Satisfaction, trust and loyalty: investigating the mediating effects of commitment, switching costs and corporate image

2018 ◽  
Vol 12 (4) ◽  
pp. 361-380 ◽  
Author(s):  
Harsandaldeep Kaur ◽  
Harmeen Soch
Keyword(s):  
Mobile Phone ◽  
Switching Costs ◽  
Service Providers ◽  
Corporate Image ◽  
Equation Modeling ◽  
Content Type ◽  
Attitudinal Loyalty ◽  
Calculative Commitment ◽  
Indian Consumers ◽  
The Impact

PurposeThe purpose of this study is to develop an understanding of the factors influencing Indian consumers’ loyalty toward mobile phone service providers by exploring the mediating roles of commitment, corporate image and switching costs on causal relationships between customer satisfaction, trust and loyalty.Design/methodology/approachA survey of 855 Indian mobile phone users was carried out to test the hypothesized relationships using structural equation modeling. The results support most of the proposed hypotheses.FindingsThe direct linkages in the model are found to be statistically significant. Of these relationships, corporate image emerged as the strongest determinant of attitudinal loyalty. Calculative commitment and corporate image are found to be partial mediators between satisfaction and attitudinal loyalty. Calculative commitment and switching costs are each proven to be partial mediators between trust and attitudinal loyalty, while corporate image is proved to be a complete mediator.Research limitations/implicationsThe study is limited to examining the impact of relationship variables on Indian consumers’ loyalty toward mobile phone companies. Future research can examine the impact of variables such as rate plans, value-added services, billing experience and voice quality on customer loyalty.Practical implicationsThe results have implications for retaining customers in highly competitive and maturing Indian mobile telecommunications. The research provides some initial insights into corporate brand building as an important area for mobile phone companies.Originality/valueThis is one of the first studies to test the mediating role of commitment, switching costs and corporate image in the relationship between satisfaction, trust and loyalty in the Indian context.

scholarly journals Revisiting customer loyalty toward mobile e-commerce in the hospitality industry: does brand viscosity matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jialin Snow Wu ◽  
Shun Ye ◽  
Chen Jerry Zheng ◽  
Rob Law
Keyword(s):  
Online Survey ◽  
Brand Management ◽  
Switching Costs ◽  
Mobile App ◽  
Integrative Model ◽  
Equation Modeling ◽  
Content Type ◽  
Affective Factors ◽  
Positive Effects ◽  
The Impact

Purpose To better understand how to retain hospitality customers in the fierce competition among mobile applications, this study aims to propose and empirically validates an integrative framework, which elaborates how conscious and subconscious factors, together with affective factors, may induce app loyalty and how brand viscosity moderates such effects. Design/methodology/approach The authors conducted an online survey to collect data and received a total of 268 valid responses. This study splits the data into two groups (brand viscosity vs non-viscosity). Then, the authors performed a multi-group structural equation modeling with Chi-square difference tests to compare the model between the two groups. Findings The findings support the integrative model and reveal that the influence of app satisfaction on loyalty is stronger for app users who do not stick to one brand across the website and mobile app channels. Moreover, for those with brand viscosity, habit and switching cost are two significant determinants that exert positive effects in inducing app loyalty. Research limitations/implications Brand viscosity across different channels matters for the effects of habit and switching costs in shaping app loyalty. E-commerce managers should elaborate on brand management among various booking channels and establish effective digital marketing strategies to facilitate the formation of usage habits and switching costs and to enhance brand viscosity across channels. Originality/value This research advances the knowledge of app loyalty in hospitality by providing a comprehensive explanatory framework from affective, conscious and subconscious lenses. This research is among the first to unveil the impact of brand viscosity on the links between loyalty and its determinants.

Examining the relative influence of multidimensional customer service relationships in the food delivery application context

2021 ◽  
Vol 33 (3) ◽  
pp. 912-928
Author(s):  
Jiseon Ahn ◽  
Jookyung Kwon
Keyword(s):  
Social Exchange ◽  
Brand Equity ◽  
Service Providers ◽  
Food Delivery ◽  
Equation Modeling ◽  
Economic Exchange ◽  
Content Type ◽  
Loyalty Intention ◽  
Self Interest ◽  
The Impact

Purpose From the perspective of relationship theory, customers tend to build a positive attitude toward a company with a strong connection. While previous tourism and hospitality studies acknowledged the strategic importance of a strong relationship between customers and brands in enhancing company performance probability, the potential benefits derived from mobile commerce experience deserves further investigation. Thus, this study aims to examine how multidimensional relationships between customers and service providers affect brand performance. Design/methodology/approach Using a sample of food delivery application customers in the USA, the structural equation modeling (SEM)-partial least squares (PLS) path modeling is used to examine the impact of economic exchange, social exchange, mutual-interest and self-interest, on brand equity and loyalty intention. Findings The PLS-SEM results indicate that customers’ perceived economic exchange, social exchange and mutual interests with food delivery applications influence their perceived equity, which, in turn, enhances their loyalty intention toward brand applications. However, self-interest does not enhance customers’ perceived brand equity. Practical implications Accordingly, food delivery service providers must value their relationship with customers to achieve sustainable organizational growth and develop appropriate promotion activities to enhance economic exchange, social exchange and mutual interests. Originality/value The current study contributes to the literature by empirically demonstrating the consequences of customer-brand relationships in the emerging service context (i.e. food delivery applications).

Get connected with your Takaful representatives

2019 ◽  
Vol 11 (5) ◽  
pp. 1175-1200
Author(s):  
Mohsin Abdur Rehman ◽  
Ismah Osman ◽  
Khurram Aziz ◽  
Hannah Koh ◽  
Muhammad Awais
Keyword(s):  
Service Quality ◽  
Relationship Marketing ◽  
Customer Loyalty ◽  
Corporate Reputation ◽  
Cultural Context ◽  
Corporate Image ◽  
Service Industries ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact

Purpose Marketing investigations on the concomitant variables of both service quality and relationship marketing are very scarce. Hence, the purpose of this study is to examine the customers’ perception of the Takaful (Islamic insurance) in relation to service quality and relationship marketing. More importantly, the examination of the impact of both service quality and relationship marketing on corporate image is further established. Accordingly, corporate reputation and customer loyalty were further evaluated, along with these respective interactions. Design/methodology/approach A self-administered survey was conducted from 350 Malaysian customers of Takaful products and services. The purposive sampling was used to collect data from the existing customers of Takaful service operators in the Klang Valley, an area in Malaysia. The questionnaire was constructed through measures of PAKSERV for service quality, as well as other measures related to relationship marketing and other constructs in this study. Structured equation modeling was used in the analysis of data. Findings The current study is the first one of its kind to examine perceptions of customers of relationship marketing and service quality as predictors of corporate image, which drives corporate reputation and ultimate customer loyalty from the perspective of the Takaful industry in Malaysia. Service quality dimensions (tangibility, reliability and personalization) and relationship marketing dimensions (Islamic ethical behavior and structural bond) positively influence corporate image of the Takaful organizations. Moreover, customer loyalty can be predicted, mainly through corporate reputation as well as corporate image. Research limitations/implications The present study is focused on the existing Malaysian Takaful customers as the population frame. Accordingly, future research studies may evaluate the same model, but perhaps in another different cultural context where the Takaful industry can grow and expand in other countries, including Saudi Arabia, Sudan and Pakistan. More importantly, the same variables may be verified to different service industries in future studies, especially those constructs related to relationship marketing because many products and services at present can be attained without face-to-face interactions through online transactions without having brick and mortar businesses. Practical implications It is important for Takaful service operators to focus on connecting the social and financial bonds to ensure the fulfilment of customers’ needs. They also need to improve the qualities related to tangibility, reliability and personalization to be able to increase their market share, especially in this present highly competitive market. Indeed, Takaful generally provides financial protection and risk management; nevertheless, the religious and ethical values need to be embraced in totality unlike conventional insurance, which has the element of gambling, uncertainty and the imposition of interest. Hence, this study aims to assist the Takaful operators toward achieving corporate reputation and apparently customer loyalty for them to remain relevant in this industry. Originality/value The model used in this study is based on the cultural context of Malaysia from the perspective of the Takaful industry. It attempts to explain customer loyalty through the incorporation of service quality and relationship marketing dimensions, where it is associated with the elements of the values of Islamic ethics especially in business transactions. More importantly, these dimensions were put together to identify its impact on corporate image, corporate reputation, and ultimately, customer loyalty, thus illustrating a distinct set of outcomes of the present study.

Identifying brand touchpoints to increase switching costs in the banking industry

2019 ◽  
Vol 38 (3) ◽  
pp. 718-736 ◽  
Author(s):  
Abdullah Sultan
Keyword(s):  
Factor Analysis ◽  
Structural Equation ◽  
Switching Costs ◽  
Service Providers ◽  
Banking Industry ◽  
Service Failure ◽  
Customer Experience ◽  
Equation Modeling ◽  
Exploratory Research ◽  
Content Type

Purpose The purpose of this paper is to study the effect of staged customer experiences on customer switching costs in the banking industry. Design/methodology/approach Brand touchpoints in the banking industry are identified by exploratory research using focus group sessions with bank customers and staff and refined by exploratory factor analysis using an independent sample of bank customers to form the staged customer experience construct. The proposed research model is then validated by confirmatory factor analysis with an independent sample using structural equation modeling. Findings Customer experience in the banking industry consists of four related but distinct stages (i.e. pre-touch, in-touch, post-touch and service failure). The first three stages have direct and indirect effects on switching costs that are partially mediated by relationship quality. Research limitations/implications Customer experience is an industry-specific construct with complicated effects on switching costs. Thus, the staged customer experience construct should be examined in different industries and applications to understand its implications. Practical implications Bank customers demand experiences that achieve desirable results in everyday situations and switch to other service providers easily if this demand is not met. Banks should focus on brand touchpoints that are both important to customers and increase switching costs to keep customers from defecting. Originality/value This research expands upon findings in the customer experience literature by exploring factors that link staged customer experiences with switching costs in the banking industry. In addition, a paradox is identified in the staged customer experience model that requires managers’ attention in order to design an effective customer experience strategy.

Emotional brand attachment: a factor in customer-bank relationships

2016 ◽  
Vol 34 (2) ◽  
pp. 136-150 ◽  
Author(s):  
Shalom Levy ◽  
Hayiel Hino
Keyword(s):  
Factor Analysis ◽  
Conceptual Framework ◽  
Structural Equation ◽  
Positive Relationship ◽  
Service Providers ◽  
Equation Modeling ◽  
Emotional Attachment ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to evaluate the relationship between customers’ emotional attachment toward bank service providers and bank loyalty. In particular, the study examines the impact of the emotional attachment factor while treating established effecting variables by employing a new conceptual framework that integrates these variables. Design/methodology/approach – The study employs data collected from a survey involving 436 participants. The study employs Exploratory Factor Analysis and Confirmatory Factor Analysis methods following a path analysis method and structural equation modeling for testing research hypotheses. Findings – The empirical results support the claim that the conceptual framework applied in this study better explains the relationship between customers’ emotional attachment toward bank service providers and bank loyalty. Specifically, the findings show a significant, direct and positive relationship between the customer’s emotional attachment and bank loyalty; an indirect positive relationship also exists through the connection of customer satisfaction. The study distinguishes between two integrated pathways consumers possibly follow when making decisions about services: the conscious decision-making process path and the emotional process path. Practical implications – The paper provides managerial and planning implications to bank service providers who seek to achieve excellent performance and a positive brand personality, thus maintaining long-lasting relationships with their customers. Originality/value – The study is among the few empirical works to specifically examine the impact of customers’ emotional attachment on bank loyalty and contributes to the available literature in that it suggests a systematic conceptual framework that evaluates the impact of key factors on bank loyalty.

The impact of brand associations on brand loyalty in the football industry

2016 ◽  
Vol 6 (5) ◽  
pp. 499-519 ◽  
Author(s):  
Daniel Maderer ◽  
Dirk Holtbruegge ◽  
Rachel Woodland
Keyword(s):  
Brand Loyalty ◽  
Structural Equation ◽  
Brand Management ◽  
Negative Impact ◽  
Equation Modeling ◽  
Brand Associations ◽  
Content Type ◽  
Attitudinal Loyalty ◽  
The Usa ◽  
The Impact

Purpose The purpose of this paper is to explore the impact of brand associations on brand loyalty of fans toward professional football clubs in developed and emerging football markets (EFM). In particular, the following research questions are answered: how important are different determinants of brand associations for fans from developed football markets (DFM) and EFM? Are there any major differences in the importance of different brand associations and their influence on brand loyalty between fans from DFM and EFM? Design/methodology/approach Based on the customer-based brand equity framework the impact of brand associations on brand loyalty is tested with a sample of 3,587 fans from DFM – Germany, England, Spain, Italy, and France (2,032) – as well as fans from EFM – Brazil, Russia, India, China, and the USA (1,555). Findings Structural equation modeling is applied and shows a negative impact of brand attributes on attitudinal loyalty, whereas brand benefits positively impact attitudinal loyalty. Furthermore, significant differences between fans from developed and EFM are revealed. Implications for the management of football teams and for research on brand management are derived. Originality/value This study extends the work of Gladden and Funk (2001) by expanding the model used to assess brand loyalty and analyzes it empirically in different football markets. When looking to foster attitudinal loyalty, marketers should concentrate on benefit associations instead of attribute associations. Most importantly, marketers should be aware that when focusing on developing brand loyalty amongst EFM fans, they should not simply apply the same strategies that proved to be effective in DFM and vice versa.

A model of mobile payment usage among Arab consumers

2018 ◽  
Vol 36 (7) ◽  
pp. 1213-1234 ◽  
Author(s):  
Reem Ramadan ◽  
Jawdat Aita
Keyword(s):  
Structural Equation ◽  
Service Providers ◽  
Arab World ◽  
Arab Countries ◽  
Integrative Model ◽  
Primary Data ◽  
Equation Modeling ◽  
Mobile Payment ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of perceived satisfaction with mobile payment applications based on use experience, and subsequent stated expectations on brand loyalty and future use behavior using a theory-based research integrative model of factors that influence Arabs’ intentions to use mobile payment application(s). Design/methodology/approach A conceptual model was developed using the mixed research method approach. The focus group approach was used for the qualitative study and structural equation modeling for the quantitative study. Primary data were collected online. Participants were 305 Arab consumers from nine countries in the Middle East. Findings Satisfaction with the quality of mobile payment application(s) increased use experience and enhanced consumers’ expectations, which in turn positively affected loyalty and purchase intentions. Research limitations/implications The study encompassed mobile payment application(s) in nine countries rather than focusing on one market, or on one product type and business. The paper did not perform a comparative study between sampled Arab countries, but rather it sees all countries and respondents just as Arabs. Practical implications Service providers should build mobile application(s) based on the features of usability, availability, reliability, adaptability, accessibility, responsiveness and security. Originality/value This study is one of the first studies that empirically examines mobile payment consumer’s usage behavior from nine countries of the Arab world where there is scarce research on the topic in the region.

Solo economy in Taiwan: a quality study of click-and-mortar malls

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chih-Chin Liang
Keyword(s):  
Service Quality ◽  
East Asia ◽  
Customer Loyalty ◽  
Perceived Value ◽  
Corporate Image ◽  
Asia Pacific ◽  
Equation Modeling ◽  
Managerial Implication ◽  
Content Type ◽  
The Impact

Purpose The rapid growth of the solo economy in the Asia-Pacific area indicates an economic transition. In East Asia, solitary households are growing along with low marital rates and birth rates under high economic pressure. Because of these population changes, malls must provide good quality service to meet the specific needs of solitary households and social households. The paper aims to discuss this issue. Design/methodology/approach In this study, relationships among service quality, customer satisfaction (CS), perceived value, corporate image and customer loyalty were compared between social and solitary customers of Taiwan click-and-mortar malls. The effects of five service quality dimensions on CS and customer loyalty were investigated by structural equation modeling. Findings The analytical results show that all hypothesized relationships among factors were supported with the exception of the impact of perceived value on satisfaction and the impact of the corporate image on satisfaction. Additionally, the comparison between solitary and social customers showed that service quality, corporate image and customer loyalty have strong relationships without differences between both kinds of customers. Solitary and social customers only differed in the impact of perceived value on loyalty. Practical implications The managerial implication of this study is that, to satisfy both social and solitary customers and to increase their loyalty, Click-and-mortar malls (CAM malls) should apply different service quality strategies for social and solitary customers. To satisfy both types of customers, a strategy for increasing visible cares should be applied in social customers, and a strategy for increasing the perception of reliability, assurance and visible cares should be applied in solitary customers. To enhance the loyalty of solitary customers, a CAM mall should enhance the value perceived by solitary customers, which can help CAM malls increase the loyalty of solitary customers in the solo economy. Originality/value The solo economy is a hot topic in East Asia because the issue of solo economy impacts the market. A CAM mall must evolve its business to attract solitary customers. However, no studies compared perceived quality, satisfaction, perceived value, corporate image and loyalty between solitary customers and social customers. This study is the first study investigated the business model of CAM malls.

Effects of network externalities on user loyalty to online B2B platforms: an empirical study

2019 ◽  
Vol 33 (2) ◽  
pp. 309-334
Author(s):  
Yonghua Cen ◽  
Li Li
Keyword(s):  
User Satisfaction ◽  
Structural Equation ◽  
Switching Costs ◽  
Service Providers ◽  
Network Externalities ◽  
Perceived Value ◽  
Network Size ◽  
Network Externality ◽  
Equation Modeling ◽  
Content Type

Purpose Given a product or service, the number of its installed user base has a significant positive effect on the existing users’ loyalty and new users’ conversion. This effect is conceptualized as network externalities in economics. Network externalities are supposed to be particularly striking in nowadays online business-to-business (B2B) platforms, but yet the mystery behind their effects on user loyalty to online B2B platforms remains to be delicately unraveled. The purpose of this paper is to discover the factors driving users’ loyalty, especially buyers’ loyalty, to online B2B platforms, by highlighting the impacts of network externalities on loyalty and other mediating factors. Design/methodology/approach A conceptual model of buyer loyalty under network externalities is elaborated. The reliability and validity of the instruments of the latent model constructs are assessed by confirmatory factor analysis, and the hypothesized causal relationships among the constructs are tested by structural equation modeling, on 710 valid buyer samples collected from a famous online B2B platform in China. Findings The analysis demonstrates that: perceived value, user satisfaction and switching costs are the major predictors of buyer loyalty to online B2B platforms characterized by network externalities; network externalities positively account for buyer loyalty by contributing to perceived value, user satisfaction and switching costs; and direct network externality (measured by perceived network size and perceived external prestige) has a significant effect on indirect network externality (measured by perceived compatibility and perceived complementarity). Originality/value The findings allow the authors to conclude meaningful managerial implications for online B2B service providers to build up loyal user bases through improving users’ perceptions of network externalities, switching costs and value.

Customer relationship investment and relationship strength: evidence from insurance industry in China

2016 ◽  
Vol 30 (2) ◽  
pp. 201-211 ◽  
Author(s):  
Guicheng Shi ◽  
Huimei Bu ◽  
Yuan Ping ◽  
Matthew Tingchi Liu ◽  
Yonggui Wang
Keyword(s):  
Structural Equation ◽  
Service Providers ◽  
Self Report ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Content Type ◽  
Service Employees ◽  
Relationship Strength ◽  
Relationship Investment ◽  
The Impact

Purpose This study aims to elucidate how different relationship investment efforts by a service firm affect its customers’ perceived relationship investment; to determine how perceived relationship investment influences various dimensions of relationship strength; and to explore the moderating effects of customer innovativeness and complaint propensity on the relationship between the perceived relationship investment and relationship strength. Design/methodology/approach To minimize common method variance, data were collected from pairs of life insurance agents in China and their clients using self-report questionnaires. Hypotheses were tested using structural equation modeling. Findings The results indicate that customers value financial effort most followed by social effort and structural effort. Perceived relationship investment influences the affective strength most strongly, followed by cognitive strength and conative strength. Customer innovativeness and complaint propensity both moderate the effectiveness of perceived relationship investment in influencing two of the three dimensions of relationship strength. Originality/value This study is among the first to specify how service employees can guide consumer perceptions of relationship investment by applying three types of relationship investment effort. The impact of perceived relationship investment on different dimensions of relationship strength was assessed to demonstrate how service providers can benefit from investing in building consumer relationships. The moderating impact of consumer innovativeness and of complaint propensity was quantified. The research findings have important implications for managing different relationship investment as well as recruiting and training service employees.

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