Dimensionality and Consequences of Customer Engagement: A Social Exchange Perspective

2019 ◽  
Vol 23 (3) ◽  
pp. 255-266 ◽  
Author(s):  
Raouf Ahmad Rather ◽  
Jyoti Sharma

Based on social exchange theory (SET), as well as relationship marketing theory (RMT), this study investigates the impact of customer engagement (CE) underlying dimensions, namely, enthusiasm, attention, absorption, interaction and identification on customer loyalty and affective commitment in hospitality industry. This study also validates and confirms the multidimensionality of CE in hospitality industry. Perceptions of 240 hotel customers were used to explore the relationships. Exploratory factor analysis and confirmatory factor analysis followed by multiple regression analysis were employed to examine the data. The empirical results indicate that by contrasting two rival models, five dimensional model provides the solid foundation and accomplishes excellent fit for data. Empirical results suggest that CE dimensions have influential impact on customer loyalty. Similarly, results demonstrate that CE has significant and positive influence on affective commitment. These findings offer insight into dimensionality and consequences of CE for academic research and bring value to service contexts particularly hospitality.

2015 ◽  
Vol 27 (3) ◽  
pp. 379-414 ◽  
Author(s):  
Jay Kandampully ◽  
Tingting (Christina) Zhang ◽  
Anil Bilgihan

Purpose – This article aims to provide a summary review of what is already known about customer loyalty and identifies some emerging issues that play an important role in it. As a result of dramatic changes in the marketplace and in consumers’ connections with the hospitality industry, researchers and practitioners are keen to understand the factors that underpin customer loyalty. Design/methodology/approach – By synthesizing extant customer loyalty literature, this article seeks further understanding of loyalty and offers priorities for ongoing loyalty research. Findings – Using conceptual models, this study provides a framework designed to extend the understanding of customer loyalty and the impact of the evolving role of engaged customers. Practical implications – Companies are advised to create emotionally engaged, loyal brand ambassadors by focusing on emerging areas, such as customer engagement, brand citizenship behaviors, mass personalization, employee engagement, brand ambassadors (both employees and customers), co-creation of value, co-design, co-consumption and rapport between customers and employees. Originality/value – This article crafts a conceptual framework for customer loyalty and identifies those factors that influence its development in the service industry with a special focus on the hospitality industry.


2020 ◽  
Author(s):  
Sajjad Ahmad Afridi ◽  
Asad Shahjehan ◽  
Maqsood Haider ◽  
Dr Uzma Munawar

This study examined the impact of employee empathy on customers’ advocacy directly and indirectly through customers’ loyalty. Moreover, the interacting effect of customers’ trust was verified between the association of customers’ loyalty and advocacy. The attributes of the proposed model were examined in the context of first line employee and patients’ interactions. A total of 220 responses were collected for analysis from the private hospitals of Peshawar. The model fitness was confirmed through confirmatory factor analysis and hypotheses were examined. Findings confirmed the positive and significant impact of employee empathy on customers’ advocacy. Further, the mediating effect was examined and found that loyalty partially mediates employee empathy and customers’ advocacy. Additionally, trust was found a significant moderator between the association of customer loyalty and advocacy. Furthermore, findings revealed that trust based loyalty significantly and positively mediates employee empathy and customers’ advocacy. Findings of the present study provide understanding for the service sector, particularly in healthcare, to enhance customers’ loyalty, advocacy, and trust through service employee’s empathic aptitude. Keywords: Employee empathy, Service Eco-system, Customers’ Loyalty, Customers’ Advocacy, Trust-Based Loyalty, Healthcare, S-D Logic


2017 ◽  
Vol 7 (2) ◽  
pp. 59-83 ◽  
Author(s):  
Maxim Potepkin ◽  
Olga Firsanova

Abstract This study estimates the impact of corporate social responsibility (CSR) on customer loyalty based on the data collected during marketing research on consumer behavior in Finnish and Russian markets of dietary supplements. Concretely, the author examines the influence of perceived CSR on customer loyalty taking into account trust factor. A key focus of this work is a comparison of Finnish and Russian customer responses as well as investigation the “country” factor in customer CSR perception and its correlation with consumer loyalty and trust. In general, the findings show similarity of customer reaction to CSR initiatives in both countries. At the same time, the study illustrates some differences in Finnish and Russian customer perception and evaluating CSR level. Regarding practical issues, the author relates arguments for implementation CSR activities as a significant factor of forming customer loyalty in the two countries. The article gives implications for marketing theory and practice.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niki Glaveli

Purpose This study aims to uncover the underlying multiple intervening mechanisms between corporate social responsibility (CSR) and customer loyalty. Social identity and social exchange theories offer the ground for prediction that the primary outcomes of CSR initiatives are customer–company (C–C) identification and customer trust, which in turn affect customer loyalty. Also, the differential effect of CSR behaviors toward specific stakeholder groups on customer attitudes and behaviors are examined. Design/methodology/approach Data were collected from 333 customers of telecommunication companies in Greece. Structural equation modeling was used to test the postulated relationships. Findings The findings demonstrate that both C–C identification and customer trust intervene in the relationship between customer perceptions of CSR and customer loyalty; however, the identification mechanism is stronger than the trust mechanism in building customer loyalty while C–C identification seems to drive customer trust. Moreover, out of the three CSR components (customers, employees, and society/environment) that were considered as relevant to customers and were investigated, customer-centric activities were found to be the stronger predictor of both C–C identification and customer trust. Also, CSR toward society/environment was found to positively influence C–C identification. Practical implications The findings of this research can assist practitioners in effectively conceptualizing CSR image from a customers’ point of view and designing their company’s CSR and communication strategies to boost positive customer responses and strong long-term relationships. Originality/value The current study provides further insights into the complex relationship between CSR and customer responses and the impact that different CSR activities may have on customers.


2017 ◽  
Vol 7 (4) ◽  
pp. 39-51
Author(s):  
Pranay Verma ◽  
Anil Kumar Sharma

This study investigates how assortment satisfaction is predicted for purchase of online footwear and its consequences. This research is interplay of product display, customer loyalty, perceived risk and price comparison to ascertain their relationships. It examines the association between intrinsic cues and assortment satisfaction. This article also probes the well-established relationship between satisfaction and loyalty by way of assortment satisfaction and customer loyalty. The impact of product display, customer loyalty and price comparison on assortment satisfaction has been empirically verified by exploratory factor analysis and tested by structural equation modeling. The findings prove that price comparison is the most important factor influencing assortment satisfaction. Assortment satisfaction leads to customer loyalty. The authors develop a model that jointly optimizes assortment satisfaction for product display and price comparison and builds customer loyalty.


Author(s):  
Filipa Sobral ◽  
Maria José Chambel

This study investigates the impact of training on the employee–organisation relationship among a sample of temporary workers from a call centre (N= 240). The data support the idea that social exchange theories are useful frameworks in explaining temporary workers’ affective commitment towards organisations. Organisational investment in training was positively related to the affective commitment of these temporary workers. However, the employees attributed greater importance to the fact that training increased their employability than to the number of training hours received. The relationship between this human resource management practice and affective commitment partly occurred through the perceived organisational support on the part of the employees. Such perception partially mediates the relationship between training as a promoter of employability and this positive attitude.


Author(s):  
Rajiv Sindwani ◽  
Manisha Goel

The technology based self service banking (TBSSB) refers to banking services availed by customers using electronic banking channels, without any interaction with bank employees. This paper examined the impact of TBSSB service quality dimensions on customer loyalty. A survey was conducted to collect data from customers of different banks, using a questionnaire. The sample size of 414 was divided into two sub-samples of equal size. The dimensions (factors) were identified by conducting an exploratory factor analysis (EFA) on first sub-sample using SPSS 16.0 software. Factor structure was confirmed by conducting confirmatory factor analysis (CFA) using AMOS 20.0 software on the second sub-sample. The proposed TBSSB SQ-Customer Loyalty conceptual model was tested for uni-dimensionality, reliability, and validity. Four proposed hypotheses were tested using structural equation modelling (SEM) with the help of AMOS 20.0. Out of four TBSSB service quality dimensions, Personalization is the only dimension that is found to have positive significant effect on customer loyalty. This study will guide banks about the critical technology based banking factors that need to be focused upon for increasing customer loyalty.


2016 ◽  
Vol 23 (3) ◽  
pp. 423-436 ◽  
Author(s):  
Yvonne Brunetto ◽  
Stephen Teo ◽  
Kate Shacklock ◽  
Rod Farr-Wharton ◽  
Art Shriberg

AbstractThis study used two theoretical lenses (positive organizational behaviour and social exchange theory) to examine the influence of an individual attribute – psychological capital (PsyCap), and an organizational factor – leader–member exchange, upon police officers’ perceptions of learning options (teamwork and training) and affective commitment. A cross-sectional design using a survey-based, self-report strategy was used to collect data from 588 frontline police officers in the United States. The findings indicate that leader–member exchange explained almost a fifth of PsyCap and together leader–member exchange and PsyCap accounted for almost a third of police officers’ satisfaction with training. Further, leader–member exchange, PsyCap, training and teamwork collectively explain almost half of affective commitment. One implication of the findings is that if senior management want police officers to be more committed, they have to improve officers’ relationships with their supervisors, upskill them (especially their supervisors) in PsyCap, and improve teamwork opportunities and processes.


2019 ◽  
Vol 29 (5/6) ◽  
pp. 539-564
Author(s):  
Gurjeet Kaur Sahi ◽  
Rita Devi ◽  
Satya Bhusan Dash

Purpose The purpose of this paper is to examine the impact of a customer engagement-enabling platform on a value captured by the firm and value acquired by the customer. It explores the relevance of relational and expertise value for customers during the engagement process so as to ensure positive referrals about the service provider. Design/methodology/approach Using a sample of 482 students, the study examines the customer engagement efforts of professional institutes that provide training to prepare for the civil service examinations of the Union Public Service Commission. The survey is confined to central areas of New Delhi, India. Statistical techniques including confirmatory factor analysis and structural equation modelling are used to analyse the data, and reliability and validity tests are performed. Findings The findings reveal the indispensable role of service providers as creators of a meaningful effective learning process and of interpersonal relations with customers for generating more business through customer referrals. Research limitations/implications The study validated the moderating role of relational value between customers’ expertise value and their referrals on the basis of motivation theory, which asserts that customers’ motivation to contribute to the organisation is driven by the individuals’ extrinsic relational need for belongingness, acceptance by like-minded individuals, and feedback, recognition and respect from employees of the organisation. Originality/value The study contributes to the existing literature by integrating the well-developed social exchange and motivation theory so as to investigate the factors that propel customers’ positive word of mouth for the service provider.


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