Why do satisfied customers defect? A closer look at the simultaneous effects of switching barriers and inducements on customer loyalty

2017 ◽  
Vol 27 (3) ◽  
pp. 616-641 ◽  
Author(s):  
Stephanie Hui-Wen Chuah ◽  
Philipp A. Rauschnabel ◽  
Malliga Marimuthu ◽  
Ramayah Thurasamy ◽  
Bang Nguyen
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Reference Group ◽  
Mobile Internet ◽  
Local Network ◽  
Equation Modeling ◽  
Holistic Model ◽  
Content Type ◽  
Marketing Innovation ◽  
Switching Barriers

Purpose The purpose of this paper is to go beyond satisfaction as an indicator of customer loyalty and propose a holistic model of service switching in a mobile internet setting. The model, which reflects both barriers and inducements of switching, is developed based on the “mooring” and “pull” concepts in the migration literature. Design/methodology/approach Focusing on Generation Y mobile internet subscribers, the study analyzed a total of 417 usable questionnaire responses. Partial least squares structural equation modeling was used to test the research model. Findings The results show that first, satisfaction and switching barriers (i.e. a focal firm’s marketing innovation initiatives, switching costs, inertia, and local network effects) are positively related to customer loyalty; second, switching barriers have a stronger influence on customer loyalty compared with satisfaction; third, switching inducements (i.e. competitors’ marketing innovation initiatives, alternative attractiveness, variety-seeking tendencies, and consumers’ susceptibility to social reference group influence) is negatively related to customer loyalty and the relationship is weaker when perceived switching barriers are high. Originality/value This study empirically validates multidimensional scales of switching barriers and inducements from a more nuanced perspective, and specifies them as reflective-formative type II models. This study is among the first to use opposing dimensions to measure switching barriers and its counterpart. Hence, it illustrates how the two contrasting mechanisms can coexist in the minds of mobile internet subscribers.

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.

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.

scholarly journals The importance of knowledge and trust for ethical fashion consumption

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yongdan Liu ◽  
Matthew Tingchi Liu ◽  
Andrea Pérez ◽  
Wilco Chan ◽  
Jesús Collado ◽  
...  
Keyword(s):  
Purchase Intention ◽  
Structural Equation ◽  
Reference Group ◽  
Subjective Norm ◽  
Ethical Consumption ◽  
Primary Data ◽  
Dominant Factor ◽  
Equation Modeling ◽  
Content Type ◽  
Tpb Model

PurposeThe clothing industry is one of the most polluting industries in the world, although manufacturers and retailers are trying to revert this tendency by applying ethical fashion principles. Drawing on the knowledge–attitude–behavior (KAB) model or practice, this study aims to predict Chinese consumers' purchase intention of ethical fashion by employing and extending the theory of planned behavior (TPB).Design/methodology/approachThe extended TPB model incorporates knowledge of ethical fashion and trust in the fashion industry and two critical variables in ethical fashion literature to explain the purchase intention of ethical fashion. Primary data from 245 Chinese respondents were collected in 2019. The model was tested and analyzed through structural equation modeling (SEM).FindingsResults show that the extended TPB model has higher predictability than the original TPB model. Attitude toward ethical fashion and subjective norm significantly predicts purchase intention while perceived behavioral control (PBC) does not. In addition, trust of ethical fashion is positively related to attitude toward ethical fashion and purchase intention, whereas knowledge of ethical fashion plays a significant role in predicting trust and the three TPB factors. The subjective norm was found to have the most significant impact on consumers' intention to purchase ethical fashion, which shows that social pressure from one individual's reference group is the most dominant factor in forming consumer's purchase intention on ethical fashion.Originality/valueThe findings enrich the past literature on ethical fashion that trusting belief is a salient determinant of consumers' attitude toward ethical fashion and purchase intention of ethical fashion products. The findings also supported the applicability of KAB and TPB in the domain of ethical consumption in the context of a developing country.

The effect of experience quality on customer perceived value and customer satisfaction and its impact on customer loyalty

2020 ◽  
Vol 32 (6) ◽  
pp. 1525-1540
Author(s):  
Andriani Kusumawati ◽  
Karisma Sri Rahayu
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Perceived Value ◽  
Statistical Technique ◽  
Equation Modeling ◽  
Content Type ◽  
Customer Perceived Value ◽  
Perceived Values ◽  
The Relationship

PurposeTo test the effect of experience quality on customer perceived value and customer satisfaction and its impact on customer loyalty to the visitors of natural nuanced outdoor cafés in the hilly areas of Joyo Agung, Malang.Design/methodology/approachThis study uses four variables, namely experience quality, customer perceived value, customer satisfaction, and customer loyalty. The population used in this research was all customers or visitors who buy and enjoy the products and services provided by the natural outdoor cafés in Malang. This study used structural equation modeling (SEM) as inferential statistical technique.Findings1) Quality experience has a significant effect on customer perceived value, customer satisfaction, and customer loyalty; 2) customer perceived value has a significant effect on customer satisfaction and customer loyalty; and 3) customer satisfaction has a significant effect on customer loyalty.Originality/valueBased on the results of previous research and the phenomenon that has been described previously, the research gaps found in this study are: (1) the relationship between experience quality and customers’ perceived values. (2) There are differences in the relationship between experience quality and customer satisfaction found in the research, which examines the effect of experience quality on customer loyalty. (3) Experience quality and customer loyalty variables still differ in the research concerning the effect of experience quality on customer loyalty. (4) The influence of customer satisfaction and customer loyalty is still different in the research results regarding the effect of customer satisfaction on customer loyalty.

Understanding B2B customer loyalty in the mobile telecommunication industry: a look at dedication and constraint

2015 ◽  
Vol 30 (2) ◽  
pp. 117-128 ◽  
Author(s):  
Shuiqing Yang
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Equation Modeling ◽  
Telecommunication Industry ◽  
Mobile Telecommunication ◽  
Theoretical Understanding ◽  
Dual Nature ◽  
Content Type ◽  
Constraint Factors ◽  
Practical Implications

Purpose – This paper attempts to investigate the simultaneous effects of dedication and constraint factors on business-to-business (B2B) customer loyalty in the context of transforming the mobile telecommunication industry. Maintaining a successful inter-organizational relationship with the key players becomes increasingly critical to the performance and competitiveness of the mobile network operator (MNO) in the mobile telecommunication industry. Design/methodology/approach – A dual customer loyalty model which reflected both dedication-based and constraint-based mechanisms is developed and empirically tested against data collected from 129 content providers (CPs) which currently have business relationships with China Mobile. Findings – The structural equation modeling partial least squares analysis indicates that dedication-based (e.g. customer satisfaction, trust in MNO and MNO’s relationship-specific investments) and constraint-based (e.g. switching costs, dependence on MNO and CP’s asset specificity) mechanisms simultaneously, yet differentially, influence CP’s loyalty toward the MNO. Practical implications – To obtain CP’s loyalty, MNOs should consider both the dedication and constraint factors. In particular, they need to focus more on the constraint-based mechanism, as it exerts stronger influences on CP’s loyalty than the dedication-based mechanism. Originality/value – This research advances our theoretical understanding of the dual nature of customer loyalty behavior in the B2B context and offers practical implications for MNOs to leverage these two contrasting causal drivers.

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

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

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

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

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

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

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.

Marketing mix, customer value, and customer loyalty in social commerce

2018 ◽  
Vol 28 (1) ◽  
pp. 74-104 ◽  
Author(s):  
Ya-Ling Wu ◽  
Eldon Y. Li
Keyword(s):  
Customer Loyalty ◽  
Customer Value ◽  
Structural Equation ◽  
Marketing Mix ◽  
Equation Modeling ◽  
Social Commerce ◽  
Content Type ◽  
Replication Studies ◽  
Consumer Value ◽  
Parsimonious Model

Purpose Based on stimulus-organism-response model, the purpose of this paper is to develop an integrated model to explore the effects of six marketing-mix components (stimuli) on consumer loyalty (response) through consumer value (organism) in social commerce (SC). Design/methodology/approach In order to target online social buyers, a web-based survey was employed. Structural equation modeling with partial least squares (PLS) is used to analyze valid data from 599 consumers who have repurchase experience via Facebook. Findings The results from PLS analysis show that all components of SC marketing mix (SCMM) have significant effects on SC consumer value. Moreover, SC customer value positively influences SC customer loyalty (CL). Research limitations/implications The data for this study are collected from Facebook only and the sample size is limited; thus, replication studies are needed to improve generalizability and data representativeness of the study. Moreover, longitudinal studies are needed to verify the causality among the constructs in the proposed research model. Practical implications SC sellers should implement more effective SCMM strategies to foster SC CL through better SCMM decisions. Social implications The SCMM components represent the collective benefits of social interaction, exemplifying the importance of effective communication and interaction among SC customers. Originality/value This study develops a parsimonious model to explain the over-arching effects of SCMM components on CL in SC mediated by customer value. It confirms that utilitarian, hedonic, and social values can be applied to online SC and that SCMM can be leveraged to achieve these values.

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