ArticlePDF Available

The Factors That Affect Customer Value and Its Impact on the Customer Loyalty

Authors:

Abstract and Figures

This study aims to find out and analyze the factors that influence customer value and their impact on customer loyalty. This study uses quantitative methods with descriptive and verification approaches using explanatory surveys. The analysis technique uses SEM analysis. From the results of the study obtained data that the factor of consumer psychology moves from the point of not good to good while the customer value factors and customer loyalty moves from good enough to well. Verification results show both partially and simultaneously these factors have a positive and significant effect. Customer value has a positive and significant effect on customer loyalty with the magnitude of its influence stronger when compared to consumer psychology and the marketing mix towards customer value. This proves empirically that customer value factors are intervening between consumer psychology and marketing mix with customer loyalty.
Content may be subject to copyright.
299
The Factors That Affect Customer Value and Its Impact on the
Customer Loyalty
Jefry Romdonny1, Undang Juju2, Eddy Jusuf2, Maskarto Lucky Nara Rosmadi3
1Doctoral Student, Pasundan University, Indonesia
2Pasundan University, Indonesia
3Institute of Economic Kridatama Bandung, Indonesia
makartolucky@gmail.com
Abstract: This study aims to find out and analyze the factors that influence customer value
and their impact on customer loyalty. This study uses quantitative methods with descriptive
and verification approaches using explanatory surveys. The analysis technique uses SEM
analysis. From the results of the study obtained data that the factor of consumer psychology
moves from the point of not good to good while the customer value factors and customer
loyalty moves from good enough to well. Verification results show both partially and
simultaneously these factors have a positive and significant effect. Customer value has a
positive and significant effect on customer loyalty with the magnitude of its influence stronger
when compared to consumer psychology and the marketing mix towards customer value. This
proves empirically that customer value factors are intervening between consumer psychology
and marketing mix with customer loyalty.
Keywords: customer value; service quality; consumer psychology; customer loyalty
I. Introduction
In the era of globalization and business competition that is so tight, competitive
advantage over a product has its own value for consumers [1]. The competitive advantage
that the company has gives a proposition value and supports customer value [2], [3].
Therefore, companies must effectively plan strategies in an effort to attract the attention of
customers. Customer value includes product quality and service. Providing optimal service is
the right strategy applied to the success of business activities [4], [5], because maintaining is
more difficult than getting new customers [6], [7].
To maintain customers, of course business people must be able to know the tastes of
consumers, especially from the social psychological aspects and consumer culture which can
change at any time [8]. By understanding what is the obligation of the producer, the quality of
service provided is considered as a differentiator in an effort to meet the needs of customers
or consumers [9], [10]. The development of a service company to consumers or customers
must also be improved [11]. customer value indicates that the product produced can be
accepted by consumers. This must be addressed by the producers as well as an evaluation
material on how to retain consumers (consumer loyalty) so as not to turn to other products or
companies [12], [13].
From the description above, the researcher can formulate several problems, namely:
1. How big is the impact of service quality on customer value
2. How big is the impact of consumer psychology on customer value
3. How big is the impact of customer value on customer loyalty
The purpose of this study is to know and analyze the impact of service quality and
consumer psychology on customer value and its effect on customer loyalty.
Budapest International Research and Critics Institute-Journal (BIRCI-Journal)
Volume I, No 4, December 2018, Page: 299-305
e-ISSN: 2615-3076(Online), p-ISSN: 2615-1715(Print)
www.bircu-journal.com/index.php/birci
emails: birci.journal@gmail.com
birci.journal.org@gmail.com
300
II. Review of Literature
2.1 Customer Value
Customers are long-term investments for companies that must be given the best
service for the continuity of their business. Companies must be able to create customer value
in the process of buying and providing good service [14], [15]. Therefore, companies must be
able to utilize people's preferences, create services, and market surveys in order to be able to
support customer value for the products they produce better and satisfactorily [16], [17], [18].
To be able to satisfy customers, companies must be able to combine several elements
including customer information, human resources, and business capabilities they have [19].
With the steps taken by the company it is expected that customers can be satisfied so that it
will increase customer value. Conversely, if the customer is not satisfied, it will have an
impact on distrust of the products produced by the company [20]. The results of empirical
research conducted by Eid [21], Ganguli & Roy [22], Sohibah, Mohammad, Salim, & Ismail
[23] , Tabassum, Zafar, Ali, Alam, & Ali [24], Al-Hawari & Mouakket [25], Wu & Liu [26]
it can be concluded that customer value has a positive and significant effect on customer
loyalty.
2.2 Service Quality
Service is an effort given by the company to consumers so that they are interested in
buying the products they produce. Providing services to consumers is subjective so it is
difficult to measure. Therefore, companies must know the characteristics and characteristics
of each consumer [27]. Good service quality will be a special power for consumers to choose
the products they want. Therefore, service quality will have a direct impact on customer
satisfaction [28], [29].
By providing optimal service quality, it will have an impact on customer loyalty and
indirectly related to buying products that producers produce [30], [31], [32]. The results of
empirical research conducted by Heri [28], Alex and Thomas [ 30], Yu [31], and Qomariah
[33] it can be concluded that giving good services to consumers will have a positive impact
on the company's image, the products produced.
2.3 Customer Psychology
Consumer psychology is one of the supporting factors that can affect customer value.
This was revealed by Rintamaki et al. [34] that in order for customer value to be formed, the
company (producer) needs to understand aspects of consumer psychology. Rintamaki's
opinion is reinforced by Jahanshahi et al. [35] and Chang & Dibb [36] that there are several
factors that can influence customer value, including situational, psychological and socio-
cultural.
However, basically the customer value must be expected by the producer
psychologically in order to have a positive impact. The results of empirical research
conducted by Scheers [37] & Chang [38] can be concluded that consumer psychology has a
positive impact on customer value related to the products and services it receives.
2.4 Customer Loyalty
Quality services and products will add to the attractiveness of consumers for goods
produced by producers. This factor can cause consumers to be loyal and will not turn to
Budapest International Research and Critics Institute-Journal (BIRCI-Journal)
Volume I, No 4, December 2018, Page: 299-305
e-ISSN: 2615-3076(Online), p-ISSN: 2615-1715(Print)
www.bircu-journal.com/index.php/birci
emails: birci.journal@gmail.com
birci.journal.org@gmail.com
301
similar products from other manufacturers. By maximizing service and satisfaction to
consumers, it will maintain loyalty and loyalty for a long period of time [33], [39], [40].
Therefore customer satisfaction is the most relevant to customer loyalty and a driver
of success in marketing [41], [42]. The results of empirical research conducted by Chen &
Tsai [39], Fiol, Alcaniz, Tena, & Garcia [40 ], Lam, Shankar, Erramilli, Murthy [43],
Gounaris, Spiros, Tzempelikos, & Kalliopi [44] it can be concluded that the quality of
customer value and customer loyalty is important for the success of a company in increasing
its relationship with customers and achieving competition competitive in organizational
performance.
III. Research Methods
This research was conducted at the Triples S ball company located in Majalengka
Regency, West Java, Indonesia. The research method uses quantitative methods with
exploratory and explanatory descriptive approaches. Sources of data come from primary data
and secondary data using structured interview techniques through questionnaires. Test the
normality of the data with the help of SPSS version 20.00 software. The collected data is then
analyzed and processed using Structural Equation Modeling (SEM) software Lisrel 8.72.
IV. Results and Discussion
Empirical data obtained from Triple S soccer ball company are:
Figure 1. Number of Customers Based on Length of Use
Based on Figure 1 above, it can be explained, that of the total number of customers
used as respondents as a whole population, the majority came from vulnerable time more
than 6 months to 12 months as many as 154 respondents, while the least customers were
those who used soccer balls Triple S more than 2 years, namely 21 respondents. From the
results of the validity and reliability test on customer value factors, service quality, consumer
psychology, and customer loyalty are all valid with values above 0.300, while reliability with
values above 0.700.
34
139
154
47 21
Number of Customers Based on Length of Use
< 3 bulan
> 3 s.d 6 bulan
> 6 s.d 12 bulan
> 1 s.d 2 tahun
> 2 tahun
months
months
months
months
years
Budapest International Research and Critics Institute-Journal (BIRCI-Journal)
Volume I, No 4, December 2018, Page: 299-305
e-ISSN: 2615-3076(Online), p-ISSN: 2615-1715(Print)
www.bircu-journal.com/index.php/birci
emails: birci.journal@gmail.com
birci.journal.org@gmail.com
302
From the results of statistical analysis using Structural Equation Modeling (SEM) software
Lisrel 8.72 the following results are obtained:
Figure 2. Structure of Relationship of All Research Variables
From Figure 2 above can be explained, that the service quality factors and consumer
psychology have a positive and significant effect on customer value. While the customer
value factor has a positive and significant effect on customer loyalty. By understanding the
value of consumers and consumer psychology, the manufacturer of soccer brand Triple S will
better understand the right way to win the hearts of consumers who will have a positive
impact on the sale of Triple S brand football. With the increase in sales of Triple S brand
soccer, the survival of manufacturers Triple S brand soccer balls are maintained and
employees of Triple S soccer manufacturers can still work well. Therefore producers need to
pay attention and understand the psychological conditions of consumers better so that
consumer value is maintained properly. This result is in accordance with the opinion
expressed by Qomariah [33] and Chen & TSai [39] that customer value and customer loyalty
are important and important for the success of a company. This opinion is supported by the
results of a study conducted by Fiol, Alcaniz, Tena, & Garcia [40], Lam, Shankar, Erramilli,
Murthy [43] that customer value and loyalty can improve relations between producers and
consumers and achieve the expected goals of producers.
In addition, customer value is a very important one in order to increase sales of Triple
S. brand soccer balls. This is because if customers feel that what is received is more than the
sacrifice they make, surely this will delight the Triple S brand soccer customers. and finally
the customer becomes a loyal customer. This result is in accordance with the opinion of
Castaneda et al. [41] and Srinivasan, Anderson & Ponnavalu [42] that by giving satisfaction
to consumers it will have an impact on the success of product marketing. This opinion is
consistent with the research conducted by Tzempelikos, & Kalliopi [44] that customer
relations is a way to improve competitiveness and overall organizational performance.
Budapest International Research and Critics Institute-Journal (BIRCI-Journal)
Volume I, No 4, December 2018, Page: 299-305
e-ISSN: 2615-3076(Online), p-ISSN: 2615-1715(Print)
www.bircu-journal.com/index.php/birci
emails: birci.journal@gmail.com
birci.journal.org@gmail.com
303
IV. Conclusion
From the research results, it can be concluded that consumer psychology and service
quality have a positive impact on customer value. By paying attention to the optimal service
element, it will make consumers / customers feel comfortable so as to create high customer
value. While customer value has a positive and significant impact on loyalty. The higher the
customer value, the more positive customer loyalty will be to the products produced by the
company. Therefore if the price is high but the benefits obtained by the customer are not
many, it will have an impact on the loyalty given by the customer.
References
[1]
[2]
[3]
[4]
[5]
[6]
[7]
[8]
[9]
[10]
[11]
[12]
[13]
Budapest International Research and Critics Institute-Journal (BIRCI-Journal)
Volume I, No 4, December 2018, Page: 299-305
e-ISSN: 2615-3076(Online), p-ISSN: 2615-1715(Print)
www.bircu-journal.com/index.php/birci
emails: birci.journal@gmail.com
birci.journal.org@gmail.com
304
[14]
[15]
[16]
[17]
[18]
[19]
[20]
[21]
[22]
[23]
[24]
[25]
[26]
[27]
[28]
Budapest International Research and Critics Institute-Journal (BIRCI-Journal)
Volume I, No 4, December 2018, Page: 299-305
e-ISSN: 2615-3076(Online), p-ISSN: 2615-1715(Print)
www.bircu-journal.com/index.php/birci
emails: birci.journal@gmail.com
birci.journal.org@gmail.com
305
[29]
[30]
[31]
[32]
[33]
[34]
[35]
[36]
[37]
[38]
[39]
[40]
[41]
[42]
[43]
... sports in case of sports equipment), necessity, etc. It has been shown that this kind of consumer psychology is one of the factors that affect a potential customer's interest in a product and subsequent possible purchase [30]. We thus incorporate this notion of customers' interest with the parameter λ. ...
... 1) Purchase Decision: When a campaign reaches an agent x, the agent has the capability to decide whether or not to purchase the product. Purchasing a product is considered as a means of participating in the advertizing campaign and deciding not to purchase the product means that the agent is unlikely to participate further in the campaign, since in reality, individuals do not generally share, retweet, or forward productrelated content if they are uninterested [30]. The decision to purchase depends on the interest that an agent has in the product/campaign and the influence exerted by the influencer who propagated the campaign to the agent. ...
... σ = 0.2 was chosen in order to not let a large number of samples cluster around the mean, i.e., to incorporate diversity in consumer interest. The a = 0.9 ensured that around 90% of the network is active [38], and the γ = 0.01 was chosen to maintain a significantly lower spread of negative influence [30]. Assuming influencer interaction with followers generates a large influence impact on the follower [28], we use the influence update c = 0.7. ...
Article
Full-text available
Social media are extensively used in today's world, and facilitate quick and easy sharing of information, which makes them a good way to advertize products. Influencers of a social media network, owing to their massive popularity, provide a huge potential customer base. However, it is not straightforward to decide which influencers should be selected for an advertizing campaign that can generate high returns with low investment. In this work, we present an agent-based model (ABM) that can simulate the dynamics of influencer advertizing campaigns in a variety of scenarios and can help to discover the best influencer marketing strategy. Our system is a probabilistic graph-based model that provides the additional advantage to incorporate real-world factors such as customers' interest in a product, customer behavior, the willingness to pay, a brand's investment cap, influencers' engagement with influence diffusion, and the nature of the product being advertized viz. luxury and non-luxury. Using customer acquisition cost and conversion ratio as a unit economic, we evaluate the performance of different kinds of influencers under a variety of circumstances that are simulated by varying the nature of the product and the customers' interest. Our results exemplify the circumstance-dependent nature of influencer marketing and provide insight into which kinds of influencers would be a better strategy under respective circumstances. For instance, we show that as the nature of the product varies from luxury to non-luxury, the performance of celebrities declines whereas the performance of nano-influencers improves. In terms of the customers' interest, we find that the performance of nano-influencers declines with the decrease in customers' interest whereas the performance of celebrities improves.
... sports in case of sports equipment), necessity, etc. It has been shown that this kind of consumer psychology is one of the factors that affect a potential customer's interest in a product and subsequent possible purchase [30]. We thus incorporate this notion of customers' interest with the parameter λ. ...
... 1) Purchase Decision: When a campaign reaches an agent x, the agent has the capability to decide whether or not to purchase the product. Purchasing a product is considered as a means of participating in the advertizing campaign and deciding not to purchase the product means that the agent is unlikely to participate further in the campaign, since in reality, individuals do not generally share, retweet, or forward productrelated content if they are uninterested [30]. The decision to purchase depends on the interest that an agent has in the product/campaign and the influence exerted by the influencer who propagated the campaign to the agent. ...
... σ = 0.2 was chosen in order to not let a large number of samples cluster around the mean, i.e., to incorporate diversity in consumer interest. The a = 0.9 ensured that around 90% of the network is active [38], and the γ = 0.01 was chosen to maintain a significantly lower spread of negative influence [30]. Assuming influencer interaction with followers generates a large influence impact on the follower [28], we use the influence update c = 0.7. ...
Preprint
Full-text available
Social media are extensively used in today's world, and facilitate quick and easy sharing of information, which makes them a good way to advertise products. Influencers of a social media network, owing to their massive popularity, provide a huge potential customer base. However, it is not straightforward to decide which influencers should be selected for an advertizing campaign that can generate high returns with low investment. In this work, we present an agent-based model (ABM) that can simulate the dynamics of influencer advertizing campaigns in a variety of scenarios and can help to discover the best influencer marketing strategy. Our system is a probabilistic graph-based model that provides the additional advantage to incorporate real-world factors such as customers' interest in a product, customer behavior, the willingness to pay, a brand's investment cap, influencers' engagement with influence diffusion, and the nature of the product being advertized viz. luxury and non-luxury. Using customer acquisition cost and conversion ratio as a unit economic, we evaluate the performance of different kinds of influencers under a variety of circumstances that are simulated by varying the nature of the product and the customers' interest. Our results exemplify the circumstance-dependent nature of influencer marketing and provide insight into which kinds of influencers would be a better strategy under respective circumstances. For instance, we show that as the nature of the product varies from luxury to non-luxury, the performance of celebrities declines whereas the performance of nano-influencers improves. In terms of the customers' interest, we find that the performance of nano-influencers declines with the decrease in customers' interest whereas the performance of celebrities improves.
... On the other hand, customer value is closely related to customer satisfaction with the brand, as the relationship is positive between customer satisfaction and high customer value. It is concluded from this that the value of the customer resulting from customer satisfaction has a positive effect on achieving customer loyalty to the brand (Donny et al., 2018). ...
Article
Full-text available
In order to confront climate change, and from the perspective of social responsibility, business organizations contribute and assume the responsibility of contributing to facing climate change. The Customer Relations Department in State Company for Food Products (SCFP) takes its role by guiding customers to adopt green social behavior through proper consumption of products and avoiding waste and pollution of the environment. The purpose of this study is to study the extent of the impact of customer relations management at the State Company for Food Products (SCFP) on the green social behavior of the customer. The study was conducted on employees of customer relations management and marketing management, the number of respondents was (56). The comprehensive statistical package (SPSS) was used for the purpose of examining the effect and the relationship between the variables of the study. It was concluded that (customer relationship management has a significant impact on changing the behavior of customers by adopting environmentally friendly social behavior. Recommendations for the study were concluded, most notably (preparing strategies to acquire customers on the basis of environmental sustainability).
... As such, firms need to adopt relevant marketing strategies in a bid to promote customers' purchases, loyalty and invariably meet set performance targets. Donny et al. (2018) similarly opined that, business can only attract and maintain customers by adopting various marketing strategies which include processes, systems and techniques for providing value to customers. These strategies are also associated with establishing relevant measures to predict customers' demands and culture, determine their tastes and preferences while ensuring that the firms' products and/or services conform to their requirements. ...
... However, within the framework of this research paper, the authors only considered some factors of digitalization affecting customer value creation, so the value of 33.8% is reasonable. Besides digitalization, creating value for customers is also influenced by other factors such as customer psychology, communication, marketing activities, etc. (Donny, Juju, Jusuf, & Rosmadi, 2018;Fan & Dong, 2021;Smith & Colgate, 2007). Thus, the proportion of 33.8% provides evidence of the important role of digitalization in customer value creation. ...
Article
Full-text available
Digitalization and digital applications play important roles in the business activities and business models of enterprises. This paper investigates the impact of digitalization on customer value creation in small and medium enterprises in Vietnam. A quantitative study was conducted with a sample of 202 small and medium enterprises in Vietnam. SPSS version 28 was used to examine whether there was a relationship between digitalization and customer value creation. The study shows that factors such as connectivity, customer management and information, business models, technology and processes, and the use of online solutions have a positive impact on creating value for customers in small and medium enterprises in Vietnam. Based on the results, suggestions for top management of small and medium enterprises to improve customer value creation are provided. Keywords: digitalization, customers, value creation
Article
Full-text available
The high level of change in people's social life demands an increase in people's knowledge of their social behaviour, which has an impact on the growth of people's intelligence to adapt to changes in the social environment, including customers. Customers have become the target of attention for business organizations including Stone Garden, through increasing customer value. The study purpose is to explain the visitor value from a functional, social, emotional and spiritual perspective during their visit to Stone Garden, followed by the meaning of visitor values from a sociological perspective. The research method used is a quantitative descriptive method with a sample measure of 100 people, using the percentage formula followed by determining the range to determine the interval for assessing respondents' perceptions. The results showed that the functional, social, emotional and spiritual values were included in the excellent category. The high value of visitors becomes a reference in determining the sociological value. Stone Garden has become an important part of people's lives because it can provide benefits and be used as a reference for travelling for the community. Stone Garden has become a superior tourism model because it shows something different, namely rock-based natural tourism as the advantage vehicle. This advantage is a motivation for organizations that can foster confidence in the development of tourist destinations in the future as well as for the community so as to direct other people to visit Stone Garden.
Article
Full-text available
Customers are important people in business organizations, do not depend on the company, not people for debate, so that customer desires are the company's duty to be realized. The study purpose is to explain customer satisfaction value as an impact of implementing customer value. The verification method is used to explain the effect of customer value on customer satisfaction with regression analysis. The results explain that Saung Angklung Udjo performance art is a traditional art performance producing beautiful tones, can foster audience enjoyment and satisfaction, the impact of the growing value of performing arts, service, personal, image and cost value. The growth in visitor value has an impact on the growth of visitor satisfaction so as to foster knowledge, a sense of pleasure and the return of fresh feeling to people who experience boredom from their daily routines. This is an important aspect in society that can be used as a reference in the process of interaction as well as a pattern of behaviour and group thought patterns that are mutually recognized in travelling
Article
Full-text available
The major concern to Nigerian companies has been how do promote made in Nigeria food products like food seasoning that has been produced in line with our local taste and culture. It is in this context that this study seeks to examine the effects of sales promotion on the consumer buying behavior of food seasoning among Nigerian households using Nestle Nigeria Plc Maggi NAIJA POT brand as a case study. The study employed cross sectional research design and the population consists of consumers of Nestle product (Maggi seasoning) in Bwari Area Council, Abuja. The sample size is 246 determined using Topman’s formula. Primary data was used through administration of questionnaire and regression analysis was used to test the relationship between the study variables. The findings revealed that most of the consumers enjoy the rebates which influence their decision before, during and after the purchase; there is a positive effect of free trial and free gift on consumer buying behavior of Maggi NAIJAPOT in Bwari Area Council, Abuja. The study concluded that that sales promotion through rebates, free trial and free gifts is one significant tool marketing companies should give attention to in order to influence their consumers’ buying behavior, and recommended among others that providing free samples for food seasoning is a good technique to use in introducing new products to the Nigerian marketplace, also free gift should be included in the outer part of the product packaging to serve as a visual attraction to Nigerian consumers. It may also take the form of the commonly used terminology BOGOF’ (Buy one get one free)
Article
Full-text available
This research aimed at descriptively reviewing marketing and individual environment association upon the customer value as well as verifying the influence of the association upon the customer value, both in partial and simultaneous measurements. A descriptive verification method was applied to the research. Furthermore, the population of the research consisted of students who had been officially registered at Faculty of Teacher Training and Education conducted by Private Universities in West Java Province. A proportional cluster random technique was used to select the sample. In terms of data sources, there were two types: primary and secondary data. To analyze the data, an analysis of Structural Equation Modelling (SEM) was occupied. The result of the research had indicated that marketing and individual environment association and the customer value had shown unsatisfactory outcome. According to verification research, marketing and individual environment association had significantly contributed to the customer value, both in partial and simultaneous measurements.
Article
Full-text available
This study aims to determine the impact of customer value, brand image and product attributes to the satisfaction and loyalty of visitors on the existing coastal tourism in Jember Regency which includes Papuma Beach, Watu Ulo Beach, Payangan Beach, Puger Beach and Paseban Beach and Bande Alit Beach. The population of this study is all visitors of coastal tourism in Jember District. Sampling method is purposive sampling with total sample as many as 300 respondents. With the number of respondents each beach tour amounted to 50 respondents. Quantitative analysis using multiple regression analysis. The result of validity test and reliability test indicate that measuring instrument can be used well. Hypothesis test shows that customer value, brand image and product attribute have an effect on visitor satisfaction. The value of the customer does not affect the loyalty of visitors, while the brand image, product attributes and visitor satisfaction affect the loyalty of visitors.
Article
Full-text available
This paper examines the importance of customer value as a strategic approach to doing business in the 21st century hypercompetitive marketplace and marketspace. The author examines the customer value theory of Professor Art Weinstein as a valid and plausible conceptual framework for strategically positioning an organization through market orientation to design and deliver superior customer value as a competitive advantage. Citing examples of new economy companies that have effectively propelled themselves to the forefront of the competition through the delivery of superior customer value, the author argues that customers are not simply just consumers or buyers of goods and services, but must be seen more like business partners. Furthermore, the author examines the role that customer service and value creation play in the development of competitive advantage and market positions by examining the differences between market driving and market driven companies relative to the customer value concept and theory. Two important frameworks proposed by Weinstein in his customer value theory are used as the framework for this paper to communicate the strategic importance of customer value: the Customer Value Funnel (CVF) and the SQIP (Service, Quality, Image, Price) Approach.
Article
Full-text available
The attainment of quality in products and services has become a pivotal concern of the 1980s. While quality in tangible goods has been described and measured by marketers, quality in services is largely undefined and unresearched. The authors attempt to rectify this situation by reporting the insights obtained in an extensive exploratory investigation of quality in four service businesses and by developing a model of service quality. Propositions and recommendations to stimulate future research about service quality are offered.
Article
Full-text available
When examining retail patronage, customer satisfaction must also be considered. Secondary resources (American Marketing Association, 2007; Berman, 2011; Berry, 2008; Chang, 2006:209; Helgesen & Nesset, 2007: 129 and Kong and Jogaratnam, 2007:279) observed that customer satisfaction is the degree to which a customer’s expectations agree with the actual performance of the product and or service. South African consumers situated in Gauteng consider a sales person’s product knowledge as the most important attribute when making purchasing decisions. American consumers in contrast consider sales person respect as the most important attribute when making purchasing decisions. The implications for marketers and sales managers are that marketers and sales managers must provide adequate training for their sales personnel in order for them to treat customers in such a way to obtain their loyalty. The quality of the products sold at the retailer does not form part of the trade-off options that customers are presented with.
Article
Full-text available
E-commerce system websites have helped to expand the business into the international sphere. Manage satisfaction, trust and customer loyalty to the use of services in the long term in view very important for business development. Lack of studies on the quality of service of E-commerce in the hotel industry in Malaysia in general and on the East Coast of Peninsular Malaysia in particular has prompted this study to be done. The main objective of this study was to identify and measure the perception of foreign tourists to the service factors of E-commerce website that influence satisfaction, trust and loyalty. Based on previous studies, a conceptual framework of this study were established, the relationship between E-commerce service quality, satisfaction, trust and customer loyalty in the hotel industry in the East Coast of Peninsular Malaysia. Tourism sector is the second largest foreign exchange earner after manufactured goods and the seventh largest contributor to the Malaysian economy with a Gross National Income (GNI) of RM47.2 billion in year 2013. The hotel industry is one of the tourism sectors. The hotel industries have international dimensions and have the use of the highest sites. Tourism and hotel industry, especially has proven to be a catalyst for development and these dynamics have turned the industry into a key-driver for economic growth.
Article
Full-text available
Recognizing that high satisfaction leads to high customer loyalty, companies today are aiming for total customer satisfaction. This article explains relative impact of product quality, service quality and contextual experience on customer perceived value and intention to shop in the future. The data has been collected using a questionnaire from 205 customers of a national retailer chain. The relative importance of product quality, service quality and contextual experience on customer perceived value and thus on customer preference and future intentions was measured using multiple regression. Also, the contribution of perceived value to preference and thus on future buying intention was also measured. Structural Equation Model (SEM) using Amos 4 was used to find the overall fitness of the model. It was found that product quality, service quality and contextual experience have a major influence on customer perceived value.
Article
Customer-perceived value is of concern for consumers wishing to make sound purchase choices, for practitioners who are keen to improve their customers' perceptions of value, and for researchers seeking to clarify the conceptual underpinnings of customer-perceived value and its relationship with other marketing variables. This paper synthesises the literature from marketing, economics, axiology and psychology to provide a holistic review of the customer-perceived value concept. Drawing on these sources facilitates deeper understanding and conceptualisation of customer-perceived value. Specifically, the paper seeks to understand customer-perceived value in both services and new shopping contexts, such as the online setting. The implications for researchers and managers are considered.