The role of relationship quality and loyalty programs in building customer loyalty

2020 ◽  
Vol 35 (11) ◽  
pp. 1645-1657 ◽  
Author(s):  
Piotr Kwiatek ◽  
Zoe Morgan ◽  
Marsela Thanasi-Boçe
Keyword(s):  
Relationship Quality ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Measurement Model ◽  
Loyalty Programs ◽  
Equation Modeling ◽  
Company Performance ◽  
Relational Exchange ◽  
Content Type ◽  
Willingness To Recommend

Purpose Despite the abundance of B2B loyalty programs (LPs), the research on their interplay with relationship marketing is scarce. The purpose of this paper is to investigate a LP (a relational practice) on a transactional business market to test if and how a B2B LP affects relationship outcomes. Design/methodology/approach The study is based on dyadic research in a multi-theory framework. Data were collected from 200 small and medium enterprises that purchase office supplies from a company and merged with the company’s internal records.The formative-reflective measurement model is estimated using structural equation modeling – partial least squares (SEM-PLS). Findings Relationship quality (RQ) directly affects sales and customer share of wallet. The effect is strengthened by customer activity in a LP. RQ results directly in a longer tenure and willingness to recommend only for members of a LP. Research limitations/implications RQ is driven mainly by customer’s evaluation of prior experience with a supplier, while a LP is based on a forward-looking promise of a reward. The results of the study point to the level of customers’ activity in a LP as a boundary condition of the program’s efficacy. Practical implications RQ affects both attitudinal and behavioral outcomes but through distinct mechanisms. Once a supplier is a preferred one, LP membership strengthens the attitudinal outcome of a relationship. The effect of RQ on company performance is magnified by the level of customer activity in a LP but not by the membership status. Originality/value The theoretical framework integrates transaction costs, relational contract and relational exchange theories to investigate a LP on a transactional market. The study adds to the scant literature on LPs in business-to-business and provides evidence for similarities and differences in comparison to consumer research.

Effects of fairness on relationship quality and re-contract intention in food service franchise system: comparison between global and domestic franchise

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jee Eun Lee ◽  
Sang Suk Lee
Keyword(s):  
Relationship Quality ◽  
Structural Equation ◽  
Food Service ◽  
Measurement Model ◽  
Equation Modeling ◽  
Content Type ◽  
Franchise System ◽  
Distributive Fairness ◽  
Considerable Impact ◽  
The Relationship

Purpose The purpose of this study is to examine the effects of fairness on relationship quality and re-contract intention in the foodservice franchise industry and this paper intends to delineate the implications of enhancing the mutual relationship between the franchisor and the franchisee in the future domestic foodservice franchise system. Design/methodology/approach To prevent the lack of reliability and to pursue the internal consistency of the measurement model, this study adopted SPSS (Ver.20.0) and derived Cronbach’s alpha. Additionally, this study conducted a confirmatory factor analysis by using AMOS (Ver.20.0) program to assess the unidimensionality of measurements. Finally, structural equation modeling was used to test the hypothesized research framework. Findings The results showed that distributive fairness and informational fairness increase the relationship quality, which franchisees perceive under the franchise system. Among the relationship quality factor, only the trust has a considerable impact on the (performance) re-contract intention. The effect of fairness on relationship quality does not show a statistically considerable difference between the two groups (global franchise vs domestic franchise). However, in terms of a global franchise, distributive fairness has a significant impact on relationship quality, whereas domestic franchise, distributive fairness directly affects performance (re-contract intention). Research limitations/implications This study provides readers with an effect of fairness in the franchise system. Results obtained in this study are useful for understanding the fairness and relationship quality in the franchise system. Practical implications Recently, as the foodservice franchise market is experiencing significant growth, government and franchise-related agencies are making considerable effort to improve the relationship between the franchisor and the franchisee and to offer a better system and policy concerning the protection of consumers. Government and franchise agencies should develop an adequate policy to improve the relationship between the franchisor and the franchisee by breaking away from the imprudent support. Originality/value This study investigates whether fairness in the franchise system has a significant effect on the relationship quality and the performance (re-contract intention) and provides implication about the mutual growth between franchisor and franchisee to the potential food service franchise in Korea.

The effects of loyalty programs in services – a double-edged sword?

2018 ◽  
Vol 32 (3) ◽  
pp. 300-310 ◽  
Author(s):  
Baolong Ma ◽  
Xiaofei Li ◽  
Lin Zhang
Keyword(s):  
Relationship Quality ◽  
Structural Equation ◽  
Qualitative Comparative Analysis ◽  
Customer Relationships ◽  
Loyalty Programs ◽  
Equation Modeling ◽  
Negative Consequences ◽  
Loyalty Program ◽  
Content Type ◽  
High Level

Purpose This paper aims to demonstrate both the positive and negative effects of loyalty programs. The study proposes a model to demonstrate why and how loyalty program strategies can result in good customer relationships and customer entitlement behaviors. Various configurations of three different loyalty program strategies are analyzed – tangible rewards, preferential treatment and perceived status. Design/methodology/approach The authors’ hypotheses were tested by analyzing the survey data of 152 frequent flyer program members in China through partial least squares-structural equation modeling. Fuzzy-set qualitative comparative analysis (fsQCA) was used to test different configurations of the three loyalty program strategies. Findings A net effects analysis demonstrates that loyalty programs are a double-edged sword. While loyalty programs can improve customer relationships, strategies based on perceived status have a positive relationship to customer entitlement, which may lead customers to expect extraordinary efforts from companies, such as greater discounts and extra privileges. Using fsQCA, the authors determined four sufficient configurations of high level of relationship quality and high level of customer entitlement, which also support their findings. Originality/value First, this study expands the research on loyalty programs by providing an examination of their positive and negative consequences. Second, by proposing the configuration paths that lead to high level of relationship quality and high level of customer entitlement using fsQCA, this research enriches research on the net effects of loyalty programs, providing researchers and practitioners with a more comprehensive understanding of loyalty programs. Third, this research extends the concept of customer entitlement to the context of buyer–seller relationships by introducing perceived status as an important antecedent of customer entitlement and by identifying four sufficient configurations.

Privacy helplessness on social media: its constituents, antecedents and consequences

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hichang Cho
Keyword(s):  
Theoretical Model ◽  
Structural Equation ◽  
Factor Model ◽  
Measurement Model ◽  
Equation Modeling ◽  
Confirmatory Factor Analyses ◽  
Content Type ◽  
Internet Users ◽  
The Usa ◽  
Antecedents And Consequences

PurposeMany internet users exhibit signs of privacy helplessness and entirely give up online privacy management. However, we know little about what privacy helplessness is, when users are likely to experience it and its implications for privacy behavior. The objectives of this study were twofold: (a) the conceptual explication of privacy helplessness as a novel construct in privacy research and (b) the development of a theoretical model that specifies the antecedents and consequences of privacy helplessness.Design/methodology/approachA research model of privacy helplessness that contains three subcomponents of privacy helplessness, five antecedents and one outcome was developed. The model was empirically examined based on survey data collected from 589 Facebook users in the USA.FindingsThe results of exploratory and confirmatory factor analyses showed that privacy helplessness is adequately assessed by a three-factor model with affective, cognitive and motivational components. The results of structural equation modeling indicated that these three aspects of privacy helplessness are uniquely predicted by five theoretical factors: (a) prior experience of privacy risks, (b) personal mastery, (c) perceived costs of adaptive privacy actions, (d) perceived rewards of privacy inactions and (e) perceived vulnerability. Furthermore, it was found that helplessness as motivational deficits (and cognitive helplessness via this) impedes adaptive privacy actions, while cognitive helplessness promotes adaptive privacy actions when they do not result in motivational deficits.Originality/valueThis study pioneers investigation in understanding key constituents, attributes and processes underlying privacy helplessness. First, the present study developed the first theory-derived, successively validated measurement model of privacy helplessness. Second, this research proposed a theoretical model of privacy helplessness, specifying antecedents and consequences of privacy helplessness.

E-retailer cognitive and emotional relationship quality: their experiential antecedents and differential impact on brand evangelism

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ibrahim Al Nawas ◽  
Shadi Altarifi ◽  
Nabil Ghantous
Keyword(s):  
Relationship Quality ◽  
Social Presence ◽  
Structural Equation ◽  
Online Survey ◽  
Word Of Mouth ◽  
Equation Modeling ◽  
Growth Strategies ◽  
Content Type ◽  
The Difference ◽  
Brand Evangelism

PurposeLimited knowledge exists on the difference in the antecedents and outcomes of relationship quality's cognitive and emotional aspects for e-retailers. This research tests how utilitarian and hedonic shopping values differentially affect “cognitive and emotional” relationship quality components and how the latter differentially affects word-of-mouth and brand evangelism.Design/methodology/approachOnline survey data were collected from 450 Jordanian online shoppers. Structural equation modeling (AMOS 24.0) was employed to analyze the data.FindingsFirst, e-retailer's informativeness and transaction convenience (i.e. utilitarian values), drive more strongly cognitive than emotional relationship quality, whereas e-retailer's escapism and social presence (i.e. hedonic values) drive more strongly emotional than cognitive relationship quality. Second, emotional relationship quality has a strong significant effect on brand evangelism, whereas cognitive relationship quality's effect is insignificant. Third, there are no statistically significant differences concerning the effect of cognitive and emotional relationship quality on word-of-mouth.Originality/valueThe findings of our research are expected to enhance our understanding of e-retailer relationship quality, its emergence and consequences. They would also provide e-retailers with guidance on how to execute growth strategies by focusing on specific types of brand relationship quality, on the other hand.

Green marketing programs as strategic initiatives in hospitality

2015 ◽  
Vol 29 (2) ◽  
pp. 81-92 ◽  
Author(s):  
Mark Scott Rosenbaum ◽  
Ipkin Anthony Wong
Keyword(s):  
Firm Value ◽  
Structural Equation ◽  
Economic Value ◽  
Green Marketing ◽  
Loyalty Programs ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact ◽  
Guest Loyalty

Purpose – This paper aims to investigate a guest’s subjective appraisal of a hotel’s green marketing program, or green equity, along with value, brand and relationship equities on guest loyalty. Design/methodology/approach – Study 1 presents three models to explicate the role of a luxury hotel’s green initiatives in influencing guest loyalty. By means of structural equation modeling, one model emerges with the best fit. Study 2 examines how tourists assign economic value to a hotel’s green programs. Findings – Green equity plays a significant role in customers’ overall assessment of a hotel’s marketing programs; however, the effect is weaker when compared with the other indicators, including a hotel’s value proposition, brand image and loyalty programs. Furthermore, the results reveal that tourists are willing to pay a price premium for a hotel’s green marketing programs. Research limitations/implications – The paper links green marketing to the customer equity model and clarifies the impact of green marketing programs on loyalty and profitability. However, the study was conducted among luxury hotel guests and tourists in Macau, a leading gambling destination; thus, these customers might not have been concerned with green marketing initiatives. Practical implications – The results show that green initiatives are beneficial as long as managers include these initiatives in their overall strategic marketing programs that also promote firm value propositions, brand images and reputation. Originality/value – The paper clarifies the role of green marketing programs in hospitality and shows how hotels can benefit from enhanced guest loyalty and decreased operational expenses by implementing green initiatives.

The effect of clustering on competitiveness improvement in Hebron

2017 ◽  
Vol 28 (5) ◽  
pp. 631-654 ◽  
Author(s):  
Ibrahim M. Awad ◽  
Alaa A. Amro
Keyword(s):  
Structural Equation ◽  
Structural Model ◽  
Model Building ◽  
Measurement Model ◽  
Background Information ◽  
Equation Modeling ◽  
Future Research ◽  
Research Model ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to map the cluster in the leather and shoes sector for improving the competitiveness of the firms. Toward this end, the study is organized to examine the impact of clustering on competitiveness improvement. The influence of competitive elements and performance (Porter’s diamond) and balanced score card was utilized. Design/methodology/approach A random sample of 131 respondents was chosen during the period from May 2016 to July 2016. A structural equation modeling (SEM) analysis was applied to investigate the research model. This approach was chosen because of its ability to test casual relationships between constructs with multiple measurement items. Researchers proposed a two-stage model-building process for applying SEM. The measurement model was first examined for instrument validation, followed by an analysis of the structural model for testing associations hypothesized by the research model. Findings The main findings show that there is a unidirectional causal relationship between improvements of performance and achieve competitiveness and also reveal that the Palestinian shoes and leather cluster sector is vital and strong, and conclude that clustering can achieve competitiveness for small- and medium-sized enterprises. Research limitations/implications Future research can examine the relationship between clustering and innovation. The effect of clustering using other clustering models other than Porter’s model is advised to be used for future research. Practical implications The relationships among clustering and competitiveness may provide a practical clue to both, policymakers and researchers on how cluster enhances economic firms such as a skilled workforce, research, development capacity, and infrastructure. This is likely to create assets such as trust, synergy, collaboration and cooperation for improved competitiveness. Originality/value The findings of this study provide background information that can simultaneously be used to analyze relationships among factors of innovation, customer’s satisfaction, internal business and financial performance. This study also identified several essential factors in successful firms, and discussed the implications of these factors for developing organizational strategies to encourage and foster competitiveness.

Dynamic capabilities: interrelations and distinct effects on performance in low and high competitive intensity environments

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amiram Markovich ◽  
Kalanit Efrat ◽  
Daphne R. Raban
Keyword(s):  
Firm Performance ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Equation Modeling ◽  
Company Performance ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Competitive Intensity ◽  
Content Type ◽  
Impact Performance

PurposeThis study aims to augment the understanding of dynamic capabilities (DCs) by exploring the interrelations among the DC categories (sensing, seizing, reconfiguring) and the distinct impact of each DC on firm performance under low and high levels of competitive intensity.Design/methodology/approachThe analysis is based on a cross-sectional survey of 139 managers in Israel. The data were collected through Web-based questionnaires using the Qualtrics software. A two-stage data analysis was performed using structural equation modeling (SEM).FindingsThe findings indicate that DCs follow a sequence in which sensing drives seizing, which, in turn, enhances reconfiguring. The effects of sensing are mainly manifested through its direct impact on seizing, with no evidence for an impact of sensing on company performance. Moreover, under low competitive intensity, only seizing appears to impact performance, while under high competitive intensity, reconfiguring joins seizing in improving firm performance.Originality/valueThe study's findings advance the debate on the direct vs sequential nature of DCs by indicating an internal DC sequence. Our research also advocates for a crucial role of sensing in enhancing DCs, regardless of the level of competitive intensity. Furthermore, this research expands the understanding of the consequences of DCs and enables the prioritization of DC categories under low and high competitive intensity.

Organizational learning capability, innovation and organizational performance

2019 ◽  
Vol 24 (1) ◽  
pp. 151-172 ◽  
Author(s):  
Mahmoud M. Migdadi
Keyword(s):  
Organizational Learning ◽  
Organizational Performance ◽  
Structural Equation ◽  
Measurement Model ◽  
Research Literature ◽  
Equation Modeling ◽  
Future Research ◽  
Learning Capability ◽  
Content Type ◽  
Managerial Practices

Purpose The purpose of this paper is to introduce a comprehensive, delineated and integrated conceptual model which includes organizational learning capability, innovation and organizational performance (OP). Then, an empirical investigation is undertaken to test the relationships among the proposed study model variables. Design/methodology/approach In total, 274 questionnaires were completed and returned. Statistical techniques employed included confirmatory factor analysis to examine the validity of the measurement model, and structural equation modeling to test the hypotheses. Findings The findings of this study suggest that OLC influences innovation and innovation affects OP. Finally, the results show that OLC affects OP indirectly through innovation (mediator). Research limitations/implications Future research should pay more attention to the influence of different mixture (variables) of influences on innovation and also examine other consequences of introducing innovation in organizations. In addition, more empirical papers supporting (or rejecting) the results in different contexts would be welcomed, especially longitudinal studies. Practical implications The results of this study help managers to ascertain the managerial practices that can be employed as well as determine the level of effort and resources necessary to enhance OLC. Additionally, managers should shed additional light on the innovation’s positive implications for OP. Originality/value This study focuses on the conceptualization of OLC and effects of these capabilities on innovation. It conceptualizes innovation as a multidimensional construct and tests its relationship with OP. Finally, the relationship between learning capability and OP, although implied, needs to be addressed empirically in the research literature, an objective that this study tries to achieve.

Impact of service quality on satisfaction and loyalty at manufacturer-distributor dyad

2019 ◽  
Vol 16 (1) ◽  
pp. 91-122 ◽  
Author(s):  
Surjit Kumar Gandhi ◽  
Anish Sachdeva ◽  
Ajay Gupta
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Empirical Studies ◽  
Equation Modeling ◽  
Content Type ◽  
Northern India ◽  
Indian Setting ◽  
Medium Enterprises ◽  
The Impact

PurposeThe purpose of this paper is to investigate the role played by service quality (SQ) in manufacturer–distributor working partnerships in the context of Indian small and medium enterprises (SMEs), and present two models which propose and validate that contributions toward SQ, made by both the manufacturing unit and distribution firm lead to satisfaction which consequently results in business-to-business (B2B) loyalty.Design/methodology/approachThe research design for this study includes a combination of literature review, exploratory interviews with a focus group and a questionnaire survey conducted through interview schedule from 101 information rich and willing respondents working in SMEs of northern India.FindingsThe paper brings out scales foe measuring organizational (internal) and distributor (external) SQ. Further, two models using structural equation modeling are developed. Model-I examines the effect of organizational SQ on distributor SQ. Model-II examines the impact of distributor SQ on satisfaction and loyalty and also tests a set of four propositions related to their working relationship. The models are empirically tested and are found to be fit.Research limitations/implicationsFuture researchers may validate these scales, and empirically test the proposed models in alternate settings. Insights derived from this study may be transferred to other partnerships, which may exist in a manufacturing supply chain including suppliers, employees, retailers and end consumers.Practical implicationsThis study would be of interest to SME practitioners interested in improving SQ with their distributors. The study also finds support for strengthening collaborative relationships with B2B partners to achieve a win-win situation.Originality/valueThere are very few empirical studies that measure SQ w.r.t. distribution function in SMEs and the concept is in nascent stage, especially in Indian setting.

Organization-stakeholder relationship and performance of Iranian SMEs

2020 ◽  
Vol 13 (3) ◽  
pp. 417-436
Author(s):  
Alireza Jalali ◽  
Mastura Jaafar ◽  
T. Ramayah
Keyword(s):  
Risk Taking ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Cluster Sampling ◽  
Content Type ◽  
Stakeholder Relationships ◽  
And Performance ◽  
Medium Enterprises ◽  
Stakeholder Relationship

Purpose This study aims to explore the direct and indirect effects of organizational stakeholder’s relationship on performance through innovativeness and risk-taking among small and medium enterprises (SMEs). Design/methodology/approach This study used the cluster sampling method to select the study sample and the questionnaire survey approach to 580 SMEs established in Tehran. A total of 150 completed questionnaires were returned. Partial least squares-structural equation modeling was administered to analyze data via the SmartPLS 3.0 software. Findings The survey outcomes revealed that organization-stakeholder relationship had an indirect effect on performance through innovativeness and risk-taking. The results indicated positive links for organization-stakeholder relationship and innovativeness, as well as the organization-stakeholder relationship to risk-taking. Practical implications This research is beneficial for entrepreneurs who wish to learn about the specific resources significant for venture growth, to devise effective strategies to expand their relationship with stakeholders and to consider the significance of the correlations established, in this study, through innovativeness and risk-taking. Originality/value This research is one of the few attempts that have addressed the importance of innovativeness and risk-taking as the key mechanisms to transform the advantages of organization-stakeholder relationships to enhance performance.

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