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Revisiting the Satisfaction–Loyalty Relationship: Empirical Generalizations and Directions for Future Research
Abstract
This extensive literature review highlights the state of the art regarding the relationship between customer satisfaction and loyalty, both attitudinal and behavioral. In particular, it brings to light several issues that should be carefully considered in analyzing the efficacy of customer satisfaction in explaining and predicting customer loyalty. In fact, for many years companies all around the world have heavily invested in customer satisfaction in the hope of increasing loyalty, and hence, consequently, profitability. But after having gone through a detailed analysis, it is clear that this link it is not as strong as it is believed to be and customer satisfaction is not enough to explain loyalty. In fact, the major findings of this review are captured in the form of a few empirical generalizations. We generalize that, while there is a positive relationship between customer satisfaction and loyalty, the variance explained by just satisfaction is rather small. Models that encompass other relevant variables as moderators, mediators, antecedent variables, or all three are better predictors of loyalty than just customer satisfaction. Further, the satisfaction–loyalty relationship has the potential to change over time. Similar weaker findings are uncovered and the study offers specific guidelines on who, when, and how much to satisfy. Finally, suggestions for future research to explore this domain are offered.
... f it is mediated by CS. Hypothesis 3 was accepted and it was concluded that CR has a positive effect on CS, which means that the higher the CR, the higher CS and vice versa. The results of this study are in line with research results (Ali et al., 2012;Almohaimmeed, 2019;Gul, 2014;Juliansyah et al., 2019;Kamran-Disfani et al., 2017;Kim & Park, 2019;V. Kumar et al., 2013) which also shows that the company's reputation will also affect customer satisfaction. Hypothesis 4 was accepted and it was concluded that CR has a positive effect on CL, which means that the higher the company reputation, the higher the customer loyalty, and vice versa. CL to a company brand is highly dependent on the company's ability ...
... important for companies, especially companies that are ready to enter into business competition, will maintain the continuity and try to get loyal customers in the long term. The results of this study are in line with the results of research (Almohaimmeed, 2019; Asmelash & Kumar, 2020;Et. al., 2021;2021;Kamran-Disfani et al., 2017;Kim & Park, 2019;V. Kumar et al., 2013) which also shows a significant effect of satisfaction on customer loyalty. ...
... The results of this study are in line with the results of research (Almohaimmeed, 2019; Asmelash & Kumar, 2020;Book et al., 2019;Cheng & Jiang, 2020;Et. al., 2021;Kim & Park, 2019;V. Kumar et al., 2013) which also shows a significant effect of satisfaction on customer loyalty. ...
This study aims to examine the influence of customer relationship management (CRM) and company reputation (CR) on customer loyalty (CL) through customer satisfaction (CS) studies at Mitratel companies. The number of samples was 155 respondents from Mitratel's customers. The approach used in this research is quantitative. The primary data is obtained from the questionnaire and analyzed quantitatively using the SEM PLS technique. The results indicate that CRM and CR affect CS and CL, but the influence of CRM on CL cannot directly influence it. To form high CL, CS must first be improved. The CRM can increase CL if the CRM program can provide CS. There is a significant influence of satisfaction on CL also proves that CS can mediate the influence of CRM and company reputation on CL. INTRODUCTION The base transceiver station (BTS) enables wireless connections between communication devices and network operators. In Indonesia, there are currently around 72,000 telecommunication towers. The increase in users resulted a higher level of complaints related to telecommunication problems from 2020 to 2023. Based on them, the author tries to examine the causes of consumer dissatisfaction to PT. Dayamitra Telecommunications Tbk. or Mitratel who has 18,473 cellular towers spread throughout Indonesia in 2020. As a form of Mitratel's efforts to improve customer satisfaction (CS), Mitratel has implemented several methods such as the establishment of a service level agreement (SLA), the measurement with a net promoter score (NPS), and CS surveys. A SLA is a written agreement between the consumer and the service provider. In this case, Mitratel details the service promises received and provided together with various performance measures, guarantees, or stipulates all of these services. In carrying out BTS tower operations, many problems that often occur, including issues of licensing, arrangement, supervision, maintenance, inefficiency, post-disaster recovery, and others. Any problems that impede the smooth functioning of the BTS towers must not be tolerated and immediate, precise, and measurable action must be taken. Every complaint or report regarding a problem with the BTS tower is very important to know and resolve. Mitratel management has established a trouble ticket system. This trouble ticket is a statement from management that a report or complaint has been entered and accepted by management. In the end, the completed trouble ticket data is presented in the closing trouble ticket data. The input, progress, and status trouble ticket processes are facilitated by an application called ANT Telkomsel. In general, the status of a closing trouble ticket will result in two status options, namely in SLA or out of SLA. According to Mitratel's Trouble Ticket Status Data for the Jabodetabek Area for 2021-2022, we can see that there are still trouble tickets that have exited the SLA in a total of 1,541 cases, which is 17.6% of the total cases for the past two years. Resolving complaints or disturbances that are out of the SLA has contributed to financial losses or lost profits for Mitratel. In addition, this will also have an impact on customer satisfaction and loyalty. The value of Mitratel's losses due to trouble ticket out SLA reached Rp. 2.086 billion in 2021 and Rp. 589.96 million in 2022. As a form of Mitratel's efforts to maintain and improve customer satisfaction, Mitratel has implemented several methods such as the establishment of a service level agreement (SLA), a complaint and suggestion system, the measurement with a net promoter score (NPS), and customer satisfaction surveys. NPS gives an assessment based on responses with a scale of 1 to 10, where customers are grouped into: promoters (9-10), passives (7-8), and detractors (0-6). The difference in the percentage of promoters and detractors, then you get the Net Promoter Score (Fred Reichheld: 2003).
... pal de las diferentes estrategias, debido a esto resulta indispensable plantear un diseño de sistema de entrega de servicios que brinde oportunidades de interacción de alto nivel; estableciendo diversas variables que logren exponer la conducta de las transacciones del consumidor y sus respectivas relaciones entre ellas. (Cronin, Brady y Hult, 2000;Kumar, et. al., 2013). ...
... Sin embargo, se ha evidenciado que la relación entre calidad de servicio y satisfacción no ha podido dar explicación a la lealtad del cliente en el sector servicios. (Kumar et al., 2013). ...
... No hay certeza que las valoraciones de la calidad y el impacto de la satisfacción manifiestan de manera suficiente la lealtad del cliente (Kumar et al., 2013), por ello se incorporó el valor percibido a los diversos modelos que indagan exponer la conducta del cliente. ...
El presente trabajo, tiene como objetivo establecer una explicación de la lealtad del consumidor partiendo de las variables calidad del servicio (variable inicial); valor percibido, confianza (variables mediadoras), satisfacción (variable resultado) y aversión a la pérdida (variable moderadora) en un contexto de servicios en telecomunicaciones. Para contrastar el modelo, se aplicó un estudio a 385 consumidores de telefonía móvil y televisión en la ciudad de Chiclayo. Se utilizó para este propósito una investigación de nivel explicativo y de diseño no experimental transversal. El presente trabajo presentó un modelo que permite observar la relevancia del uso de variables mediadoras como el valor percibido y la confianza en la predicción de la lealtad del cliente en la dinámica de servicios en telecomunicaciones. No se pudo evidenciar el efecto moderador que ocasiona la aversión a la pérdida en el valor percibido y la confianza del consumidor, por tanto, no se encontró efectos en las variables resultado, satisfacción y lealtad. Finalmente, estos hallazgos sugieren la necesidad de nuevas investigaciones que aborden en otro contexto de servicios la aversión a la pérdida por cuanto diversos estudios evidenciaron su efecto moderador.
... We now develop a conceptual framework to link the adoption of MGS adoption behavior with marketing mindset metrics in a B2B context (see Figure 1). We rely on the extent literature on capabilities and marketing mindset metrics to generate insights on the critical factors influencing MGS adoption decisions (Kumar et al., 2013a(Kumar et al., , 2013bMitręga, 2019;Gnizy, 2018). MGS adoption decisions of clients are primarily motivated by their need for upgrading capabilities (technological, operational, and marketing) and influenced by their satisfaction and sentiment levels with prior products and services (Anderson et al., 1994;Bolton, 1998). ...
... The MGS adoption decision is also influenced by the potential of the new services generation to yield additional benefits, such as enhancing clients' ability to attract new customers with new or improved functionality or improving the satisfaction of existing customers with higher reliability, convenience, or lower costs. Satisfied clients exhibit longer relationship duration and may be more likely to adopt multiple generations (Bolton, 1998;Kumar et al., 2013aKumar et al., , 2013b. Repurchase intentions are driven by higher clients' satisfaction and sentiment (Anderson & Sullivan, 1993;Garbarino & Johnson, 1999). ...
... However, there may be a lesser need for the clients to change existing consumption patterns or explore upgrades to new services generations; so higher levels of satisfaction may not yield an increase in MGD. Kumar et al. (2013aKumar et al. ( ), (2013b show that the relationship between satisfaction and repeat purchases is non-linear. Rego et al. (2013) show that heterogeneity of a firm's customer base can lead to negative relationship between customer satisfaction and market share. ...
This study explores the role of clients’ mindset metrics (i.e., satisfaction and sentiment) attributing to the variation in the adoption patterns of multi-generational services (MGS) of those clients of an MGS supplier. Based on a triangulation approach and theoretical underpinning, we propose that clients manage three MGS adoption metrics – multigenerational depth, features, and time – to augment their capabilities over time.
We show that the linkages between mindset, and adoption metrics, moderated by cultural and economic factors, explain the variation in adoption patterns using the adoption data of 58,476 clients from an MGS supplier providing five services generations of new-age products/services over a 10-year period in 13 developed and emerging markets. A small improvement in marketing mindset metrics significantly impacts firm revenues through improvements in MGS adoption metrics, which also vary by the culture and economic conditions of the client's country. We develop managerial insights about allocating scarce resources to foster MGS adoption and enhancing the success of new generations introduction across countries. We show that instead of a focus on faster adoption, a diversified strategy balancing multigenerational depth, breadth, and time and using appropriate strategies for enhancing satisfaction or sentiment leads to better outcomes for the MGS supplier.
... It has been shown that people's words, actions, and self-descriptions can all be very different from one another (Baehre et al., 2022;Raassens & Haans, 2017). Knowing how individual consumers' promoter scores connect to actual WOM behaviour is important because only a fraction of consumers who say they will refer the company really do so (Donthu et al., 2021;Kumar et al., 2013). Second, the net promoter notion has been criticised for its reliance on unverified testimonials (Baehre et al., 2022;East et al., 2008). ...
... Ranaweera and Jayawardhena (2014) found that less than half of customers recommended a product to others. Kumar et al. (2013) also found a weak connection between intentions and recommendations: 70% of the customers who had showed willingness to recommend did not actually do so. Intentions cannot therefore be regarded as the sole predictor of customer loyalty and firm growth, and further research is warranted. ...
Our paper explores how individual customers’ promoter scores are linked to their electronic word-of-mouth (eWOM) behaviour under different cultural contexts. We conducted two studies using experimental design to addresses these two research questions. The first study utilised a unique dataset comprising 4,864 hotel guests,
enabling a comparison between the intentions suggested by their individual promoter scores and the actual e-WOM behaviour they subsequently engaged in on various online platforms. The second study used data collected from four different countries (I.e., US, UK, China, and Egypt) to validate the results of study 1 and to explore the influence of national culture on the relationships between individual promoter scores and the actual e-WOM behaviour. The findings of study 1 revealed that promoter scores have a significant positive effect on online message valence. Study 2 validated the results of study and it also revealed that the influence of net promoter score on positive WOM and negative WOM increases with increasing collectivism, power distance, uncertainty avoidance, and masculinity. Our research provides meaningful theoretical and practical implications for hotels managers.
... Satisfaction and loyalty are longstanding concepts in marketing literature (Cardoza, 1965: Bloemer & Lemmink, 1992Oliver, 1999;Ghorbanzadeh & Rahehagh, 2020;Kumar et al., 2013). Loyal customers are typically satisfied (Oliver, 1999). ...
... Junaid et al. (2019) proposed that well-being is expected to be the outcome of brand love, finding that brand love is ultimately beneficial for both brands and customers. Furthermore, Kumar et al. (2013) finds that a satisfying brand experience over time leads to consumer delight. ...
... Crotts and Magnini (2011) describe customer delight as the feeling consumers have when they get value or satisfaction from a service or product that exceeds their expectations. Some studies defined customer delight as a positive, non-linear reaction to extreme levels of satisfaction, which they call the delight zone (Eisenbeiss et al., 2014;Kumar et al., 2013;Ranaweera and Menon, 2013). This study indicates that delight is the extended emotion that follows satisfaction with a product or service. ...
... While Lee and Park (2019) argued that customer delight is a more accurate indicator of customer relationship management than satisfaction, this study embraces and explores customer delight as a consequence of customer satisfaction. Previous research has shown the link between customer satisfaction and customer delight (Eisenbeiss et al., 2014;Kumar et al., 2013;Ranaweera and Menon, 2013). Previous research has implicitly posited delight as a supplementary positive reaction to satisfaction (Kim et al., 2015). ...
Purpose
Despite the significance of donations (Sadaqah) via mobile payment in Islamic countries, little is known about the variables influencing continuance intention toward using m-payment for donations (Sadaqah). Based on the stimulus-organism-response (S-O-R) model, this research explores the influence of perceived quality (i.e. system, information, service) as a stimulus on customer satisfaction, engagement and delight as organisms, which then affects continuance intention toward using m-payment for donations (Sadaqah) as a response. Moreover, the study investigates the moderating role of Islamic religiosity.
Design/methodology/approach
Using partial least squares structural equation modeling (PLS-SEM), a representative data sample of 419 Egyptian Muslims was analyzed to test hypotheses.
Findings
The findings revealed that all perceived quality constructs significantly positively affect customers' satisfaction. Customer satisfaction, in turn, positively affects customer engagement and delight. Moreover, customer engagement, delight and Islamic religiosity significantly positively affect continuance intention toward using m-payment for donations (Sadaqah). The findings also revealed that Islamic religiosity moderates the influence of customer engagement and customer delight on continuance intention toward using m-payment for donations (Sadaqah).
Originality/value
This is the first study to examine using m-payment for donations (Sadaqah) in an Islamic environment based on the S-O-R model.
... To our knowledge, no studies have investigated how industry characteristics influence the association between customer satisfaction, affective commitment, and PWOM intention. What we know is that industry characteristics moderate the extent to which customer satisfaction increases loyalty (Jones & Sasser, 1995;Anderson & Mittal, 2000;Kumar, Dalla Pozza, & Ganesh, 2013;Evanschitzky, Stan, & Nagengast, 2022), and the extent to which PWOM induces favorable attitudinal and behavioral responses (You et al., 2015;Donthu et al., 2021). This is a critical issue because managers in various industries constantly invest vast resources in enhancing and maintaining customer satisfaction. ...
... In addition to its theoretical contributions, our study also provides useful insights for practitioners to anticipate the outcomes of their initiatives to manage customer satisfaction. As pointed out by Kumar et al. (2013), marketers in different industries struggle to maintain a satisfied customer base to keep their customers loyal and generate more profits in the future. The advantages of having loyal customers are that they spend more money, cost less to serve, pay a premium price, and are more prone to spread PWOM than less loyal customers (Reichheld et al., 2000;Baumann, Elliott & Hamin, 2011;Dahana, Miwa, & Morisada, 2019). ...
This study investigates how industry characteristics affect the relationships between customer satisfaction, commitment, and positive word-of-mouth (PWOM) intention. Specifically, it examines the moderating roles of competition, consumption visibility (private or public), and service relationship (contractual or noncontractual) within the satisfaction-commitment-PWOM linkage. A theoretical model was developed and validated by analyzing large-scale survey data encompassing 174,719 customer responses across 40 industries using the structural equation modeling (SEM) approach. As expected, we found that customer satisfaction positively affects PWOM intention. However, the impact was more pronounced in industries with lower competition intensity, higher consumption visibility, and longer service relationship, whereas the link between commitment and PWOM appears to be the same across industries. These findings suggest that industry characteristics should be addressed in WOM research, and uniform marketing methods should not be implemented in practice, as there are differences in WOM generation mechanisms in different industries.
... He also reiterated that issues of quality and experienced staff should be looked at in order to meet the global requirement. This is also in agreement with Kotler and Keller (2012) who believed that loyalty can only be achieved through experience, qualified personnel and superior quality. ...
... To them, peoples" opinions and their advices play a pivotal role toward influencing their purchase decision. Also, most customer loyalty studies measured the relationship between the predictors of loyalty directly despite the calls by scholars to include a mediating and or moderating variable in future studies (Kumar, Dalla, & Ganesh, 2013). ...
... Focusing on total service quality of purchases from site-to-store, Swaid & Wigand (2012) discovered that integrated pickup is a crucial aspect of service quality that strongly affects customer loyalty intentions. Additionally, numerous studies have shown a favorable correlation between bank CL and service quality perceptions of consumer (Kaura et al., 2015;Kumar et al., 2013;Narteh, 2018). According to Huré et al. (2017), Omni-channels encourage customer loyalty that are highly valued by customers. ...
... Such conflicting findings in the existing study on the connection of CS and CL (see Leuschner et al., 2013 for a recent meta-analysis of these connections) point to the significance of taking into account how the connection between CS and CL functions in an Omni-channel setting. According to the banking studies (Kumar et al., 2013;Kaura et al., 2015) and multi-channel contexts (Wallace et al., 2004), a rise in CS has been linked to a rise in CL. ...
Technological advancement and digitalization bring drastic transformations in the business market. This study intends to recognize the factors that influence customer loyalty and enhance the literature relevant to the evolving topic of Omni-channel which provides a seamless experience to consumers among all channels. This study empirically investigates the association among the Omni-channel “integration quality, perceived value, customer satisfaction & customer loyalty” in the Pakistani banking segment. To collect the data, a quantitative study was accompanied. The online surveys were generated on google forms filled out by the customer and some were distributed by hand. 233 questionnaires out of 250 were used to perform the analysis, and 17 questionnaires were excluded due to incomplete or missing data. SPSS 21 was used to perform Cronbach alpha & regression analysis. The result shows that loyalty & satisfaction are significantly influenced by the Integration quality, and a significant positive association of Perceived Value with satisfaction but shows insignificant relation with loyalty. Moreover, by enhancing customer satisfaction loyalty can be increased in the banking segment also showing significant results, and high-quality integration enhances the Perceived Value. while examining the given framework outcomes, the Pakistani bank's manager might be able to use the Omni-channel strategy in the banking sector favorably & recognize its influence on customers as well.
... Customer loyalty is described as "a strongly held commitment to repurchase or re-patronize a referred product or service consistently in the future, despite situational influences and marketing efforts that may trigger switching behavior" (Lamb et al., 2012). A substantial amount of service management literature has shown the relationship between customer satisfaction and customer loyalty (Chen, 2012;Kumar et al., 2013;Suh and Yi, 2006). According to a study conducted by Lee et al. (2012), hospitals can increase patient satisfaction and loyalty through efficient operations, employee engagement, and service quality. ...
... Higher levels of satisfaction, perceived school reputation and perceived teacher competence are all predicted to boost service provider performance. Specifically, an increase in satisfaction is commonly viewed as a precursor for customer loyalty (Garzaro et al., 2021;Kumar et al., 2013) as well as retention (Gustafsson et al., 2005). In the context of primary and secondary schools, satisfied parents may spread the word about their child's school to relatives, friends or acquaintances, bringing in new pupils (Jie et al., 2023). ...
Purpose
The purpose is to investigate the impact of the value co-creation behaviour of parents on a set of education service outcomes, including perceived school reputation, parent satisfaction and teacher competence.
Design/methodology/approach
An online survey of 932 parents of primary and secondary school children was conducted. Canonical correlation analysis (general linear model) was used to test the impact of parental involvement in value co-creation behaviour on education service outcomes.
Findings
Value co-creation behaviour has a positive impact on education service outcomes, but the impact differs depending on the type of behaviour. Parent citizenship behaviour positively affects satisfaction, school reputation and perceived teacher competence. However, parent participation behaviour positively affects satisfaction with the school and perceived teacher competence.
Research limitations/implications
The study used self-reported data from parents, which may be biased and subject to errors. Future research could use more objective measures such as administrative records or teacher reports. The study's results are limited to one country, highlighting the need for further research in multiple countries.
Practical implications
The study's findings have implications for education service providers in terms of the importance of supporting parental involvement in their child's school life via value co-creation behaviour.
Originality/value
The study contributes to the service dominant logic, value co-creation theory and educational marketing literature by providing the detailed empirical evidences of parents' value co-creation outcomes in the context of the primary and secondary schools.
... The multidimensional character of loyalty is shared since loyalty can be manifested through attitudes or intentions and behaviours (Dick & Basu, 1994). Some studies have questioned the relationship between satisfaction and loyalty, qualifying that this link depends on the sector, the type of customers, the measures used, and the mediating or moderating variables (Kumar et al., 2013). In the B2B context, the contributions con rm that satisfaction exerts a certain in uence, directly or indirectly, on loyalty (Elsäßer & Wirtz, 2017;Saragih et al., 2022). ...
The objective of this study is to achieve a travel agencies segmentation based on both relational (trust, commitment, satisfaction, and loyalty) and technological (advancement and use of Information and Communication Technologies) criteria that improve the understanding of their strategic behaviours. The segmentation methodology uses a tandem approach: correspondence and hierarchical cluster analysis. From a sample of 256 travel agencies, four segments have been identified. Relational criteria have made it possible to segment only the retail agency market, while technological criteria have been shown to be more capable of segmenting the wholesale agency market. This work contributes to the advancement of the literature on business-to-business segmentation in tourism by providing a more complete vision of the segmentation of companies. From a practical approach, it allows a better knowledge of the agency segments, so it could be used for the selection not only of providers (customer perspective) but also of target segments (service provider perspective).
... Customer care representatives who display empathy in call-centre interactions can resolve customer issues more effectively, leading to higher levels of customer satisfaction [105]. The skilful identification and validation of customers' emotions through empathy can foster loyalty and trust [106] and enhance customer experiences [107]. To this end, call-centre conversations can be analysed to detect empathy, which could also benefit in training the agents [84]. ...
Empathy is a social skill that indicates an individual's ability to understand others. Over the past few years, empathy has drawn attention from various disciplines, including but not limited to Affective Computing, Cognitive Science and Psychology. Empathy is a context-dependent term; thus, detecting or recognising empathy has potential applications in society, healthcare and education. Despite being a broad and overlapping topic, the avenue of empathy detection studies leveraging Machine Learning remains underexplored from a holistic literature perspective. To this end, we systematically collect and screen 801 papers from 10 well-known databases and analyse the selected 54 papers. We group the papers based on input modalities of empathy detection systems, i.e., text, audiovisual, audio and physiological signals. We examine modality-specific pre-processing and network architecture design protocols, popular dataset descriptions and availability details, and evaluation protocols. We further discuss the potential applications, deployment challenges and research gaps in the Affective Computing-based empathy domain, which can facilitate new avenues of exploration. We believe that our work is a stepping stone to developing a privacy-preserving and unbiased empathic system inclusive of culture, diversity and multilingualism that can be deployed in practice to enhance the overall well-being of human life.
... What's particularly alarming is that, while service teams believe that consumer expectations are higher than ever, they also feel that their organizations are treating service less seriously, many organizations views customer service as an expense rather than an opportunity for growth (Tschohl, 1996). Customers think customer service influences their brand decision and loyalty; this is a fact that is too vital to ignore (Kumar, Dalla Pozza & Ganesh, 2013). Soosay, Ferrer and Santa (2021) stated that organizations confront significant problems today since the successful provision of numerous goods and services necessitates the effective integration of logistical activities across a growing supply chain and increasing geographical isolation (Soosay, Ferrer and Santa, 2021). ...
The paper examines the relationship between supply chain integration dimensions (customer integration, supplier integration, and internal integration) and customer service at Hariss International Ltd. The study employed both descriptive and cross-sectional designs, utilizing quantitative data collection methods. A sample of 36 employees was chosen from the organization for data collection. Primary data was collected through interviews and surveys, while secondary data came from records and published sources. The study utilized statistical tools such as correlation analysis, multiple regression analysis, and factor analysis to analyze the data. The results reveal significant positive relationships between customer integration, supplier integration, internal integration, and customer service. The findings indicate that enhancing these integration dimensions can lead to improved customer service. Factor analysis identified sub-dimensions within each integration dimension, shedding light on the specifics of integration within the company. The paper emphasizes the importance of these integrations in influencing customer service positively. It concludes that organizations prioritizing supply chain integration can achieve better customer service, adapt to changes, and maintain a competitive edge. In conclusion, this paper contributes to the understanding of how different dimensions of supply chain integration affect customer service, using a case study of Hariss International Ltd. The findings highlight the significance of fostering integration strategies to enhance customer service and overall organizational performance.
... Một khi các hoạt động đồng tạo giá trị được tạo điều kiện thuận lợi, khách hàng có xu hướng cung cấp phản hồi và đề xuất mang tính xây dựng hơn cho các công ty để cải thiện nền tảng tạo giá trị (Kumar et al., 2013). Khách hàng cũng sẵn sàng chia sẻ kinh nghiệm của họ với những người bạn khác hoặc với những khách hàng mới (Kumar et al., 2007). ...
Những tiến bộ trong sự phát triển của công nghệ mới và việc sử dụng phổ biến các thiết bị điện tử di động đã khiến khách hàng tăng cường sử dụng ngân hàng điện tử (e-banking). Nhiều nghiên cứu đã tập trung vào các yếu tố thúc đẩy việc áp dụng ngân hàng điện tử, tuy nhiên, một số nghiên cứu đã xem xét hành vi sau khi áp dụng e-banking của khách hàng. Chất lượng dịch vụ đã được công nhận là một trong những thành phần quan trọng nhất của việc sử dụng ngân hàng điện tử, bao gồm sự hài lòng, tin tưởng và cam kết. Tuy nhiên, rất hiếm nghiên cứu tập trung vào tác động của chất lượng ngân hàng điện tử đối với sự đồng sáng tạo của khách hàng liên quan đến truyền miệng điện tử (eWOM). Người ta đã chứng minh rằng đồng sáng tạo giá trị thúc đẩy sự sáng tạo của khách hàng, mang lại lợi ích chung cho cả doanh nghiệp và khách hàng, bao gồm cả việc thúc đẩy eWOM, nhưng các nhận định thực nghiệm liên quan vẫn còn hạn chế. Mô hình khái niệm đã được thử nghiệm thực nghiệm bằng cách sử dụng dữ liệu khảo sát từ 265 người trả lời là người dùng dịch vụ ngân hàng điện tử ở Việt Nam. Dữ liệu được phân tích bằng phương pháp bình phương tối thiểu từng phần (Partial Least Squares - PLS) và SPSS. Kết quả chỉ ra rằng cả chất lượng dịch vụ ngân hàng điện tử và ý định áp dụng đều có tác động đáng kể đến hoạt động đồng tạo ra giá trị của khách hàng và eWOM. Vì các tài liệu trước đây liên quan đến các yếu tố để tạo điều kiện cho sự đồng sáng tạo của khách hàng và eWOM còn hạn chế, kết quả của nghiên cứu này có thể đóng góp vào các tài liệu hiện có bằng cách tích hợp các yếu tố cấu trúc liên quan vào mô hình nghiên cứu, có thể giải thích hiện tượng đồng tạo ra giá trị khách hàng và eWOM, đặc biệt là trong bối cảnh áp dụng ngân hàng điện tử. Hơn nữa, kết quả sẽ giúp các chuyên gia thiết kế các tổ hợp thị để thúc đẩy việc áp dụng ngân hàng điện tử.
... The presence or absence of a causal condition's impact on an outcome depends on its interaction with other conditions (Mattke et al., 2021). For example, linear relationships assumed in variance-based methodologies don't always hold such as higher customer satisfaction resulting in higher customer loyalty (Kumar et al., 2013); in some cases (e.g., service recovery) lower satisfaction might also lead to higher loyalty (Chang & Chang, 2010). ...
This study combines the customer experience, service robot, and communication literatures to explore how a service robot's personality affects the overall service robot experience. It considers individual (here, the customers' extroverted vs. introverted personality) and situational (here, hedonic vs. utilitarian service settings) contextual factors, and three specific service robot experiences (here, warmth, competence, and discomfort). A pretest (n = 81) shows that a robot's personality (here, extroversion vs. introversion) can be shaped using verbal and nonverbal cues in the service robot design. Applying Complexity and Configuration Theories and using the novel fuzzy‐set qualitative comparative analysis and necessary condition analysis (NCA) techniques, the main study (n = 279) reveals the complex impact of the service robot personality on the overall service robot experience. Unlike conventional methods (e.g., SEM and regression) yielding averaged results, our findings show that various configurations with both introverted and extroverted robot personalities can equally lead to positive service robot experiences, based on the individual and situational context in which customers are embedded and the extent to which warmth, competence and discomfort are perceived. Hence, the more extroverted is not always better. Finally, the NCA findings reveal the minimum competence level that is required to obtain a certain level for the overall service robot experience. By understanding the intricate link between robot personality and its context, this research helps companies in strategically enhancing the service robot experience.
... In particular, more research needs to be done to reveal moderators that can help build customer loyalty. Kumar et al. [40] said that trust can be used to predict loyalty and can moderate the relationship with loyalty. Shaikh et al. [5] said that the use of "moderators" could help researchers in the field of mobile financial services find new and interesting relationships between concepts. ...
One of the highly acclaimed innovations is the mobile wallet. Mobile wallets ensure that customers can make purchases even if they forget their wallets at home. The use of these wallets has increased significantly with the spread of the COVID-19 pandemic as a preventive measure. However, with COVID-19 restrictions lifted and adaptation to the pandemic, customers are no longer forced to use mobile wallets. That is, things have returned to normal as before the pandemic, where the customer is left free to choose the method of payment. In this regard, businesses need to retain their customers and make sure that those customers will reuse their own mobile wallets even during this period (post-COVID-19). Hence, it is critical to explore customer loyalty determinants toward mobile wallet services in such a period. Therefore, using the Indian context, this paper sought to explore the determinants of customer loyalty toward mobile wallet services post-COVID-19. This study also investigated the role of trust as a moderator. Based on a sample size of 243 customers in India, the relationships in the proposed model were tested using SmartPLS statistical technology. The results revealed that service quality, privacy and security, and trust are the key determinants in gaining customer loyalty toward mobile wallets. Yet, the results did not support perceived usefulness and ease of use as determinants of customer loyalty. As for trust as a moderator, the results supported only one of the four proposed hypotheses. Specifically, the results supported that "trust has a significant moderating impact on the relationship between service quality and customer loyalty". The results offer a more precise comprehension of the relationships between customer loyalty and customer loyalty determinants in post-COVID-19 and enable managers to make better management decisions.
... This effect can be due to the customer experience determining whether the expectations he has are sufficient for the company (Srivastava & Kaul, 2017), so when these expectations are met, customers can experience a satisfaction. Kumar et al. (2018) said that realizing good customer knowledge is the main observation of retail managers. Many managers say that developing customer knowledge is more important to create satisfied customers. ...
This research was conducted to determine the effect of E-Service Quality and Customer Experience on E-Customer Loyalty through E-Customer Satisfaction Millennial Generation of Online Travel Agent Users in DKI Jakarta. This research uses SEM data analysis techniques and data processing using PLS. The population in this research is the millennial generation who live in DKI Jakarta, with a sample of 210 respondents. The sampling technique uses a purposive sampling technique. The results showed that variables E-Service Quality and Customer Experience have a positive and significant effect on E-Customer Satisfaction and E-Customer Loyalty, E-Customer Satisfaction has a positive and significant effect on E-Customer Loyalty, as well as E-Service Quality and Customer Experience have a positive and significant effect on E-Customer Loyalty through E-Customer Satisfaction.
... The intention to reuse means that consumers intend to continue using a certain product or service. Most past studies have confirmed that the relationship between satisfaction and intention is linear (Kumar, Dalla, Pozza, & Ganesh, 2013). For example, using the extended Unified Theory of Acceptance and Use of Technology (UTAUT2) on the characteristics of mobile ordering software, Alalwan (2020) empirically predicted and analysed factors influencing Jordan's FDA e-satisfaction and customers' continuous use of FDAs. ...
The purpose of this study is to investigate factors influencing the usage attitude of food delivery applications (FDAs), as well as the relationship between customer satisfaction and loyalty. The current study combined the uses and gratifications (U&G) theory and satisfaction-loyalty theory for the development of a research framework to investigate usage attitude, customer satisfaction and loyalty of working adults towards using FDAs. A quantitative research approach was adopted to collect data through an online questionnaire. A total of 300 valid responses were collected. The study's measurement model and structural equation model were assessed using partial least squares-structural equation modeling (PLS-SEM). Results demonstrate that quality control, convenience, ease of use, delivery experience and listing positively influence the usage attitude of FDAs, while the effect of search of restaurants was found to be insignificant. Delivery experience was the most conspicuous factor among all. In addition, word-of-mouth, intention to reuse and recommendation of FDAs were found to be significantly affected by customer satisfaction. This paper extends the literature of online food delivery associated with usage attitude and loyalty while the findings provide valuable insights and practical recommendations to managers of food delivery companies.
... The partnership between the customers and the company is expressed in their contribution to the development of businesses as observers, promoters, participants and co-creators who interact not only with the brand, but also with other consumers and the media. Customer retention has been a significant theme by many scholars since the mid 90's and has remained a major concern to forward looking managers in the last decade (Bergamo, Guiliani & Galli 2011;Kumar, Pozza & Ganesh 2013).Notably, the elimination of efficient banking services in today's world and Nigeria in particular would spell doom to the system. According to Alirez (2011), in order to create loyal consumers and to retain the existing ones, there is need for implementation of a successful system of customer relationship platform in an organization for greater commitment. ...
This study evaluates earnings management, IFRS adoption and corporate attributes with evidence from Nigeria. It sets out to investigate the relationship between share price and discretionary accrual manipulations, and a non-significant relationship that exists between share price and real activity earnings in non-financial firms quoted on the Nigerian Stock Exchange (NSE). The research approach utilized here is the longitudinal research design and covered the period between 2016 – 2020 (5 years). The quantitative method of analyzing data was also adopted with use of Panel Least Square estimation method for the data analyses by the aid of E-view 20 version. Results suggested that; firstly, significant relationship subsists between adoption of International Financial Reporting Standards (IFRS) and discretionary accrual adoption manipulations, and a non-significant relationship subsists between adoption of IFRS and real activity management of earnings in non-financial firms quoted on the NSE. Secondly, a significant relationship subsists between political affiliations and discretionary accrual manipulations, and a significant relationship exists between political acquaintances and real activity earnings management in the non-financial Nigerian quoted firms. The study therefore recommends that; the shareholdings of top officers with political affiliations in firms should be separately disclosed in financial reports (FR) of companies.
... This paper does not examine the factors that contribute to consumers' evaluations of product benefits. The extent to which satisfaction with a product leads to repeat purchases is debated, but it is believed to be at least one of the major contributing factors (Kumar, et al., 2013). It is necessary to theoretically examine and verify through research how commodity evaluation affects incidental social exchange and how empathy and attachment function as mediating factors. ...
... Therefore, it is crucial to understand the existing customers and their needs and expectations through their purchasing patterns and sensitivity to price and loyalty programs. Studies report that a list of different activities affects and improves customer retention in the telecommunication industry, such as (i) loyalty activities [11,25], (ii) customer satisfaction activities [26,27], and (iii) service quality [28,29]. ...
Unlabelled:
In this study, we explore the possible factors affecting churn in the Danish telecommunication industry and how those factors connect with retention strategies. The Danish telecommunication industry is experiencing a saturated market regarding the number of customers, but the number of service providers has increased significantly in recent years. Due to the high costs of acquiring new customers, the telecommunication industry put great emphasis on retaining customers in such an intensely competitive industry. We employ five machine learning algorithms: random forest, AdaBoost, logistic regression, extreme gradient boosting classifier, and decision tree classifier on four datasets from two geographical regions, Denmark and the USA. The first three datasets are from online repositories, and the last one contains responses from 311 students from Aalborg University collected through a survey. We identify key features extracted by the best-performing algorithms based on five performance measures. Based on that, we aggregate all the features that appear important for each dataset. The results demonstrate that customers' preferences are not aligned. Among the prominent drivers, we find that service quality, customer satisfaction, offering subscription plan upgrades, and network coverage are unique to the Danish student population. Telecommunication companies need to integrate the sociohistoric milieu of the Nordic countries to tailor their retention policies to different consumer cultures.
Supplementary information:
The online version contains supplementary material available at 10.1007/s42452-023-05389-6.
... Xie & Heung (2012) interpreted customer loyalty as attitudes and behavior towards a brand. It is the strength and depth of the relationship, retention, and duration of using a company's product/brand (Kumar, Pozza, & Ganesh, 2013). Aktepe, Ersoz, & Toklu (2014), alongside Leong et al. (2015), postulated that customer loyalty is an indicator of the level of satisfaction with products/brands. ...
Products have a special value for customers and brand owners, and becoming a favorite is the aim of many brands. Therefore, this research used a causal quantitative design with a deductive approach to determine the influence of customer experience, satisfaction, and loyalty on brand power and willingness to pay a price premium. The data were obtained from primary sources via a questionnaire, while the population and unit of analysis were determined using the non-probability sampling technique with the criteria of Apple product customers aged at least 17 years old in Indonesia. A total of 280 respondents were achieved from August to December 2021 using the purposive sampling technique. The data were analyzed using SPSS 26 software (factor analysis) and Lisrel 10.2 with SEM (Structural Equation Modeling). Subsequently, the results indicated a positive influence of customer experience, satisfaction, and loyalty on brand power and willingness to pay a price premium. The research also suggested that maintaining and improving product quality, alongside continuous innovation, strengthened customer loyalty and brand power as well as increased their willingness to pay a price premium.
... The current study has limitations, specifically its cross-sectional approach, which may impact its conclusions about the relationship between product quality and customer satisfaction. Additionally, Kumar et al., (2013) have shown that customer satisfaction and loyalty intentions can vary when measured at different times. Future research could examine this relationship using a longitudinal approach. ...
Ensuring quality product is top priority of all organisations as it plays a significant role in achieving customer satisfaction, which is the ultimate objective of all marketing efforts. This study delves into the aspect of product quality considering its eight dimensions to study the impact of product quality on customer satisfaction in consumer durable sector. A well-structured questionnaire was designed to seek the opinion of respondents about the quality of durable products and their level of satisfaction. The data obtained from 560 respondents confirmed that product quality has a positive and significant impact on customer satisfaction. The study also revealed that perceived quality and durability have the highest impact on customer satisfaction, followed by reliability, features, and aesthetics. The study recommends that companies should ensure that their products align with customer needs and preferences by focusing on critical product quality dimensions. The study has identified areas where businesses may need to improve to achieve higher levels of customer satisfaction to ensure long-term success.
... While it is expected that salespeople have a good understanding of customer needs, research has shown that this is often not the case, with salespeople failing to provide an adequate value proposition to customers (Homburg et al., 2009;Rapp et al., 2014). These failures can result in less buyer satisfaction and commitment to the supplier (Kumar et al., 2013;Palmatier et al., 2007). For salespeople to be effective, they must have a clear understanding of customer expectations and act in a manner that satisfies those expectations, reducing failures and increasing positive outcomes in relational exchanges (Haas et al., 2012). ...
Purpose-The purpose of this paper is to offer a comprehensive overview of current research on customer behavior in the business-to-business (B2B) context and propose a research agenda for future studies. Despite being a relatively recent area of interest for academics and practitioners, a literature review that synthesizes existing knowledge into coherent topics and outlines a research agenda for future research is still lacking. Design/methodology/approach-Drawing on a systematic literature review of 219 papers and using a text-mining approach based on the Latent Dirichlet Allocation algorithm, this paper enhances the existing knowledge of B2B customer behavior and provides a descriptive analysis of the literature. Findings-From this review, ten major research topics are found and analyzed. These topics were analyzed through the lens of the Theory, Context, Characteristics and Method framework, providing a summary of key findings from prior studies. Additionally, an integrative framework was developed, offering insights into future research directions. Originality/value-This study presents a novel contribution to the field of B2B by providing a systematic review of the topic of customer behavior, filling a gap in the literature and offering a valuable resource for scholars and managers seeking to advance the field.
... While it is expected that salespeople have a good understanding of customer needs, research has shown that this is often not the case, with salespeople failing to provide an adequate value proposition to customers (Homburg et al., 2009;Rapp et al., 2014). These failures can result in less buyer satisfaction and commitment to the supplier (Kumar et al., 2013;Palmatier et al., 2007). For salespeople to be effective, they must have a clear understanding of customer expectations and act in a manner that satisfies those expectations, reducing failures and increasing positive outcomes in relational exchanges (Haas et al., 2012). ...
Purpose
The purpose of this paper is to offer a comprehensive overview of current research on customer behavior in the business-to-business (B2B) context and propose a research agenda for future studies. Despite being a relatively recent area of interest for academics and practitioners, a literature review that synthesizes existing knowledge into coherent topics and outlines a research agenda for future research is still lacking.
Design/methodology/approach
Drawing on a systematic literature review of 219 papers and using a text-mining approach based on the Latent Dirichlet Allocation algorithm, this paper enhances the existing knowledge of B2B customer behavior and provides a descriptive analysis of the literature.
Findings
From this review, ten major research topics are found and analyzed. These topics were analyzed through the lens of the Theory, Context, Characteristics and Method framework, providing a summary of key findings from prior studies. Additionally, an integrative framework was developed, offering insights into future research directions.
Originality/value
This study presents a novel contribution to the field of B2B by providing a systematic review of the topic of customer behavior, filling a gap in the literature and offering a valuable resource for scholars and managers seeking to advance the field.
... His claim was later supported by some scholars and some of them carried out their studies on the consumers' fondness for the brand (Back & Parks, 2003;Pritchard et al., 1999a;Rauyruen Miller, 2007), consumers' purchase intentions for the brand (Chitty, Ward, & Chua, 2007) and faithfulness for the brand (Pritchard et al., 1999a). Some studies have also investigated relationship among the construct brand trust, brand commitment, attitudinal brand loyalty to better understand the BL (Kumar et al., 2013;Morgan & Hunt, 1994a;Oliver, 1999). ...
Brand loyalty has always been a complex phenomenon and the presence of digital technology is making it more challenging as consumers are well informed and demanding than ever. In such dynamic and challenging environment business firms should include the factors that help creating the brand loyalty. Little consideration has been made to “a detailed model” of brand loyalty, most of the earlier researches while examining the antecedents of brand loyalty have pin pointed few variables to explain the whole phenomenon. This research is an effort to investigate and overcome this vacuity. The reason of conducting this study is to inspect brand loyalty in depth and suggesting a detailed model of brand loyalty along with all of its possible antecedents and mediator. Both distinct elements of Brand loyalty are investigated together that is “attitudinal brand loyalty and behavioral brand loyalty”. All the antecedents of brand loyalty are adopted from existing marketing research literature, which included “Brand Commitment, Customer Satisfaction and Brand Perceived Risk”. Most important findings of this study are a) attitudinal brand loyalty impact positively on behavioral brand loyalty b) the effect of Brand Perceived Risk on behavioral brand loyalty is not direct, that is it effect through attitudinal brand loyalty. c) Attitudinal Brand loyalty mediates the impact among brand commitment and customer satisfaction on behavioral brand loyalty. All the findings are consistent with the proposed model. 450 questionnaires were circulated amongst the Karachi residents, out of which 389 responded. Data is examined with the help of SPSS. The study concluded the potential antecedents Customer Satisfaction and Brand Commitment as significant construct in brand loyalty as they have strong relation with attitudinal and behavioral brand loyalty. Results show a strong relationship among attitudinal brand loyalty and behavioral brand loyalty. This proposed brand loyalty model will be helpful for the Business firms.
... Further, despite the various effects induced by the novel coronavirus-related constructs were generally smaller (e.g., perceived health safety, destination crowding, risks and fear of COVID-19, vaccination status), such findings add to the literature by providing evidence about their role in swaying tourists' loyalty in pandemic contexts. This is because the incorporation of such variables in mediation and conditional process models allows to enhance the prediction of the focal outcomes (Woodside, 2017), and in this case contributes to the better explanation of loyalty and thus a greater understanding of phenomena and theory building (Kumar et al., 2013). ...
Tourism destinations constitute a conglomerate of attractions, service providers, and retailers that make up the overall offerings and experiences that attract visitors. However, given the severe consequences that the COVID-19 pandemic has had on the tourism industry, it is crucial to appraise consumer loyalty towards destinations in the context of the coronavirus disruptions. An increasing number of academic works examining the factors that influence destination loyalty have been carried out since the pandemic breakout, but no evaluation of their cumulative results and findings has been offered in the literature. Therefore, this research conducts a review of studies that have empirically investigated the drivers of destination loyalty during the pandemic in diverse geographical settings. By analyzing 24 journal articles selected from the Web of Science (WoS) database, this work adds to the literature by providing an assessment of the state-of-the-art body of knowledge about the explanation and prediction of loyalty for tourism destinations in the context of COVID-19.
... Therefore, not every time can a producer satisfy consumers because so many consumers use it differently, have different attitudes, and have different responses.BCA's digital banking services provide satisfaction to meet customer needs but do not create customer loyalty because the results of research on millennial customers are still interested in special offers or other bank promos. The results of this study are in accordance with research conducted by Kumar et al. (2013); Djayapranata (2020); Gultom (2019) that satisfaction has no significant effect on loyalty. ...
In the midst of changes in digital technology, customer behavior and the development of he business environment, BCA responds by taking strategic steps and policies in maintaining the excellence of digital banking services based on meeting customer needs through the provision of innovations in digital-based products and services. Attention to customer experience, increasing customer satisfaction and electronic word of mouth (EWOM) creates customer loyalty. This study aims to analyze whether 1) the influence of customer experience, efficiency, trust and ease on customer satisfaction. 2) the influence of customer satisfaction on EWOM. 3) the influence of customer experience, customer loyalty and EWOM towards customer loyal. The sampling technique uses a nonprobability sampling technique with a judgement sampling method. A total of 250 BCA customers and millennials were selected as respondents where the questionnaire survey was conducted from December 2021 to May 2022. Data analysis was performed using the SEM-LISREL analysis tool. The results of this study showed that first, customer experience and ease affected customer satisfaction, meanwhile efficiency and trust did not affect customer satisfaction. Second, customer satisfaction affected EWOM. Lastly, Customer experience and EWOM affected customer loyalty, meanwhile customer satisfaction did not affect customer loyalty.
Keywords: digital technology, ease, efficiency, SEM, trust
... Pengaruh tersebut dapat disebabkan oleh customer experience menentukan apakah ekspektasi yang dimiliki sudah dipenuhi oleh perusahaan (Srivastava & Kaul, 2014), sehingga ketika ekspektasi tersebut dipenuhi, maka pelanggan akan merasa puas. Kumar et al. (2013) menyatakan bahwa menciptakan pengalaman pelanggan yang unggul adalah perhatian utama manajer ritel dan sebagian besar manajer mengakui bahwa meningkatkan pengalaman pelanggan sangat penting untuk menciptakan pelanggan yang puas. Berdasarkan kaitan antar variabel yang ditunjukkan pada hasil penelitian terdahulu yang dijabarkan di atas, berikut ini model yang digunakan dalam penelitian ini: ...
Pertumbuhan tingkat penjualan ritel di Indonesia bernilai negatif selama satu tahun terakhir. Berbagai fenomena yang terjadi akibat pandemi yang sudah berlangsung sejak tahun 2020 menyebabkan penurunan tersebut, seperti pengurangan gaji dan pemutusan hubungan kerja yang berdampak terhadap penurunan daya beli masyarakat, sehingga menghambat kinerja perusahaan ritel. Oleh sebab itu, perusahaan ritel perlu memperbaiki kinerjanya dengan meningkatkan loyalitas pelanggan yang merupakan sebuah upaya untuk mempertahankan pelanggan yang sudah ada. Penelitian ini bertujuan untuk menguji apakah 1) pengalaman pelanggan dapat memprediksi kepuasan pelanggan. 2) kualitas pelayanan dapat memprediksi kepuasan pelanggan. 3) pengalaman pelanggan dapat memprediksi loyalitas pelanggan. 4) kualitas pelayanan dapat memprediksi loyalitas pelanggan. 5) kepuasan pelanggan dapat memprediksi loyalitas pelanggan. 6) kepuasan pelaggan memediasi prediksi pengalaman pelanggan pada loyalitas pelanggan. 7) kepuasan pelanggan memediasi prediksi kualitas pelayanan pada loyalitas pelanggan. Sampel dipilih dengan menggunakan metode non-probability sampling yang berupa teknik convenience sampling pada 200 responden dan Partial Least Square – Structural Equation Modeling (PLS-SEM) dilakukan untuk menguji hipotesis penelitian. Hasil penelitian ini menunjukan bahwa pengalaman pelanggan dan kualitas pelayanan berpengaruh signifikan untuk memprediksi kepuasan pelanggan, pengalaman pelanggan memiliki pengaruh signifikan untuk memprediksi loyalitas pelanggan, kualitas pelayanan tidak berpengaruh signifikan untuk memprediksi loyalitas pelanggan, kepuasan pelanggan memiliki pengaruh signifikan untuk memprediksi loyalitas pelanggan, dan kepuasan pelanggan memediasi prediksi pengalaman pelanggan dan kualitas pelayanan pada loyalitas pelanggan. Retail’s sales-growth in Indonesia has been decreasing since last year. Various phenomenons which are caused by the pandemic that has been happening since 2020 has caused the decrease, such as reduction in salary and laid off that resulted in reducing purchasing power which then obstruct retail firm’s performance. Therefore, retail firms should improve their performance by increasing customer loyalty which is an attempt to retain existing customers. This research aimed to examine whether 1) customer experience can predict customer satisfaction. 2) service quality can predict customer satisfaction. 3) customer experience can predict customer loyalty. 4) service quality can predict customer loyalty. 5) customer satisfaction can predict customer loyalty. 6) customer satisfaction mediates the prediction customer experience on customer loyalty. 7) customer satisfaction mediates the prediction service quality on customer loyalty. The sample of this study was selected by using the non-probability sampling method, which is convenience sampling method, with a total amount of 200 respondents and Partial Least Square – Structural Equation Modeling (PLS-SEM) was conducted for the hypotheses testing. The findings of this study illustrate that customer experience and service quality has significant effect to predict customer satisfaction, customer experience has significant effect to predict customer loyalty, service quality has not significant effect to predict customer loyalty, customer satisfaction has significant effect to predict customer loyalty, customer satisfaction mediates the prediction of customer experience and service quality on customer loyalty.
... E-satisfaction is of great importance in the development of e-loyalty (Anderson and Srinivasan, 2003;Toufaily et al., 2013). Customer loyalty is defined through behavioural and attitudinal perspectives (Christodoulides and Michaelidou, 2011;Kumar et al., 2013;Oliver, 1999). The behavioural perspective focuses on market share, brand allegiance, exclusive purchases, and price elasticity, while the attitudinal perspective focuses on attitudes toward loyal/disloyal acts, brand preference, commitment or attitude toward the brand measures, and/or probability of purchase. ...
Confronted by social media, multi-brand companies face a challenge to control their brand image and advertising content. Building an interactive website, as a common umbrella to their many brands can produce a successful customer experience leading to satisfaction and brand loyalty. This paper investigates
e-loyalty toward multi-brand websites that aggregate, on a single website, brands and products belonging to the same parent company (corporate brand).
Using a quasi-experiment on two major corporate multi-brand websites, the study uncovers a positive multi-brand experience effect coming from the benefits of having multiple brands on the same site. The multi-brand experience on e-loyalty is stronger for first-time visitors compared to repeat visitors and e-loyalty increases with the number of brands purchased before visiting the website. The study provides strong evidence to support a positive effect of multi-brand websites on e-loyalty.
Keywords: multi-brand websites; e-satisfaction; e-loyalty; website content features; online brand experience.
... While customer loyalty is often used as a synonym for various behavioral outcomes, such as purchasing products from a given brand repeatedly or visiting a certain store multiple times, behavioral intentions also play a pivotal role for capturing the loyalty construct and more fully cover the meaning of approach behaviors 1 (Kumar and Shah, 2004;Otterbring and Lu, 2018;Pritchard et al., 1999). Accordingly, the current work concentrates on this latter way of studying loyalty, which is one of the most commonly used conceptualizations, consisting of customers' future purchase and patronage intentions (Kumar et al., 2013;Pullman and Gross, 2004;Tsai, 2001;Olk et al., 2021). Thus, we use customers' future purchase and patronage intentions as examples of approach behaviors. ...
Intelligent machines are steadily replacing human workforce in retail and service. Although customers' short-term responses toward service robots are well understood, little is known about the potential long-term effects of replacing humans with robots in these settings. Drawing on social perception theory, the Stimulus Organism Response (SOR) model, and speciesism theory, the current research examines whether and how human and robotic service workers influence customers' loyalty responses depending on whether these living and nonliving entities acknowledge customers. Across three experiments and a series of different shopping settings (N = 1541), we expose customers to human (vs. robotic) service workers who do (vs. do not) acknowledge them through eye contact. A human (vs. robotic) acknowledgment was found to result in significantly more favorable loyalty responses; an effect mediated by the perceived warmth and, to a lesser extent, the perceived competence of the service workers. These findings hold across embarrassing (e.g., shopping for lingerie or sex toys) and non-embarrassing (e.g., shopping for shoes) settings, offering generalizable insights for managers and scholars concerned with the outcomes of implementing innovative human-centric technologies in various consumption contexts.
Purpose
This research paper explores customer experience (CX) among low-literate customers in organized retail environments. It integrates theories from customer literacy, CX and patronage literature to understand CX comprehensively.
Design/methodology/approach
The study gathered data from 470 respondents using mall intercept and snowball sampling. Data analysis employed partial least squares (PLS) modeling.
Findings
The results indicate that all the dimensions do not have the same effect on CX. Answering calls for future research, the results establish CX's nomological validity by showing its positive influence on retail reputation, retail quality and satisfaction. However, it does not directly affect patronage but has an indirect influence through retail quality and satisfaction. Also, the authors conclude that retail quality and satisfaction are consequences of CX and not previously conceptualized proxies for it.
Research limitations/implications
Conducting primary research with low-literate customers (LLCs) has its own set of limitations that give rise to further research directions. While acknowledging limitations, the study suggests avenues for future research by surveying LLCs with an objective questionnaire, contributing to limited empirical research in this segment.
Practical implications
The findings highlight the multidimensional nature of CX. In summary, this research paper provides insights into CX dimensions and outcomes for LLCs in organized retail. It contributes to marketing literature, assisting retailers in improving CX and driving patronage across customer segments.
Originality/value
The paper contributes to marketing literature by studying LLCs, testing a comprehensive CX model, confirming antecedents in retail patronage and exploring reciprocal relationships in retailing.
Purpose
The study aims to develop a holistic model identifying the constructs that impact customer loyalty in retail banking and introduce product type as a moderating variable to the model.
Design/methodology/approach
A conceptual model of customer loyalty is introduced and empirically tested with 416 valid samples obtained from Australian retail banking customers. The data were analysed using partial least squares structural equation modelling and multigroup analysis.
Findings
This study confirms the moderating effect of high- and low-involvement products on the relationship between customer loyalty and satisfaction, trust, service quality, commitment and perceived value. Surprisingly, the effect of satisfaction on loyalty was much stronger with low-involvement product types and the effect of commitment on loyalty was much stronger with customers who utilise high-involvement products.
Research limitations/implications
The study uses a sample population in Australia who utilise one of the top four banks and investigates three product types. Further research could expand the product selection and include customers who use credit unions and other banks not in the top four categories.
Originality/value
This study is the first to confirm the moderating effect product type has on the customer loyalty relationship in retail banking in regard to high- and low-involvement product categories. The research provides a deeper understanding of the factors that influence customer loyalty and identifies which types of products influences customer loyalty the most. Additionally, this study highlights the importance of understanding the different needs and priorities of customers using different product types in order to effectively influence their loyalty.
This community service activity was carried out on Monday 5 April 2021. The implementation of service on increasing beef cattle sales with E-commerce involved one partner, namely the IZZAH SEJAHTERA MULTIFARM livestock farmer group, a beef cattle farm located in Ringinwok RT03/RW01, Jagoan Village, District Sambi, Boyolali Regency, Central Java with a population of 19 beef cattle. This beef cattle business is managed by a manager, Mr. Sulistyo, ST who is also the owner of the livestock business and two employees. The activities carried out include, Introduction and socialization about sales using the Facebook social media marketplace, Conducting training on how to make sales using the Facebook social media marketplace. Participants in community service activities were very enthusiastic about participating in the activity from beginning to end, even though in this activity they used e-meeting because the situation and conditions were still in the Covid-19 pandemic. Participants in the training on creating a Facebook marketplace account are very interested because so far partners are still using conventional marketing Keywords: Pelatihan; Pendampingan; Pemasaran.
Objetivo do estudo: Entender os fatores que impactam o esforço dos consultores de vendas que atuam com empresas de Vendas Diretas e que possam gerar maior esforço, melhor desempenho e melhor resultado para o consultor e para as empresas.Metodologia/abordagem: Foi utilizado um levantamento (survey) com recorte transversal com consultores de todo o Brasil. Obteve-se 1.199 respostas válidas. Os dados foram analisados utilizando-se Análise Fatorial Exploratória (AFE), Análise Fatorial Confirmatória (AFC) e um Modelo de Equações Estruturais (MEE).Principais resultados: Como resultado foi gerado um modelo que comprova que a satisfação do consultor, a gestão de vendas feita pelas empresas e as ferramentas de canal utilizadas por eles, impactam o esforço, o desempenho e o resultado do consultor.Contribuições teóricas/metodológicas: O modelo, baseado na Teoria da Expectância, foi aplicado e validado para descrever a relação entre Esforço, Desempenho e Recompensa na visão do consultor.Relevância/originalidade: Por ser uma equipe de vendas totalmente independente, na qual as empresas têm limitações legais para direcionar as atividades dos consultores, é crucial para o setor entender quais fatores motivam maior esforço dos consultores e, consequentemente, melhores resultados para as empresas. Poucos estudos atuais abordaram o tema, menos ainda em um país relevante como o Brasil.
Previous literature uses first‐order meta‐analyses to overcome the divergent theories about customer relational benefit, which produced mixed results in terms of the associations found. Originally conceptualised as unidimensional, customer relational benefit is an integrative multidimensional concept that includes trust, commitment, loyalty, satisfaction, word of mouth, and other constructs involved in long‐term relational exchanges. The authors conduct a second‐order meta‐analysis on 41 first‐order meta‐analyses on customer relational benefits, generating 3.8 million observations and 3462 independent samples, resulting in an overall generalisation of the relationships between these constructs. We test three theoretical models and propose an alternative rival framework. Main results indicate that the product‐ versus consumer‐related model generates strong variance in loyalty. Second, the cognitive–affective–conative–behavioural model is not superior in terms of explaining and predicting loyalty, but our three‐stage model performs better. Third, the service‐profit chain model is an alternative in terms of generating a sequence of effects (serial perspective). Fourth, our new alternative framework (a three‐stage model based on the temporal sequence of loyalty) works better for explaining some constructs.
Purpose
Status demotion in hierarchical loyalty programs (HLPs) has received considerable academic attention. However, existing research is relatively silent on whether HLP status demotion fosters service relationship fading by influencing demoted customers’ psychological disengagement and the likelihood of patronage reduction. Drawing on the relationship fading literature and the stimulus–organism–response framework, this study aims to examine these effects. It further investigates the moderating role of psychological ownership on the links of status demotion with psychological disengagement and the likelihood of patronage reduction.
Design/methodology/approach
Two studies (Studies 1 and 2) were conducted in the context of airline HLPs. Study 1 was a structured survey conducted among 213 demoted airline HLP customers in Australia, and Study 2 was an experiment conducted among 178 executive MBA students in Bangladesh. The PROCESS macro was used to test the moderated mediation model.
Findings
The results of both studies show that HLP status demotion significantly influences customers’ psychological disengagement and the likelihood of patronage reduction. The findings also reveal that psychological disengagement mediates the relationship between status demotion and the likelihood of patronage reduction. Further, customers with high (low) psychological ownership feel high (less) psychological disengagement and show high (less) likelihood of patronage reduction due to their HLP status demotion.
Originality/value
This study extends the existing literature on relationship marketing and HLPs by offering a better understanding of how and under what conditions status demotion elicits customers’ psychological disengagement and the likelihood of patronage reduction.
Artificial intelligence software called chatbots are designed to imitate human conversation. They utilize natural language processing technology to comprehend and interpret user input and produce responses based on pre-programmed rules or machine learning algorithms. Chatbots are widely utilized in sales and customer service domains. Customers appreciate the convenience of chatbots' instant responses and ability to quickly provide needed information without human intervention. Chatbots benefit businesses by handling multiple inquiries of customers and reducing the need for additional staff, and can also be used for internal purposes such as responding to employee queries and assisting with various tasks. This chapter examines the use of chatbots in marketing, customer service, and sales, covering their classification and common types, impact on customer experience and service costs, and ethical considerations. This chapter will be useful for scholars researching chatbots and professionals looking to integrate them into their marketing and customer service strategies.
Purpose
This paper aims to establish the causal relationship between destination image and tourist motivation and engagement.
Design/methodology/approach
A causal model with seven hypotheses was tested into a sample of 438 domestic tourists in Acapulco (Mexico).
Findings
Cognitive destination image is the main antecedent of tourist engagement, exerting an important direct and indirect effect through push and pull motivations. Affective image also exerts a direct effect on tourist engagement and an indirect effect through push and pull motivations. Only pull motivations exert an influence on tourist engagement.
Research limitations/implications
The study is based on domestic tourists at a sun and beach destination.
Practical implications
Destination management organisations should invest in the care, improvement and promotion of tourism resources. Online and offline communication campaigns should be based on tourism resources and experiences.
Originality/value
This paper fulfils three research gaps: destination image is associated with tourist engagement; tourist motivations affect tourist engagement; and destination image is associated with tourist motivations.
The success of any tourism business depends on the skill to communicate effectively with customers. Competence in English is no longer satisfactory in itself to find a job in the tourism industry. The aim of the study is to address the gap in research by investigating the interaction of language and tourist experiences by examining the association between pleasant tourist experiences and foreign language knowledge. For this purpose, the study used both qualitative and quantitative research methods. The efforts of tourism businesses and their preparedness to solve language barriers in the tourism industry were examined through semi-structured interviews with 15 tourism businesses inclusive of owners and managers. In addition to the qualitative data collected, quantitative data was obtained through 400 questionnaires from both domestic and international tourists at the Gariep Dam. The results suggest that despite the increase in foreign visitors, most tourism businesses are reluctant to appoint staff based on foreign language skills. The study concludes that a great number of tourists regard their English proficiency as poor which makes it difficult for them to communicate their required products and services clearly. This leads to misunderstandings and dissatisfaction tourists will leave a destination being frustrated. Although very few tourists indicated they have experienced language barriers and have complained about it to the manager, no perceptible solutions were put forward to resolve language barriers. In conclusion, the study urges tourism businesses to pay attention to the language issues and asserts that language barriers could be solved if larger tourism establishments have clear written language policies in place. Lastly, foreign language skills should also be considered as an employment criterion for employees in the tourism industry. Even though all staff have the right to communicate in the language they prefer for the purposes of job security, they need to learn new languages in order to perform their jobs optimally.
This study explores the nonlinear modeling of customer satisfaction (CS) and loyalty for resource allocation strategies that promote efficient loyalty programs. We first introduce global models to reflect several important nonlinear characteristics, particularly (a) a saturation-attainable limit of effectiveness, (b) nonconstant marginal returns, and (c) asymmetric responses between satisfied and dissatisfied customers. In the proposed models, we put forth the joint use of two types of mixture models to deal with different levels of heterogeneity. Based on the model best supported among alternatives in the literature, we targeted customers using expected incremental loyalty, which is derived from the joint use of an estimated response curve of loyalty to satisfaction and an empirical distribution of CS scores. Then, we evaluate the efficiency of loyalty programs under the assumption of full and limited access to customers and subsequently derive managerial implications. For instance, through a counterfactual simulation of the models for the three industries, we find that improving the perceived quality in the mobile communication industry may have a greater effect on loyalty than in the hotel and convenience store industries because of its higher switching cost.
Funding: N. Terui acknowledges funding by JSPS KAKENHI [Grants (A)17H01001 and (A)22H00056].
Supplemental Material: The online appendix is available at https://doi.org/10.1287/serv.2022.0313 .
This study expounds a strategic framework of omnichannel integration to enhance the customer experience in the inner circle of loyalty loop. Depending upon the multiple topics of omnichannel marketing, customer engagement, and loyalty loop, the research model was built on managerial factors of channel and customer characteristics and their influences on customer engagement behaviors in the transitional stage of omnichannel marketing. Analysis results found that web usability and customer characteristics (share of store visits, social media use, and email receptivity) are associated with customer engagement behaviors. Customers’ email receptivity moderates the impact of channel characteristics (web usability and store proximity). This study asserts that certain interactive touchpoints for receptive customers can build up a loyalty loop, indicating the need for a catalyst channel bridging the inner and outer circles of the loyalty loop. By directly and indirectly reinforcing customer engagement behaviors, permission-based email can solidify customers’ presence in the inner circle of the loyalty loop.
This study investigates how cultural traits play a role regarding the effect of attribute-level experiences on tourist satisfaction. Adopting Deep Learning algorithm, we proposed Attribute-Level Sentiment Analysis Model (ASAM) to extract tourists’ attribute-level experiences from online reviews. Then, based on nearly 50000 online reviews collect from TripAdvisor, we empirically find that positive attribute-level experiences exert the greater influence on individualism American tourists’ satisfaction, while negative attribute-level experiences affect collectivism Chinese tourists’ satisfaction. In addition, we find that attribute type moderates the effect of perceived attribute experiences on overall satisfaction. Specifically, American tourists are more influenced by positive experiences with vertical attributes, while Chinese tourists are more affected by negative experiences with horizontal attributes. This research contributes to hospitality literature by enhancing the understanding of the cross-cultural factors in influencing tourist satisfaction. These findings also shed light on practices regarding improving tourist satisfaction.
Product importance and related constructs have been inadequately defined and understood in the consumer behavior literature. This paper reviews and integrates these constructs and presents a framework for the analysis of product importance perceptions. Two forms of the construct are identified, and the antecedents of and responses to product importance are specified. Implications for consumer research and marketing management are discussed.
Evidence indicates that satisfied customers defect at a high rate in many industries. Because satisfaction alone does not translate linearly into outcomes such as loyalty in terms of purchases, businesses must strive for 100 percent, or total, customer satisfaction and even delight to achieve the kind of loyalty they desire. Current studies attribute a higher degree of emotionality to the dissatisfaction end of the satisfaction continuum than in the past. For example, customers who have experienced service failures feel annoyed or victimized. Although victimization is felt at a deeper emotional level than irritation, both can result in outrage. By focusing on more intense customer emotions, such as outrage and delight, the authors explore the dynamics of customer emotions and their effect on customer behavior and loyalty. Schneider and Bowen base their conceptualization on people's needs rather than the more conventional model that focuses on customer expectations about their interactions with a firm. The authors propose a complementary needs-based model far service businesses that assumes customer delight and outrage originate with the handling of three basic human needs - security, justice, and self-esteem. By recasting a situation as one that has violated any of a customer's fundamental needs, the deeper emotional outcome (e.g., outrage) does not seem incongruous. The authors describe each need and offer specific managerial tactics for avoiding outrage and creating delight. Recent emphasis on relationship marketing - that is, attracting, developing, and retaining customers is pertinent because building relationships requires that companies view customers as people first and consumers second. Service is an exchange relationship in which customers swap their money and loyalty for what Schneider and Bowen argue is need gratification - a psychological contract with service firms to have their needs gratified. The authors discuss strategies that help firms gratify and, in some cases, delight customers. while avoiding the perception that they do not respect customer needs. Companies must manage how they show concern for customer needs in all actions, including the activities of the back office (e.g., billing, shipping), not just front-office personnel who directly contact the customer.
Superior customer satisfaction provides a clear strategic advantage and an inimitable resource for a firm — particularly in today’s complex and often uncertain markets. Two decades of academic research have quantified the impact of customer satisfaction on a number of beneficial customer behaviors and consequent financial performance. It is clear that firms that manage their customers as well as costs realize greater financial returns compared to firms that ignore customer satisfaction. In the pages that follow, we provide a strategic overview of this research to enable managers to use customer satisfaction in the strategic planning processes of their firms. After defining customer satisfaction, we discuss how customer satisfaction is measured and analyzed, provide an overview of research on antecedents and outcomes of customer satisfaction, and offer recommendations for managers on how to achieve a successful customer-focused strategy.
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)
Instead of offering products or services alone, increasingly, firms and their partners are offering consumption systems. Consumption systems are offerings characterized by a significant product and service subsystem, as well as a pattern of consumption in which consumption occurs in multiple episodes over time. The authors develop a theoretical model for conceptualizing satisfaction with consumption systems and empirically test it using longitudinal data from 5206 automobile owners. Results show that an intertemporal examination of attribute-level performance, satisfaction, and behavioral intentions can improve an understanding of their relationships because these relationships change as the consumption of the product unfolds. For example, on the basis of their salience, attribute weights in determining satisfaction shift over time. Furthermore, the crossover effect of product and service satisfaction in determining intentions toward the manufacturer and the service provider is asymmetric, and this asymmetry reverses over time. Service satisfaction initially has a much larger impact in determining intentions toward the manufacturer, but later, product satisfaction is more influential in generating intentions toward the service provider and manufacturer. The results show that there is no direct link between satisfaction and behavioral intentions. Rather, satisfaction affects behavioral intentions in the future through a dual-mediation route.
The relationship between attribute-level performance, overall satisfaction, and repurchase intentions is of critical importance to managers and generally has been conceptualized as linear and symmetric. The authors investigate the asymmetric and nonlinear nature of the relationship among these constructs. Predictions are developed and tested empirically using survey data from two different contexts: a service (health care, n = 4517) and a product (automobile, n = 9359 and n = 13,759). Results show that (1) negative performance on an attribute has a greater impact on overall satisfaction and repurchase intentions than positive performance has on that same attribute, and (2) overall satisfaction displays diminishing sensitivity to attribute-level performance. Surprisingly, results show that attribute performance has a direct impact on repurchase intentions in addition to its effect through satisfaction.
This study develops a longitudinal model of the effect of a service change on customer attitudes about service quality. The model is estimated with data from a field experiment with three survey waves. Service changes are found to strongly influence customer evaluations of service quality through their effect on customer perceptions of current performance and disconfirmation. The effect of disconfirmation is larger, and the effect of prior attitudes is smaller, directly after the service change compared with a subsequent time period.
Product importance and related constructs have been inadequately defined and understood in the consumer behavior literature. This paper reviews and integrates these constructs and presents a framework for the analysis of product importance perceptions. Two forms of the construct are iden-tified, and the antecedents of and responses to product importance are specified. Implications for consumer research and marketing management are discussed.
Customer satisfaction is the predominant metric firms use for detecting and managing customers' likelihood to defect. But while satisfaction and defection are related, satisfaction is only a weak predictor of whether a customer will defect. This article suggests that for repurchase decisions that involve an information-based evaluation of alternatives to the incumbent, likelihood of defection will be influenced by “how much” customers know about those alternatives. The relationship between level of knowledge about alternatives and defection is examined in the context of actual health insurance choices. Results suggest that the level of objective and subjective knowledge about alternatives has a direct effect on likelihood of defection—above and beyond satisfaction level. The view of defection forwarded in this article suggests that managers may be able to gain additional control over customer defection through actions aimed at influencing how much customers know (or come to know) about alternative vendors.
While reward programs have been widely used as a means to engender customer loyalty, it is not clear if the ends are justified. Some researchers argue that we do not fully understand the mechanism underlying reward programs and how it affects consumer acceptability of such programs. In this study, we examine two variables; timing (immediate vs. delayed) and type (direct vs. indirect) of rewards in two service conditions (satisfied vs. dissatisfied). We conduct the experiment in two service settings and the results indicate that when consumers are satisfied, they prefer delayed, direct rewards (of higher values) to immediate, direct rewards. However, when consumers are dissatisfied, they prefer immediate, direct rewards to delayed, direct rewards (of higher values). Interestingly, the preference for direct over indirect rewards is apparent only if the rewards are delayed (for the satisfactory service experience) or immediate (for the dissatisfactory service experience).
Most research in customer asset management has focused on specific aspects of the value of the customer to the company. The
purpose of this article is to propose an integrated framework, called CUSAMS (customer asset management of services), that
enables service organizations (1) to make a comprehensive assessment of the value of their customer assets and (2) to understand
the influence of marketing instruments on them. The foundation of the CUSAMS framework is a careful specification of key customer
behaviors that reflect the length, depth, and breadth of the customer-service organization relationship: duration, usage,
and cross-buying. This framework is the starting point for a set of propositions regarding how marketing instruments influence
customer behavior within the relationship, thereby influencing the value of the customer asset. The framework and propositions
provide the impetus for a research agenda that identifies critical issues in customer asset management.
The authors present a unified strategic framework that enables competing marketing strategy options to be traded off on the basis of projected financial return, which is operationalized as the change in a firm's customer equity rel- ative to the incremental expenditure necessary to produce the change. The change in the firm's customer equity is the change in its current and future customers' lifetime values, summed across all customers in the industry. Each customer's lifetime value results from the frequency of category purchases, average quantity of purchase, and brand-switching patterns combined with the firm's contribution margin. The brand-switching matrix can be esti- mated from either longitudinal panel data or cross-sectional survey data, using a logit choice model. Firms can ana- lyze drivers that have the greatest impact, compare the drivers' performance with that of competitors' drivers, and project return on investment from improvements in the drivers. To demonstrate how the approach can be imple- mented in a specific corporate setting and to show the methods used to test and validate the model, the authors illustrate a detailed application of the approach by using data from the airline industry. Their framework enables what-if evaluation of marketing return on investment, which can include such criteria as return on quality, return on advertising, return on loyalty programs, and even return on corporate citizenship, given a particular shift in cus- tomer perceptions. This enables the firm to focus marketing efforts on strategic initiatives that generate the great- est return.
Drawing from need, motivation, and social exchange theories, this study conceptualizes and empirically examines the differential curvilinear effects of multiple determinants of loyalty intentions, including transactional satisfaction, trust, and value for relational exchanges. The authors conceptualize trust as a "motivator," satisfaction as a "hygiene," and value as a "bivalent" factor in consumer loyalty mechanisms. Using consumer data on relational exchanges in two different service contexts-retail clothing and nonbusiness airline travel - and accounting for different sources of error - namely, measurement, common method, and response style - the authors empirically investigate the hypothesized mechanisms. The data support the motivator, or the enhancing role of trust, and the hygiene, or the maintaining role of satisfaction, on loyalty intentions in both contexts. Although the authors also obtain consistent results for the influence of value, its role is aligned with a hygiene mechanism, not a bivalent mechanism. The authors contribute to the study of loyalty antecedents by (1) theoretically proposing the nature and shape of the influence of different loyalty determinants, (2) considering the simultaneous and differential effects of multiple determinants, and (3) drawing implications from the results for theory and managerial practice.
It is becoming increasingly apparent from the literature that marketers need to consider customer-level information when they
generate a marketing strategy for the firm. In this article, the authors develop a customer-focused framework that uses a
marketing strategy with an overall objective of maximized financial performance. This strategy is driven by seven customer-level
marketing tactics and shows how actual customer data can be used to generate an actionable marketing strategy leading to optimal
levels of profitability, customer equity, and shareholder value. In addition, the authors discuss a successful implementation
of this strategy for several business-to-business and business-to-consumer firms and offer insights as to how to customize
an implementation strategy for any firm, along with presenting potential challenges a firm may encounter during the implementation
process. Several suggestions for future research are offered to explore and harness this newly available evidence.
Although researchers and managers pay increasing attention to customer value, satisfaction, loyalty, and switching costs,
not much is known about their interrelationships. Prior research has examined the relationships within subsets of these constructs,
mainly in the business-to-consumer (B2C) environment. The authors extend prior research by developing a conceptual framework
linking all of these constructs in a business-to-business (B2B) service setting. On the basis of the cognition-affect-behavior
model, the authors hypothesize that customer satisfaction mediates the relationship between customer value and customer loyalty,
and that customer satisfaction and loyalty have significant reciprocal effects on each other. Furthermore, the potential interaction
effect of satisfaction and switching costs, and the quadratic effect of satisfaction, on loyalty are explored. The authors
test the hypotheses on data obtained from a courier service provider in a B2B context. The results support most of the hypotheses
and, in particular, confirm the mediating role of customer satisfaction.
The author develops a probabilistic model that converts stated purchase intents into purchase probabilities. The model allows heterogeneity between nonintenders and intenders with respect to their probability to switch to a new “true” purchase intent after the survey, thereby capturing the typical discrepancy between overall mean purchase intent and subsequent proportion of buyers (bias). When the probability to switch of intenders is larger (smaller) than that of nonintenders, the overall mean purchase intent overestimates (underestimates) the proportion of buyers. As special cases, the author derives upper and lower bounds on proportions of buyers from purchase intents data and shows the consistency of those bounds with observed behavior, except in predictable cases such as new products and business markets. However, a straightforward modification of the model deals with new product purchase forecasts.
The data interval bias issue in econometric studies of the relationship between advertising and sales first was discussed in JMR by Clarke in 1976. Within the last few years, several studies reported in the marketing literature have investigated the modeling of sales-advertising relationships with temporally aggregated data. Weiss, Weinberg, and Windal developed an aggregate form of the brand loyal model for data aggregated over time and compared their estimates of micro-level parameters with those derived from an alternative approximation developed by Bass and Leone. The authors use simulated data and empirical data to compare the performance of the two approximation approaches.
Instead of offering products or services alone, increasingly, firms and their partners are offering consumption systems. Consumption systems are offerings characterized by a significant product and service subsystem, as well as a pattern of consumption in which consumption occurs in multiple episodes over time. The authors develop a theoretical model for conceptualizing satisfaction with consumption systems and empirically test it using longitudinal data from 5206 automobile owners. Results show that an intertemporal examination of attribute-level performance, satisfaction, and behavioral intentions can improve an understanding of their relationships because these relationships change as the consumption of the product unfolds. For example, on the basis of their salience, attribute weights in determining satisfaction shift over time. Furthermore, the crossover effect of product and service satisfaction in determining intentions toward the manufacturer and the service provider is asymmetric, and this asymmetry reverses over time. Service satisfaction initially has a much larger impact in determining intentions toward the manufacturer, but later, product satisfaction is more influential in generating intentions toward the service provider and manufacturer. The results show that there is no direct link between satisfaction and behavioral intentions. Rather, satisfaction affects behavioral intentions in the future through a dual-mediation route.
Many companies have been disappointed by a lack of results from their quality efforts. The financial benefits of quality, which had been assumed as a matter of faith in the “religion of quality,” are now being seriously questioned by cost-cutting executives, who cite the highly publicized financial failures of some companies prominent in the quality movement. In this increasingly results-oriented environment, managers must now justify their quality improvement efforts financially. The authors present the “return on quality” approach, which is based on the assumptions that (1) quality is an investment, (2) quality efforts must be financially accountable, (3) it is possible to spend too much on quality, and (4) not all quality expenditures are equally valid. The authors then provide a managerial framework that can be used to guide quality improvement efforts. This framework has several attractive features, including ensured managerial relevance and financial accountability.
Customer satisfaction/dissatisfaction has become an important issue for marketing practitioners. The authors examine the issue in terms of customer service. In particular, practitioners and academicians have noted that simply investing in greater service delivery may not return the cost of the additional investment. Part of the problem is that customers’ response to service increments can be nonlinear, and satisfaction and dissatisfaction thresholds may not occur at the same point. The authors propose a method for analyzing this complex behavior in a way that can lead to the development of more accurate service strategies through an understanding of the relationships among customer-transaction costs, satisfaction, and purchase loyalty. They use a catastrophe model to describe a service loyalty customer-response surface. Then, by presenting a “real-world” application with a small service-quality customer dataset provided by General Electric Supply, they show how one actually estimates such a model and interprets the results.
The authors develop a longitudinal model of the effect of a service change on customer attitudes about service quality. The model is estimated with data from a field experiment with three survey waves. Service changes are found to have a strong influence on customer evaluations of service quality through their effect on customer perceptions of current performance and disconfirmation. The effect of disconfirmation is larger and the effect of prior attitudes is smaller directly after the service change than in a subsequent time period.
A simplified cognitive model is proposed to assess the dynamic aspect of consumer satisfaction/dissatisfaction in consecutive purchase behavior. Satisfaction is found to have a significant role in mediating intentions and actual behavior for five product classes that were analyzed in the context of a three-stage longitudinal field study. The asymmetric effect found demonstrates that repurchase of a given brand is affected by lagged intention whereas switching behavior is more sensitive to dissatisfaction with brand consumption. An attempt to predict repurchase behavior on the basis of the investigated cognitive variables yielded weak results. However, repurchase predictions were improved when the model was extended to a multipurchase setting in which prior experience with the brand was taken into account.
It is no longer news that over the past five years, Sears, Roebuck and Company has radically changed the way it does business and dramatically improved its financial results. But the Sears transformation was more than a change in marketing strategy. It was also a change in the logic and culture of the business. Led by CEO Arthur Martinet, a group of more than 100 top-level Sears executives spent three years rebuilding the company around its customers. In rethinking what Sears was and what it wanted to become, these managers developed a business model of the company - the employee-customer-profit model - and an accompanying measurement system that tracks success from management behavior through employee attitudes to customer satisfaction and financial performance. The basic elements of the model are not difficult to grasp. In retailing, there is a chain of cause and effect running from employees' behavior to customers' behavior to profits, and it is not hard to see that behavior depends primarily on attitude. Still, implementing the model is not easy. One problem is measuring such soft data as customer and employee "satisfaction." Not surprisingly, many companies do not have a realistic grasp of what their customers and employees actually think and do. By means of an ongoing process of data collection, analysis, modeling, and experimentation, Sears does. Moreover, the work of creating the model and the measures has made such demands on managers that it has changed the way they think and behave. And now that cultural change is spreading throughout the company.
While many researchers have made contributions to the now extensive literature on service quality, there is much less research on what constitutes delight in service quality and how organizations can delight customers. This article examines the differences between customer satisfaction and customer delight, notably the benefits of delighting rather than merely satisfying customers. It describes how to delight customers, outlines how to implement a successful customer delight program, shows how to measure customer delight, and discusses the potential pitfalls of doing so.
Many companies have been disappointed by a lack of results from their quality efforts. The financial benefits of quality, which had been assumed as a matter of faith in the ''religion of quality,'' are now being seriously questioned by cost-cutting executives, who cite the highly publicized financial failures of some companies prominent in the quality movement. In this increasingly results-oriented environment, managers must now justify their quality improvement efforts financially. The authors present the ''return on quality'' approach, which is based on the assumptions that (1) quality is an investment, (2) quality efforts must be financially accountable, (3) it is possible to spend too much on quality, and (4) not all quality expenditures are equally valid. The authors then provide a managerial framework that can be used to guide quality improvement efforts. This framework has several attractive features, including ensured managerial relevance and financial accountability.
The author develops a probabilistic model that converts stated purchase intents into purchase probabilities. The model allows heterogeneity between nonintenders and intenders with respect to their probability to switch to a new "true" purchase intent after the survey, thereby capturing the typical discrepancy between overall mean purchase intent and subsequent proportion of buyers (bias). When the probability to switch of intenders is larger (smaller) than that of nonintenders, the overall mean purchase intent overestimates (underestimates) the proportion of buyers. As special cases, the author derives upper and lower bounds on proportions of buyers from purchase intents data and shows the consistency of those bounds with observed behavior, except in predictable cases such as new products and business markets. However, a straightforward modification of the model deals with new product purchase forecasts.
The data interval bias issue in econometric studies of the relationship between advertising and sales first was discussed in "JMR" by Clarke in 1976. Within the last few years, several studies reported in the marketing literature have investigated the modeling of sales-advertising relationships with temporally aggregated data. Weiss, Weinberg, and Windal developed an aggregate form of the brand loyal model for data aggregated over time and compared their estimates of micro-level parameters with those derived from an alternative approximation developed by Bass and Leone. The authors use simulated data and empirical data to compare the performance of the two approximation approaches.
While many researchers have made contributions to the now extensive literature on service quality, there is much less research on what constitutes delight in service quality and how organizations can delight customers. This article examines the differences between customer satisfaction and customer delight, notably the benefits of delighting rather than merely satisfying customers. It describes how to delight customers, outlines how to implement a successful customer delight program, shows how to measure customer delight, and discusses the potential pitfalls of doing so.
Several of the largest marketing research suppliers estimate that 70 to 90% of their clients use purchase intention scales in some form on a regular basis. Though there have been many studies of purchase intention, relatively few researchers have tried to relate purchase intention to actual purchase behavior. Those who have attempted to relate the two often have found substantial variation between stated intention and actual behavior. The authors have collected what they believe is the largest and most comprehensive database on purchase intention and actual purchase behavior for new products yet developed. They use different models in a comparison of predictive accuracy when stated intentions data are adjusted by separate perceptions of products such as willingness to consult others before purchase, affordability, liking, and availability.
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.
Many service organizations have embraced relationship marketing with its focus on maximizing customer lifetime value. Recently, there has been considerable controversy about whether there is a link between customer satisfaction and retention. This research question is important to researchers who are attempting to understand how customers' assessments of services influence their subsequent behavior. However, it is equally vital to managers who require a better understanding of the relationship between satisfaction and the duration of the provider-customer relationship to identify specific actions that can increase retention and profitability in the long run. Since there is very little empirical evidence regarding this research question, this study develops and estimates a dynamic model of the duration of provider-customer relationship that focuses on the role of customer satisfaction. This article models the duration of the customer's relationship with an organization that delivers a continuously provided service, such as utilities, financial services, and telecommunications. In the model, the duration of the provider-customer relationship is postulated to depend on the customer's subjective expected value of the relationship, which he/she updates according to an anchoring and adjustment process. It is hypothesized that cumulative satisfaction servesas an anchor that is updated with new information obtained during service experiences. The model is estimated as a left-truncated, propo rtional hazards regression with cross-sectional and time series data describing cellular customers perceptions and behavior over a 22-month period. The results indicate that customer satisfaction ratings elicited prior to any decision to cancel or stay loyal to the provider are positively related to the duration of the relationship. The strength of the relationship between duration times and satisfaction levels depends on the length of customers' prior experience with the organization. Customers who have many months' experience with the organization weigh prior cumulative satisfaction more heavily and new information (relatively) less heavily. The duration of the service provider-customer relationship also depends on whether customers experienced service transactions or failures. The effects of perceived losses arising from transactions or service failures on duration times are directly weighed by prior satisfaction, creating contrast and assimilation effects. How can service organizations develop longer re lation-ships with customers? Since customers weigh prior cumulative satisfaction heavily, organizations should focus on customers in the early stages of the relationship-if customers' experiences are not satisfactory, the relationship is likely tobe very short. There is considerable heterogeneity across customers because some customers have a higher utility for the service than others. However, certain types of service encounters are potential relationship "landmines" because customers are highly sensitive to the costs/losses arising from interactions with service organizations and insensitive to the benefits/gains. Thus, incidence and quality of service encounters can be early indicators of whether an organization's relationship with a customer is flourishing or in jeopardy. Unfortunately, organizations with good prior service levels will suffer more when customers perceive that they have suffered a loss arising from a service encounter-due to the existence of contrast effects. However, experienced customers are less sensitive to such losses because they tend to weigh prior satisfaction levels heavily. By modeling the duration of the provider-customer relationship, it is possible to predict the revenue impact of service improvements in the same manner as other resource allocation decisions. The calculations in this article show that changes in customer satisfaction can have important financial implications for the organization because lifetime revenues from an individual customer depend on the duration of his/her relationship, as well as the dollar amount of his/her purchases across billing cycles. Satisfaction levels explain a substantial portion of explained variance in the durations of service provider-customer relationships across customers, compa rable to the effect of price. Consequently, it is a popular misconception that organizations that focus on customer satisfaction are failing to manage customer retention. Rather, this article suggests that service organizations should be proactive and learn from customers before they defect by understanding their current satisfaction levels. Managers and researchers may have underestimated the importance of the link between customer satisfaction and retention because the relationship between satisfaction and duration times is very complex and difficult to detect without advanced statistical techniques.
Share of wallet is a concept that is growing in popularity among satisfaction researchers. There is no empirical research, however, examining the relationship between satisfaction, retention, and share of wallet. This is largely the result of the inherent difficulty collecting true share of wallet information in most business categories. If the impact of satisfaction on share of wallet is the same as satisfaction on retention, then managers can simply substitute more easily obtainable retention data. Therefore, this research examines the appropriateness of using actual purchase as a proxy for the more difficult to attain share of wallet in two distinct industries, Class 8 trucks and pharmaceuticals. The findings indicate that the top performance attributes in terms of predictive ability are the same and in the same order for each outcome, suggesting that for some firms, actual purchase may represent an acceptable proxy for share of wallet when deriving opportunities for service improvement.
Although managers are interested in the financial value of customers and researchers have pointed out the importance of stock analysts who advise investors, no studies to date have explored the implications of customer satisfaction for analyst stock recommendations. Using a largescale longitudinal data set, the authors find that positive changes in customer satisfaction not only improve analyst recommendations but also lower dispersion in those recommendations for the firm. These effects are stronger when product market competition is high and financial market uncertainty is large. In addition, analyst recommendations at least partially mediate the effects of changes in satisfaction on firm abnormal return, systematic risk, and idiosyncratic risk. Analyst recommendations represent a mechanism through which customer satisfaction affects firm value. Thus, if analysts pay attention to Main Street customer satisfaction, Wall Street investors should have good reason to listen and follow. Overall, this research reveals the impact of satisfaction on analyst-based outcomes and firm value metrics and calls attention to the construct of customer satisfaction as a key intangible asset for the Investor community.
Customer satisfaction/dissatisfaction has become an important issue for marketing practitioners. The authors examine the issue in terms of customer service. In particular, practitioners and academicians have noted that simply investing in greater service delivery may not return the cost of the additional investment. Part of the problem is that customers' response to service increments can be nonlinear, and satisfaction and dissatisfaction thresholds may not occur at the same point. The authors propose a method for analyzing this complex behavior in a way that can lead to the development of more accurate service strategies through an understanding of the relationships among customer-transaction costs, satisfaction, and purchase loyalty. They use a catastrophe model to describe a service loyalty customer-response surface. Then, by presenting a "real-world" application with a small service-quality customer dataset provided by General Electric Supply, they show how one actually estimates such a model and interprets the results.
In exemplary service organizations, executives understand that they need to put customers and frontline workers at the center of their focus. Those managers heed the factors that drive profitability in this service paradigm: investment in people, technology that supports frontline workers, revamped recruiting and training practices, and compensation linked to performance. They also express a vision of leadership in somewhat unconventional terms, referring to an organization's "patina of spirituality" and the "importance of the mundane." In this article, Heskett, Jones, Loveman, Sasser, and Schtesinger take a close look at the links in the service-profit chain, which puts hard values on soft measures so that managers can calibrate the impact of employee satisfaction, loyalty, and productivity on the value of products and services delivered. Managers can then use this information to build customer satisfaction and loyalty and assess the corresponding impact on profitability and growth. Describing the links in the service-profit chain, the authors explain that profit and growth are stimulated by customer loyalty; loyalty is a direct result of customer satisfaction; satisfaction is largely influenced by the value of services provided to customers; value is created by satisfied, loyal, and productive employees; and employee satisfaction, in turn, results from high-quality support services and policies that enable employees to deliver results to customers. By completing the authors' service-profit chain audit, companies can determine not only what drives their profit but how they can sustain it in the long term.
The service profit chain is a simple conceptual framework linking employee satisfaction and loyalty, customer satisfaction and loyalty, and financial performance. Although widely used by practitioners, the service profit chain's series of hypothesized relationships between employee, customer, and financial outcomes has not been rigorously tested using data that span all components of the model. Panel data from the branches of a large regional bank are used to test individually each of the service profit chain's constituent hypotheses. The results generally support the model, but there are some exceptions. Further work is needed to refine and simplify several critical measures and to enhance the analysis to test the service profit chain as a complete system of related hypotheses.
Research has found that customer satisfaction is positively related to repurchase intention, actual repurchase, marke