Revisiting the role of relationship benefits in online retail

2019 ◽  
Vol 38 (6) ◽  
pp. 745-759 ◽  
Author(s):  
Pavleen Soni

Purpose Given the importance of relationship benefits in creating customer satisfaction, the purpose of this paper is to investigate the moderating role of relationship benefits (special treatment benefits and confidence benefits) on relationship quality and word of mouth (WOM) for online retailers. The conditional mediating role of relationship quality between customer satisfaction and WOM is also examined. Design/methodology/approach A sample of 700 MBA students from two universities in Punjab (North India) has been used to collect data. Structural equation modelling and PROCESS Macro (Hayes (2017) have been used for data analysis (mod mod mediation). Findings When customers perceive high confidence benefits, special treatment benefits moderate the mediational role of relationship quality between customer satisfaction and WOM. Specific conditions under which use of confidence benefits and special treatment benefits are successful for online retailers have also been identified. Practical implications Tailored use of special treatment benefits with confidence benefits in appropriate combinations will help the online retailers in segmenting the customers and differentiating amongst them according to the customers’ receptivity towards these benefits. Marketers can devise communication strategies, create customer segments and position their services using the results obtained in the study. Originality/value The present study is the first of its kind which clarifies as to why the previous literature considered special treatment benefits as less relevant to customers. It also establishes the situations in which these benefits successfully moderate the effect of customer satisfaction in developing relationship quality and eliciting positive WOM in the Indian internet retailing context.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nisar Ahmed Channa ◽  
Maqsood Hussain Bhutto ◽  
Musaira Bhutto ◽  
Niaz Ahmed Bhutto ◽  
Beenish Tariq

Purpose Research suggests that innovation plays a key role in creating a competitive edge and business survival in highly competitive industries like retail. Despite the importance of innovation in retail establishments, very limited efforts have been made so far to study how innovation influences consumer behavior in retail establishments. This paper aims to identify the impact of relationship benefits (i.e. confidence, social and special treatment benefits) on consumer’s loyalty with the retail store and examine the moderating effect of retailer innovation in these relationships. Design/methodology/approach To conduct this study, a sample comprised of 400 consumers of four retail sectors (i.e. household, electronics, textile and food) was chosen. The data were analyzed through partial least squares structural equation modeling (PLS-SEM) technique. Findings The findings of this research suggest a significant positive influence of confidence and special treatment benefits on consumer loyalty and that retail innovation moderates the link between relationship benefits and consumer loyalty. Originality/value This research contributes to the existing literature in the domain of retail customer loyalty by empirically testing the under-studied phenomenon of retail innovation with the help of contingency theory.


2017 ◽  
Vol 31 (2) ◽  
pp. 131-141 ◽  
Author(s):  
Maria-Eugenia Ruiz-Molina ◽  
Irene Gil-Saura ◽  
David Servera-Francés

Purpose This work aims to attempt an in-depth study of the link between relationship benefits and store loyalty, examining the moderating role of the retailer’s degree of innovation in these relations. Design/methodology/approach An equations model has been contrasted based on 820 valid individual structured questionnaires administered to consumers of 13 trade names in four retail distribution sectors (food, textile, electronics and household goods). Findings The results provide evidence of the positive influence of relationship benefits on store loyalty and in particular the benefits stemming from trust. The links between social and special treatment benefits in relation to loyalty are, however, significantly stronger in the less innovative establishments. Research limitations/implications This paper provides evidence of the moderating role of innovation on the relationship between social benefits and special treatment benefits and loyalty. Practical implications Technology may be used as a differentiation tool. The retailer should concentrate its investments on information and communications technology solutions that contribute to enhance the customer experience at the point of sale without neglecting the social dimension to increase the benefits of trust and ultimately, customer loyalty. Originality/value The paper provides an in-depth examination of the retail innovation variable which is scarcely analysed in the literature, offering support for the idea that innovation at the point of sale plays a moderating role in the links between relational benefits and customer loyalty.


2018 ◽  
Vol 30 (4) ◽  
pp. 1087-1111 ◽  
Author(s):  
Farzana Quoquab ◽  
Jihad Mohammad ◽  
Norjaya Md Yasin ◽  
Nor Liza Abdullah

Purpose This study sheds some light on factors that affect customer switching intention in the Malaysian mobile phone service industry. More particularly, the purpose of this paper is to examine the effect of service quality (SQ), customer satisfaction, switching cost and consumer innovativeness (CI) on service switching intention (SWI); the mediating role of customer satisfaction; and the moderating role of service switching cost on the relationship between CI and SWI. Design/methodology/approach Data were collected using a self-administered questionnaire survey that yielded 535 responses. Using structural equation modelling approach, the partial least square software, version 3 was utilised to test the study hypotheses. Findings Results reveal that customer satisfaction, service switching cost and CI directly affect SWI. However, no significant relationship was found between SQ and SWI. Again, data supported the mediating effect of customer satisfaction as well as the moderating effect of service switching cost. Research limitations/implications It is expected that the findings from this study will enable policymakers, managers and marketers to formulate better strategies and effectively implement loyalty programs, preventing their customers from switching. Originality/value This study contributes to the existing literature by testing switching costs as the quasi moderator. Moreover, this is a pioneer study to consider CI as the antecedent of SWI.


2014 ◽  
Vol 42 (6) ◽  
pp. 553-575 ◽  
Author(s):  
Seyed Shahin Sharifi ◽  
Mohammad Rahim Esfidani

Purpose – The purpose of this paper is to study how relationship marketing can reduce cognitive dissonance in post-purchase stage and, thereby, increase customer satisfaction and encourage loyalty under mediating roles of trust and cognitive dissonance. Design/methodology/approach – Based on a survey on consumers of cell phones, the authors tested the effects of relationship marketing on cognitive dissonance and then customer satisfaction, behavioural, and attitudinal loyalty, using structural equation modelling. Findings – The results indicate that, thanks to relationship marketing, consumers undertook less cognitive dissonance in post-purchase stage. Thus, as consumers faced less cognitive dissonance, they represented more satisfaction and thereby behavioural and attitudinal loyalty. Additionally, the study confirmed the mediating role of trust and cognitive dissonance. Practical implications – The results show that when brands and retailers make their ties with their customers stronger and encourage trust, they can discourage cognitive dissonance in post-purchase stage and thereby encourage customer satisfaction and behavioural and attitudinal loyalty. Originality/value – Literature on post-purchase behaviour and cognitive dissonance shows how cognitive dissonance can reduce post-purchase satisfaction. Our research adds to the literature of both relationship marketing and post-purchase behaviour.


2016 ◽  
Vol 8 (4) ◽  
pp. 516-535 ◽  
Author(s):  
Arun Kumar Tarofder ◽  
Seyed Rajab Nikhashemi ◽  
S.M. Ferdous Azam ◽  
Prashantini Selvantharan ◽  
Ahasanul Haque

Purpose The purpose of this paper is to examine the effect of explanation on customer satisfaction in the service failure stage. It seeks to better understand the dynamics of consumer repurchase intention through a mediating effect of customer satisfaction. Design/methodology/approach A structured questionnaire was e-mailed to collect the primary data. With three reminders, this study managed to obtain 322 responses from customers who complained about their internet service in Malaysia. Structural equation modelling techniques were applied to examine both direct and mediating effects between variables. Findings Results reveal that all four dimensions of explanation have significant partial mediating effect on repurchase intention through customer satisfaction. Results also disclose that there is no significant relationship between excuse and customer satisfaction in service failure. Among all dimensions, reference and apology have higher influence on repurchase intention through customer satisfaction. Research limitations/implications The results are particularly valuable for managers, as it supports the role of using explanation as a practical tool for fostering positive and profitable outcomes like repeat customer purchases. Practical implications The findings of this study will help organisations rethink their explanation strategies with the eye to foster greater customer repurchase intention. Originality/value The results are particularly valuable for managers, as they support the role of using explanation as a practical tool for fostering positive and profitable outcomes like repeat customer purchases.


2016 ◽  
Vol 34 (3) ◽  
pp. 411-430 ◽  
Author(s):  
Muhammad Abid Saleem ◽  
Sadaf Zahra ◽  
Rashid Ahmad ◽  
Hina Ismail

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.


2017 ◽  
Vol 35 (1) ◽  
pp. 81-110 ◽  
Author(s):  
Mohammad Reza Jalilvand ◽  
Sirous Salimipour ◽  
Mehdi Elyasi ◽  
Mehdi Mohammadi

Purpose Restaurants with limited promotion budgets depend mainly on word of mouth (WOM) among customers. WOM seems particularly important to the marketing of services. This is because services are experiential in nature and difficult to assess before purchase. In the restaurants context there is little research on WOM. The purpose of this paper is to examine the factors that may influence tourists’ WOM about restaurants implying on the critical role of relationship quality. Design/methodology/approach A comprehensive literature review is conducted to identify the major factors influencing WOM in the context of restaurant industry. The study utilizes self-administered questionnaire survey and the target population are the customers who have referred to the restaurants of Tehran, Iran. A convenience sampling approach was utilized to collect a sample of 326 customers. A structural equation modeling procedure is applied to the examination of the antecedents of WOM. Findings The paper found that food quality, personal interaction quality, physical environment quality, and perceived value influence WOM behavior of customer in an indirect way through relationship quality. Practical implications This research conjectured that an understanding of factors that influence the tourist to talk each other about a given restaurant are worthy of additional research. Consequently, the study helps to understand how these factors can provide alternative sources of marketing to attract the long-term economic sustainability of restaurant industry in Iran. Originality/value To the authors’ knowledge, this research will be the first attempt to explore influential factors on WOM in restaurant industry focusing on the critical role of relationship quality. It is expected that researchers will find this research a contribution to the WOM literature, particularly in restaurant industry.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ashish Gupta ◽  
Shivendra Pandey

Purpose The study aims to examine the moderating role of variety-seeking behaviour between customer engagement and its antecedents (customer satisfaction and customer value). Further, this study also tests the existence of the value-satisfaction-engagement behaviour chain. Design/methodology/approach The perception of 262 respondents was used to examine the hypothesis using the structural equation modelling approach. Findings The moderation effect of variety-seeking behaviour between customer satisfaction and customer engagement was found to be significant. Also, customer satisfaction fully mediated the relationship between perceived value and customer engagement, hence, empirically validating the value-satisfaction-engagement model in the retailing context. Research limitations/implications The findings draw managers' attention towards the segment of consumers who are more likely to be engaged, thus helping managers develop a more efficient and focussed strategy to achieve customer engagement. The result also suggests that variety-seeking buyers may not get engaged even after satisfaction. Originality/value This paper is among the first to empirically test the moderating role of variety-seeking behaviour to achieve customer engagement.


2017 ◽  
Vol 11 (3) ◽  
pp. 246-267 ◽  
Author(s):  
Asad Ahmad ◽  
Obaidur Rahman ◽  
Mohammed Naved Khan

Purpose The purpose of this study is to explore the factors that help in building e-loyalty towards online retailers. Internet has brought the world market into a single platform. Marketers have started using Internet as a new and innovative way to interact and reach people all around the world. With the increase in the number of Internet users, the number of e-marketers has also increased. In the context of online retailing, the service quality being offered is increasingly being used as a tool for competitive advantage. E-tailers are embracing superior e-services to attract, retain and convert patrons into loyal customers. Design/methodology/approach The researchers in the present study have used a research instrument that consists of constructs of the modified eTailQ scale, hedonism and e-satisfaction that together result in the formation of e-loyalty. Researcher-controlled sampling was employed to collect data from 159 student respondents. Findings Exploratory factor analysis, confirmatory factor analysis and structural equation modelling were applied for analysing the collected data. The results of the study demonstrate that major factors which help in the formation of e-loyalty are e-satisfaction, customer service, privacy and hedonism. Originality/value This study extends the understanding of the role of e-satisfaction, customer service, privacy and hedonism in the formation of loyal consumers. The researchers proposed a model to study the factors impacting the e-loyalty of the Internet shoppers in India. The findings of the study are expected to help both researchers and marketers.


2014 ◽  
Vol 32 (4) ◽  
pp. 300-320 ◽  
Author(s):  
Meena Rambocas ◽  
Vishnu M. Kirpalani ◽  
Errol Simms

Purpose – The purpose of this paper is to investigate an integrated model mapping the influence of brand affinity, customer experience, and customer satisfaction on brand equity in retail banking. Design/methodology/approach – Data were collected from 315 banking customers in Trinidad and Tobago through personally administered structured questionnaires and analyzed with Structural Equation Modelling. Findings – The findings showed the mediating role of customer satisfaction in brand equity relationships. The results also showed the pivotal role of brand affinity, customer satisfaction, and service experience in explaining brand equity. Practical implications – The study provides an integrated approach to brand building. It also offers an objective framework brand owners can use to evaluate marketing investments. It also provides a clear brand differentiation strategy for bank brands. Finally, it introduces cross-cultural research in brand equity which can be a useful competitive tool for indigenous banks and foreign banks seeking market expansion strategies. Originality/value – This research is one of the few studies that analyzed brand equity in retail banking. It advanced a brand equity framework that explores the mediating role of customer satisfaction and provides a guide to uplift perceptions and stimulate customer confidence in the banking sector.


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