Customer loyalty: a review and future directions with a special focus on the hospitality industry

2015 ◽  
Vol 27 (3) ◽  
pp. 379-414 ◽  
Author(s):  
Jay Kandampully ◽  
Tingting (Christina) Zhang ◽  
Anil Bilgihan
Keyword(s):  
Employee Engagement ◽  
Customer Loyalty ◽  
Hospitality Industry ◽  
Service Industry ◽  
Customer Engagement ◽  
Special Focus ◽  
Content Type ◽  
Emerging Issues ◽  
Brand Ambassadors ◽  
The Impact

Purpose – This article aims to provide a summary review of what is already known about customer loyalty and identifies some emerging issues that play an important role in it. As a result of dramatic changes in the marketplace and in consumers’ connections with the hospitality industry, researchers and practitioners are keen to understand the factors that underpin customer loyalty. Design/methodology/approach – By synthesizing extant customer loyalty literature, this article seeks further understanding of loyalty and offers priorities for ongoing loyalty research. Findings – Using conceptual models, this study provides a framework designed to extend the understanding of customer loyalty and the impact of the evolving role of engaged customers. Practical implications – Companies are advised to create emotionally engaged, loyal brand ambassadors by focusing on emerging areas, such as customer engagement, brand citizenship behaviors, mass personalization, employee engagement, brand ambassadors (both employees and customers), co-creation of value, co-design, co-consumption and rapport between customers and employees. Originality/value – This article crafts a conceptual framework for customer loyalty and identifies those factors that influence its development in the service industry with a special focus on the hospitality industry.

Dimensionality and Consequences of Customer Engagement: A Social Exchange Perspective

2019 ◽  
Vol 23 (3) ◽  
pp. 255-266 ◽  
Author(s):  
Raouf Ahmad Rather ◽  
Jyoti Sharma
Keyword(s):  
Factor Analysis ◽  
Social Exchange ◽  
Customer Loyalty ◽  
Hospitality Industry ◽  
Affective Commitment ◽  
Academic Research ◽  
Customer Engagement ◽  
Marketing Theory ◽  
Empirical Results ◽  
The Impact

Based on social exchange theory (SET), as well as relationship marketing theory (RMT), this study investigates the impact of customer engagement (CE) underlying dimensions, namely, enthusiasm, attention, absorption, interaction and identification on customer loyalty and affective commitment in hospitality industry. This study also validates and confirms the multidimensionality of CE in hospitality industry. Perceptions of 240 hotel customers were used to explore the relationships. Exploratory factor analysis and confirmatory factor analysis followed by multiple regression analysis were employed to examine the data. The empirical results indicate that by contrasting two rival models, five dimensional model provides the solid foundation and accomplishes excellent fit for data. Empirical results suggest that CE dimensions have influential impact on customer loyalty. Similarly, results demonstrate that CE has significant and positive influence on affective commitment. These findings offer insight into dimensionality and consequences of CE for academic research and bring value to service contexts particularly hospitality.

Determinants of employee engagement and their impact on employee performance

2014 ◽  
Vol 63 (3) ◽  
pp. 308-323 ◽  
Author(s):  
Anitha J.
Keyword(s):  
Employee Engagement ◽  
Peer Relationships ◽  
Structural Equation ◽  
Social Impact ◽  
Employee Performance ◽  
Working Environment ◽  
Small Scale ◽  
Special Focus ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to identify the key determinants of employee engagement and their predictability of the concept. It also studies the impact of employee engagement on employee performance. Design/methodology/approach – Causal study was done to study the impact of relationships. A survey questionnaire was developed and validated using a pilot data (a=0.975). Simple random sampling was used to select the employees from middle and lower managerial levels from small-scale organisations. A total of 700 questionnaires were distributed and 383 valid responses collected. Regression and structural equation modelling were used to predict and estimate the relationships. Findings – It was found that all the identified factors were predictors of employee engagement (r2, 0.672), however, the variables that had major impact were working environment and team and co-worker relationship. Employee engagement had significant impact on employee performance (r2, 0.597). Practical implications – Special focus and effort is required specifically on the factors working-environment and team and co-worker relationship as they have shown significantly higher impact on employee engagement and hence employee performance. Organisations shall focus on presenting a great environment for employees to work and promote programmes that would enhance peer relationships. Social implications – The determinants of employee engagement connote a healthy working atmosphere that reflects on the social impact created by the organisation. Employees would enjoy considerable attention in terms of the determinants being addressed. Originality/value – The research emphasises the growing importance and need for crystallisation of the concept of employee engagement. The research is unique in respect to the comprehensive model that is developed and validated.

The impact of service quality, customer engagement and selected marketing constructs on airline passenger loyalty

2017 ◽  
Vol 9 (1) ◽  
pp. 21-40 ◽  
Author(s):  
Raditha Hapsari ◽  
Michael D. Clemes ◽  
David Dean
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Airline Industry ◽  
Perceived Value ◽  
Customer Engagement ◽  
Data Set ◽  
Content Type ◽  
Airline Passenger ◽  
The Impact

Purpose This study aims to empirically analyse the determinants of airline passenger loyalty in the high-frills Indonesian airline industry. The interrelationships among passenger loyalty, customer engagement, customer satisfaction, brand image, perceived value and service quality are identified and discussed. Design/methodology/approach The perceptions of 250 Indonesian airline passengers were used to examine the interrelationships among the constructs. The data set was analysed using confirmatory factor analysis and structural equation modelling. Findings The empirical results demonstrate that customer engagement has the most influential effect on passenger loyalty, followed by customer satisfaction. Customer satisfaction has the largest total effect on customer engagement. Service quality, perceived value and customer satisfaction also indirectly affect customer loyalty through mediation. Originality/value The integration of the customer engagement construct with the other important marketing constructs comprehensively explains the role of customer engagement on customer loyalty. The effects of the important marketing constructs on customer loyalty are not only explained in the direct relationships but also in indirect relationships through mediation.

Customer engagement in CSR: a utility theory model with moderating variables

2017 ◽  
Vol 27 (4) ◽  
pp. 833-853 ◽  
Author(s):  
Wade Jarvis ◽  
Robyn Ouschan ◽  
Henry J. Burton ◽  
Geoffrey Soutar ◽  
Ingrid M. O’Brien
Keyword(s):  
Customer Loyalty ◽  
Customer Value ◽  
Structural Equation ◽  
Utility Theory ◽  
Theory Model ◽  
Customer Engagement ◽  
Content Type ◽  
Moderating Variables ◽  
The Impact ◽  
The Relationship

Purpose Both customer engagement (CE) and corporate social responsibility (CSR) have been linked to customer loyalty. Past studies use service dominant logic and customer value co-creation to explain this relationship. The purpose of this paper is to apply utility theory to develop and test a new theoretical model based on CSR initiative preference to understand the relationship between CE and customer loyalty to the organisation in a CSR platform. Design/methodology/approach This empirical study uses choice theory in the form of best-worst scaling, and structural equation modelling, to measure the impact of sports club members’ choice preferences for a range of CSR initiatives on their intention to engage with the initiative and subsequent loyalty to the club. Findings This study highlights the importance of engaging members in the CSR strategy they prefer as it enhances not only the extra value to the organisation via customer loyalty to the organisation, but also CE with the organisation. Furthermore, the study reveals age and gender impact on the relationship between CE in CSR initiatives and customer loyalty. Originality/value This study extends CE to CSR behaviours and provides empirical evidence for a unique theoretical framework of CE based on utility theory. It also highlights the need to take into account moderating variables such as customer demographics.

Customer satisfaction with sommelier services of upscale Chinese restaurants in Hong Kong

2019 ◽  
Vol 31 (4) ◽  
pp. 532-554 ◽  
Author(s):  
Tommy Lau ◽  
Man Lai Cheung ◽  
Guilherme D. Pires ◽  
Carol Chan
Keyword(s):  
Hong Kong ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Positive Impact ◽  
Partial Least Square ◽  
Least Square ◽  
Survey Method ◽  
Content Type ◽  
The Impact

Purpose The abolishment of the wine tax in Hong Kong has led to increased wine consumption and increased demand for wine-related professionals, such as sommeliers. Yet the importance of sommeliers’ value-adding performance in the context of upscale Chinese restaurants has not been examined. To address this gap, the SERVQUAL framework is adopted to examine the influence of sommeliers’ service quality (SQ) on customer satisfaction (CS) and loyalty in the context of upscale Chinese restaurants in Hong Kong. Design/methodology/approach The survey method is used to collect data from 302 units of the population of interest, partial least square-structural equation modelling (PLS-SEM) is used to test the links between constructs. Findings Four of the seven dimensions of sommeliers’ service quality, namely, empathy, tangibles, credibility and assurance, have a significant positive impact on customer satisfaction and customer loyalty, whereas the impact of perceived value and responsiveness on customer satisfaction and customer loyalty is positive but only marginally significant. Reliability has a weak and non-significant impact on customer satisfaction and customer loyalty. Research limitations/implications Examining a small number of upscale Chinese restaurants in Hong Kong limits generalisation of the findings to other contexts. Replication of the research in different contexts will enhance generalizability. In terms of implications, the discussion highlights the importance of sommeliers’ service performance on customers’ SQ perceptions SQ, CS and loyalty, all of which are important variables for restaurateurs. Originality/value To the best of the authors’ knowledge, this is the first study of the influence of the quality of sommelier’s SQ on CS and loyalty in upscale Chinese restaurants in Hong Kong. Given the lack of attention to this service role in the literature, the study contributes theory from which further understanding can develop.

Mcdonald’s versus Vikram Bakshi

2021 ◽  
Vol 11 (4) ◽  
pp. 1-27
Author(s):  
Nitin Pangarkar ◽  
Neetu Yadav
Keyword(s):  
Emerging Markets ◽  
Multinational Corporations ◽  
Service Industry ◽  
Executive Development ◽  
Content Type ◽  
Academic Level ◽  
Quick Service ◽  
Term Performance ◽  
The Impact

Learning outcomes The case illustrates the challenges of managing JVs in emerging markets. specifically, after going through the case, students should be able to: i.Analyze the contexts in which firms need to form JVs and evaluate this need in the context of emerging markets such as India; ii.Understand how multinational corporations can achieve success in emerging markets, specifically the role of strategic (broader than the product) adaptation in success; iii.Evaluate the impact of conflict between partners on the short-term and long-term performance of a JV; and iv.Create alternatives, evaluate each alternative’s pros and cons, and recommend appropriate decisions to address the situation after a JV unravels and the organization is faced with quality and other challenges. Case overview/synopsis McDonald’s, the global giant in the quick service industry, entered India in 1993 and formed two JVs in 1995 one with Vikram Bakshi (Connaught Plaza Restaurants Ltd or CPRL) to own and operate stores in the northern and eastern zones, and another with Amit Jatia (Hardcastle Restaurants Private Limited or HRPL) to own and operate stores in the western and southern zones. Over the next 12 years, both the JVs made steady progress by opening new stores while also achieving better store-level metrics. Though CPRL was ahead of HRPL in terms of the number of stores and total revenues earned in 2008, the year marked the beginning of a long-running dispute between the two partners in CPRL, Bakshi and McDonald’s. Over the next 11 years, Bakshi and McDonald’s tried to block each other, filed court cases against each other and also exchanged recriminations in media. The feud hurt the performance of CPRL, which fell behind HRPL in terms of growth and other metrics. On May 9, 2019, the feuding partners reached an out-of-court settlement under which McDonald’s would buy out Bakshi’s shares in CPRL, thus making CPRL a subsidiary. Robert Hunghanfoo, who had been appointed head of CPRL after Bakshi’s exit, announced a temporary shutdown of McDonald’s stores to take stock of the current situation. He had to make a number of critical decisions that would impact the company’s performance in the long-term. Complexity academic level MBA, Executive MBA and executive development programs. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 11: Strategy.

Corporate social responsibility and financial performance: bidirectional relationship and mediating effect of customer loyalty: investigation in Sweden

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abir Hichri ◽  
Moez Ltifi
Keyword(s):  
Corporate Social Responsibility ◽  
Financial Performance ◽  
Customer Loyalty ◽  
Mediating Effect ◽  
Content Type ◽  
Global Context ◽  
Bidirectional Relationship ◽  
Corporate Social ◽  
The Impact

Purpose The study is based on a hybrid model composed of accounting and business data and is amongst the first to test the impact of corporate social responsibility (CSR) performance on the financial performance of the company, as well as the impact of financial performance on CSR performance. The bidirectional logic chosen by the study is rarely adopted in the global context and has never been tested in the Swedish context. Moreover, the purpose of this paper is to test the mediating effect of customer loyalty on the company’s CSR performance-financial performance relationship to assess this effect over the long term. This design has been neglected in previous studies. Design/methodology/approach Data was collected from a sample of 110 Swedish companies during the period 2009–2019. This study collects the data from the Thomson Reuters Eikon database. A multiple regression analysis was performed to test the hypotheses. Findings The results confirmed the bidirectional relationship between CSR performance and company financial performance. This means that CSR performance positively influences the company’s financial performance. Similarly, financial performance positively influences the company’s CSR performance. Moreover, customer loyalty has a positive and significant mediating effect on the company’s CSR performance-financial performance relationship. Originality/value This study adds several inputs. The first contribution of the research is to test a hybrid model composed of accounting and commercial data. This model is amongst the first to test the impact of CSR performance on the financial performance of the company and the impact of financial performance on CSR performance. The second contribution is the bidirectional logic chosen by the study which is rarely adopted in the global context and has never been tested in the Swedish context. The third contribution is to test the mediating effect of customer loyalty on the company’s CSR performance-financial performance relationship to assess this effect over the long term. This design has been neglected in previous studies. The fourth contribution is the choice of the field of investigation for the reliability of the data used and the generalisation of the results obtained.

scholarly journals Teacher Fellow accreditation – a madrigal of voices! But is it the right tune? Tensions of standardisation, engagement and neoliberalism

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hazel Kershaw-Solomon ◽  
Nick Beech ◽  
Jeff Gold ◽  
Julia Claxton ◽  
Tricia Auty ◽  
...  
Keyword(s):  
Higher Education ◽  
Human Resource Development ◽  
Employee Engagement ◽  
Peer Relationships ◽  
Academic Staff ◽  
Professional Status ◽  
Critical Approach ◽  
Content Type ◽  
Competency Frameworks ◽  
The Impact

Purpose The purpose of this paper is to explore the impact competency frameworks as standardisation can have on the employee engagement of academic staff within higher education (HE) through their employment as managerial tools. Design/methodology/approach A literature review is conducted from which the conditions for effective competency frameworks are evaluated and the influence of changes in the HE environment in the form of political agendas and tight resources are explored. Findings This paper provides insights into the dynamics of public service modernisation and the tensions between the dominant discourse of managerialism and the degree of agency afforded to professional academics. It highlights the relevance of informal peer relationships in setting the climate to generate collegial bonding and professional engagement that underpin successful teacher fellowship accreditations. It further highlights the key role managers play in this process and provides a conceptual framework highlighting the dynamics and combined effect of employee engagement and competency frameworks set within complex HE environment. Practical implications This paper brings together the prerequisites for effective implementation of competency frameworks to implement successful employee engagement strategies set within the complexities of the HE context, which has not been studied to date. Armed with such insights, Human Resource Development (HRD) departments and universities can implement competency assessments that generate greater staff engagement. Originality/value The paper provides a critical approach in reviewing the impact of Continued Professional Development and its link to professional status and thus helps British Universities and others to understand how the mechanisms at work affect engagement levels of academic staff. Armed with this depth of understanding of how the change initiative works, with whom and under what circumstances, universities will be better able to meet target UK Professional Standards Framework membership levels required by the higher education academy (HEA) and, subsequently, the HEA to meet their targets for the government.

scholarly journals Antecedents of organizational identification: implications for employee performance

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Syeda Wajiha Kazmi ◽  
Syeda Tuba Javaid
Keyword(s):  
Employee Engagement ◽  
Organizational Identification ◽  
Employee Performance ◽  
Quality Of Education ◽  
Content Type ◽  
Perceived Supervisor Support ◽  
The University ◽  
The Impact ◽  
The Relationship

Purpose This study aims to investigate the impact of three determinants of organizational identification (OID) on employee performance (EP) in the context of private business institutions. Design/methodology/approach A sample of 175 permanent faculty members from four top universities in Karachi, Pakistan, was interviewed using a five-point Likert scale questionnaire. The data were inserted in SPSS 22 and SmartPLS v 3.2 for performing the analysis. Findings Results of the study showed a significant effect in perceived supervisor support on OID; OID; job satisfaction and EP; and mediating relationship. Conversely, an insignificant effect was observed in workplace incivility. Research limitations/implications It is highly recommended that organizations work on the areas that lead to enhancing their employees’ performance. Also, human resource should create a healthy culture that promotes initiatives, open-door policies and discourages power distance. Lastly, one of the key responsibilities of management is to strengthen their OID because employees are more likely to identify with their supervisors if they invest in the organizations they work for. Practical implications This study will help strengthen the relationship between supervisors and university employees. It will guide the supervisors to acknowledge and appreciate the efforts of their subordinates and develop recreational policies and employee engagement activities. In addition, it will help develop a conducive environment and enhance the quality of education in the university and the society. Originality/value Understanding the determinants of OID on EP in the educational context is very important as it enhances the quality of EP and the overall quality of education of the institution.

Enhancing internal communication to build social capital amongst hospitality employees – the role of social media

2016 ◽  
Vol 28 (12) ◽  
pp. 2675-2695 ◽  
Author(s):  
Ceridwyn King ◽  
Hyemi Lee
Keyword(s):  
Social Capital ◽  
Social Media ◽  
Conceptual Framework ◽  
Hospitality Industry ◽  
Internal Communication ◽  
Structured Interviews ◽  
Empirical Examination ◽  
Content Type ◽  
The Impact ◽  
Current Practices

Purpose Adopting a social capital theoretical (SCT) lens, this study aims to propose a conceptual framework of effective internal communication (IC) for the hospitality industry. The study explores how to enhance current practices and the suitability of social media as an augmentation to traditional IC channels. Design/methodology/approach A qualitative research methodology, consisting of 20 semi-structured interviews with hospitality employees, was adopted. Following a “reduction” and “interpretation” process, 16 themes related to effective IC were identified which informed a conceptual framework. Findings Characteristics of effective IC were identified in addition to IC benefits at both employee and organizational levels. Considering the limitations of current practices, the applicability of social media was explored. Requirements of effective IC suggest that new channels (e.g. social media) should be adopted to build social capital. Research limitations/implications The study informs SCT from a meso-level (process) perspective. The articulation of an IC framework informs how social capital can be built through effective IC, providing a foundation for further empirical examination as to the impact of various channels on the IC process. Adoption of a case study design suggests that results and implications can only be generalized to similar environments. Practical implications The study details the characteristics of effective IC and its subsequent benefits, highlighting how social media can augment current IC practices in a hospitality organization. Originality/value Being a 24/7 labor-intensive operation makes employee communication to ensure service excellence challenging in the hospitality industry. Through the application of SCT and the exploration of social media in a workplace setting to enhance IC, significant theoretical and practical insights are realized.

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