Effectiveness of Loyalty Programs in Customer Retention: A Multiple Mediation Analysis

2021 ◽  
pp. 227868212110001
Author(s):  
Andy Chin Woon Fook ◽  
Omkar Dastane

The impact of loyalty programs on customer retention was investigated in this study. Concomitantly, the mediating effects of brand association and customer satisfaction between loyalty programs and customer retention were also tested in three ways, viz., in parallel, distinct, and sequential through a series of structural models. The study focuses on the Malaysian national car sector, and empirical data was collected from 313 Malaysian national cars users through convenience sampling. This explanatory, quantitative research adopts a questionnaire as a survey instrument, and the collected data was first subjected to normality and reliability assessment followed by confirmatory factor analysis, structural equation modeling using IBM SPSS AMOS 24. Multiple mediation analysis was then conducted, and results were confirmed through bootstrapping. Findings show that there is a significant positive impact of loyalty programs on customer retention. The brand association has a full mediation effect between loyalty programs and customer retention when tested in parallel with customer satisfaction; on the contrary, customer satisfaction demonstrated an insignificant mediation effect. On the other hand, when tested distinctly, brand association showed a partial mediating effect while there was no mediation effect of customer satisfaction. Besides, customer satisfaction and brand association demonstrated sequential partial mediation.

2018 ◽  
Vol 37 (1) ◽  
pp. 53-64 ◽  
Author(s):  
Dian Anggraece Sigit Parawansa

Purpose The purpose of this paper is to investigate the effect of commitment and customer’s satisfaction on the relationship between service quality and customer retention. Design/methodology/approach The research was conducted on the entire customer rural banks (BPR) in Makassar, South Sulawesi Province; the sample size comprised 300 respondents. Analysis equipment used in this study is a quantitative approach that is inferential statistical analysis with structural equation modeling based variance is known as a method WarpPLS. Findings The results of the analysis show that there is significant influence between the variables of service quality, commitment, customer satisfaction, and customer retention. It was also found that the results of the variables commitment and customer satisfaction mediate the effect of service quality on customer’s retention. Originality/value The study showed the mediation effect (using the Sobel test) of service quality on customer retention using commitment and customer satisfaction as intervening variables in rural banks; and the study was conducted in the customer rural banks (BPR) in Makassar, South Sulawesi Province, where no such study for this relationship has been conducted previously.


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.


2021 ◽  
Vol 7 (1) ◽  
pp. 105
Author(s):  
Sherly Sherly ◽  
Darwin Lie ◽  
Vivi Candra ◽  
Dolly Miduk Siallagan ◽  
Acai Sudirman

This research aims to determine the role of job satisfaction as a mediator of the relationship between principal supervision and compensation for teacher performance. The research design used a quantitative approach to causality. To obtain research data using documentation instruments and distributing questionnaires online. The sample used in the study was 215 respondents. The basis for determining the sample is oriented towards a non-probability sampling approach using a purposive sampling formula. To test the mediating effect of satisfaction and the relationship between principal supervision and compensation on teacher performance, a structural equation modeling (SEM) approach is used using partial least squares. Under the research results, It was found that the fact that principal supervision had a significant effect on job satisfaction and teacher performance. Then compensation also has a significant effect on job satisfaction and teacher performance. The findings of the mediation effect state that job satisfaction successfully mediates the relationship between principal supervision and compensation for teacher performance


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Miao Miao ◽  
Tariq Jalees ◽  
Syed Imran Zaman ◽  
Sherbaz Khan ◽  
Noor-ul-Ain Hanif ◽  
...  

PurposeThis research study investigates the factors that influence e-customer satisfaction, e-trust, perceived value and consumers repurchase intention in the context of the B2C e-commerce segment. It investigates the mediation effect of e-customer satisfaction, e-trust and perceived value on repurchase intention. It also examines the moderating role of prior online experience.Design/methodology/approachBased on the adapted questionnaire, pre-recruited enumerators collected the data from five leading business universities of Karachi. They distributed 425 questionnaires and received 415 questionnaires. The study has used Partial Least Square-Structure Equation Modeling (PLS-SEM) technique for data analysis.FindingsWe have tested 20 hypotheses, of which our results do not support five, including two direct, two mediating. Our results support all the direct hypotheses except the following two: (1) delivery service affects e-satisfaction (2) customer services quality effect on trust. We did not find support for the following two mediating hypotheses (1) e-satisfaction mediates delivery services and repurchase intention, (2) service quality mediates customers' service quality and repurchase intention. Our results do not support one moderating relationship. Prior online experience moderates e-perceived value and repurchase intention.Research limitations/implicationsThis research provides valuable information to the online retailers of B2C e-commerce, which can help them make strategies based on their consumers' behavior and encourage them to make repeat purchases from online retailing stores. It allows future researchers to replicate the model in cross-cultural studies in different product categories.Originality/valueWe have examined the moderating effect of prior online experience between (e-satisfaction, e-trust and perceived value) on the repurchase intention.


2020 ◽  
Author(s):  
Hui Zhao ◽  
Miao-miao Jiang ◽  
Sang Hu ◽  
Chang Su ◽  
Li Zhang ◽  
...  

Abstract Background: The relationship between diabetes and myocardial infarction has always been the focus of research, but it is not clear whether the DM-MI association is direct or mediated by other factors. Our hypothesis is that part of the risk of MI in DM patients may be mediated by CRP and AST. We examined this hypothesis in the mediation analysis and tried to assess the extent to which CRP and AST could explain the MI risk caused by DM.Methods: This case-control study was conducted on 130 patients with MI and 130 patients with no-MI. We compared the relevant biochemical indicators of MI and no-MI patients, and applied mediation analysis to test the association of CRP and AST with DM-MI Potential adjustment effect.Results: The study found that individuals who suffered MI were more likely to have DM as compared with Non-MI (OR = 2.117, 95%CI = 1.130-4.195, P = 0.020), and CRP and AST are positively correlated with the occurrence of MI, For every unit increase in CRP and AST levels, the risk level of MI Significantly increased by 1%, 3.1% respectively. The direct effect of DM and MI is 0.847, the mediating effect of CRP is 7.69% of the total effect, and the mediating effect of AST is 52.79% of the total effect. The mediation effect of the CRP-AST path is 0.386, accounting for 12.36% of the total effect. In the mediation model we verified, CRP and AST play a part of the mediation effect between DM with MI, and the total mediation effect accounts for 72.84%.Conclusions: CRP and AST play an important role in the risk of DM-induced MI. This provides evidence for the mechanism and is of great significance for the exploration of therapeutic targets.


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