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

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.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anabela Maria Bello de Figueiredo Marcos ◽  
Arnaldo Fernandes de Matos Coelho

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.


2020 ◽  
Vol 13 (12) ◽  
pp. 3787-3807
Author(s):  
Guy Assaker

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.


2018 ◽  
Vol 35 (2) ◽  
pp. 430-445 ◽  
Author(s):  
Manimay Ghosh

Purpose The purpose of this paper is to examine the applicability of electronic service quality instrument, E-S-QUAL, in e-commerce industry in India. Additionally, the efficacy of the instrument is also examined for two sub-groups of users based on frequency of usage. Design/methodology/approach Field research was conducted with a modified version of the instrument. The data collected were analyzed using multivariate techniques. Findings The study confirms the validity of the four dimensions (efficiency, fulfillment, system availability, and privacy) of E-S-QUAL instrument. All four dimensions were found to be significant predictors of perceived value. Efficiency and fulfillment were significant predictors of overall perceived quality. Perceived value had a positive and significant relationship with loyalty. The two relationships were further examined for two sub-groups of web users based on the frequency of usage. For heavy users of websites, all four dimensions were significant predictors of perceived value. For predicting perceived value in respect of light users of website, efficiency, fulfillment, and privacy were important determinants. The relationships among latent constructs were checked using structural equation modeling and the model was found to be acceptable. The result showed that electronic service quality affected perceived value, which, in turn, affected loyalty toward a website. Originality/value This paper makes an attempt to replicate the four dimensions structure of E-S-QUAL instrument on online shopping sites in India thus enhancing its external generalizability. Additionally, the paper investigates the association of the four aforesaid dimensions with perceived value and overall perceived quality for two sub-groups of users: frequent and non-frequent. The cornerstone of this particular study is to examine the frequency of usage as deterministic parameter for perceived value and overall perceived quality.


2018 ◽  
Vol 4 (2) ◽  
pp. 220-244 ◽  
Author(s):  
Yousef Keshavarz ◽  
Dariyoush Jamshidi

Purpose Loyalty has become the most important strategic aim in the hotel industry. The purpose of this paper is to obtain an empirical understanding of loyalty in the Kuala Lumpur hotel sector. Design/methodology/approach The dimensions of service quality as perceived by hotel customers were identified through the literature review. Hypotheses were formulated and tested to: examine the effects of process quality and outcome quality on perceived value, tourist satisfaction, and tourist loyalty; and to determine if perceived value and tourist satisfaction play a mediating role in the effect of process quality and outcome quality on tourist loyalty. In this study, the sample was 417 respondents from the international tourists who stay at least one night in four- or five stars hotels in Kuala Lumpur. Collected data were analyzed by structural equation modeling. Findings The statistical findings supported a relationship between process quality and outcome quality with perceived value and tourist satisfaction, and tourist loyalty with perceived value and tourist satisfaction. The results also indicated that process quality and outcome quality did not have a direct effect on tourist loyalty. Perceived value and tourist satisfaction mediated the relationship between process quality and outcome quality with tourist loyalty. Originality/value The finding of this study proposed that the hoteliers targeting international tourists with service quality including process and outcome quality should focus more on these factors to build loyalty. For instance, the tangible, responsiveness, reliability, empathy, assurance, and convenience as the dimensions of process quality and valence, waiting time, and sociability as the dimensions of outcome quality should meet the needs of the international tourists, therefore increasing tourist loyalty through perceived value and tourist satisfaction.


2019 ◽  
Vol 36 (1) ◽  
pp. 40-57 ◽  
Author(s):  
Arash Ahmadi

Purpose The purpose of this paper is to evaluate and analyze the influence of service convenience, service quality and customer satisfaction on the formation of word of mouth in airline industry. Design/methodology/approach The sample included 400 passengers who had experienced THAI’S international flights. To test the study hypotheses, a research model was examined applying structural equation modeling. Findings The findings submit that, in addition to effects of service convenience, service quality and customer satisfaction on word of mouth, decision convenience has the most positive significant influence on word of mouth compared to service quality dimensions and customer satisfaction. Research limitations/implications The present research focuses on assessing the word of mouth level only for THAI; therefore, its findings may not be generalized for the other airlines. In addition, the target market of this study is the customers of THAI. Future researchers can select the markets of other airlines customers. Practical implications In airline companies, service convenience plays a central role on customer word of mouth. Therefore, airlines should concentrate on travelers’ convenience in the service procedure. They should plan the service to support the best convenience for travelers. Originality/value This investigation would help airlines to understand what makes customers more satisfied before, during and after using an airline service and to understand how this is related to the word of mouth.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Volker G. Kuppelwieser ◽  
Philipp Klaus ◽  
Aikaterini Manthiou ◽  
Linda D. Hollebeek

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dae Hui Lee

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.


Author(s):  
Rinda Naomi Kosasih

Kepuasan dan loyalitas pelanggan merupakan salah satu hal yang harus diperhatikan oleh perusahaan agar perusahaannya dapat berlangsung dengan baik. Pada kasus pengguna flexi trendy wilayah Surabaya menunjukkan bahwa Customer Complain dan Perceived Value dikeluarkan dari model karena tidak mempunyai pengaruh baik secara langsung maupun secara tidak langsung, terhadap Loyalitas pengguna CDMA pra bayar Flexi Trendy. Pada modifikasi pertama, adanya pemberian konstrain pada variabel Quality Product dan Customer Satisfaction untuk menaikan nilai membuat nilai indeks koefisien regresi variabel Quality Product menjadi tidak signifikan, sehingga dibuat model modifikasi kedua dengan menghilangkan variabel Quality Product dan hasil yang diperoleh lebih baik dari model modifikasi pertama. Dari hasil analisis juga didapatkan bahwa loyalitas Customer tidak hanya dipengaruhi oleh kepuasan Customer atau Customer Satisfaction sebesar 45%, namun Image merek perusahaan turut mempengaruhi langsung secara signifikan sebesar 36%. sedangkan Customer Satisfaction atau kepuasan Customer dipengaruhi secara langsung oleh dua faktor yaitu image perusahaan atau Brand Image sebesar 22%, dan kualitas Customer Service atau Customer Service Quality sebesar 61%. Analisis juga memperlihatkan bahwa Customer yang hanya sampai pada level puas menggunakan Flexi Trendy, Brand perusahaan hanya berpengaruh kecil pada mindset Customer yaitu hanya sbesar 22%, sedangkan jika Customer sudah loyal maka Brand perusahaan lebih banyak mempengaruhi sebanyak 36%, sehingga pihak TELKOM Flexi lebih baik memusatkan kegiatan pemasaran dan periklanan pada customer yang terkategori loyal, karena selain biaya yang lebih murah juga pemasaran melalui word-of-mouth menjadi lebih efisien.


2018 ◽  
Vol 9 (3) ◽  
pp. 261-276
Author(s):  
Gusti Ngurah Joko Adinegara

This research provided the new results on the determinants of tourist satisfaction. The data were obtained using questionnaire as the instrument. The variables used were destination and hotel service quality, destination and hotel image, tourist perceived value, tourist satisfaction, revisit intention, and word of mouth. Sampling technique was convenience sampling. The respondents were foreign and domestic tourists who traveled to Bali and stayed at three and four-star hotels. The sample size was 265. Then, the Structural Equation Modeling (SEM) was utilized in explaining the relationship between latent variables and hypotheses. The result shows that from eleven hypotheses, there are two rejected hypotheses regarding the influence of destination service quality and hotel service quality on the image. Destination and hotel image has a significant effect on revisit intention and word of mouth through tourist perceived value and satisfaction. Theoretically, tourist satisfaction determines the factors that affect it directly and indirectly. Practically, tourism business should manage the destination and hotel service quality because it increases the tourist perceived value.


2019 ◽  
Vol 32 (3) ◽  
pp. 793-816 ◽  
Author(s):  
Dae Hui Lee

Purpose In an effort to better understand value-oriented general attendees, the purpose of this paper is to propose and empirically test a comprehensive model to examine the effect of three factors of service quality in exhibitions (i.e. service product, service environment and service delivery) on satisfaction through three factors of perceived value (i.e. emotional value, economic value and social value). Design/methodology/approach A confirmatory factor analysis was performed to determine key factors in exhibition service quality, perceived value and satisfaction. A structural equation modeling was conducted to analyze the causal relationships among the factors. Findings The empirical results indicated that service product and service environment were significantly and positively associated with all factors of perceived value, which in turn significantly influenced satisfaction. Service delivery, however, was associated only with emotional value. On the other hand, all three factors of perceived value significantly influenced general attendees’ satisfaction. The findings indicated perceived value as an important mediator between exhibition service quality and general attendees’ satisfaction. Originality/value Clearly identifying specific trajectories from service quality to satisfaction through distinct perceived values can be a stepping stone to establishing effective and efficient marketing strategies for general attendees and customizing for their needs. The distinct and clear associations between service quality and perceived value can help exhibition organizers and practitioners understand the process of determining general attendees’ overall satisfaction.


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