Understanding the impact of the relationship quality on customer loyalty: the moderating effect of online service recovery

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shu-Mei Tseng
Keyword(s):  
Relationship Quality ◽  
Customer Loyalty ◽  
Service Recovery ◽  
Survey Study ◽  
Service Firms ◽  
Online Service ◽  
Statistical Population ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this study is to examine the impact of the relationship quality on customer loyalty. The moderating role played by online service recovery in this study is further discussed. Design/methodology/approach A quantitative Web-based survey study was conducted to statistically test these relationships among relationship quality, service recovery and customer loyalty. Data collected from 183 respondents were taken for analysis through partial least squares. Findings The findings reveal that relationship quality has significant influence on customer loyalty, whereas service recovery has moderated effect on the relationship between relationship quality and customer loyalty. Research limitations/implications The respondents of this study were recruited from online panels; thus, a purposive sample could be a biased indication of the characteristics of the actual population. Therefore, it is suggested that future researchers enroll subjects from a statistical population that accurately represents the entire population and, in addition, that they collect more responses to increase the generalizability of the findings. Practical implications Because failures in service delivery are inevitable, recovery of such encounters thus represents a significant challenge for service firms. Hence, this study proposes concrete suggestions for firms to manage and operate e-commerce websites, as well as to enhance relationship quality and customer loyalty. Originality/value Service failures have been the bane of e-commerce, compelling customers to either abandon transactions entirely or switch to a physical competitor. Many firms have realized the importance of maintaining strong relationships with customers to enhance their loyalty. However, previous literature has a few studies conducted on the relationships among service recovery, relationship quality and customer loyalty in the e-commerce context. Therefore, it is meaningful to identify these relationships.

scholarly journals PENGARUH RELATIONSHIP MARKETING DAN RELATIONSHIP QUALITY TERHADAP LOYALITAS PELANGGAN DENGAN KEPUASAN PELANGGAN SEBAGAI VARIABEL INTERVENING PADA PRODUK PARFUM MULEGH DI PURWOKERTO

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Ilham Akbar
Keyword(s):  
Customer Satisfaction ◽  
Relationship Quality ◽  
Relationship Marketing ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Marketing Relationship ◽  
Negative Effect ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

The research entitled �The Influence of Relationship Marketing and Relationship Quality Towards Customer Loyalty with Customer Satisfaction as The Intervening Variable on Mulleg Perfume Product in Purwokerto� aims to determine the impact of relationship marketing and relationship quality towards customer satisfaction and customer loyalty and to determine whether customer satisfaction could become the intervening variable. The hypothesis of this research is the relationship marketing has negative effect towards customer satisfaction, the relationship marketing has positive effect towards customer loyalty, the relationship quality has positively effect towards customer satisfaction, the relationship quality has positively effect towards the customer loyalty, and the customer loyalty could be able to mediate the influence of relationship marketing and relationship quality toward customer loyalty.� The analysis method that used on this research is the structural equation modeling.The results show that the relationship marketing has positive and significant effect towards customer satisfaction. It will increase the customer satisfaction of Mulleg Aromatic perfume product in Purwokerto. The relationship quality has positive and significant effect towards customer satisfaction, so it will increase the customer satisfaction of Mulleg Aromatic perfume product in Purwokerto. The relationship marketing has positive and significant effect towards customer loyalt. It will increase the customer loyalty of Mulleg Aromatic perfume product in Purwokerto. The relationship quality has positive and significant effect towards the customer loyalty. The Customer Satisfaction has positive and significant effect towards customer loyalty. The customer satisfaction could mediate the influence of relationship marketing towards the customer loyalty on Mulleg Aromatic perfume product in Purwokerto. The customer satisfaction could mediate the influence of relationship quality towards the customer loyalty of Mulleg Aromatic perfume product in Purwokerto.�Keywords : Relationship Marketing , Relationship Quality , Customer Satisfaction and Customer Loyalty�

The mediating effects of program loyalty in loyalty rewards programs: an experimental design in coffee shops

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pınar Başgöze ◽  
Yaprak Atay ◽  
Selin Metin Camgöz ◽  
Lydia Hanks
Keyword(s):  
Experimental Design ◽  
Customer Loyalty ◽  
Perceived Value ◽  
Deep Understanding ◽  
Loyalty Program ◽  
Content Type ◽  
Value Perception ◽  
Study Results ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this study is to evaluate the impact of reward structure on the customer's value perception of the program, loyalty to the program and loyalty to the firm.Design/methodology/approachA 2 (type of reward) x 2 (timing of redemption) between subjects experimental design was conducted. In addition, the indirect effect of the customer's value perception of the program on loyalty to the firm via loyalty to the program is tested with Hayes and Preacher's mediation procedure.FindingsStudy results indicated that type of reward has a positive impact on the perceived value of a loyalty program. Program loyalty mediates the relationship between the perceived value of the loyalty program and customer loyalty, as well as the relationship between type of reward and customer loyalty.Originality/valueThe findings of this study demonstrate the importance of the type and timing of loyalty program rewards on customer perceptions of the value of the loyalty program. In addition, this study is a step forward in providing a deep understanding of the impact of such perceptions on loyalty. These findings fill a number of research gaps and provide tangible guidance for practitioners.

Corporate social responsibility and service innovation on customer loyalty

2015 ◽  
Vol 33 (6) ◽  
pp. 823-839 ◽  
Author(s):  
Ying-Pin Yeh
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Relationship Quality ◽  
Customer Loyalty ◽  
Service Innovation ◽  
Service Firms ◽  
Content Type ◽  
Wealth Management ◽  
Relationship Value ◽  
Corporate Social

Purpose – Customer loyalty is crucial for firms to generate positive returns. Creation of customer loyalty is a challenge for service firms because switching service firms can represent a risk. The purpose of this paper is to examine how wealth managers select and implement corporate social responsibility (CSR) and service innovation strategies to influence customer loyalty. Design/methodology/approach – A review of the related literature indicated that scant studies have determined the meanings and outcomes of CSR and service innovation. Therefore, the roles of CSR and innovation were examined in this study to evaluate how these factors affect customer loyalty in a wealth management context. The authors evaluated customer advocacy, relationship quality, and relationship value as mediating variables, and formulated six hypotheses. Data were collected using a questionnaire survey distributed to wealth management customers in Taiwan. All the hypotheses were verified using a structural equation model and data collected from the respondents. Findings – The results indicated that relationship quality and value are positively related to customer loyalty, and customer advocacy is positively related to both relationship quality and value. In addition, CSR and service innovation are positively related to customer advocacy. Research limitations/implications – This research was limited to collecting data related to specific service providers, and therefore consumers in other countries should be examined to test the robustness of the theoretical model. The results of analyses conducted on other industries and in other countries might differ. Practical implications – In the wealth management service context, CSR and service innovation capabilities contribute to customer advocacy, which can achieve superior relationship quality, relationship value, and customer loyalty. Originality/value – This paper contributes to investigations on the effect of CSR and service innovation on customer loyalty by adopting customer advocacy, relationship quality, and relationship value as mediators.

“Too much of a good thing?”: exploring the dark side of empowering leadership by linking it with unethical pro-organizational behavior

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xue Zhang ◽  
Guyang Tian ◽  
Chao Ma ◽  
Yezhuang Tian ◽  
Zhongqiu Li ◽  
...  
Keyword(s):  
Organizational Behavior ◽  
Social Exchange ◽  
Social Exchange Theory ◽  
Survey Study ◽  
Dark Side ◽  
Empowering Leadership ◽  
Content Type ◽  
Indirect Relationship ◽  
The Impact ◽  
The Relationship

PurposeGrounded in social exchange theory (SET), the purpose of this paper is to examine the relationship between empowering leadership and unethical pro-organizational behavior (UPB), as mediated by duty orientation (including duty to members, duty to mission and duty to codes). Further, this study proposes that perceived leader expediency moderates indirectly between empowering leadership and UPB.Design/methodology/approachThis paper tests this social exchange model across a survey study using time-lagged data collections from 215 employees of a service company in China.FindingsThe results show that duty orientation mediates the relationship between empowering leadership and UPB. In addition, perceived leader expediency moderates the indirect relationship between empowering leadership and UPB through duty orientation (i.e. duty to members and duty to missions).Originality/valueThis research aids in understanding the impact of empowering leadership on follower outcomes by investigating the dark side of empowering leadership and examining the relationships between empowering leadership, duty orientation and UPB. The present study also challenges the notion that the phrase “the greater the empowerment, the better the outcomes” suggests that organizations should offer a conditional approach to the empowerment of followers by their leaders.

scholarly journals Managing online service recovery: procedures, justice and customer satisfaction

2016 ◽  
Vol 26 (6) ◽  
pp. 764-787 ◽  
Author(s):  
Jaywant Singh ◽  
Benedetta Crisafulli
Keyword(s):  
Customer Satisfaction ◽  
Service Recovery ◽  
Interactional Justice ◽  
Online Information ◽  
Online Service ◽  
Mediated Communication ◽  
Content Type ◽  
Recovery Strategies ◽  
The Impact ◽  
Information And Technology

Purpose The internet has changed the way services are delivered and has created new forms of customer-firm interactions. Whilst online service failures remain inevitable, the internet offers opportunities for delivering efficient service recovery through the online channel. Notwithstanding, research evidence on how firms can deliver online service recovery remains scarce. The purpose of this paper is to investigate the impact of two online service recovery strategies – online information and technology-mediated communication – on customer satisfaction, switching and word of mouth intentions. Design/methodology/approach A scenario-based experiment is employed. Data are analysed using partial least squares structural equation modelling. Findings Online information and technology-mediated interactions can be used as online service recovery strategies. When fair, online service recovery can restore customer satisfaction, lower switching and enhance positive word of mouth. Interactional justice delivered through technology-mediated communication is a strong predictor of satisfaction with online service recovery. Yet, customers in subscription services show greater expectations of online service recovery than those in non-subscription services. Research limitations/implications Further research could examine the impact of online service recovery on relational constructs, such as trust. Since customers participate in the online recovery process, future research could investigate the role of customers as co-creators of online service recovery. Practical implications Service managers should design online recovery strategies that meet customer need for interactional justice, for example, bespoke e-mails, and virtual chat communications with genuine customer care. Originality/value Online information and technology-mediated communication function as online service recovery strategies. Customer perceptions of justice towards online service recovery restore satisfaction, and encourage loyal behaviour.

Face, fate and brand equity: service recovery justice and satisfaction

2020 ◽  
Vol 37 (7) ◽  
pp. 843-854
Author(s):  
Joseph Lok-Man Lee ◽  
Noel Yee-Man Siu ◽  
Tracy Jun-Feng Zhang
Keyword(s):  
Distributive Justice ◽  
Brand Equity ◽  
Service Recovery ◽  
Interactional Justice ◽  
Content Type ◽  
Cultural Variables ◽  
Justice Perceptions ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

Purpose Can we always expect that service recovery justice leads to satisfaction? Literature has shown that a number of moderating factors impact the recovery justice-satisfaction link in different cultures. However, there is a dearth of research that has indicated the key cultural variables that play a moderating role. This study aims to attempt to fill the research gap by investigating the moderating role of concern for face, belief in fate and brand equity in the relationship between perceived justice and satisfaction in Chinese culture during service recovery. Design/methodology/approach The hypothesized relationships are tested using data from interviews with 600 persons who have recently complained about their telecommunications services. Structural equation modeling is applied in analyzing their responses. Findings Concern for face is found to strengthen the relationship between interactional justice perceptions and satisfaction, but to weaken the relationship between distributive justice perceptions and satisfaction. Belief in fate weakens the link between perceptions of interactional justice and satisfaction. Brand equity positively moderates the relationship between perceptions of interactional justice and satisfaction, but it negatively moderates the relationship between perceptions of distributive justice and satisfaction. Practical implications The cultural variables, namely, face, fate and brand equity, are found to serve as a moderating role in the relationship between recovery justice dimensions and satisfaction. They are more salient when it is related to social element. Face and brand equity, as interpersonal constructs, aggravate the impact of interactional justice on satisfaction. Fate, as non-social factor, weakens the impact of interactional justice on satisfaction. It is argued that managers should provide staff training in product knowledge and customer service as a preventive measure against damage to the brand. Regular customer satisfaction research and benchmarking exercises should be conducted to understand how customers perceive interactional justice. Originality/value This has been the first research to examine the impact of concern for face, belief in fate and brand equity in the relationship between justice perceptions and post-recovery satisfaction during service recovery.

Stand by me: analyzing the tourist–intelligent voice assistant relationship quality

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sandra Maria Correia Loureiro ◽  
Arnold Japutra ◽  
Sebastian Molinillo ◽  
Ricardo Godinho Bilro
Keyword(s):  
Relationship Quality ◽  
Social Exchange ◽  
Structural Equation ◽  
Perceived Value ◽  
Self Esteem ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to explore tourist perceived value and attachment to intelligent voice assistants (IVAs) as antecedents of the quality of the human–IVA relationship in the hospitality domain. This research also examines the moderating role of psychological factors (self-esteem) and knowledge factors (past experience and technology expertise) in the relationships between antecedents and relationship quality. Design/methodology/approach The researchers conducted two quantitative studies, collecting data via online surveys in Mechanical Turk (n1 = 124 and n2 = 281). The proposed model was tested using partial least squares structural equation modeling. Findings The first study uncovers that tourist perceived value is the main influence on the quality of the relationship between tourists and IVAs. The second study confirms the direct relationships of the first and shows that self-esteem and technology expertise act as moderators. Practical implications This study advances the understanding of the tourism and hospitality stakeholders in using modern technologies (e.g. IVAs). Through comprehending the relationship building between individuals and IVAs, the stakeholders will be able to craft better strategies. Originality/value The study extends the attachment and social exchange theories to the tourist–IVA relationship context. Specifically, this research demonstrates the impact of tourist perceived value on the quality of the relationship with the IVA. It also points out that tourists’ self-esteem and technology expertise can weaken the tourist–IVA relationship.

Driving customer loyalty in the Malaysian fast food industry

2019 ◽  
Vol 11 (6) ◽  
pp. 1367-1387 ◽  
Author(s):  
Farzana Quoquab ◽  
Nur Zulaikha Mohamed Sadom ◽  
Jihad Mohammad
Keyword(s):  
Customer Loyalty ◽  
Fast Food ◽  
Food Industry ◽  
Service Providers ◽  
Partial Least Square ◽  
Mediating Effect ◽  
Fast Food Industry ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose Although the importance of halal logo in determining purchase intention has been recognized in the marketing literature, there is a dearth of study that has examined the impact of halal logo toward customer loyalty. To fulfill this gap, this study aims to shed some light on the impact of halal logo toward achieving customer loyalty in the context of fast food industry in Malaysia. More specifically, the objectives of this study are: to examine the direct and indirect effect of halal logo on customer loyalty; to examine the effect of halal logo on trust and perceived reputation; to examine the effect of halal logo and perceived reputation on customer loyalty; and to examine the mediating effect of trust and perceived reputation in the relationship between halal logo and customer loyalty among the fast food industry consumers in Malaysia. Design/methodology/approach This study used stimulus-organism-response (S-O-R) theory as the theoretical basis. The data were collected via self-administered survey questionnaire consisting 117 Muslim fast food consumers. Partial least square (SmartPLS, version 3) was used to test the study hypotheses. Findings Results of this study revealed that halal logo, directly and indirectly affect customer loyalty. Moreover, perceived reputation and trust also found to be positively related to customer loyalty. Research limitations/implications The data were collected from Malaysian Muslim consumers. Future studies can consider non-Muslim consumers to compare the loyalty pattern among Muslim and non-Muslim consumers. Practical implications The findings from this study will benefit fast food industry marketers who are targeting Muslim consumer segment and also those marketers who are operating their franchise business in Muslim majority countries. The findings suggest that halal logo helps service providers to create positive perceived reputation and to build trust among consumers, which eventually lead customer loyalty. It is expected that the findings of this study will assist the halal fast food industry marketers to better strategize their marketing efforts in retaining the Muslim customer base. Originality/value Using S-O-R theory, this study examines halal logo as the key driver of customer loyalty, which is comparatively a new link. Moreover, this study examines the mediating effects of perceived reputation and trust in the relationship between halal logo and customer loyalty, which are not tested in previous literature in the field.

Examining the relationship between e-service recovery quality and e-service recovery satisfaction moderated by perceived justice in the banking context

2020 ◽  
Vol 27 (6) ◽  
pp. 1951-1980
Author(s):  
Sonia Mathew ◽  
Ajay Jose ◽  
Rejikumar G ◽  
Dony Peter Chacko
Keyword(s):  
Information Quality ◽  
Banking Sector ◽  
Service Failure ◽  
Service Recovery ◽  
Equation Modeling ◽  
Content Type ◽  
Perceived Justice ◽  
Recovery Satisfaction ◽  
The Impact ◽  
The Relationship

PurposeThe study focuses on the core issue faced by bankers on how to retain existing customers who have encountered an e-service failure and who are skeptical about the justice received through the service recovery process. It further endeavors to create an internal bench-marking model for assessing e-service recovery satisfaction.Design/methodology/approachBy the experimental study, the authors confirm a measurement model using structural equation modeling for examining the impact of perceived service recovery quality antecedents on e-service recovery satisfaction moderated by perceived justice. In total, responses from 399 e-banking customers, who had experienced a e-service failure, were recorded using a 5-point Likert scale with a structured questionnaire.FindingsThe perceived e-service recovery quality antecedents identified were perceived information quality, digital commitment, perceived employee performance and perceived service orientation of organization. The empirical results revealed that “perceived information quality” was the most significant predictor of e-service recovery satisfaction. Perceived justice moderates the relation between perceived service recovery quality and e-service recovery satisfaction.Research limitations/implicationsThe research does not contemplate the e-service recovery satisfaction of customers who have undergone multiple service failures.Practical implicationsThe conclusions of the investigation suggest that the four antecedents of perceived e-service recovery quality model are suitable instruments for creating benchmarks for e-service recovery satisfaction for banks, and that perceived justice moderates the relationship between e-service recovery quality and e-service recovery satisfaction. Therefore, policymakers in banks can use this model to assess the e-service recovery quality, and they ought to enhance the perceived justice feel of the customers who have experienced a service failure.Originality/valueThere remains scarcity of empirical research focusing on perceived information quality and digital commitment as antecedents of perceived e-service recovery quality and its effect on e-service recovery satisfaction in the banking context. Furthermore, similar studies within the banking sector have rarely considered perceived justice as a moderator variable. Hence, this paper attempts to accomplish the research gap by empirically testing the e-service recovery satisfaction level of a large sample of the population toward four antecedents of perceived e-service recovery quality rendered by banks and create a benchmark model to ascertain e-service recovery satisfaction.

Hospitality-based service recovery, outcome favourability, satisfaction with service recovery and consequent customer loyalty: an empirical analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ghazal Shams ◽  
Raouf Rather ◽  
Mohsin Abdur Rehman ◽  
Rab Nawaz Lodhi
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Service Failure ◽  
Service Recovery ◽  
Sampling Technique ◽  
Study Data ◽  
Behavioural Intention ◽  
Content Type ◽  
Hotel Managers ◽  
The Impact

Purpose In recent studies, tourism scholars focussed more on service failure and recovery. Thus satisfaction with service recovery (SSR) and outcome favourability in conjunction with service recovery (SR) and customers’ behavioural intention was given very little attention, while they are very attention-grabbing, particularly in marketing areas of hospitality and tourism studies. Using stealing thunder and co-creation-based strategies, this study aims to investigate the impact of SR on outcome favourability, and its association with SSR and customer loyalty. Design/methodology/approach To attain the objectives of the current study, data were collected through field survey by applying a random sampling technique from 346 regular customers four- and five-star hotels in the context of Iran. The structural equation modelling technique was applied for testing the measurement and relationship models of the study. Findings The findings of this research reveal a positive relationship between SR and outcome favourability. The findings also indicate that outcome favourability positively affects SSR and loyalty. Finally, SSR exerts a favourable and significant impact on customer loyalty. Research limitations/implications The study findings may have restricted applicability in different contexts other than four- and five-star hotels. Theoretically, the current research contributes insight into the dynamics of characterizing SR, outcome favourability, SSR and behavioural intention-based theoretical associations, as observed in the hospitality industry. Originality/value This study adopted an un-explored SR, outcome favourability and SSR theoretical perspectives to identify the strength and nature of relationships between them and discuss their important implications for academicians and hotel managers.

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