Online relationship marketing and customer loyalty: a signaling theory perspective

2019 ◽  
Vol 37 (1) ◽  
pp. 226-240 ◽  
Author(s):  
Sheena Lovia Boateng
Keyword(s):  
Relationship Marketing ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Signaling Theory ◽  
Relationship Building ◽  
Equation Modeling ◽  
Content Type ◽  
Online Trust ◽  
Online Technologies

PurposeOnline technologies have, in recent times, revolutionized the process of relationship building between firms and their customers. Nonetheless, there is a limited focus and theorization when it comes to explaining the link between online relationship marketing (ORM) activities and their impact on firm relationship marketing (RM) objectives. Thus, the purpose of this paper is to examine the signaling role of ORM activities in generating online trust and customer loyalty, through the lens of the signaling theory.Design/methodology/approachData for the study were gathered through a survey of 429 Ghanaian retail bank customers. Results were analyzed using structural equation modeling techniques.FindingsThe paper highlights the signaling role of engagement and interactivity online in influencing banks’ RM outcomes per the signaling theory. It concludes that bank’s online relationship activities, over and above the online tools utilized, need to communicate appropriate and useful signals in order to positively influence online trust and loyalty among customers.Originality/valueThe study, in its uniqueness, utilizes the signaling theory to explain the role and impact of online RM activities in the banking industry.

The role of customers in co-creating m-services in the O2O model

2017 ◽  
Vol 28 (5) ◽  
pp. 866-883 ◽  
Author(s):  
Jung-Kuei Hsieh
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Online Survey ◽  
Cognitive Factors ◽  
Equation Modeling ◽  
Content Type ◽  
Emotional Factors ◽  
Message Source ◽  
Store Environment

Purpose The purpose of this paper is to investigate customer loyalty in the online-to-offline (O2O) model by conceptualizing and measuring emotion and cognition. Design/methodology/approach An online survey was used to collect 514 questionnaire responses. The data were analyzed using structural equation modeling. Findings Three emotional factors influence two cognitive factors, which in turn affect customer loyalty. The type of message source acts as a moderator. In addition to pleasure and arousal, dominance is a key factor of emotion. The effects of social enhancement and store environment on customer loyalty reflect the O2O model’s integration of online and offline environments. Practical implications The moderating role of the type of message source implies that marketers of brick-and-mortar stores can promote positive offline experiences to attract online customers and then encourage these customers to disseminate personal messages in their social circles. By attracting online customers through appealing m-services and retaining these customers through favorable store environments, marketers can maximize the utility of the O2O model. Originality/value Three emotional factors and two cognitive factors are conceptualized to predict customer loyalty in the O2O model. This study shows that the relationships between cognitive factors and customer loyalty are moderated by the type of message source. When check-in activity messages are sent by friends, the perception of social enhancement can lead to greater customer loyalty. In contrast, when check-in activity messages are sent by unfamiliar sources, customer loyalty is driven more by cognition of the store environment than by online interaction. The findings enrich existing knowledge of the O2O model and m-services, and have implications for researchers and marketers.

Predictors of customer loyalty in the Pakistani banking industry: a moderated-mediation study

2016 ◽  
Vol 34 (3) ◽  
pp. 411-430 ◽  
Author(s):  
Muhammad Abid Saleem ◽  
Sadaf Zahra ◽  
Rashid Ahmad ◽  
Hina Ismail
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Integral Model ◽  
Equation Modeling ◽  
Survey Method ◽  
Content Type ◽  
Research Framework ◽  
Mediational Role

Purpose – The purpose of this paper is to develop an original framework to explore the effects of social influence (SI), market orientation (MO) and service quality (SQ) with moderating effect of emotional intelligence (EI) on customer loyalty (CL) and to discuss the mediational role of customer satisfaction. Design/methodology/approach – This study applies six original concepts – SI, MO, SQ, EI, customer satisfaction to develop an integral model to enhance CL. In addition, this research employs an empirical study by means of the questionnaire survey method to verify the hypotheses and to explore its managerial implications. Structural equation modeling has been applied to verify the research framework. Findings – The empirical results show that MO, SI and SQ significantly affect CL with presence of customer satisfaction as a mediator. Furthermore, this study demonstrates that the direct relationships between MO and SI on CL are not supported. However indirect paths present full mediation except in case of SQ where mediation was partial. Moreover, EI was found to enhance the partially mediated relationship between SQ and CL with mediational role customer satisfaction. Hence, banks should invest resources to increase MO, SI and SQ to increase customer satisfaction and CL. Originality/value – This study summarizes the literature on customer satisfaction and relationship marketing into a new managerial framework of CL. It utilizes new arrangement of four construct – SI, MO, and SQ with EI – to develop an original framework to enhance CL. Although past research has highlighted the relevant issues about CL, none explores it with MO and moderating role of EI on SQ. Therefore, this paper develops the research framework of CL to fill the research gap specifically in Pakistani context.

The mediating roles of renqing and ganqing in Chinese relationship marketing

2015 ◽  
Vol 6 (2) ◽  
pp. 156-176 ◽  
Author(s):  
Xinhua Zhou ◽  
Guicheng Shi ◽  
Matthew Tingchi Liu ◽  
Huimei Bu
Keyword(s):  
Relationship Marketing ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Social Relationship ◽  
Survey Methodology ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Content Type ◽  
Attitudinal Loyalty ◽  
Marketing Investments

Purpose – This paper aims to investigate the roles of renqing (reciprocal favor) and ganqing (positive affect) as consequences of relationship marketing investments (three dimensions: financial, social and structural) and antecedents of customer loyalty. Design/methodology/approach – A quantitative survey methodology using self-administered questionnaires has been adopted to collect data of 218 procurement staffs from the database of China Purchasing Managers’ Club. Hypotheses tests were conducted using structural equation modeling. Findings – The results reveal that financial and social relationship marketing investments, but not structural relationship marketing investments, are crucial in evoking renqing and ganqing. The results also provide strong evidence of the relationship between renqing and ganqing, which in turn are necessary determinants of customer loyalty. Originality/value – This research is among the first to examine and confirm renqing and ganqing as a mediating mechanism through which financial and social relationship marketing investments influence attitudinal loyalty, and also through attitudinal loyalty ultimately affects behavioral loyalty. Findings imply the need for Chinese firms in general, and business-to-business context in particular, to strategically lever on the key antecedents of customer loyalty including relationship marketing investments, renqing and ganqing, in pursuit of a more competitive advantage and long-term profit.

The effect of service recovery on customer loyalty: the role of perceived food safety

2019 ◽  
Vol 11 (1) ◽  
pp. 69-86 ◽  
Author(s):  
Nancy Bouranta ◽  
Evangelos Psomas ◽  
Fotis Vouzas
Keyword(s):  
Food Safety ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Service Recovery ◽  
Equation Modeling ◽  
Confirmatory Factor Analyses ◽  
Content Type ◽  
Safety Issues ◽  
The Relationship

PurposeThis study aims to focus on the food industry and empirically examine the mediating role of consumers’ perceived food safety on the relationship between a company’s service recovery and customer loyalty. In addition, consumers’ demographic characteristics and their influences on the relationship between perceived food safety and customer loyalty are determined.Design/methodology/approachA survey was carried out through a structured questionnaire which was administered to the public. Using a small intercept interview, a random sample of 836 usable questionnaires was collected in Greece. Exploratory and confirmatory factor analyses were applied to validate the proposed constructs. The causal relationships among constructs were examined using structural equation modeling.FindingsAccording to the findings, consumers’ perceived food safety partially mediates the effect of a company’s service recovery on customer loyalty. The socio-demographic profile of consumers (gender, marital and parenthood status) also significantly influences the underlying factors of product and the loyalty attributes.Practical implicationsThis study enriches the existing literature of food safety by examining the distinct role that consumers’ perceptions play in forming loyalty, highlighting the importance of companies’ recovery efforts. The results obtained from this analysis offer a better understanding of consumer behavior toward food safety – encouraging and supporting food companies to successfully design their marketing strategies. Food safety issues also have become increasingly important in international trade, which makes it essential to understand consumer perceptions and behavior toward food safety.Originality/valueThis study fills the identified literature gap and contributes to the literature, as no previous study has examined the proposed relationships in the food sector, taking into consideration food safety issues.

Are blogs still effective to maintain customer relationships?

2015 ◽  
Vol 6 (1) ◽  
pp. 5-25 ◽  
Author(s):  
Chaang-Iuan Ho ◽  
Pie-Chun Lee
Keyword(s):  
Relationship Marketing ◽  
Structural Equation ◽  
Online Survey ◽  
Information Quality ◽  
Dominant Role ◽  
Customer Relationships ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role

Purpose – The purpose of this study is to propose a model investigating the effectiveness of travel blogs as a relationship marketing tool. Specifically, the mediating role of online relationship quality (RQ) dimensions between the attributes of blogs and e-loyalty is modeled. Furthermore, the study investigates the e-loyalty to travel blogs in explaining the reader’s intention to purchase from its online retailer. Design/methodology/approach – The subjects of this study were blog readers who had travel blog usage experiences. The online survey was conducted by one of the major portal Web sites in Taiwan. There were 288 usable responses obtained in total. The structural equation modeling approach was used to estimate the research model. Findings – The research results indicate that information quality plays a dominant role in influencing online satisfaction and trust. The mediating role of e-satisfaction between e-trust and e-loyalty is identified, and thus the online RQ development process: information quality → e-trust → e-satisfaction → e-loyalty→ intention to buy travel products. Research limitations/implications – Travel blogs are still effective to maintain customer relationship. However, they seem to lose interactivity and entertainment to readers. Practical implications – Managerial implications lay emphasis on providing a completed circuit by integrating different social media to facilitate tourism information seeking. Originality/value – This study is to develop a context-specific model of relationship marketing drivers to the travel blogosphere.

Customer–brand relationship in the era of artificial intelligence: understanding the role of chatbot marketing efforts

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yang Cheng ◽  
Hua Jiang
Keyword(s):  
Artificial Intelligence ◽  
Structural Equation ◽  
Relationship Building ◽  
Equation Modeling ◽  
Content Type ◽  
Brand Relationship ◽  
Information Accessibility ◽  
The Usa ◽  
Marketing Activities

Purpose This study aims to explore the role of artificial intelligence (AI)-powered chatbot marketing efforts (CMEs) in the establishment of relationships between brands and their customers, extending the link between relationship marketing and online consumer behavioral intentions. Design/methodology/approach Data are collected from 1,072 customers in the USA, who used chatbot marketing activities from any of 30 brands leading their industries in messaging innovation. Structural equation modeling is used for data analysis. Findings Results show that interaction, information, accessibility, entertainment and customization are important CMEs components. CMEs have significant direct effects on the quality of communication with chatbot agents and indirectly affect customer–brand relationships (CBR) and customer response. In addition, the findings demonstrate that CBR mediates the association between communication quality and customer response. Originality/value Implications of this study can enable practitioners to understand the effects of AI on user experiences and provide a guide for the development of CMEs strategies and relationship building.

The effects of goods-related and service-related B2B brand images on customer loyalty

2017 ◽  
Vol 32 (5) ◽  
pp. 722-732 ◽  
Author(s):  
Fabio Cassia ◽  
Nicola Cobelli ◽  
Marta Ugolini
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Brand Image ◽  
Equation Modeling ◽  
Content Type ◽  
Positive Effects ◽  
Mediated Effects ◽  
Service Logic ◽  
B2b Branding

Purpose Previous research has shown that business-to-business (B2B) brand image has positive effects on customer loyalty. However, the results have been inconsistent because they have highlighted that B2B brand image has either direct or mediated effects on loyalty. Drawing on the framework of service transition, this study aims to develop and test a model that reconciles previous findings. This model suggests that goods-related and service-related B2B brand images coexist in customers’ perceptions and impact customer loyalty in different ways. Design/methodology/approach A model was developed and estimated using covariance-based structural equation modeling. The data used in the analysis were collected through a survey in the Italian health-care industry, focusing on the relationship between hearing aid manufacturers and audiologists. Findings Both goods-related and service-related B2B brand images have positive effects on loyalty. However, while the effects of goods-related image on loyalty are fully mediated by satisfaction, service-related image has both direct and mediated effects on loyalty. Research limitations/implications This study reconciles previous work arguing that B2B brand image has either direct or mediated effects on loyalty by focusing on the transition from a goods-oriented logic for branding to service branding. In particular, the analysis focuses on the role of the brand in the co-creation process, suggesting that a service-related brand image reflects the value unfolding over time through co-created experiences. However, additional research needs to be conducted in other industries before the results can be generalized. Practical implications The findings provide managers with insights for the co-creation of their B2B brand images. In particular, the results urge managers to integrate the traditional goods-oriented approach to branding with service branding, showing that enriching B2B brand image with service-related aspects will have a direct and positive effect on loyalty. However, brand image cannot be created or changed unilaterally by the firm as it is determined by the customer based on co-creation experiences. Originality/value This is the first study to explicitly and separately consider the effects of goods-related and service-related aspects of B2B brand image on loyalty. It also is one of the first studies to apply service logic to B2B branding issues.

Trust, commitment, customer intimacy and customer loyalty in Islamic banking relationships

2018 ◽  
Vol 36 (5) ◽  
pp. 823-848 ◽  
Author(s):  
Mirza Tabrani ◽  
Muslim Amin ◽  
Ahmad Nizam
Keyword(s):  
Customer Loyalty ◽  
Significant Relationship ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Banking Relationships ◽  
Customer Intimacy ◽  
The Relationship ◽  
Percent Response Rate

PurposeThe purpose of this paper is to investigate the role of trust in enhancing customer loyalty, and to test the mediation role of commitment and customer intimacy in the relationship between trust and customer loyalty.Design/methodology/approachA total of 500 questionnaires were distributed and 200 were returned (40 percent response rate), and a structural equation modeling technique was used to test the hypotheses.FindingsThe results of this study show that trust has a significant relationship with commitment and customer intimacy but no significant relationship was found with customer loyalty. Commitment and customer intimacy have a significant relationship with customer loyalty. The mediation analysis reveals that commitment and customer intimacy play a mediation role in the relationship between trust and customer loyalty.Practical implicationsThis study indicates that commitment and customer intimacy affect customer loyalty. The role of commitment and customer intimacy as a mediator between trust and customer loyalty indicates that customers are committed to continuing and maintaining the relationships with Islamic banks.Originality/valueThis study provides empirical evidence on interrelationships between trust, commitment, customer intimacy and customer loyalty in banking relationships.

Online Relationship Marketing to Customer Loyalty Based on Signaling Theory (Evidence of Bank Customers in Indonesia)

2020 ◽  
Vol 11 (1) ◽  
pp. 127-127
Author(s):  
Wenny Pebrianti ◽  
Wenseslaus Tanwira ◽  
Ahmadi
Keyword(s):  
Relationship Marketing ◽  
Customer Loyalty ◽  
Financial Services ◽  
Signaling Theory ◽  
Cellular Communication ◽  
Place And Space ◽  
New Era ◽  
Online Trust ◽  
Marketing Activities ◽  
Relationship Of

The internet has changed people's way of life, especially in dealing a transaction. Indonesian banking entered a new era since 2000 when banks in Indonesia began implementing electronic banking or e-banking systems. Integrating cellular communication technology and banking financial services is changing people's lifestyles to be more flexible in making it easier for users to access banking financial services without being hindered by time, place and space. The same integration also occurs in relationship marketing strategies and cellular communication technologies that make it easy for companies to be able to reach and provide the best service to their consumers. This study wants to reveal the relationship of interactivity and engagement which is an activity of Online Relationship Marketing at a bank to be able to understand consumers in order to create customer loyalty with online trust as mediation.Based on the above background, the problem in this study is "Does Online Relationship Marketing activities such as engagement and interactivity affect customer loyalty either through online trust as mediation or not?" Keywords: engagement, interactivity, online trust, customer loyalty, signaling theory

Does employee willingness to take risks affect customer loyalty? A moderated mediation examination of innovative behaviors and decentralization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohd Ahmad Al-Hawari ◽  
Shaker Bani-Melhem ◽  
Faridahwati Mohd. Shamsudin
Keyword(s):  
Personality Traits ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Frontline Employees ◽  
Content Type ◽  
Mediating Role ◽  
Hotel Managers ◽  
Innovative Behaviors

Purpose This study aims to build on the trait activation and interactionist perspective theories to investigate the effect of frontline employees’ (FLEs) willingness to take risks on hotel guest loyalty by assessing the mediating role of their innovative behaviors. It also examines whether decentralization strengthens the positive impact of willingness to take risks on innovative behavior and, subsequently, customer loyalty. Design/methodology/approach The authors collected multilevel data from various sources – hotel FLEs (n = 183), hotel operation managers (n = 46) and hotel guests/customers (n = 266) – from five-star hotels operating in Dubai. Structural equation modeling and PROCESS macro (version 3.5) were used to analyze the data. Findings The findings showed that willingness to take risks indirectly (via innovative behaviors) affects guest/customer loyalty positively. This effect is strengthened when the hotel is decentralized. Practical implications This study provides insight into how hotel managers can foster customer loyalty. More specifically, they can do so by establishing employees’ innovative behaviors triggered by employees’ positive personality traits and by giving employees more autonomy. Originality/value The present study addresses recent calls to investigate the positive impact of FLEs’ personality traits, attitudes and behaviors on customer loyalty.

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