Developing a customer loyalty model for guest houses in China: a congruity-based perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sha Wang ◽  
Kam Hung ◽  
Minglong Li ◽  
Hailian Qiu

Purpose Although the number of guest houses in China is increasing rapidly, many of them are not performing well in developing customer loyalty. Self-congruity and functional congruity represent two cost-effective but inadequately researched ways for guest houses to maintain customers. In view of the lack of empirical research explaining the post-purchase behavior of guest house customers, the purpose of this study is to develop a congruity-based customer loyalty model for this specialized type of accommodation. Design/methodology/approach Based on a review of relevant literature, a robust conceptual framework of customer loyalty comprising satisfaction, self-congruity, functional congruity, perceived value and attractiveness of alternates was constructed. By means of an online panel survey, 828 valid questionnaires were obtained from customers who had stayed in a Chinese guest house within the previous year. Structural equation modeling was conducted to test the conceptual model and the hypothesized relationships among the constructs. Findings Significant relationships were found between the two congruity constructs in guest houses, which both led to positive customer post-purchase behaviors. The authors found that self-congruity, functional congruity and the attractiveness of alternates did not affect customer loyalty directly; rather, they influenced loyalty indirectly through customer satisfaction. Originality/value This study developed a unique, congruity-based model of customer loyalty in the context of guest houses. It enhances the body of knowledge regarding congruity in the field of tourism and hospitality, and it discusses relevant implications of the findings for tourism marketing researchers and for owner-managers of guest houses.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jono Mintarto Munandar ◽  
Dewi Oktaviani ◽  
Yenni Angraini

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.


2014 ◽  
Vol 15 (2) ◽  
pp. 206-226 ◽  
Author(s):  
Mariya Anatolievna Molodchik ◽  
Elena Anatolievna Shakina ◽  
Angel Barajas

Purpose – The purpose of this paper is to explore the plausibility of six elements of IC and justify the measurement ability of a set of indicators based on publicly available data for each of the proposed element in order to provide tools to managers for their decision-making process in knowledge management (KM). Design/methodology/approach – Core company's intangibles are combined into six intellectual capital (IC) elements that appear after the division of each of the traditional components (human, structural and relational capital (RC)). The human capital includes management and human resources capabilities (HRC). Structural capital is divided into innovation and internal process capabilities (IPC). RC contains networking capabilities and customer loyalty. In drawing on the relevant literature each element is described through a set of indicators collected from publicly available data. The validity of proposed IC model is justified through structural equation modeling. Each element is tested on a sample of more than 1,650 listed European companies over the period of 2004-2011. Findings – The study gives empirical support of three component IC structure and its decomposition into second level. The findings reveal that implementation of KM plays a significant role for HRC as well as for IPC. Research limitations/implications – The analysis was conducted for a particular sample that may restrict the conclusions. Practical implications – The proposed measurements for intangibles can be applied by any company for benchmarking and comparative analysis in KM. Originality/value – The study provides empirical justification of metrics for intangibles allowing a better route in an economy driven by knowledge.


2017 ◽  
Vol 45 (12) ◽  
pp. 1277-1297 ◽  
Author(s):  
Amresh Kumar ◽  
Bhawna Anjaly

Purpose The advent of e-retailing has created multiple options for customers. Hence, most important concern is to identify the experience which entices customers for repurchase from the one particular e-retailer. This paper tries to identify the customer experience with reference to activities happening post-purchase. The purpose of this paper is to develop and validate online post-purchase customer experience (OPPCE). Design/methodology/approach The methodology of this scale development study starts with skimming of relevant literature to identify the knowledge gap and prepare a theoretical background for the study. Then scientific method is applied for scale creation. First, items of the scale been identified through interviews of online shoppers and marketing experts. Then the major dimensions were identified through exploratory factor analysis applied on the data collected from active shoppers, who transacted online in last six months, with the help of a structured questionnaire survey. These data are analyzed through structural equation modeling to validate the scale. Findings The study yields that the scale for measuring OPPCE is multi-dimensional. It has six dimensions, i.e. delivery, product-in-hand, return and exchange, customer support, benefits and feel-good factors. The proper focus on the items of these dimensions can help e-retailers improve customer experience and increase repeat purchase. Originality/value Post-purchase activities have a significant impact on customer and their repeat purchase intensions. But it has not received its due attention particularly in the online context. Hence, this paper fills this knowledge gap and gives e-retailers a tool to enhance their customers’ experience.


2017 ◽  
Vol 29 (3) ◽  
pp. 862-882 ◽  
Author(s):  
Fiona X. Yang ◽  
Sherry Xiuchang Tan

Purpose This paper aims to empirically investigate how event innovation may induce desirable corporate branding. Design/methodology/approach A survey yielded 280 complete responses from tourists who had attended an event in Macau. Structural equation modeling was used to test the innovation-corporate loyalty framework through perceived event value and corporate image, with a multi-group comparison to examine differences between first-time and repeat customers. Findings The results indicate that innovation is not only the key to value enhancement of the event but also an efficacious instrument of branding the parent company and building corporate loyalty; only product-related innovation has a significant impact on event value; both functional and emotional values induce a more favorable corporate image; and event-induced corporate branding is more effective in securing repeat business than attracting new clientele. Practical implications The findings help hospitality operators and event planners to leverage innovative events for corporate branding and cater to different customer segments by providing distinct marketing strategies. Originality/value The study contributes to the body of knowledge regarding event management and corporate branding and sheds light on future research to explore the initiative and benefit of pushing forward event innovation.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohd Ahmad Al-Hawari ◽  
Shaker Bani-Melhem ◽  
Faridahwati Mohd. Shamsudin

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismail Badraoui ◽  
Ivo van der Lans ◽  
Youssef Boulaksil ◽  
Jack G.A.J. van der Vorst

PurposeThis study investigates the impact of agri-food supply chains (AFSCs) characteristics on the antecedents of horizontal logistics collaboration (HLC). Specifically, the study compares the relationship between collaboration activities and outcomes for companies in and outside AFSCs.Design/methodology/approachFirst, a survey was used to collect data from different industries. Second, confirmatory factor analysis and structural equation modeling were applied to compare the measurement and structural models from different industry categories.FindingsThe results support the premise that collaboration improves trust and commitment in the relationship, which in turn enhance satisfaction. The results also show the existence of a minor influence of AFSCs characteristics on HLC antecedents, in the form of an indirect impact of dedicated investments on commitment.Practical implicationsThe factors having a significant influence on the collaboration outcomes and their respective effects are generally similar across food and nonfood supply chains, providing opportunities for interdisciplinary and collaboration experiences.Originality/valueThis research contributes to the body of knowledge on interfirm collaboration by considering the specificities of HLC. It also highlights the importance of conducting contingency research on collaborative experiences, as firms from different industry contexts operate under distinct operational conditions.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alvin Patrick M. Valentin

Purpose This study aims to examine the applicability of an extended version of the theory of planned behavior (TPB) in predicting pro-environmental behavior, specifically the purchase behavior (PB) of package-free bath products, among students in higher education institutions (HEIs). Design/methodology/approach Using a non-experimental survey research design, this study empirically tested an extended TPB model through structural equation modeling. The dataset was obtained through a survey of undergraduate students in three HEIs in the Philippines. Findings Environmental knowledge (EK) predicted attitudes toward purchasing package-free bath products. Attitudes, subjective norms and pro-environmental self-identity (PSI) predicted intention to purchase package-free bath products. Furthermore, the intention to purchase package-free bath products and perceived behavioral control predicted PB of the said item. Research limitations/implications The results imply that the addition of EK and PSI to the TPB is applicable in predicting pro-environmental behavior, specifically the purchase of package-free bath products. Practical implications The results showed how HEIs can encourage their students to purchase package-free bath products. Social implications The results highlight how social and economic factors play a role in promoting or inhibiting pro-environmental behavior among HEI students. Originality/value The findings support the inclusion of EK and PSI to the TPB for an integrative model that aims to improve the prediction of the purchase of package-free bath products.


2019 ◽  
Vol 2 (1) ◽  
pp. 37-54 ◽  
Author(s):  
Apostolos Ampountolas

PurposeThe online travel environment continues to expand as the numerous peer-to-peer (P2P) marketplaces that comprise the “sharing economy” have also multiplied and expanded, resulting in a move from the traditional hospitality industry to a new digital ecosystem. The purpose of this paper is to examine the effects of different antecedents and the relationships between benefit factors. It does so by simulating the behavior that leads to consumer loyalty and repurchase intentions within a P2P marketplace transaction.Design/methodology/approachThe analysis is based on survey data from 456 respondents located in different regions, collected via a web-based survey questionnaire. A two-step approach employing confirmatory factor analysis, followed by structural equation modeling, was conducted to evaluate the measurement and structural models, as recommended by Anderson and Gerbing.FindingsThe findings of this study partially confirm the relationship between benefit factors (monetary, hedonic and location benefits) and consumer repurchase intentions. The benefit factors display a positive influence on consumer satisfaction, which mediates the relationship between loyalty and repurchase intentions. Hence, the study contributes to scholarly efforts to better understand why consumers choose to purchase through P2P platforms.Practical implicationsThe findings of this study can provide P2P intermediaries and hosts with the empirical evidence of consumer behavioral changes. Nowadays, in practice, consumers have the ability to compare products and offers. As such, for a consumer to remain loyal to a particular supplier, the offer must satisfy the service and experience that the consumer has in mind, as many alternative offers exist.Originality/valueThis study seeks to identify the behavioral factors that cause even loyal consumers to move from the traditional hospitality industries to P2P platforms, despite the probability of losing any loyalty benefits gained in the traditional industries.


2014 ◽  
Vol 28 (5) ◽  
pp. 361-373 ◽  
Author(s):  
Husni Kharouf ◽  
Donald J. Lund ◽  
Harjit Sekhon

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.


2017 ◽  
Vol 27 (3) ◽  
pp. 616-641 ◽  
Author(s):  
Stephanie Hui-Wen Chuah ◽  
Philipp A. Rauschnabel ◽  
Malliga Marimuthu ◽  
Ramayah Thurasamy ◽  
Bang Nguyen

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.


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