Stretching the value-satisfaction-loyalty chain by adding value dimensions and cognitive and affective satisfactions

2016 ◽  
Vol 54 (4) ◽  
pp. 981-1003 ◽  
Author(s):  
Martina G. Gallarza ◽  
Maria Eugenia Ruiz-Molina ◽  
Irene Gil-Saura
Keyword(s):  
Product Quality ◽  
Customer Loyalty ◽  
Social Value ◽  
Cognitive Factors ◽  
Value For Money ◽  
Content Type ◽  
Mediating Role ◽  
Emotional Factors ◽  
A Chain ◽  
Emotional Value

Purpose – Consensus on how value dimensions are drivers of overall perceived value is a widespread reality in consumer behaviour literature. But scanty research has been done on which of these value dimensions best predict customer loyalty. The purpose of this paper is to propose a causal model that examines how PERVAL dimensions of value affect customers’ loyalty, through both cognitive and affective satisfaction. Design/methodology/approach – The model is tested on a sample of 820 Spanish retail customers and the findings suggest that product quality and value for money (cognitive) impact customer loyalty through emotional and social value (affective), with significant direct and indirect effects through both cognitive and affective satisfaction. Findings – Notably, the results highlight the mediating role of shoppers’ emotional and social value on the linkages between satisfaction and loyalty. Therefore, this study has proved the embedded impact of value dimensions on overall satisfaction and behavioural intentions in a cognitive-affective-behavioural framework. Practical implications – Managerially, retailers who intend to build long-term relationships with their customers will benefit by investing in emotional factors along with cognitive factors, on the assumption that cognitive factors lead to emotional factors, and that both affect loyalty to the service provider through cognitive and affective satisfaction. Originality/value – This work can be said to have made two substantial contributions to previous literature. First, the old but constantly renewed dichotomy between utilitarian and hedonic attributes in retailing has emerged in the work, in the sense that different value dimensions (two utilitarian, one hedonic and one social) have been proved to be differently related to customer satisfaction (both cognitive and affective), and indirectly to customer loyalty. And second, this work has also proved the existence of a chain of effects between value dimensions: product quality and value for money to emotional value, and this to social value.

A review of value drivers in service settings

2018 ◽  
Vol 32 (7) ◽  
pp. 850-867 ◽  
Author(s):  
Maria-Eugenia Ruiz-Molina ◽  
Martina Gallarza ◽  
Irene Gil-Saura
Keyword(s):  
Product Quality ◽  
Customer Loyalty ◽  
Perceived Value ◽  
Value Drivers ◽  
Content Type ◽  
Value Perceptions ◽  
Segmentation Approach ◽  
Emotional Value ◽  
Home Furnishing ◽  
Loyal Customers

Purpose Perceived value and customer loyalty have been studied jointly in most of services literature but mainly through SEM models. This paper aims to draw on the literature on the multidimensional richness of perceived value, to adopt a segmentation approach and explore segments of loyal consumers towards the service provider based on their value perceptions. Design/methodology/approach A survey was conducted among 460 Spanish consumers interviewed at the store exit of seven retail chains in two sectors (grocery and home furnishing). A CHAID analysis was performed on loyalty responses, through nine value dimensions (efficiency, service quality, product quality, emotional value, value for money, social value, aesthetic value, escapism and ethics). Findings Results show the existence of different groups of loyal customers based on the nine value types. Efficiency is prioritised by the most loyal customers in grocery but not for home furnishing. Emotional value and aesthetics, along with product quality determine the most loyal segments. Practical implications Retailers should focus on enhancing those value dimensions that better explain customer loyalty towards retail stores in their area of specialisation, combining not only tangible and intangible elements but also functional and emotional elements. Originality/value The paper adds to the prolific research on perceived value in services with a diachronic graphical review of value dimensions in retailing; furthermore, the range of value dimensions studied here is wider than most of previous works using dimensions of value in services.

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.

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.

Web-store image dimensions and online retail customer loyalty: investigating mediators and moderators

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pavleen Soni
Keyword(s):  
Customer Satisfaction ◽  
Product Quality ◽  
Customer Loyalty ◽  
Online Retail ◽  
Content Type ◽  
Design Elements ◽  
Purchase Frequency ◽  
Store Design ◽  
Serial Mediation

PurposeIn an era of burgeoning activity in online retail in India, the role of web-store design is paramount. Web-store design elements such as website functionality, brand assortment and product quality are expected to generate customer loyalty.Design/methodology/approachUsing data collected from 553 students from two universities in north India, the present study investigates the indirect effect of web-store dimensions (through website functionality, brand assortment and product quality) on online store loyalty via an enjoyment state (flow) and customer satisfaction. Serial mediation has been analysed through PROCESS macro developed by Hayes version 3.0. In addition to this, the moderating role of gender and purchase frequency has also been investigated.FindingsThe present study renders support to serial mediation between website functionality, flow, customer satisfaction and loyalty. However, the path between brand assortment and loyalty is more strongly mediated by customer satisfaction only. Males experience less flow as compared to females while handling brand assortment on websites. The three-way interaction between brand assortment, gender and purchase frequency is also statistically significant.Originality/valueThe study examines the manner in which online retailers can choose to build customer loyalty when they try to build retail image using web store functionality and /or product/brand assortments. The study offers insights to retailers about how and when to focus on hedonism versus customer satisfaction or both of them in conjunction to enhance customer loyalty. This study is important as it investigates the relationships in Indian scenario witnessing a high rate of growth in online retail which can tremendously affect these relationships.

M-shopping service quality dimensions and their effects on customer trust and loyalty: an empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruoqing Zhang ◽  
Minjoon Jun ◽  
Sergio Palacios
Keyword(s):  
Service Quality ◽  
Customer Loyalty ◽  
Perceived Risk ◽  
Ease Of Use ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Quality Dimensions ◽  
Service Quality Dimensions ◽  
Customer Trust

PurposeThe present study seeks to identify the salient mobile shopping (m-shopping) service quality dimensions as perceived by mobile shoppers (m-shoppers) and examines the linkages between the derived m-shopping service quality dimensions, customer trust and customer loyalty.Design/methodology/approachThe research instrument is developed based upon the mostly validated measures of prior studies. A pretest of the questionnaire is conducted to assess the content validity of the measurement scales. An online survey is used to collect the required data. We employ structural equation modeling (SEM) to analyze data collected from 286 m-shoppers.FindingsWe identify five key m-shopping service quality dimensions: responsiveness, personalization, ease of use, aesthetics and perceived risk based on an extensive review of relevant literature. The SEM results show that all the five m-shopping service quality dimensions significantly impact, directly and/or indirectly, customer loyalty. Moreover, the results show that trust plays a partial mediating role in the effects of responsiveness and personalization on loyalty; a full mediating role in the effects of aesthetics and perceived risk on loyalty and no mediating role in the effect of ease of use on loyalty.Practical implicationsMobile retailers (m-retailers) can use the quality measurement tool developed in this study to detect service quality weaknesses and strengths. Based on their quality assessment, m-retailers can effectively allocate corporate resources to the important service quality attributes uncovered by this study, thereby improving their overall service quality performance and in turn expanding their loyal customer base.Originality/valuePrior studies have demonstrated that service quality and customer trust play a pivotal role in enhancing customer loyalty in both offline and online settings. Unfortunately, no research has empirically examined the relationships between service quality dimensions, trust and loyalty in the context of m-shopping. Therefore, a major contribution of this study is to address this research gap and add knowledge to the limited body of post-adoption m-shopping research.

The effect of service quality on customer satisfaction and loyalty and the mediating role of customer satisfaction

2020 ◽  
Vol 32 (3) ◽  
pp. 543-558 ◽  
Author(s):  
Neale J. Slack ◽  
Gurmeet Singh
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Policy Makers ◽  
Content Type ◽  
Mediating Role ◽  
Corporate Resources ◽  
Customer Satisfaction And Loyalty

PurposeThe purpose of this study is to determine the effect of service quality on customer satisfaction and loyalty and the mediating role of customer satisfaction in the supermarket sector.Design/methodology/approachIn total, 480 supermarket customers participated in an intercept survey in four urban centres of Fiji. Descriptive statistics were used to determine the level of service quality provided by supermarkets, and inferential statistics to determine the gap between customer's service quality expectations and perceptions and to test the research hypotheses.FindingsThe findings indicate service quality of supermarkets is perceived as being unsatisfactory, service quality significantly affects customer satisfaction and loyalty and customer satisfaction partially mediates the relationship between service quality and customer loyalty reducing customer's perceptions of service quality, leading to lower customer loyalty.Practical implicationsThis study provides an indication as to where supermarkets should target their marketing attention and scarce corporate resources and may help in their efforts to service, satisfy, retain and attract more long-term loyal customers in the increasingly competitive supermarket sector. This research could inform government policy makers in sequencing the supermarket sector transformation and assist local supermarkets to adapt to this changing retail landscape.Originality/valueThis study advances our understanding of the effect of service quality on customer satisfaction and loyalty and the mediating role of customer satisfaction in the supermarket sector.

Investigating the perceived quality of a special event and its influence on perceived value and behavioural intentions in a special event in Thailand

2020 ◽  
Vol 11 (3) ◽  
pp. 337-355
Author(s):  
Supawat Meeprom ◽  
Tongrawee Silanoi
Keyword(s):  
Economic Value ◽  
Perceived Value ◽  
Perceived Quality ◽  
Social Value ◽  
Exit Point ◽  
Content Type ◽  
Behavioural Intentions ◽  
Special Event ◽  
Emotional Value

PurposeThe aim of this study is to examine the impact of perceived special event quality on perceived value and behavioural intentions. Specifically, it was proposed that attendees' perceived special event quality has direct and indirect effects on behavioural intentions through the mediating role of social value, economic value and emotional value.Design/methodology/approachA self-administered, onsite survey was deployed to gather the data to formulate the hypothesised relationships in this study. Data collection also included event-intercepted panel surveys, conducted with actual consumers who attended the Agricultural and Cultural Fair. The surveys were distributed and conducted during the afternoon and early evenings at the event area and exit point of the event. In total, 250 questionnaires were distributed to domestic visitors and 176 respondents completed the survey.FindingsThe study found the perceived quality of the special event directly impacted social value, economic value, emotional value and behavioural intentions. The results also indicated that social value and emotional value had significant effects on behavioural intentions. Further, this study found that both social value and emotional value components mediated the relationship between perceived quality of the special event and behavioural intentions. These results confirmed the existence of a perceived-quality-value-behavioural intentions chain.Research limitations/implicationsThere are some key limitations including the sample size in this study was relatively small and all the respondents were domestic attendees, providing findings specific to one culture only. In term of implications, the results offer event organisers holistic insights into elements to be adopted as the foundation for special event consumption. It helps event organisers to build upon customer choice behaviour, which can be employed to effectively cultivate more attendees for the special events.Originality/valueThis is the first study that examined the extent to which attendees' perceived quality of a special event influenced their perceived values in Agricultural and Cultural Fair which is a special event held each year in the major city of Khon Kaen in the northeast region in Thailand.

Are functional, emotional and social values interrelated? A study of traditional guesthouses in Iran

2020 ◽  
Vol 32 (9) ◽  
pp. 2857-2880 ◽  
Author(s):  
S. Mostafa Rasoolimanesh ◽  
Mohmmad Iranmanesh ◽  
Muslim Amin ◽  
Kashif Hussain ◽  
Mastura Jaafar ◽  
...  
Keyword(s):  
Structural Equation ◽  
Social Values ◽  
Perceived Value ◽  
Social Value ◽  
Equation Modeling ◽  
Content Type ◽  
Theoretical Contribution ◽  
Emotional Value ◽  
Moderating Role

Purpose This study aims to examine the interrelationships between the dimensions of perceived value, including functional, emotional and social values. The mediating role of emotional value between functional and social values and satisfaction have been hypothesized and tested. In addition, this study examines the moderating role of social value for the effect of emotional value on satisfaction. Design/methodology/approach Data for this study were collected from guests staying at two traditional guesthouses in Kashan, Iran. The authors applied partial least squares structural equation modeling to analyze 316 questionnaires completed by participants and for hypotheses testing. Findings The authors found positive and direct effects of all dimensions of perceived value on satisfaction. Moreover, the results indicated positive and significant indirect effects for functional and social values on satisfaction through emotional value. The findings demonstrated positive and strong effects of functional and social values on emotional value. The results do not support a moderating role for social value on the relationship between emotional value and satisfaction. In addition, the findings showed a strong and positive effect for satisfaction on revisit intentions. Originality/value This study makes a unique theoretical contribution to the perceived value literature by investigating the interrelationships between dimensions of perceived value. Moreover, this study explores several practical implications of these findings.

Rational and emotional factors of customer satisfaction and brand loyalty in a business-to-business setting

2017 ◽  
Vol 32 (1) ◽  
pp. 138-152 ◽  
Author(s):  
Marc Elsäßer ◽  
Bernd W. Wirtz
Keyword(s):  
Customer Satisfaction ◽  
Product Quality ◽  
Brand Loyalty ◽  
Success Factors ◽  
Brand Image ◽  
Complex Model ◽  
Content Type ◽  
Emotional Factors ◽  
Business Setting ◽  
Business To Business

Purpose Reaching customer satisfaction and brand loyalty in a business-to-business setting is still an area of rising interest to both researchers and practitioners. Compared to consumer branding, there is notably very little known about the success factors of industrial branding and how to convince buyers rationally and emotionally in business-to-business markets. Therefore, this paper aims to examine the success factors of branding in a business-to-business setting and analyze their performance impact on customer satisfaction and brand loyalty. Design/methodology/approach In total, 258 buyers of mechanical and plant engineering companies participated in an online survey. Data analysis was performed by using confirmatory factor analysis and structural equation modeling. Findings The results reveal that rational brand quality consists of the three dimensions, product quality, service quality and distribution quality, whereas consistent advertising style, brand image, country-of-manufacture image and salesperson’s personality are dimensions of emotional brand associations. All dimensions positively influence customer satisfaction and brand loyalty. Originality/value This study offers a certain value compared to the relevant literature mentioned in literature review. Compared to a large majority of the papers, the integration of rational and emotional factors in an integrative and complex model implies novelty. For example, Davis et al. (2008) and Baumgarth and Binckebanck (2011) focus on specific exogenous factors in their studies, namely, brand awareness and brand image, respectively, sales force impact combined with product quality and non-personal communication. In contrast, Van Riel, Pahud de Mortanges and Streukens (2005), Chen et al. (2011) and Chen and Su (2012) conceptualized a more complex model but did not separate rational and emotional factors. Jensen and Klastrup (2008) were the only authors who made this separation, but they did not include well-known emotional success factors such as brand image or country-of-manufacture image in their research model. Furthermore, an endogenous causal chain representing an observable consumer behavior is missing. This paper fills this gap.

Understanding Chinese consumers' pre-purchase value expectations: the role of country of origin effect

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mengnan Qu ◽  
Sara Quach ◽  
Park Thaichon ◽  
Lorelle Frazer ◽  
Meredith Lawley ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Online Survey ◽  
Country Of Origin ◽  
The Body ◽  
Social Value ◽  
Chinese Consumers ◽  
Content Type ◽  
Price Expectation ◽  
Willingness To Purchase ◽  
Emotional Value

PurposeThis study aims to examine the effect of country of origin (COO) on customers' value expectation and willingness to pay by employing signalling theory and cue utilisation.Design/methodology/approachThe data were collected from 386 customers via an online survey in the context of Australian food retail franchise stores in China.FindingsThe findings indicate that COO origin is an important determinant of customer expectations including service quality, social value, emotional value, monetary price, behavioural price and reputation. Furthermore, the only social value was a significant predictor of willingness to pay. Although the direct effect of COO on willingness to purchase was not significant, the COO had a significant indirect effect on willingness to pay via social value. Finally, the COO has a stronger effect on monetary price expectation among customers who were aware of the country brands than those who were unaware.Originality/valueThe study extends the body of knowledge related to the effect of COO during the pre-purchase process and provides important implications for retailers who are looking to enter an overseas market such as China.

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