communal-brand connection with high- vs. low-involvement products. This study’s experiment employed a between-subjects design with two randomized blocks of high- and low-involvement product categories. Within each block, the relationship between the independent variables (i.e. impulsiveness and variety-seeking) and the dependent variables (i.e. self-brand connection, communal-brand connection, and purchase intention) were analyzed using SmartPLS. Results show that impulsiveness has a positive impact on self-brand connection and communal-brand connection with high-involvement and low-involvement products. Variety-seeking only positively impacts self-brand connection and communal-brand connection with low-involvement products.
... In the field of hotels, to investigate the determinants of hotel customers' switching intentions, Sun [27] composed push factors with firm characteristics, perceived risks, etc., and composed mooring factors with individual characteristics to conduct the study. In studies in the field of food service [28][29][30], perceived quality, satisfaction, satiation, and loyalty were used as push factors, while personality, variety seeking, and purchasing decision involvement were used as mooring factors. Meanwhile, in the field of online services, Chih, Wang, Hsu, and Cheng [31] composed push factors with weak connection and writing anxiety, pull factors with enjoyment, relative usefulness, and relative ease of use, and mooring factors with switching costs and past experience to conduct the study. ...
This study aimed to derive tourism motives and constraint factors that have changed or are newly applicable after COVID-19, and to identify the influencing relationships between these factors and complex aspects of tourism behavior intentions. For this purpose, the Push-Pull-Mooring model was used. To achieve the purpose of this study, prior literature and empirical studies were used to derive the primary measurement items through the primarily derived PPM model-based factors, and an online questionnaire survey was conducted with consumers who had had experience of overseas travel within the past two years. In total, 322 copies of the questionnaire were used for analysis. Through factor analyses, five push factors, four pull factors, and four mooring factors were derived. To understand tourism behavior intentions, each of the travel resumption times, preferred destination types, and preferred accommodation types were divided into three to conduct multinomial logistic regression analysis. The influence relationships between variables were verified to identify the changes in tourism behavior intentions caused by COVID-19, and the results indicated that some items of the PPM factors had significant influencing relationships with travel resumption times and preferred accommodation types. The preferred destination types were found to have significant influencing relationships with some items of the push/pull factors that were not found to have any influencing relationships with the mooring factors. This study is meaningful in that it presented motives and constraint factors for tourism behaviors from a new perspective based on changes in the tourism environment due to COVID-19, and the application of the PPM model and travel behavior is expected to be applied to diverse tourist behavior studies hereafter to achieve theoretical extensions.
... For example, hospitality customers will evaluate the environmental-friendly context based on their experience and satisfaction. Jung and Yoon (2012) proposed that the variation needs have moderated the effect of satisfaction on switching intentions. Conversely, Setiyaningrum (2006) claimed that the variation needs do not moderate the effect of satisfaction on switching intentions when applied to different services. ...
In the context of climate change, this study uncovers the role of green airlines’ social responsibility in conjunction with the consumers’ switching behavior while considering the effects of latent variables, including green psychology, airline corporate image, green experimental behavior, green service fairness, green alternative attractiveness and switching intention, were examined in the study. In a highly competitive service environment, an organization needs to understand how passengers perceive its corporate image, satisfaction, fairness attractiveness, and behavior of switching intention. The predicted relationship was based on partial least squares structural equation modeling of a convenience sample of 615 valid datasets collected from individuals who used green airline services in China. The findings show that the psychological benefit of greenness, only warm glow, is the main driver of airline corporate image. Furthermore, airline corporate image, green service fairness, and green alternative attractiveness support passengers’ green experiential satisfaction. The evidence demonstrates that green experiential satisfaction and green alternative attractiveness have significantly positive effects on switching intention. However, green service fairness has no significant effect on green switching intention. This study contributes to the literature by understanding airline customers’ perception of the complex relationship in the green constructs. This finding can help marketers facilitate and develop their external communication and craft their image to retain their existing or potential customers.
... The authors H. S. Jung and Yoon (2012) observed that customer's preference for variety had a significant impact on motivation. According to Bockholdt et al. (2020), fast fashion involves consumers buying trendy products and changing their wardrobes frequently. ...
Sustainable consumption practices help to reduce environmental impacts and fosters responsible consumers. Researchers have explored the positive drivers and negative barriers of fashion-conscious consumer (FCC) purchasing intention on fashion clothing. The study also examined the motives and outcomes of the phenomenon, such as rental landscape and frugality. Using the qualitative phenomenological method, researchers conducted 21 in-depth semi-structured interviews in India to tap into FCC's buying intention and experience. From the results of qualitative analysis, researchers identified “emotion” as a new parameter reflecting consumer passion and interpersonal relationships. Different themes emerged, such as selection of the style, attention-seeking, status value, cost factor (uncontrollable), and psychological value, which are the commonly identified motivators. Conceptual framework is developed
... Meanwhile, switching behavior refers to the consumer's actual act of replacing one service provider with another (Wu et al., 2018). Various reasons can provoke customers' switching behavior such as price inconvenience, low service quality, ethical concerns, and trust (Jung & Yoon, 2012;Park & Jang, 2014). ...
ARTICLE INFO Abstract Many hospitality enterprises nowadays seek to engage their customers in the process of value creation. This study investigated the concept of co-creation of the dining experience and its outcomes. It aimed to: (1) examine the direct effects of co-creation of dining experience on perceived personalization, brand love, customer satiation, and switching behavior, (2) test the direct effects of both perceived personalization and brand love on customer satiation and switching behavior, and (3) assess the mediation effects of both perceived personalization and brand love on the linkage between co-creation and customer satiation as well as between co-creation and switching behavior. A quantitative approach was adopted in this study using a questionnaire survey for primary data collection. The sample included a total of 615 domestic customers of restaurants in Egypt. Structural equation modeling using Smart-PLS 3.2 was performed to test the hypothesized conceptual model. The results revealed that the impact of dining experience co-creation on perceived personalization and brand love was positive, while it was negative on customer satiation and nonsignificant on switching behavior. The findings also confirmed the mediation effects of both perceived personalization and brand love. This study addresses a gap in the hospitality literature and provides some valuable managerial implications.
... Some studies have investigated the moderating role of VSB on the relationship between customer satisfaction and loyalty, reporting a significant influence of VSB on switching intent and loyalty (Jung & Yoon, 2012;Woratschek & Horbel, 2006). The recent study conducted by Udunuwara et al. (2019) exclusively on the VSB in the accommodation domain found the impact of VSB on generating repeat visitation and identified the significant impact of VSB on customer relationship management activities of hotels. ...
This study explores the hotel selection patterns of leisure travellers to understand their loyalty or variety seeking intentions and profile them through their key characteristics, factors that influence their hotel consumption patterns. While data were collected via focus groups, twenty-two participants were purposively sampled based on the criteria-Australian travellers who have been to the same international destination three times or more for leisure. Data analysis used the thematic approach, which commenced with coding by identifying themes. The findings reveal that leisure travellers do seek variety in their hotel selection. It also identified three types of international leisure travellers based on their hotel selection within the same destination. Firstly, the same location within the destination and the same hotel as previous visits. Secondly, the same location within the destination and a different hotel to previous visits and finally, different location within the destination and a different hotel (rather than sticking to a hotel chain).The findings of this study further enrich the understanding of loyalty and variety-seeking behaviour in the accommodation sector. This paper extends the concept of variety seeking behaviour to micro level consumption choices—hotel selection at a destination.
... It has examined the concept of variety seeking with regard to individuals' propensities or traits in switching destinations and service providers (Assaker and Hallak 2013;Ha and Jang 2013;S. S. Jang and Feng 2007;Jung and Yoon 2012;. However, research suggests that external factors, such as spatial constraints imposed by movement restrictions, crowding, or servicescape design elements, can also promote variety seeking as a means of seeking freedom (Levav and Zhu 2009). ...
This article investigates how the perceived threats caused by COVID-19 affect consumers’ travel choices and actions by influencing their intentions to seek variety. Four studies show that the perceived threat of COVID-19 increases variety seeking in travel choices. Study 1 finds that travelers who perceive a greater threat of COVID-19 tend to undertake more varied activities during their travel. Study 2 shows that the main effect exists only for individuals who have previously visited the destination. Study 3 replicates the moderating effect of previous visiting experience by using a different way to manipulate the perceived threat of COVID-19. Study 4 illustrates the moderating impact of another important factor: the number of travelers included in the companies’ communication messages. The article concludes by discussing the theoretical and managerial implications of the findings.
This paper systematically examines the literature review in the field of customer switching behavior. Based on the literature review, it can be concluded that customer switching behavior is a topic that has been widely researched, with a focus on various industries, particularly banking and telecommunications. Research trends in this area have shown a positive direction in recent years, and the amount of research being done in marketing and data science is relatively balanced. In marketing, correlational studies are predominant, with a focus on identifying relationships between customer satisfaction, price-related variables, attractiveness of alternatives, service failure, quality, and switching costs to switching behavior. The PPM model is also gaining popularity as an important development for switching behavior because it considers both push and pull factors. Data science research has shown promising results in predicting customer switching behavior, with each research paper achieving good predictive accuracy. However, research gaps spanning the fields of marketing and data science need to be addressed to provide a comprehensive understanding of the drivers of customer switching behavior. Overall, the literature review shows that customer switching behavior is an important concern for businesses, and further research in this area is essential to gain a better understanding of customer behavior and develop effective strategies to retain customers.
Purpose
This study draws on optimum stimulation theory and aims to examine the food variety-seeking behavior and its effect on local food attitudes and local restaurant patronage of digital nomads.
Design/methodology/approach
A moderated mediation model is used, using survey data from a multicultural sample of 249 digital nomads across three popular digital nomad hubs: Bali, Thailand and Mexico.
Findings
The study finds that digital nomads with stronger food variety-seeking tendencies are more inclined visit local restaurants through mediating role of local food attitudes. This mediating effect is moderated by nomadic experience and patronage of restaurants that offer popular international cuisines, with inexperienced nomads and those more reliant on international food options showing a greater likelihood of embracing local food and visiting local restaurants.
Research limitations/implications
This study extends food variety-seeking behavior literature and optimum stimulation theory by examining how digital nomads navigate food consumption in travel contexts. It highlights the heterogeneity in food variety seeking’s impact on local food attitudes and restaurant patronage, showing that nomadic experience and reliance on international food options shape these relationships.
Originality/value
This study contributes to the limited research on digital nomads’ food consumption behaviors and offers novel insights into how food variety-seeking tendencies shape their dining choices. It also provides practical guidance for local food businesses aiming to engage the fast-growing digital nomad market.
This research analyzes the direct and indirect effects of service quality, food quality, menu, and atmosphere on revisit intention, with customer satisfaction as a mediating variable. The object of the research is Flyover Coffee Shop, with a sample of 216 respondents selected using a convenience sampling technique, with the criteria of having visited more than once. The analysis used the Partial Least Squares (PLS) method with SmartPLS 3.0. The results show that service quality does not have a significant effect on customer satisfaction. Conversely, food quality, the menu, and the atmosphere have a positive and significant impact on customer satisfaction. Customer satisfaction, in turn, has a positive and significant effect on revisit intention. The implications of this research suggest that to increase revisit intention, Flyover Coffee Shop should focus on improving food quality, the menu, and the atmosphere to enhance customer satisfaction. Although service quality is important, it does not show a significant effect in this context, so service improvement strategies may need further consideration for a greater impact on customer satisfaction and loyalty.
Retail banks are able to generate profitable returns when they manage their customer base to identify, satisfy, acquire, and retain profitable customers. Whilst the switching of brands by consumers is a common feature in today’s highly competitive retail banking sector of Zimbabwe, however, it poses serious challenges to both banks and consumers. The development and maintenance of a long-term relationship with customers are essential for retail banks to boost their profits and thrive in a competitive banking landscape. The major problem facing the retail banking sector is the high switching behaviour of their customers, eroding shareholder value. The main purpose of the study was to understand consumers switching behaviours in the retail banking sector, yet most of these banks have similar offerings. The study used a cross-sectional research design to collect quantitative data from 376 consumers who were chosen using systematic sampling. Our findings show that consumers in the retail sector switch banks due to various factors, chiefly price, brand image, service quality, product availability, trust, and firm strategy. We recommend that banks optimize customer relationship strategies and quality service delivery to leverage customer brand equity. Our study contributes to literature on the banking sector that focuses on customer switching behaviour.
The use of halal products such as cosmetics is an obligation for Muslims, so switching to using halal cosmetics is also an obligation. This has contributed to the growth of halal market globally, and further attract more studies to be investigated on the issues related to halal product and halal market. Although investigating switching intention towards halal cosmetics among Muslim customer would expand the body of knowledge on halal products, the literature on this phenomenon is remain a gap. Therefore, this study has collected data from 447 respondents using questionnaire. The objective of this study is to investigate the antecedents of attitude towards halal cosmetics and the influence attitude towards halal cosmetics to switching intention. The antecedents that investigated in this study are Perceived Behavioral Control, Subjective Norm, Perceived Moral Obligation, Halal Label and Perceived Risk. This study found that Perceived Behavioral Control, Subjective Norm and Perceived Moral Obligation were significant antecedents of switching intention. The aspect of halal certification is a top priority as a antecedent of switching intention followed by perceived moral obligation and risk. The theoretical and managerial implications of this study are also discussed.
Purpose
The present research sought to analyze the effects of customer delight on both internal and external financial structures of publicly traded, service firms.
Design/methodology/approach
Primary (i.e. survey) and secondary (i.e. financial records) data sources were gathered. A total of 685 participants responded to one questionnaire focusing on hotels and another one focused on restaurants, both of which measured levels of customer delight and satisfaction. Financial data were gathered from Center for Research in Security Prices, CRSP/COMPUSTAT.
Findings
Results of MANOVA revealed that there was a significant difference in the net profit margin (NPM) based on customer delight. Canonical correlation results exposed a significant correlation between satisfaction and delight combined and the financial performance measures (net profit margin, cash flow margin, return on assets and b-beta) combined.
Practical implications
By delighting their customers, managers will achieve higher profit margins. However, these are not likely to result in improved cash flow margin or return on assets. The effects of COVID-19 can alter yearly returns; thus, longitudinal research is needed to continue testing for the effects on delight on financial performance.
Originality/value
The relationship between delight and financial measures had not been previously determined (notwithstanding a few studies using substitute measures for financial performance). The present study uses actual data from the financial filings to empirically test their relationship to customer delight.
This study aims to develop a framework for determining the underpinning factors behind international food tourists’ intentions for food-based visit behavior. Specifically, by engaging food tourists in a systematic study, this study investigates the direct and indirect predictive effects of food tourist local food experiences (LFEs), perceptions of experiential value (EV), and satisfaction with food experiences on place attachment (PA) and behavioral intentions (BIs). Data were collected using a questionnaire from 451 food tourists who participated in a food tour for a day or longer in Istanbul. Structural equation modeling was used to test the proposed model. The findings demonstrate that LFE significantly influences EV, PA and satisfaction (SAS). Second, EV, PA and SAS were found to be significant predictors of BI. Third, food variety seeking (VARSEEK) was found to have a moderating effect between LFE and PA while weakening tourist PA. The study provides new insights into tourist dining experiences and offers a number of recommendations for destination managers and stakeholders to enrich tourist experiences.
The tourism industry is one of the industries most a ected by the Covid-19 pandemic. Understanding the motivation for travel is essential for the tourism development of the destination and long-term business. This study used the push-pull-mooring model (PPM model) to explain the factors that in uence the decision of tourists to visit agritourism destinations in Serbia after the Covid-19 pandemic, with an emphasis on the economic factors of travel. The results obtained by multiple regression analysis indicate a signi cant e ect of economic, as well as other factors within the model, on the decision of tourists. The signi cance of the research is re ected in the creation of a realistic picture of the in uence of factors on tourists' decisions, and therefore on the creation of future management steps in the management of an agro-tourism destination.
Although service customers’ switching intention has gained scholars’ attention, research focusing on higher education institutions (HEIs), which examines other antecedents beyond service quality, seems to be missing in the literature. The present study integrates relevant theories and concepts from both marketing and higher education literature to explore the influence of service quality, price, and attractiveness of alternative on students’ switching intention. Based on the Nigeria-centric ICEQ service quality model for HEIs, a quantitative study involving final year students of a university in Nigeria was conducted. Data analysis was based on the SmartPLS structural equation modeling. Findings indicate that attractiveness of alternative and price have overtaken service quality in predicting switching intention among prospective graduate students. In the ICEQ model, only the quality of institutional infrastructure could influence switching intention positively and significantly. The study proposes a model that can guide HEIs in developing countries to craft effective marketing strategies.
Purpose
On the basis of the approach-avoidance motivation theory, this study aims to examine the role of information confusion in influencing consumer switching intention among social commerce platforms, with the mediating effect of emotional exhaustion and the moderating role of social overload.
Design/methodology/approach
This study applied a multi-method quantitative approach including a survey and two experiments. Data were obtained from consumers on popular social commerce platforms in China. The survey's sample size was 327 respondents, whereas a total of 1,621 consumers participated in the two experiments.
Findings
Findings from the survey reveal that information confusion affects switching intention directly and indirectly via emotional exhaustion. Moreover, social overload moderates the emotional exhaustion–switching intention relationship and the indirect impact of information confusion on switching intention. Results of the two experiments further confirm the relationships found in the survey.
Originality/value
This study develops and validates a mediation and moderation model which expectedly serves as a framework to better explain consumer switching intention on social commerce platforms. The study also offers fresh insights into consumer switching intention in the unique context of social commerce in an emerging market (i.e. China), which has been largely ignored in the prior literature.
Purpose
Restaurant entrepreneurs are increasingly leveraging crowdfunding as an alternative financing mechanism. In the context of restaurant crowdfunding, studies have identified factors related to campaign communication that affect crowdfunding success from the entrepreneurs’ perspective. Integrating a funder perspective, this study aims to investigate the role of the consumption value offered by rewards and builds a value-based understanding of restaurant crowdfunding.
Design/methodology/approach
This study uses a sample of 3,134 restaurant campaigns launched on the Kickstarter crowdfunding platform, and texts of 34,128 rewards were analyzed using a Python program. A hierarchical linear regression approach with a generalized logistic regression model was adopted to test hypothesized relationships.
Findings
Drawing upon consumption value theory (CVT), this study finds that in restaurant crowdfunding, utilitarian value holds a strong inverted-U relationship and participatory value holds a strong linear relationship with crowdfunding success. However, socioemotional value does not have a significant effect on outcomes. This study also finds evidence for positive effects of greater variety, higher number of rewards and lower average pledge level on restaurant crowdfunding success.
Practical implications
This study extends the literature on restaurant crowdfunding by integrating insights on the effects of value offered through rewards. Primarily, this study finds evidence for distinct effects of consumption values for restaurant crowdfunding audience. Practically, this study holds implications for reward menu design and value offering design for restaurant entrepreneurs seeking crowdfunding.
Originality/value
Restaurant crowdfunding has been studied to a limited extent, with extant literature focusing on characteristics of campaign descriptions. The role of rewards is uncovered using CVT and thus a value-based understanding of restaurant crowdfunding is presented.
This study aims to examine the relationships customer centric measures in wine tasting rooms. Furthermore, moderating role of customer satisfaction in value for money and repurchase intent relationship was examined.The data were collected in wineries in British Columbia, Canada. Analysis was conducted using the partial least squares structural equation modelling (PLS-SEM). In order to test the moderating role of satisfaction, the respondents were divided into two groups of unsatisfied and satisfied customers. The multi-group analysis of PLS-SEM was used to detect possible heterogeneity.The findings show that there is a significant relationship between value for money and repurchase intent. A significant relationship between value for money and repurchase intent was also detected, when satisfaction as a dichotomous variable was present in the model. A moderating role of satisfaction was discovered, where the strength of the relationship between value for money and repurchase intent appeared to decrease with higher levels of satisfaction.This study provides an overview in the triangle relationships between value for money, customer satisfaction and repurchase intent, and how the dichotomous satisfaction construct moderates the value for money and repurchase intent relationship. Surprisingly, the moderating impact was found to be negative and at the same time significant.
Purpose
This paper examined mediating effect of customer loyalty on the influence of customer orientation and technology orientation on the performance of small and medium-sized enterprises (SMEs).
Design/methodology/approach
This study adopted and modified items from previous studies. Also, data were analyzed using structural equation modeling (SEM). Additionally, a PROCESS Macro mediation test was used.
Findings
The study's findings indicated that customer orientation and technology orientation positively and significantly affect customer loyalty. Moreover, the findings indicated that customer loyalty has a positive and significant effect on the performance of SMEs. Finally, customer loyalty was found to mediate the influence of customer orientation and technology orientation on the performance of SMEs.
Practical implications
The study recommends on business performance improvement through enhancing customer and technology orientations and customer loyalty. So, SMEs should make sure their internal environment is conducive to accommodate customer and technology orientations, which will help them come up with effective ways to get loyal customers and improve their business.
Originality/value
The study adds value to the existing literature by introducing customer loyalty as an intervening variable between the effect of customer orientation and technology orientation on business performance of SMEs.
Purpose
The purpose of this qualitative comparative study was to explore the brand-switching behavior of Muslim consumers in selected cities from Pakistan and Malaysia.
Design/methodology/approach
Data were collected through interviews which were conducted with 30 participants including universities (5), shopping malls (5) and restaurant locations (5) of each country. The constant comparative analysis was used to analyze the data.
Findings
Results revealed that a demonstration of awareness of American brands, their image and perceived quality causes Muslim consumers to switch away from American brands to non-American brands. In addition, this study also showed that the certain reasons compel consumers to stay with American brands.
Practical implications
The findings are helpful for American brands in reconsidering their strategies while segmenting the Muslim consumers as target market.
Originality/value
This is the first paper of its kind to explore Muslim consumer brand-switching behavior by using a qualitative method.
The purpose of this study is to examine the direct, indirect and moderating role of involvement in the satisfaction, quality and loyalty relationship among local food festival tourists. Several different approaches exist concerning the role of involvement on the satisfaction-loyalty relationship but there is a lack of integration between approaches. This study therefore compared an Indirect effect model with Direct/Indirect effect model and Direct effect model, using 401 data collected at three local food festivals in Korea. Results of analyses found that the Direct/Indirect effect model suggesting involvement influences loyalty directly and indirectly via satisfaction and quality performed best. Another alternative model, with involvement moderating the effect of quality and satisfaction on loyalty, was also tested and supported. Marketing strategies should better convert involvement into effective local food festival tourists’ loyalty considering its direct/indirect and moderating effects.
The scientific advancement in urbanized locations with the relation of the lower classes and discovery to Secularized culture boosts food delivery applications and restaurant industries in India. The convenience of users is the primary objective aspect of such, at the same time, the second thing that this software is also beneficial for the development of the market in eating and food supply, as the use of the online platform is a place where the restaurant owner is prepared to attract as many users as he can by allowing them to see the entire food menu by item name, price, photo, etc. Apps for food delivery have proven to be a big success in India as people know its operations and services. As one can order food for any occasion, it is one of the most comfortable and trusted options available. These apps help save time, resources, fuel, and efforts for people, which is one of the key reasons this industry is thriving and will tend to do so. Therefore, part of my initiative would be to review the theoretical background in various aspects of food sector apps, business models and various factors affecting the adoption of food delivery apps that have never been addressed before.
Mobile number portability is defined as a system that allows consumers to change operator without a necessity of changing the mobile phone number. Since it gives consumers the chance of giving service from any operator whichever they want, it not only increases competition level in mobile communication market and also it increases consumer welfare. With a consumer oriented perception, toward the aim of this study, the effects of the mobile number portability application are examined theoretically at first. Then, the relationships among "mobile number portability application satisfaction", "perceived public illumination activities" and "knowledge (information level) about the application" with "the intention to change the operator (switching intention)" are scrutinized and the results are interpreted. Especially nowadays the global crisis is tried to overcome, taking into consideration of results, which is obtained from such scientific studies, is crucial to reach the aimed results of these kind of consumer centric regulations.
In this article, we attempt to distinguish between the properties of moderator and mediator variables at a number of levels. First, we seek to make theorists and researchers aware of the importance of not using the terms moderator and mediator interchangeably by carefully elaborating, both conceptually and strategically, the many ways in which moderators and mediators differ. We then go beyond this largely pedagogical function and delineate the conceptual and strategic implications of making use of such distinctions with regard to a wide range of phenomena, including control and stress, attitudes, and personality traits. We also provide a specific compendium of analytic procedures appropriate for making the most effective use of the moderator and mediator distinction, both separately and in terms of a broader causal system that includes both moderators and mediators. (46 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
The authors address two key issues that have received inadequate attention in the choice behavior literature on variety seeking. First, they explicitly separate true variety-seeking behavior (i.e., intrinsically motivated) from derived varied behavior (i.e., extrinsically motivated). Second, they hypothesize variety-seeking behavior to be a function of the individual difference characteristic of need for variety and product category-level characteristics that interact to determine the situations in which variety seeking is more likely to occur relative to repeat purchasing and derived varied behavior. The authors test their hypotheses in a field study of Dutch consumers, which assesses both the intensity of brand switching and the underlying motives for their switching behavior. Results support the importance of isolating variety switches from derived switches and of considering product category-level factors as an explanation for the occurrence of variety-seeking behavior.
This study compares effectiveness of comparative and noncomparative advertising for products characterized by different levels of cognitive and affective involvement. Comparative advertisements induce more positive brand attitudes for products which elicit cognitive and affective motivations simultaneously. This happens because brand comparisons facilitate an attribute-based processing style which might otherwise succumb to the competing affective involvement. Noncomparative attribute-based ads yield more favorable attitudes toward the ad when affective involvement is high than when it is low. Comparative ads are also shown to positively influence brand switchers and have a negative impact on consumers loyal to competing brands.
In this article, we provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development. We present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests. We discuss the comparative advantages of this approach over a one-step approach. Considerations in specification, assessment of fit, and respecification of measurement models using confirmatory factor analysis are reviewed. As background to the two-step approach, the distinction between exploratory and confirmatory analysis, the distinction between complementary approaches for theory testing versus predictive application, and some developments in estimation methods also are discussed.
The intricate relationships among core service and service encounter performances, customer satisfaction, and switching barriers in the formation of satisfaction and switching intention were examined in this study. A field survey was conducted at upper-midscale hotels. The results of the structural analysis revealed that both core service and service encounter performances significantly affected customer satisfaction, and satisfaction completely mediated the effects of service performances on switching intention. In addition, findings from the tests for metric invariances indicated that components of switching barriers (switching costs, relational investment, and lack of alternatives’ attractiveness) moderated the relationships between satisfaction and switching intention. In particular, the role of satisfaction derived from service performances in decreasing hotel guests’ intention to switch is greater when they perceive high switching costs, relational investment, and lack of alternatives’ attractiveness. Based on study findings, theoretical and practical implications are identified and discussed.
It is widely recognised that the tourist market is not homogeneous. Yet segment-specific satisfaction analysis has received inadequate attention both from researchers and managers. Focusing on tourists' dining experiences, this study investigated whether tourists could be grouped into distinct segments; whether the composition of variables determining customer satisfaction differed among the identified segments; and whether market segmentation strategy could contribute to more parsimonious satisfaction prediction models. Factor analysis was performed to determine dimensions that are likely to influence tourist restaurant selection and evaluations, whereas cluster analysis was employed to identify homogeneous groups of respondents. Multiple regression analyses were then employed to examine the relative importance of service dimensions in determining satisfaction judgments of each segment. Based on the analyses, five distinct dining segments were identified. Different sets of service dimensions appeared to affect satisfaction judgments. Greater variation in satisfaction was explained when analysis was undertaken at market segment level compared to aggregate market level. Management and marketing implications of the study are discussed.
The authors propose a taxonomic framework for defining and measuring alternate forms of variety-seeking and reinforcement behavior. This framework is composed of seven simple and testable models that capture the spirit of most of the models offered in the marketing literature in this area. The models are tested on panel data for 16 brands in five separate product categories. In addition, simulations are run to examine the effects of violations of the modeling assumptions. The analyses provide insights about variety-seeking and reinforcement tendencies which may be of benefit to the marketing manager.
Data obtained from 375 members of a consumer panel in a two-phase study of consumer experiences with automobile repairs and services were used to examine the antecedents and consequences of consumer satisfaction. The results support previous findings that expectations and disconfirmation are plausible determinants of satisfaction, and suggest that complaint activity may be included in satisfaction/dissatisfaction research as suggested by earlier descriptions of consumer complaining behavior.
Creating and maintaining customer loyalty has become a strategic mandate in today's service markets. Recent research suggests that customers differ in their value to a firm, and therefore customer retention and loyalty-build- ing efforts should not necessarily be targeted to all customers of a firm. Given these sentiments, it is becoming increasingly necessary for firms to have a thorough understanding of their customer base. Yet current knowledge is limited in providing insights to firms regarding the differences within their customer base. This research comprises two studies in which the authors examine the differences among internal customer groups in a service industry. As theory suggests and as is empirically validated here, customers who have switched service providers because of dissatisfaction seem to differ significantly from other customer groups in their satisfaction and loyalty behaviors. The findings offer some interesting implications for both marketing theory and practice.
In a study of telecommunications services, the authors examine the effects of customer satisfaction, affective com- mitment, and calculative commitment on retention. The study further examines the potential for situational and reactional trigger conditions to moderate the satisfaction-retention relationship. The results support consistent effects of customer satisfaction, calculative commitment, and prior churn on retention. Prior churn also moderates the satisfaction-retention relationship. The results have implications for both customer relationship managers and researchers who use satisfaction surveys to predict behavior.
Companies that offer loyalty reward programs believe that their programs have a long-run positive effect on customer evaluations and behavior. However, if loyalty rewards pro- grams increase relationship durations and usage levels, customers will be increasingly exposed to the complete spectrum of service experiences, including experiences that may cause customers to switch to another service pro- vider. Using cross-sectional, time-series data from a worldwide financial services company that offers a loyalty reward program, this article investigates the conditions under which a loyalty rewards program will have a posi - tive effect on customer evaluations, behavior, and repeat purchase intentions. The results show that members in the loyalty reward program overlook or discount negative evaluations of the company vis-à-vis competition. One possible reason could be that members of the loyalty re - wards program perceive that they are getting better quality and service for their price or, in other words, "good value."
In this article the relationship between store image, store satisfaction and store loyalty is examined. A distinction is made between true store loyalty and spurious store loyalty and manifest and latent satisfaction with the store. We hypothesise that the positive relationship between manifest store satisfaction and store loyalty is stronger than the positive relationship between latent store satisfaction and store loyalty. Furthermore, we hypothesise a direct as well as an indirect effect through satisfaction of store image on store loyalty. Second, the relationship between store image and store loyalty is mediated by store satisfaction. We do not find evidence for a direct effect of store image on store loyalty.
Purpose
– This study aims to develop and empirically test a model examining the antecedents of consumer loyalty toward internet portals.
Design/methodology/approach
– The data were collected based on an internet survey in Taiwan. Self‐administered questionnaires were used for all measures.
Findings
– The results show that attributive satisfaction is very important in affecting consumers' overall satisfaction toward an internet portal, which in turn affects consumers' loyalty intention toward an internet portal. This study also demonstrates that consumers' specific asset investment on an internet portal exerted a positive impact on loyalty intention, whereas perceived opportunism toward an internet portal exerted a negative influence on loyalty intention.
Originality/value
– This study contributes to the e‐commerce service studies in two ways. First, it developed and empirically tested a model for examining the antecedents of consumer loyalty intentions toward an internet portal. Second, it incorporated the concept of transaction cost (i.e. opportunism and asset specificity) into the model and examined the effect on the formation of loyalty intention. This inclusion also improved the theoretical foundation of loyalty formation in an internet‐connected service world.
One of the most unexamined assumptions marketing firms have made in recent years is that satisfaction alone will guarantee customer loyalty. Our research questions this assumption. We explored the correspondence between customer satisfaction and loyalty, and found as many as half of the “satisfied” customers to be predisposed to switching service suppliers. This satisfaction‐loyalty gap reflects the fact that different components of service quality drive satisfaction versus loyalty. Satisfaction is driven more by “technical quality” (the quality of the work performed) than by “functional quality” (how the service work was delivered); however, once satisfaction is achieved, loyalty is driven more by functional than by technical quality. This is the pattern of influence for a “low contact” (where customers’ direct contact with service providers is absent or marginal) service. For a “high contact” service, the pattern of influence is exactly the reverse. Of significant importance to service managers, the paper explains the dynamics of loyalty versus satisfaction and derives their managerial implications.
In this article, we provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development. We present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests. We discuss the comparative advantages of this approach over a one-step approach. Considerations in specification, assessment of fit, and respecification of measurement models using confirmatory factor analysis are reviewed. As background to the two-step approach, the distinction between exploratory and confirmatory analysis, the distinction between complementary approaches for theory testing versus predictive application, and some developments in estimation methods also are discussed.
Interest in the problem of method biases has a long history in the behavioral sciences. Despite this, a comprehensive summary of the potential sources of method biases and how to control for them does not exist. Therefore, the purpose of this article is to examine the extent to which method biases influence behavioral research results, identify potential sources of method biases, discuss the cognitive processes through which method biases influence responses to measures, evaluate the many different procedural and statistical techniques that can be used to control method biases, and provide recommendations for how to select appropriate procedural and statistical remedies for different types of research settings.
Current techniques using brand-switching data to infer competitive relationships among products are based on the assumption that those brands most frequently switched between are the closest substitutes. For product classes in which variety seeking is an important determinant of consumer behavior, this assumption is probably violated. A technique is proposed which accounts for the fact that consumers may switch between brands not because the brands are substitutes, but because the brands complement one another to meet the consumers' desire for variety. The approach utilizes constrained nonlinear optimization to determine model coefficients that describe substitution and complementarity among brands. The proposed technique is illustrated with individual consumption histories for a frequently purchased packaged good and is shown to extend the range of insights provided by current brand-switching techniques.
Some concerns why is it important to satisfy customers are discussed. A three-phase approach to increasing customer satisfaction is developed which has important implications. Different actions are required to raise the satisfaction of customers of a family of products or services whose level of satisfaction differs. The company that will survive and flourish over the long term is the one that continually works to understand the relationship between satisfaction and loyalty for each of its customers, for each of its business units, and for each of the industries in which its competes.
This study investigates determinants that cause mobile phone customers to transit from being loyal to switching. By examining what keeps customers loyal, and then examining what provokes or entices the same customers to switch, the findings suggest that the transition from loyalty to switching may be due to changes in the underlying determinants as well as new determinants. The study concludes that mobile telecommunications is a commodity and offers several applied implications for mobile service providers and suggestions for future research.
Two experimental studies (a lab experiment and a study involving a real usage experience over time) reveal the existence of a strong, positive impact of customer satisfaction on willingness to pay, and they provide support for a nonlinear, functional structure based on disappointment theory (i.e., an inverse S-shaped form). In addition, the second study examines dynamic aspects of the relationship and provides evidence for the stronger impact of cumulative satisfaction rather than of transaction-specific satisfaction on willingness to pay.
This study tests the different and combined roles of involvement and ambivalence in the satisfaction–repurchase loyalty relationship. The study analyses survey data from 922 Vietnamese consumers. The study uses structural equation modelling for testing mediator and moderator effects. The results indicate that satisfaction has both positive direct and indirect effects on repurchase loyalty via involvement. Ambivalence has negative direct effects on both satisfaction and involvement, but does not directly influence repurchase loyalty. Empirical evidence also reveals that ambivalence and involvement are both moderators in the satisfaction–repurchase loyalty relationship. However, the moderating mechanisms of the two constructs in this relationship are different. While involvement moderates positively the direct effect of satisfaction on repurchase loyalty, ambivalence moderates negatively the indirect effect of satisfaction on repurchase loyalty via involvement. This result means that the indirect effect of satisfaction on repurchase loyalty through involvement is weaker under high ambivalence than low ambivalence. The results of this study indicate that ambivalence and involvement, as well as the combined role of these constructs, are important to understanding and explaining the relationship between satisfaction and repurchase loyalty.
Drawing on the attitude accessibility and stability theories, we investigate the moderating role of product involvement in the customer satisfaction-loyalty relation. Structural equation modeling shows that customer satisfaction has both direct and indirect effects on loyalty, whereas ad attitudes and corporate image have only indirect effects through their mediating influence on brand attitudes. Furthermore, product involvement decreases the direct effects of satisfaction on brand attitudes and loyalty, but it increases the indirect effects of ad attitudes and corporate image.
For consumers, evaluation of a service firm often depends on evaluation of the "service encounter" or the period of time when the customer interacts directly with the firm. Knowledge of the factors that influence customer evaluations in service encounters is therefore critical, particularly at a time when general perceptions of service quality are declining. The author presents a model for understanding service encounter evaluation that synthesizes consumer satisfaction, services marketing, and attribution theories. A portion of the model is tested experimentally to assess the effects of physical surroundings and employee responses (explanations and offers to compensate) on attributions and satisfaction in a service failure context.
Customer switching behavior damages market share and profitability of service firms yet has remained virtually unexplored in the marketing literature. The author reports results of a critical incident study conducted among more than 500 service customers. The research identifies more than 800 critical behaviors of service firms that caused customers to switch services. Customers' reasons for switching services were classified into eight general categories. The author then discusses implications for further model development and offers recommendations for managers of service firms.
Customer loyalty is viewed as the strength of the relationship between an individual’s relative attitude and repeat patronage.
The relationship is seen as mediated by social norms and situational factors. Cognitive, affective, and conative antecedents
of relative attitude are identified as contributing to loyalty, along with motivational, perceptual, and behavioral consequences.
Implications for research and for the management of loyalty are derived.
Two consumer strategies for the purchase of multiple items from a product class are contrasted. In one strategy (simultaneous choices/sequential consumption), the consumer buys several items on one shopping trip and consumes the items over several consumption occasions. In the other strategy (sequential choices/sequential consumption), the consumer buys one item at a time, just before each consumption occasion. The first strategy is posited to yield more variety seeking than the second. The greater variety seeking is attributed to forces operating in the simultaneous choices/sequential consumption strategy, including uncertainty about future preferences and a desire to simplify the decision. Evidence from three studies, two involving real products and choices, is consistent with these conjectures. The implications and limitations of the results are discussed.
This study examines the antecedents and consequences of commitment to hotel casinos targeting local customers. To accomplish this goal, a model of loyalty was developed and tested to understand the behavioral outcomes (benefits) of building relationships with lo- cal customers and what elements contribute to these behavioral outcomes. The results of path analysis showed that emotional attachment is a key mediating variable between attitudinal antecedents (trust and switching costs) and behavioral variables (proportion of visit, word of mouth, cooperation, time spent in casinos, and other product usage). The most influential variables on behavioral outcomes of loyalty were found to be trust and emotional attachment. The study contributes to services and casino marketing by validating empirical linkages in gaming context and providing empirical support for conceptualized differential effects of trust and switching cost on emotional attachment and behavioral outcomes of loyalty in services marketing literature. Theoretical and practical implications and future research issues are discussed.
Building on Keaveney’s work and using related studies from the disciplines of marketing and psychology, a model of service provider switching was developed. It was empirically examined using structural equation modeling with data from customers of mortgage services of various Canadian financial institutions. Factors deemed responsible for switching behavior, along with switching intentions, were measured from mortgage customers. Self-reports of their actual behavior were also collected via telephone.
In the rush to build Internet businesses, many executives mistakenly concentrate all their attention on attracting customers rather than retaining them. But chief executives at the cutting edge of e-commerce-from eBay's Meg Whitman to Vanguard's Jack Brennan-know that customer loyalty is an economic necessity: acquiring customers on the Internet is very expensive, and unless customers stick around and make lots of repeat purchases, profits will remain elusive. For the past two years, Frederick Reichheld and Phil Schefter have studied e-loyalty-analyzing the strategies and practices of many leading Internet companies and surveying thousands of their customers-with surprising results. Conrary to the popular perception that online customers are fickle by nature, they found that the Web is actually a very sticky space. Most of today's on-line consumers exhibit a clear proclivity toward loyalty, and Web technologies, if used correctly reinforce that inherent loyalty. In this article, the authors explain the enormous advantages of retaining online buyers. They warn that if executives don't quickly gain the loyalty of their most profitable existing customers and acquire the right new customers, they'll end up catering to the whims of only the most price-sensitive customers. They also describe what Grainger, Dell, America Online, and other Internet leaders are doing to gain their customers' trust and earn their loyalty. By encouraging repeat purchases among a core of profitable customers, companies can initiate a spiral of economic advantages. This loyalty effect enables them to compensate their employees more generously, provide investors with superior cash flows, and reinvest more aggressively to further enhance the value delivered to customers.
The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addition to the known problems related to sample size and power, is that it may indicate an increasing correspondence between the hypothesized model and the observed data as both the measurement properties and the relationship between constructs decline. Further, and contrary to common assertion, the risk of making a Type II error can be substantial even when the sample size is large. Moreover, the present testing methods are unable to assess a model's explanatory power. To overcome these problems, the authors develop and apply a testing system based on measures of shared variance within the structural model, measurement model, and overall model.
Although the ''disconfirmation of expectations'' model continues to dominate research and managerial practice, several limitations indicate that it is not a complete picture of satisfaction formation. The authors propose a new model of the satisfaction formation process that builds on the disconfirmation paradigm by specifying a more comprehensive model that includes two standards in a single model and specifically incorporates the impact of marketing communication. An empirical test of the model provides support for the hypothesized relationships and a better understanding of the mechanisms that produce satisfaction.
Both practitioners and academics understand that consumer loyalty and satisfaction are linked inextricably. They also understand that this relation is asymmetric. Although loyal consumers are most typically satisfied, satisfaction does not universally translate into loyalty. To explain the satisfaction-loyalty conundrum, the author investigates what aspect of the consumer satisfaction response has implications for loyalty and what portion of the loyalty response is due to this satisfaction component. The analysis concludes that satisfaction is a necessary step in loyalty formation but becomes less significant as loyalty begins to set through other mechanisms. These mechanisms, omitted from consideration in current models, include the roles of personal determinism ("fortitude") and social bonding at the institutional and personal level. When these additional factors are brought into account, ultimate loyalty emerges as a combination of perceived product superiority, personal fortitude, social bonding, and their synergistic effects. As each fails to be attained or is unattainable by individual firms that serve consumer markets, the potential for loyalty erodes. A disquieting conclusion from this analysis is that loyalty cannot be achieved or pursued as a reasonable goal by many providers because of the nature of the product category or consumer disinterest. For some firms, satisfaction is the only feasible float for which they should strive; thus, satisfaction remains a worthy pursuit among the consumer marketing community. The disparity between the pursuit of satisfaction versus loyalty, as well as the fundamental content of the loyalty response, poses several investigative directions for the next wave of postconsumption research.
The American Customer Satisfaction Index (ACSI) is a new type of market-based performance measure for firms, industries, economic sectors, and national economies. The authors discuss the nature and purpose of ACSI and explain the theory underlying the ACSI model, the nation-wide survey methodology used to collect the data, and the econometric approach employed to estimate the indices. They also illustrate the use of ACSI in conducting benchmarking studies, both cross-sectionally and over time. The authors find customer satisfaction to be greater for goods than for services and, in turn, greater for services than for government agencies, as well as find cause for concern in the observation that customer satisfaction in the United States is declining, primarily because of decreasing satisfaction with services. The authors estimate the model for the seven major economic sectors for which data are collected. Highlights of the findings include that (1) customization is more important than reliability in determining customer satisfaction, (2) customer expectations play a greater role in sectors in which variance in production and consumption is relatively low, and (3) customer satisfaction is more quality-driven than value-or price-driven. The authors conclude with a discussion of the implications of ACSI for public policymakers, managers, consumers, and marketing in general.
Are there economic benefits to improving customer satisfaction? Many firms that are frustrated in their efforts to improve quality and customer satisfaction are beginning to question the link between customer satisfaction and economic returns. The authors investigate the nature and strength of this link. They discuss how expectations, quality, and price should affect customer satisfaction and why customer satisfaction, in turn, should affect profitability; this results in a set of hypotheses that are tested using a national customer satisfaction index and traditional accounting measures of economic returns, such as return on investment. The findings support a positive impact of quality on customer satisfaction, and, in tum, profitability. The authors demonstrate the economic benefits of increasing customer satisfaction using both an empirical forecast and a new analytical model. In addition, they discuss why increasing market share actually might lead to lower customer satisfaction and provide preliminary empirical support for this hypothesis. Finally, two new findings emerge: First, the market's expectations of the quality of a firm's output positively affects customers' overall satisfaction with the firm; and second, these expectations are largely rational, albeit with a small adaptive component.
The 1990s saw a questioning of the value of merely satisfying customers and instead focused attention on the importance of customer delight. In a key contribution, Oliver, Rust, and Varki (1997) developed a structural model of the antecedents and consequences of customer delight, acting in parallel with satisfaction, that was generally supported for two entertainment services. However, the effect of delight on intention was significant for symphony ticket purchasers but not for theme park patrons. This article first replicates their path analysis for more mundane visits to consumer Web sites. Then it takes advantage of a larger sample and additional measures to address construct measurement issues and to determine whether customer delight is something more than a nonlinear effect of satisfaction on intention.