Customer participation, value co-creation and customer loyalty: evidence from Umrah travel agencies in Indonesia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali Mursid ◽  
Cedric Hsi-Jui Wu
Keyword(s):  
Customer Loyalty ◽  
Brand Image ◽  
Employee Performance ◽  
Customer Participation ◽  
Equation Modeling ◽  
Content Type ◽  
Service Employee ◽  
Hedonic Value ◽  
Service Brand ◽  
The Impact

Purpose This study aims to elucidate customer participation and value co-creation in enhancing customer loyalty in the context of Umrah travelers. First, it identifies the antecedents of Umrah travelers’ participation including service brand image, service employee performance and willingness to customize. Second, this study explores the impact of Umrah travelers’ participation in Umrah travelers’ loyalty. Finally, it explores co-creation value (hedonic, refreshment and price) and Umrah travelers’ satisfaction emerging in the relationship between Umrah travelers’ participation and Umrah travelers’ loyalty. Design/methodology/approach The survey draws its respondents from Umrah participants in Central Java Province, Indonesia, using the purposive sampling method with 459 samples. Data analysis used confirmatory factor analysis and structural equation modeling. Findings The results reveal that service brand image, service employee performance and willingness to customize significantly affect Umrah travelers’ participation. Umrah travelers’ participation has an insignificant effect on Umrah travelers’ loyalty; conversely, Umrah travelers’ participation has a significant effect on co-creation value (hedonic value, refreshment and price). Only the price of the co-creation value has a significant effect on Umrah travelers’ loyalty, while hedonic value and refreshment value do not. Finally, Umrah travelers’ participation directly affects Umrah travelers’ satisfaction, and, in turn, Umrah travelers’ satisfaction impacts Umrah travelers’ loyalty. Originality/value This study attempts to elucidate the theory of customer participation and value co-creation in the Umrah travelers setting. It identifies the factor determiner of customer participation from the professional aspects of the company, namely, service brand image, service employee performance and willingness to customize. This study explored the importance of value co-creation and customer satisfaction in enhancing customer loyalty.

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.

Connecting the dots between brand logo and brand image

2019 ◽  
Vol 11 (1) ◽  
pp. 68-87
Author(s):  
Harsandaldeep Kaur ◽  
Kanwalroop Kaur
Keyword(s):  
Structural Equation ◽  
Brand Image ◽  
Brand Personality ◽  
Equation Modeling ◽  
Personality Dimensions ◽  
Content Type ◽  
Brand Familiarity ◽  
Sphere Of Influence ◽  
The Impact ◽  
The Relationship

Purpose Although the prominence of brand logo for companies is widely acknowledged, a close examination of the literature reveals lack of empirical research pertaining to effect of brand logo on consumer perception toward brand. Therefore, the purpose of this paper is to fill the gap in marketing studies concerning the effect of a logo on consumer evaluations. The research addresses two questions: first, how brand logo favorability helps to increase brand image; and second, how brand logo form consumer perceptions toward brand through brand personality dimensions and brand familiarity? Design/methodology/approach The data were collected from 816 respondents using mall-intercept technique. Structural equation modeling via AMOS was conducted to test the proposed model to gain insight into the various relevant influences and relationships. Findings The findings revealed the importance of the company’s brand logo in enhancing the brand image. The results further highlighted that brand personality dimensions and brand familiarity mediate the relationship between brand logo and brand image. Practical implications The study offers managers a new perspective for building strong brand identity with the help of logos along with the brand personality dimensions and brand familiarity to enhance brand image. Originality/value This study provides novel insights on the impact of brand logo on brand image. This is the first study to determine the mediating role of brand personality in the relationship between brand logo and brand image. It thereby adds to the literature of visual identity by developing the sphere of influence of brand logo and its effects toward brands.

An assessment of forerunners for customer loyalty in the selected financial sector by SEM approach toward their effect on business

2019 ◽  
Vol 53 (4) ◽  
pp. 546-561 ◽  
Author(s):  
Subhankar Das ◽  
Anand Nayyar ◽  
Inderpal Singh
Keyword(s):  
Customer Loyalty ◽  
Empirical Support ◽  
Financial Sector ◽  
Process Models ◽  
Customer Relationship ◽  
Equation Modeling ◽  
Content Type ◽  
Usability Tests ◽  
Insurance Firms ◽  
The Impact

Purpose The purpose of this paper is to identify and describe the relationship between the precursors and consequences of customer loyalty (CL) in the Indian financial sector, specially banking and insurance context, taking a sample of individual customers as respondents from the Indian State of Punjab. Design/methodology/approach The collected data have been analyzed using univariate, bivariate and multivariate analysis techniques. Specifically, descriptive statistics have been assessed to examine the basic characteristics of the sample data. Confirmatory factor analysis with maximum likelihood criteria has been adopted for the measurement and validation of various constructs. Independent samples t-test has been used to compare the CL of public and private firms, banks and insurance firms, and for some of the demographic variables like gender, marital status, etc. One-way ANOVA has been used to compare the CL for variables having more than two groups. Structural equation modeling (SEM) has been used to measure the impact of CL on the BP of financial services firms. Findings The result shows that BP is a higher-order construct measured in terms of word-of-mouth, repurchase intention, price premium and share of wallet. Though each of the four measures of CL is special and unique in nature, yet a high level of positive correlation has been seen among these dimensions. The study reveals that CL is not significantly different for the banking firms and insurance firms in Punjab. Research limitations/implications The authors consider this work as one of the foundational elements that will enable further advances toward the governance of multi-layer business impact modeling systems. Extensive usability tests would enable to further confirm the findings of the paper. This study contributes to the customer relationship management and services marketing literature by providing empirical support for CL and BP relationship in the Indian context. Practical implications The approach described here should improve the maintainability, reuse and clarity of business process models and in extension improve data for CL in large banking and insurance organizations. The approaches described here should improve the maintainability, reuse and clarity of loyalty and relationship of the customer with that of organizations. This can improve data for customer relationship and loyalty in banking and insurance sector. Originality/value This paper fulfills an identified gap to enabling SEM enabled models for data regarding customer relationship and loyalty. Loyalty revolves around the concept of relationship. CL is not a new concept, but recent years have demonstrated a developing interest to fabricate CL because of customer-oriented techniques or strategies. Over the previous era, CL has been broadly inspected inside marketing, trades and transactions. It can be concluded that the CL significantly influences BP.

scholarly journals The transformational potential of Latin American retail experiences

2020 ◽  
Vol 34 (6) ◽  
pp. 769-783
Author(s):  
Pilar Gardiazabal ◽  
Constanza Bianchi ◽  
M. Abu Saleh
Keyword(s):  
Customer Satisfaction ◽  
Latin American ◽  
Customer Loyalty ◽  
Empirical Support ◽  
Well Being ◽  
Equation Modeling ◽  
Content Type ◽  
Firm Outcomes ◽  
Transformative Potential ◽  
The Impact

Purpose The purpose of this paper is to investigate if retail services have a transformative potential to improve the well-being of customers in a Latin American market. Transformative studies have been conducted mostly in developed countries, and consumer well-being in a Latin American supermarket context has not been addressed previously. Specifically, this study aims to understand if customer satisfaction with a supermarket experience in Chile leads to positive customer well-being. Additionally, it is examined if customer well-being influences firm outcomes, such as customer loyalty, word-of-mouth (WOM) communication or retailer equity. Design/methodology/approach A conceptual model was developed, and data was collected through an online survey from 866 customers of a large supermarket chain in Chile. Hypotheses were tested with structural equation modeling. Findings The findings of this study support all the hypotheses of the model and confirm that customer satisfaction has direct and indirect effects on customer loyalty and other firm outcomes through customer well-being. Research limitations/implications This research is among the few studies in the academic literature that considers retail experience and well-being outcomes for supermarket customers in a Latin American context. Limitations derive from the cross-sectional nature of this study. Practical implications There are implications from this study contributing to the literature on customer retail experience, in terms of the potential to transform supermarket shopping in a Latin American country. This is particularly relevant in Latin America as the extent to which for-profit organizations acknowledge their relevancy of the individuals’ well-being is still at its infancy. Social implications This research provides empirical support to the importance of not only looking at traditional measures such as WOM, equity and loyalty but looking into the impact services have for customers’ life and well-being. Originality/value This study contributes to the services literature and addresses a gap in it by exploring the transformative potential of supermarket shopping on customer well-being and in turn the role of customer well-being in retail firm outcomes. The findings also contribute in considering Chile, a Latin American context that has been overlooked in the transformative services studies. This provides managerial implications for domestic and global companies that offer grocery retailing for consumers in this region.

Corporate social responsibility toward stakeholders and customer loyalty: investigating the roles of trust and customer identification with the company

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niki Glaveli
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Social Exchange ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
Customer Trust ◽  
The Impact

Purpose This study aims to uncover the underlying multiple intervening mechanisms between corporate social responsibility (CSR) and customer loyalty. Social identity and social exchange theories offer the ground for prediction that the primary outcomes of CSR initiatives are customer–company (C–C) identification and customer trust, which in turn affect customer loyalty. Also, the differential effect of CSR behaviors toward specific stakeholder groups on customer attitudes and behaviors are examined. Design/methodology/approach Data were collected from 333 customers of telecommunication companies in Greece. Structural equation modeling was used to test the postulated relationships. Findings The findings demonstrate that both C–C identification and customer trust intervene in the relationship between customer perceptions of CSR and customer loyalty; however, the identification mechanism is stronger than the trust mechanism in building customer loyalty while C–C identification seems to drive customer trust. Moreover, out of the three CSR components (customers, employees, and society/environment) that were considered as relevant to customers and were investigated, customer-centric activities were found to be the stronger predictor of both C–C identification and customer trust. Also, CSR toward society/environment was found to positively influence C–C identification. Practical implications The findings of this research can assist practitioners in effectively conceptualizing CSR image from a customers’ point of view and designing their company’s CSR and communication strategies to boost positive customer responses and strong long-term relationships. Originality/value The current study provides further insights into the complex relationship between CSR and customer responses and the impact that different CSR activities may have on customers.

How important is CRM toward customer’s loyalty to conventional and Islamic bank marketing strategy?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jono Mintarto Munandar ◽  
Dewi Oktaviani ◽  
Yenni Angraini
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Relevant Literature ◽  
Internet Banking ◽  
Service Industries ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional Banks ◽  
The Impact

Purpose This paper aims to test the effect of customer relationship management (CRM) strategy on customer loyalty of bank customers. Design/methodology/approach The questionnaire derived from previous studies along with relevant literature was completed by 100 customers of conventional banks and 100 customers of Islamic banks. Structural equation modeling assessed the impact on customer loyalty on three key constructs of CRM programs (continuity marketing, one to one marketing and partnering). Findings Two out of three variables, which is continuity marketing and partnering, have significant effects on both banks. Continuity marketing is the dominant variable at conventional banks. Partnering is the dominant variable at Islamic banks. Research limitations/implications The effects of CRM programs on customer loyalty observed in this study required further research. The data used in this study were only gathered from the banking industry in Indonesia, and so more research studies are needed to support the conclusion. Practical implications It is reasonable to conclude that customer loyalty can be built, strengthened and retained by CRM programs, aimed at increasing security and building trust in each transaction, improving partnership, optimize another bank’s service product like internet banking and SMS banking and communicating with customers in a timely manner. Originality/value Advanced and specific knowledge relevant to CRM in banking service industries.

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.

Influence of customer participation from the employee perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jaewon Yoo ◽  
Jing Chen ◽  
Gary L. Frankwick
Keyword(s):  
Work Engagement ◽  
Economic Benefits ◽  
Customer Participation ◽  
Equation Modeling ◽  
Curvilinear Relationship ◽  
Shape Effect ◽  
Content Type ◽  
Service Employees ◽  
Service Employee ◽  
Employee Work Engagement

PurposeTo reduce costs, many banks have increased customer involvement during the creation and delivery of their products and services. Based on a job demands-resources (JD-R) model, this study tests an inverted U-shaped curvilinear relationship between perceived customer participation and employee work engagement. Customer orientation (CO) and service employee perceived fit with customers (PCF) moderate this relationship, which eventually affect both the internal and external benefits of service-employee work engagement.Design/methodology/approachThe authors collected survey data from 518 service employees in the South Korean banking and insurance industries and analyzed the data using structural equation modeling (SEM).FindingsThe results indicate that perceived customer participation (PCP) has a significant inverted U-shape effect on work engagement. Results also suggest that CO and PCF have positive relationships with work engagement. In addition, they moderate the inverted U-shaped relationship between service employee PCP and work engagement, while work engagement positively affects organizational citizenship, job satisfaction and commitment.Research limitations/implicationsThe authors empirically identify a curvilinear effect of PCP on work engagement. In doing so, the authors introduce and operationalize the new construct: PCF and suggest PCF and CO as unique job resources for service employees. The authors also examine these constructs as predictors based on a motivational process and as moderators based on a strain (energetic) process.Practical implicationsFrom a managerial perspective, examining the curvilinear relationships of customer participation and work engagement suggests that front-line employees’ (FLEs’) PCP does not necessarily enhance the economic benefits of productivity gains by using customers as substitutes for portions of employee labor. Another finding with managerial relevance indicates that service employees, who have more CO and PCF, showed more tolerant attitudes toward unnecessary and excessive levels of customer participation and regarded it as a job resource.Originality/valueThis study explains that researchers must consider the positive and negative sides of customer participation simultaneously because frontline employee PCP can be changed depending on the level of participation provided by customers. This study also shows that CO can be assumed as a personal resource and PCF as an environmental resource in the work engagement process.

The impact of customer resources on customer value in co-creation: the multiple mediating effects

2020 ◽  
Vol 3 (1) ◽  
pp. 33-56 ◽  
Author(s):  
Meng Xiao ◽  
Qinhai Ma ◽  
Man Li
Keyword(s):  
Customer Value ◽  
Tourism Industry ◽  
Mediating Effect ◽  
Customer Participation ◽  
Equation Modeling ◽  
Mediating Effects ◽  
Content Type ◽  
Hedonic Value ◽  
The Relationship ◽  
Reactive Interaction

Purpose Co-creating value with customers is important for companies in order to gain a competitive advantage. Based on resource theory and social interaction theory, the purpose of this paper is to explore the customer participation mechanism in co-creating value and test the effects of different types of customer resources and multi-level customer–firm interaction on customer value. Design/methodology/approach Data were collected from tourism industry. Hypotheses were tested using structural equation modeling. Findings The results indicate that both the customer’s human resource and relationship resource have a significantly positive effect on customers’ utilitarian value and hedonic value through reactive and proactive interactions. Reactive interaction has a full mediating effect on the relationship between relationship resource and proactive interaction, whereas proactive interaction has a full mediating effect on the relationship between reactive interaction and hedonic value. Originality/value This study explores the mediating effects of customer–firm interaction between customer resources and customer value. This paper contributes to the understanding of customers’ motivations for, and the processes of, participating in value co-creation.

The impact of social media activities on brand image and emotional attachment

2020 ◽  
Vol 11 (1) ◽  
pp. 109-135 ◽  
Author(s):  
Albert A. Barreda ◽  
Khaldoon Nusair ◽  
Youcheng Wang ◽  
Fevzi Okumus ◽  
Anil Bilgihan
Keyword(s):  
Social Media ◽  
Structural Equation ◽  
Brand Image ◽  
Equation Modeling ◽  
Emotional Attachment ◽  
Brand Commitment ◽  
Psychological Benefits ◽  
Content Type ◽  
Social Media Platforms ◽  
The Impact

Purpose The study aims to develop a theoretical model that portrays the antecedents of emotional attachment in the travel context by combining branding, marketing and information systems theories. Design/methodology/approach The authors gather empirical data through a Web-based questionnaire from 236 respondents. The proposed theory-driven model is examined empirically by using confirmatory factor analysis and structural equation modeling. Findings The findings suggest that social media rewards and benefits impact users’ brand commitment. Social media interactivity and rewards help building a stronger brand image. Brand commitment and brand image, in turn, affect emotional attachment positively. Research limitations/implications Other unexamined constructs may add to the explanation of building brands using social media platforms. As this is an exploratory study in relation to enhancing emotional attachment in an online travel setting, other constructs such as brand page commitment, annoyance, social benefits and telepresence may be considered in future studies. Practical implications Practitioners might encounter ways to influence favorable perceptions and brand commitment when consumers use social media sites. The model addresses questions regarding the significant role of social media activities on influencing brand image and brand commitment that in turn influence the development of a strong emotional attachment. Social implications This study examined the effects of social media activities including interactivity, psychological benefits and rewards on brand image and brand commitment, and the effects of brand image and brand commitment on emotional attachment in the travel context. The results offer further verification for the theory-based model presented in the study. Evidently, statistically significant and meaningful associations exist among the factors. Originality/value The key contribution of this study is that it presents and validates a theory-driven model that reveals the antecedents of sustainable emotional attachment. The proposed framework stresses the positive relationships among constructs and offers research basis for expansion in other settings.

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