Service quality, customer satisfaction and customer value: holistic determinants of loyalty and word-of-mouth in services

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anabela Maria Bello de Figueiredo Marcos ◽  
Arnaldo Fernandes de Matos Coelho
Keyword(s):  
Service Quality ◽  
Customer Value ◽  
Structural Equation ◽  
Direct Relationship ◽  
Word Of Mouth ◽  
Insurance Industry ◽  
Perceived Value ◽  
Equation Modeling ◽  
Content Type ◽  
The Relationship

PurposeThe objective of this paper is to understand the relationships between service quality, perceived value and satisfaction because several studies endeavored to model these linkages. It is important to test these relationships with loyalty and word-of-mouth (WOM). Thus, it is important to test these relationships in the insurance sector since the relationship between these variables and WOM has not been studied in insurance.Design/methodology/approachThis investigation proposes a theoretical model tested using structural equation modeling (SEM). A questionnaire survey was developed to explore the relationships among service quality, perceived value, satisfaction, loyalty and WOM. For this study, 744 valid questionnaires were collected from a sample of Portuguese car insurance holders.FindingsThe results revealed that service quality has a direct relationship with perceived value and satisfaction. In turn, perceived value has a direct relationship with satisfaction. Perceived value and satisfaction influence loyalty and WOM. Finally, loyalty influences WOM.Originality/valueThis investigation examines the mediating role of perceived value and satisfaction in the relationship between service quality (facility and interactive) and loyalty and WOM in the insurance industry. It fills a gap in the literature by exploring the variables that lead to positive WOM in the insurance industry; the authors do not know any study that links these variables with WOM. Also, the relationship between loyalty and WOM has been poorly studied, although it is well known that in services, loyal customers speak well of the companies. Thus, the authors try to fill this gap in the academic literature by analyzing these relationships.

scholarly journals Influence of service quality, loyalty programme and perceived value on word-of-mouth behavior of domestic and international airline passengers in India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joemon Pappachan
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Word Of Mouth ◽  
Perceived Value ◽  
Combined Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Airline Passengers ◽  
International Airline ◽  
Loyalty Programme

Purpose This paper aims to investigate the combined effect of airline service quality (ASQ), loyalty programme and perceived value (PV) on word-of-mouth (WOM) behavior of passengers’ traveling to domestic and international destinations from India. Design/methodology/approach Passenger’s perception on service quality, loyalty programme and PV varies with flight type, which can affect WOM. This study was designed to know whether destination based difference in passengers’ perception on airline services affects their WOM. Hence, a sample of 554 frequent passengers was taken, which includes 358 domestic and 196 international passengers. The responses were collected using well-structured questionnaire. The hypothetical model was developed and tested using structural equation modeling using analysis of a moment structures (AMOS). Findings Travel destination (flight) type moderates significantly the effect of ASQ on WOM behavior. ASQ affects WOM behavior more in domestic passengers. PV and loyalty programme do not moderate significantly with respect to destination type. PV was found to have significant influence on international passengers. However, loyalty programme was significant among domestic passengers. Practical implications Airline managers can develop appropriate marketing strategies targeting the passenger influencing attributes. ASQ is the most significant attribute applicable to both flight types. The airlines can focus on attractive ticket fares for international passengers and more loyalty programme benefits for domestic passengers. Originality/value This study examined the combined effect of ASQ, loyalty programme and PV on WOM behavior of passengers traveling in domestic and international sectors, which has not been researched yet.

scholarly journals Importance of Customer Perceived Value in Restaurant Businesses: Influence of Brand Experience on Brand Strength and Electronic Word of Mouth

2021 ◽  
Vol 23 (1) ◽  
Author(s):  
Hafiz Ihsan Ur Rehman ◽  
Urva Zainab Zainab ◽  
Hafiz Kashif Iqbal ◽  
Muhammad Amir
Keyword(s):  
Customer Value ◽  
Structural Equation ◽  
Word Of Mouth ◽  
Perceived Value ◽  
Equation Modeling ◽  
Brand Experience ◽  
Electronic Word Of Mouth ◽  
Brand Strength ◽  
Customer Perceived Value ◽  
The Relationship

The purpose of this paper is to empirically examine the relationship between brand experience, brand strength, and electronic word of mouth along with mediating role of perceived brand value. A total of 308 responses were generated, using an electronic questionnaire. The data was deductively analyzed using reliability, validity, confirmatory factor analysis (CFA), and structural equation modeling (SEM). The results of this study indicate that brand experiences positively influence brand strength and electronic word of mouth. Moreover, the results revealed the partial mediation of customer perceived value in the relationship of brand experience and brand strength and also in the relationship between brand experience and electronic word of mouth. This study explains how restaurants can create electronic word of mouth and increased brand strength through memorable experiences. This study provides insight beyond marketing mix elements, and ad theatrical elements which provide evidence for positive customer value perception increased brand strength, and widely generated word of mouth. The theatrical elements of serving food studied in this research have not been studied before in the context of Pakistani restaurants. Therefore, this study bridges the gap between previous studies.

The role of customer experience in the perceived value–word-of-mouth relationship

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Volker G. Kuppelwieser ◽  
Philipp Klaus ◽  
Aikaterini Manthiou ◽  
Linda D. Hollebeek
Keyword(s):  
Consumer Behavior ◽  
Structural Equation ◽  
Word Of Mouth ◽  
Perceived Value ◽  
Customer Experience ◽  
Equation Modeling ◽  
Content Type ◽  
Behavior Outcomes ◽  
The Relationship

Purpose The customer experience (CX), as revealed in the literature-based debate, has been variously viewed as either a driver or an outcome of customer-perceived value (CPV). However, the association of CPV, CX and word-of-mouth (WoM) behavior remains nebulous to date, thereby generating an important research gap. In response and to bridge this gap, this study aims to explore CX’s role in the CPV–WoM behavior relationship, the role of WoM behavior arising from CX and whether CX acts as a core mediator (vs a moderator) in the association of CPV and subsequent consumer-behavior outcomes. Design/methodology/approach By conducting two studies spanning a broad range of services, this paper explores the relationship between CPV, CX, and WoM behavior through structural equation modeling. Findings The findings are that CX plays a crucial role in the CPV–WoM relationship, thereby confirming the existence of a direct link between CPV (social/hedonic/utilitarian value), CX and WoM. The results also highlight CX’s mediating role in the relationship between social and utilitarian (but not hedonic) values. Moreover, the results reveal that the EXQ scale, measuring CX, comprises distinct experiences perceived by high and low CX-based customer segments, respectively. Practical implications CPV (utilitarian, hedonic, social) not only affects consumers’ behavioral intentions but also, more importantly, their WoM behavior. Therefore, managers need to consider all three values. Moreover, managers should shift their focus from social value perceptions to CX. The results suggest that managers need to devote additional resources to the development of a suitable CX, which will help mitigate consumers’ online and/or offline brand-related WoM. This study indicates the context in which managers must emphasize the construct that produces positive outcomes. Originality/value By identifying a direct relationship between CPV, CX and the ensuing consumer-behavior outcomes, the study offers important theoretical insight into CX’s nomological network.

Linkages among extended service quality, distinct perceived value and satisfaction in the exhibition trust-building process

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dae Hui Lee
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Perceived Value ◽  
Information And Communications Technology ◽  
Equation Modeling ◽  
Content Type ◽  
Structural Relationships ◽  
Building Process ◽  
The Relationship ◽  
Extended Service

PurposeThe purpose of this study was to examine the causal relationship between extended service quality including information and communications technology (ICT) and distinct perceived value. This study also examined whether distinct perceived value has different effects on exhibition trust through general attendees' satisfaction.Design/methodology/approachStructural equation modeling was used to examine the causal relationships between the following factors: extended service quality, distinct perceived value, satisfaction and trust.FindingsThe structural relationships between extended service quality, distinct perceived value and satisfaction required to build exhibition trust were empirically confirmed. In particular, ICTs had significant effects on all of the perceived value factors, which reliably supports a conclusion that ICT is a key component of exhibition service quality.Originality/valueRecognizing the significance of ICT, this study has contributed to the field by providing researchers and managers with useful information that not only demonstrates how extended service quality and distinct perceived value independently contribute to satisfaction and interact with each other in doing so but also offers insights for better understanding how trust can be formed in exhibitions. Grasping the distinct preferences for value-oriented activities, understanding the importance of their mediating impacts and expanding the online-offline social networks in which their benefits are promoted and shared can alleviate the uncertainty leading up to exhibition participation while increasing the preemptive transparency of the relationship between quality and value offered by exhibitions.

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.

The effects of hotel green business practices on consumers’ loyalty intentions: an expanded multidimensional service model in the upscale segment

2020 ◽  
Vol 13 (12) ◽  
pp. 3787-3807
Author(s):  
Guy Assaker
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Perceived Value ◽  
Measurement Model ◽  
Equation Modeling ◽  
Business Practices ◽  
Service Model ◽  
Content Type ◽  
Green Practices ◽  
Hotel Service Quality

Purpose This study aims to present and empirically examines an expanded service model that incorporates green hotel practices together with a multidimensional/higher-order measurement model of service quality, as well as perceived value and satisfaction, to examine the relationships among these variables and hotel consumers’ loyalty/behavioral intentions (BI). Design/methodology/approach The model was examined using partial least squares structural equation modeling (PLS-SEM) using data gathered in August 2018 from 200 surveys completed by UK subjects who stayed at upscale European hotels. Findings The results of PLS-SEM found that hotel service quality has a direct and positive effect on perceived value, satisfaction and BI. There is also an indirect effect of service quality on BI through perceived value and satisfaction, while green practices only had a direct effect on perceived value, not satisfaction or BI. Research limitations/implications This study offers new insights into the network of causal relationships among determinants of hotel consumers’ BI. The results offer hotel operators a better understanding of specific green practices and service quality attributes they can use to more favorably influence consumers’ intentions to revisit the property and recommend them through positive word-of-mouth. Originality/value This research is particularly relevant in today’s reality characterized by travelers’ growing concern for green issues and business’ responsibilities toward the environment. Moreover, unlike previous studies, this study assumes a multidimensional scheme for service quality, further enhancing the understanding of hotel consumers’ BI relationships.

scholarly journals Effect of Service Quality and Perceived Value Satisfaction and Loyalty Religious Tourists Visit Island Madura, Indonesia

2016 ◽  
Vol 2 (04) ◽  
Author(s):  
Pribanus Wantara
Keyword(s):  
Quality Of Service ◽  
Structural Equation Modeling ◽  
Service Quality ◽  
Structural Equation ◽  
Perceived Value ◽  
Tourism Development ◽  
Equation Modeling ◽  
Relationship Of ◽  
The Relationship

This paper wants to examine the relationship of service quality, perceived value, satisfaction and loyalty with religious tourists who visit the island of Madura in 2015. The structural equation modeling results support the hypothesis that service quality affects directly the satisfaction and loyalty, and satisfaction directly affects loyalty, but the results do not support the hypothesis that the perceived value directly affects the satisfaction and perceived value directly affects loyalty. Quality of service only has direct and indirect influence on loyalty through satisfaction. So the stage of tourism development in Madura, quality of service is very important in building loyalty and satisfaction tourists

scholarly journals The relationship between service quality, client satisfaction, perceived value and client loyalty: a case study of Fly Emirates

2020 ◽  
pp. 219-238
Author(s):  
Ashraf Jahmani ◽  
Islam Bourini ◽  
Omar A. Jawabreh
Keyword(s):  
Service Quality ◽  
Airline Industry ◽  
Structural Equation ◽  
Client Satisfaction ◽  
Negative Relationship ◽  
Perceived Value ◽  
Quantitative Information ◽  
Equation Modeling ◽  
Proposed Model ◽  
The Relationship

La lealtad del cliente es uno de los mayores desafíos para la industria de las aerolíneas. Por eso, los profesionales de marketing están buscando información sobre cómo desarrollar la lealtad del cliente. Este estudio explorará la relación entre la calidad del servicio, la satisfacción del cliente, el valor percibido y la lealtad del cliente en la industria aérea. El propósito de este estudio es desarrollar e implementar un método para que la aerolínea identifique atributos que aumentarán la lealtad del cliente. Unos 384 encuestados participan en este estudio y los cuestionarios se distribuyeron al azar entre los pasajeros que viajaban en Fly Emirates. En particular, un enfoque deductivo adaptado para recopilar información cuantitativa específica para aceptar o rechazar la hipótesis. El estudio actual aplica el modelo de ecuación estructural SEM-PLS para investigar la relación entre los constructos en el modelo propuesto. Este estudio encontró que la calidad del servicio tiene una relación positiva en la satisfacción de los pasajeros y la lealtad del cliente. Por otro lado tiene una relación negativa en el valor percibido y la lealtad del cliente. Los resultados de este estudio indicaron que la calidad del servicio y la satisfacción del pasajero son factores importantes que afectan a la lealtad del cliente. En conclusión, Fly Emirates debe ser capaz de comprender la importancia de la calidad del servicio y la satisfacción del pasajero para cumplir con la lealtad del cliente y mejorar la calidad del servicio que es más importante en la industria de las aerolíneas. Client loyalty is one of the biggest challenges for the airline industry and marketers are seeking information on how to build client loyalty. This study will explore the relationship between service quality, client satisfaction, perceived value and client loyalty in the airline industry. The purpose of this study is to develop and implement a method for airline to identify attributes that will increase client loyalty. 384 respondents participate in this study and questionnaires were distributed randomly to passengers traveling by Emirates. In particularly a deductive approach adapted to collect specific quantitative information to accept or reject the hypothesis. Current study applies Structural Equation Modeling SEM-PLS to investigate the relationship among the constructs in proposed model. This study found that service quality has appositive relationship on passengers’ satisfaction and client loyalty and negative relationship on perceived value and client loyalty. The results of this study indicated that service quality and passenger's satisfaction are important factors effect of client loyalty. In conclusion Emirates must be able to understand the importance of service quality and passenger's satisfaction to fulfill the client loyalty and improve the service quality that make most significant in airline industry.

Millennials’ intention to stay and word-of-mouth referrals

2019 ◽  
Vol 8 (1) ◽  
pp. 60-78
Author(s):  
Decha Dechawatanapaisal
Keyword(s):  
Organizational Identification ◽  
Structural Equation ◽  
Word Of Mouth ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Intention To Stay ◽  
Content Type ◽  
Perceived External Prestige ◽  
Person Organization Fit ◽  
The Relationship

Purpose The purpose of this paper is to investigate the mediating effect of organizational identification in the relationship between person-organization fit and intention to stay as well as word-of-mouth referrals. The study also examines the role of perceived external prestige as a moderator of the relationship between organizational identification and intention to stay and word-of-mouth referrals. Design/methodology/approach Data were collected from 2,649 millennial employees working in various companies located within the Central Thailand Industrial Estates. The hypothesized relationships were tested and analyzed by means of a confirmatory factor analysis, structural equation modeling, hierarchical regression and a bootstrapping procedure. Findings The results revealed that the direct relationships between person-organization fit and intention to stay as well as word-of-mouth referrals were found to be partially mediated by organizational identification. In addition, perceived external prestige was found to have a moderating effect on the relationship between organizational identification and word-of-mouth referrals, but found no effect on employee retention. Research limitations/implications The current research took place among the millennial workers in Thai organizations, which needs to be extended to other generational cohorts or different culture settings for more generalization. Practical implications The results imply that managers should routinely assess and monitor person-organization compatibility, and ensure that corporate cultures, values and norms are properly communicated and mutually shared among the millennial workers. The aim is to inspire them to perceive better fits and proudly identify with their workplace. Such efforts are likely to induce not only retention, but also should encourage word-of-mouth referrals. Originality/value This study extends existing knowledge by assessing the relationships among person-organization fit, organizational identification and perceived external prestige as well as their impacts on intention to stay and word-of-mouth referrals by millennial employees, which has not been extensively investigated in the literature.

Understanding the relationship of self-service technology quality with user adoption using SSTQUAL

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manimay Ghosh
Keyword(s):  
Service Quality ◽  
Empirical Research ◽  
Behavioral Intentions ◽  
Perceived Value ◽  
Equation Modeling ◽  
Content Type ◽  
Self Service ◽  
Self Service Technology ◽  
Relationship Of ◽  
The Relationship

PurposeThe study aimed to examine the antecedents to self-service technology (SST) adoption behavior and the relationships between the constructs using empirical research.Design/methodology/approachBased on synthesis of the extant literature, a model was hypothesized, hypotheses were framed. Field data collected were analyzed using structural equation modeling.FindingsFew interesting findings were noted in this research. First, SST service quality had a direct positive linkage with perceived value, but no linkage with e-satisfaction. Second, strong positive linkage existed between perceived value and e-satisfaction. Therefore, the connection between SST service quality and satisfaction was completely mediated by perceived value. Third, no relationship existed between perceived value and behavioral intentions, but a direct positive relationship existed between e-satisfaction and behavioral intentions. Thus, the relationship of perceived value with behavioral intentions was fully mediated by e-satisfaction. Fourth, no direct connection was found between SST service quality and behavioral intentions. Rather, the connection was fully mediated by perceived value and e-satisfaction. Fifth, direct positive association was found between behavioral intentions and actual adoption of SST.Research limitations/implicationsThis empirical research was conducted primarily on the young population.Practical implicationsThe study will benefit managers in making better decisions on how to make SST work successfully for their organizations.Originality/valueFirst, this research further refined the SST adoption process of a customer, thus making a meaningful contribution to the literature on SST. Second, the research validated SSTQUAL scale in a different geographical setting.

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