Building trust by signaling trustworthiness in service retail

2014 ◽  
Vol 28 (5) ◽  
pp. 361-373 ◽  
Author(s):  
Husni Kharouf ◽  
Donald J. Lund ◽  
Harjit Sekhon
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Positive Impact ◽  
Past Research ◽  
Customer Relationships ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Survey Responses ◽  
Customer Trust

Purpose – The purpose of this paper is to investigate the role of retailer trustworthiness in driving customer trust and the subsequent impact on loyalty. The authors position trustworthiness as a mediator in the link between retail strategies and the development of trust. They model customer loyalty to the service retailer as a function of the trust created through trustworthy perceptions. Design/methodology/approach – The authors validate their model using 420 survey responses from customers in a service retail setting. Nine research hypotheses were tested using structural equation modeling. Alternate models are estimated, and the results provide support for the theory-based trustworthiness mediation model. Findings – Trustworthy behaviors first build trustworthiness, which then translates into customer trust and ultimately has a positive impact on both behavioral and attitudinal loyalty. Research limitations/implications – The research highlights the importance for retailers to signal their trustworthiness to build customer trust and loyalty. Researchers should measure trustworthiness perceptions when examining customer relationships and managers should plan strategically to develop both trust and trustworthiness with their customers. Originality/value – This study is one of the first to investigate the mediating effect of trustworthiness on customer loyalty in service settings. While past research has investigated dimensions of trustworthy behaviors, none has included a measure of trustworthiness perceptions and consumer trust in the same theoretical model. The results of the research provide important insights for both researchers and managers.

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.

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.

To fly or not to fly? An empirical study of trust, post-recovery satisfaction and loyalty of Malaysia Airlines passengers

2019 ◽  
Vol 29 (5/6) ◽  
pp. 661-690 ◽  
Author(s):  
Amrul Asraf Mohd-Any ◽  
Dilip S. Mutum ◽  
Ezlika M. Ghazali ◽  
Lokmanulhakim Mohamed-Zulkifli
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Interactional Justice ◽  
Final Analysis ◽  
Mediating Effect ◽  
Three Dimensions ◽  
Content Type ◽  
Perceived Justice ◽  
Recovery Satisfaction ◽  
Customer Trust

Purpose The purpose of this paper is to investigate the importance of successful service recovery in the airline sector by examining the interrelationship between perceived justice, recovery satisfaction and overall satisfaction, customer trust and customer loyalty. Furthermore, the research assesses the mediating effect of overall satisfaction and customer trust on customer loyalty. Design/methodology/approach Data were collected via an airport intercept survey of Malaysia Airlines passengers who had experienced service failure. In total, 380 responses were used for the final analysis. The study uses partial least squares structural equation modelling technique with SmartPLS 3.0, in order to test and validate the research model and hypotheses posited. Findings The results reveal that: recovery satisfaction is significantly affected by procedural and interactional justice; distributive and procedural justice, as well as recovery satisfaction influenced overall satisfaction; customer trust is most influenced by interactional justice, distributive justice and recovery satisfaction; customer loyalty is positively affected by customer trust, overall satisfaction and recovery satisfaction; and the influence amongst recovery satisfaction and customer loyalty is partially mediated by customer trust and overall satisfaction. Originality/value The study contributes to a whole conceptual comprehension of the essential determinants of customer loyalty from the combined perspectives of three theories, namely, justice theory, expectancy disconfirmation theory and commitment-trust theory. This study successfully differentiates the three dimensions of perceived justice and assesses them individually to discern and compare their influence on overall satisfaction, recovery satisfaction and trust. In addition, the study finds that the influence of recovery satisfaction on loyalty is partially and sequentially mediated by trust and overall satisfaction.

Diversity climate on turnover intentions: a sequential mediating effect of personal diversity value and affective commitment

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joonghak Lee ◽  
Steven Kim ◽  
Youngsang Kim
Keyword(s):  
Structural Equation ◽  
Affective Commitment ◽  
Turnover Intentions ◽  
Positive Impact ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Diversity Climate ◽  
Content Type ◽  
Climate Influences ◽  
The Relationship

PurposeResearch on diversity climate has shown that diversity climate as an employee's perception of an organization's diversity-related practices or procedures has a positive impact on reducing turnover intentions. However, we know little about which intervening mechanism explains the relationship between diversity climate and employee's turnover intentions. In this study, we suggest that individual employee's perceived diversity climate influences turnover intentions through personal diversity value and affective commitment.Design/methodology/approachWith a sample of 901 employees in more than 50 companies affiliated in South Korea, the authors test the hypothesized relationship, using structural equation modeling (SEM).FindingsOur findings show that personal diversity value and affective commitment sequentially mediate the relationship between perceived diversity climate and turnover intentions.Research limitations/implicationsThis study can enhance the understanding about the mediating mechanism linking the relationship between perceived diversity climate and turnover intentions and how personal diversity value and affective commitment link the relationship.Originality/valueThe authors theorize and find that perceived diversity climate can influence personal diversity value that results in employee commitment and turnover intentions.

Salesperson ethics behavior as antecedent of Islamic banking customer loyalty

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tony Wijaya ◽  
Moh Nasuka ◽  
Anas Hidayat
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Consumer Loyalty ◽  
Islamic Ethics ◽  
Content Type ◽  
New Findings ◽  
Customer Trust

Purpose The development of the banking industry is encouraging increasingly fierce competition. In the face of banking competition, Islamic banks need to build customer loyalty by paying attention to ethical aspects. Ethics has an essential role in forming and preserve relationships between companies and customers in the long term. The measurement model of salesperson ethical behavior in this study was built using the Islamic-based marketing concept. This study aims to test empirical models of Islamic ethics-based salesperson behavior in increasing customer loyalty of Islamic banks through the aspect of customer trust. Design/methodology/approach Research data were obtained from 165 Islamic bank customers in the Central Java, Indonesia, using the purposive sampling method. Data analysis in this study uses structural equation modeling. Findings The study shows that the Islamic ethics-based salesperson behavior has a positive effect on customer trust in a salesperson, customers’ trust in Islamic banks and customer loyalty. Customer trust in a salesperson has positively and significantly influenced customer trust in Islamic banks and customer loyalty. Customer trust in Islamic banks has a positive and significant effect on customer loyalty. Practical implications This study’s results are expected to be used to reference maintenance salesperson in Islamic banking to behave based on Islamic principles. Islamic marketing principles need to be applied through salespersons behaving realistically (al-Waqi’iyyah) and humanistic concepts (insaniyyah). The application of Islamic ethics can limit and avoid deviant behavior from salespeople that is detrimental to consumers and organizations. The behavior of salespeople based on Islamic ethics will build consumer trust in both organizations and salesperson so that it has implications for consumer loyalty. Originality/value This paper provides new findings to understand Islamic banking consumer loyalty that focuses on Islamic ethical salesperson behavior point of view. This paper also presents a new measurement of research variables from an Islamic perspective in examining the role of Islamic ethics-based salesperson behavior toward banking customer loyalty. This study takes the object of research in Islamic banking that has different characteristics from conventional financial institutions.

Motivational determinants of digital ticketing: the mediating effect of service satisfaction and the moderating effect of psychological discomfort

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sanghoon Kim ◽  
Ho Yeol Yu ◽  
Hyun-Woo Lee
Keyword(s):  
Intrinsic Motivation ◽  
Structural Equation ◽  
Positive Impact ◽  
Group Analysis ◽  
Mediating Effect ◽  
Service Satisfaction ◽  
Equation Modeling ◽  
Intention To Use ◽  
Sporting Events ◽  
Content Type

PurposeThe purpose of the study was (1) to examine the motivational composites determining consumers' continued intention to use digital ticketing via self-service technology (SST) by integrating service satisfaction and (2) to ascertain the differences between consumers according to their psychological discomfort toward technology.Design/methodology/approachData were collected using a structured questionnaire, and a total of 323 were included in the analysis. Partial least squares structural equation modeling (PLS-SEM) was utilized to test motivational determinants of digital ticketing. In addition, permutation-based multi-group analysis was performed to investigate the differences between consumers with high and low technology discomfort.FindingsBoth intrinsic and extrinsic motivation are positive predictors of continued intention to use digital ticketing, but only intrinsic motivation has a positive impact on continued intention through service satisfaction. Moreover, the relationship between intrinsic motivation, service satisfaction and continued intention was stronger for consumers with high psychological discomfort than those with low psychological discomfort.Originality/valueGiven the conspicuous characteristics of the digital ticketing process for sporting events, the insights gained from the study may be of assistance to researchers and practitioners in understanding sport consumers' ticket consumption behavior and the determinants of SST usage.

Peranan Rasa Syukur, Kepercayaan, dan Komitmen dalam Memediasi Pengaruh Ikatan Finansial, Ikatan Sosial, Ikatan Kustomisasi, dan Ikatan Struktural Terhadap Loyalitas Nasabah Bank Sultra

2019 ◽  
Vol 2 (2) ◽  
pp. 1
Author(s):  
Juharsah Juharsah
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Total Sample ◽  
Social Bonding ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Mediating Role ◽  
Customer Commitment ◽  
Structural Bonding ◽  
Customer Trust

This study aims to examine and analyze mediating role of gratitude, trust, and commitment in financial, social, customization, and structural bonding on Bank Sultra customer loyalty. Total sample are 354 respondents through Slovin formula.The respondent obtained by convenience sampling method. Data for needs analysis questionnaires were obtained by using a Likert scale of 5 points.The data were then analyzed with methods of structural equation modeling approach. The analysis showed that; gratitude play a role mediating influence financial, social, customization, and structural bonding on customers trust, customers commitment, and customers loyalty; customer trust play a role mediating influence financial bonding and gratitude  on customer commitment and customer loyalty, but did not play a role mediating effect in social, customization, and structural bonding on customers commitment and customers loyalty; customers commitment play a role mediating influence financial bonding, social bonding, customization bonding, structural bonding, gratitude, and customers trust on customers loyalty. Key Words:   Consumer Behaviour, Relationship Marketing, Customer Loyalty,Customer Commitment, Customer trust, Gratitude, Financial Bonding, Social Bonding, Customization Bonding, Structural Bonding 

How does corporate social responsibility create customer loyalty? The role of corporate image

2017 ◽  
Vol 13 (3) ◽  
pp. 409-427 ◽  
Author(s):  
Mert Gürlek ◽  
Ertugrul Düzgün ◽  
Selma Meydan Uygur
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Corporate Image ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Independent Hotels ◽  
Corporate Social

Purpose This paper aims to investigate whether corporate image has a mediating effect on the influence of corporate social responsibility (CSR) on customer loyalty in independent hotels. Design/methodology/approach Data were collected from customers of five-star hotels located in Istanbul in Turkey. The theoretical model was tested with 404 usable data. The results were analyzed by using structural equation modeling (SEM). Findings Findings show that CSR creates customer loyalty partially through corporate image in the independent hotels. In addition, it was found that the hotels included in the study carried out moderate level of CSR activities. Research limitations/implications The research model was tested in independent five-star hotels. Further studies could be carried out using different independent hospitality companies. In addition, the research was conducted on a limited sample, as hotel managers were not willing to allow direct contact with customers. Further studies could be carried out on larger samples. Practical implications This study recommends that independent hotels carry out more CSR activities on social and environmental issues. In addition, direct effect of CSR on customer loyalty is lower than its indirect effect via corporate image. Therefore, if companies desire to create customer loyalty through CSR, they should introduce their CSR activities to customers via communication tools (website, media etc.) Originality/value This study examines CSR in terms of sustainable development in the independent hotels. Furthermore, it explains relationships between CSR and corporate image and customer loyalty through the principle of generalized reciprocity specified in the theory of social change.

The effect of trust with suppliers on hospital supply chain performance

2017 ◽  
Vol 24 (3) ◽  
pp. 694-715 ◽  
Author(s):  
Ayman Bahjat Abdallah ◽  
Mais Issam Abdullah ◽  
Firas Izzat Mahmoud Saleh
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Positive Impact ◽  
Mediating Effect ◽  
Healthcare Sector ◽  
Equation Modeling ◽  
Content Type ◽  
Supplier Integration ◽  
Trust Hospital ◽  
Improve Hospital

Purpose The purpose of this paper is to investigate the effect of trust with suppliers on hospital-supplier integration (SI) and hospital supply chain (SC) performance. Additionally, the mediating effect of SI on trust-hospital SC performance is investigated. Design/methodology/approach A research model and hypotheses were developed based on literature review. The study is based on survey data collected from 152 respondents in 55 private hospitals in Jordan. The proposed hypotheses were tested using structural equation modeling. Findings The paper finds that trust with suppliers has a positive impact on hospital-SI and hospital SC performance. Hospital-SI partially mediates the relationship between trust and hospital SC performance. Practical implications The findings of this research provide useful insights into the role of trust in boosting SC performance in the healthcare sector. High levels of SI not only improve hospital SC performance but also enhance the transformation of trust benefits into SC performance. Originality/value This research is one of the limited studies that investigated the effect of trust on hospital-SI and hospital SC performance in the healthcare sector. To the best of the authors’ knowledge, this is the first study to investigate those relationships in the Middle East in general and in Jordan in particular.

Analysis of Natural Resources and Environment, Politico-Economic Conditions and their influences on Tourist Behavioural Intentions in Hunza: Mediating effect of Tourist Satisfaction

2020 ◽  
Vol 4 (4) ◽  
pp. 55-74
Author(s):  
Faqeer Muhammad ◽  
Kifayat Ullah ◽  
Rehmat Karim
Keyword(s):  
Natural Resources ◽  
Structural Equation ◽  
Positive Impact ◽  
Partial Least Square ◽  
Least Square ◽  
Mediating Effect ◽  
Economic Conditions ◽  
Primary Data ◽  
Equation Modeling ◽  
Tourist Satisfaction

This study aims to explore the influence of Natural Resources and Environment (NRE), Politico-Economic Conditions (PEC) on Tourist Behavioral Intension (TBI) in Hunza, Pakistan. The study further investigates the mediating role of Tourist Satisfaction (TS) on the given variables. Partial Least Square Structural Equation Modeling (PLS-SEM) technique has been applied to conceptualize the research frame and to test the proposed hypotheses. Primary data was collected by using convenient sampling technique for analysis from 220 tourists who visited tourism nucleus sites of Hunza. The finding of the study reveals that Natural resources and Environment, Politico-and Economic Conditions have a significant positive impact on Tourist’s Behavioral Intensions. Moreover, Tourist’s Satisfaction partially mediates the positive relationships among Natural Resources and Environment, Political & Economic Conditions and Tourist’s Behavioral Intensions. The findings of the study extend the understanding that presence of natural resources along with healthy environment and stable political & economic conditions of a destination are the key determinants for sustainable tourism development.

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