The Impact of Service Satisfaction, Relational Satisfaction and Commitment on Customer Loyalty in Logistics Outsourcing Relationship

2015 ◽  
Vol 4 (1and2) ◽  
Author(s):  
Sanjit Singh H.
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Structural Model ◽  
Reliability And Validity ◽  
Service Satisfaction ◽  
Equation Modeling ◽  
Relational Satisfaction ◽  
Logistics Outsourcing ◽  
Major Predictor ◽  
The Impact

This research explores the impact of service satisfaction, relational satisfaction, price satisfaction, and commitment on customer loyalty in logistics outsourcing relationships in Indian scenario. 254 users of logistics services from India were selected for investigating the potential linkages among the aforementioned satisfaction aspects and loyalty. Structural equation modeling (SEM) was employed to test the reliability and validity of the measurement and structural model developed to study the relationship among the linkages. Findings from the study supports that logistics service satisfaction, price satisfaction, relational satisfaction and commitment do influence loyalty positively. The analysis suggests that service satisfaction is the most important antecedent having primary influence in the formation of customer loyalty. Service satisfaction also has secondary influence on loyalty by acting as a strong driver in both relational satisfaction and commitment aspects of the service dimensions. Price satisfaction though positively been driven by service satisfaction, was found to have less significant effect as a predictor of loyalty in this context. The present study suggests that relational satisfaction is the second major predictor of loyalty which also drives commitment. This research is not an end-point but an attempt to establish the linkages and the effect among the antecedents driving the building and retention of good buyer-seller relationship in logistics outsourcing.

scholarly journals Identifying the Impact of Strategic Alliances on the Performance of SMEs (Case Study: The Industry of Automotive Parts Manufacturers in Iran)

2017 ◽  
Vol 10 (6) ◽  
pp. 227 ◽  
Author(s):  
Kambiez Talebi ◽  
Jahangir Yadollahi Farsi ◽  
Hamideh Miriasl
Keyword(s):  
Strategic Alliances ◽  
Structural Equation ◽  
Structural Model ◽  
Reliability And Validity ◽  
Measurement Model ◽  
Equation Modeling ◽  
Innovative Capabilities ◽  
Automotive Parts ◽  
Technical Features ◽  
The Impact

This study has investigated the effects of strategic alliances on the performance of small and medium sized enterprises (SMEs) of the industry of automotive parts manufacturers. Questionnaires have been distributed among 400 senior managers of SMEs of the industry of auto parts manufacturers based on stratified random sampling. The data has been analyzed using structural equation modeling software and PLS2 software in two segments of measurement model and structural model. In the first segment, technical features of the questionnaire were tested in terms of reliability and validity. Moreover, in the second segment, t-test was used to test research hypotheses. The results show that there is a significant and positive relationship between the dimensions of strategic alliances, including new opportunities, entrepreneurial and innovative capabilities, social capital, and internationalization of business, and competitive advantage with the performance of SMEs.

scholarly journals An extensive comparison of CB-SEM and PLS-SEM for reliability and validity

2020 ◽  
pp. 357-364
Author(s):  
Asyraf Afthanorhan ◽  
Zainudin Awang ◽  
Nazim Aimran
Keyword(s):  
Structural Equation ◽  
Structural Model ◽  
Reliability And Validity ◽  
Measurement Model ◽  
Equation Modeling ◽  
Unbiased Estimation ◽  
Crucial Issue ◽  
R Software ◽  
Erroneous Result ◽  
The Impact

Structural Equation Modeling (SEM) includes measurement and structural model for hypothesis testing. The results yielded from structural model is unlikely to be valid if a poor loading of an indicator is selected. The impact of these erroneous result on standardized loading is disregard. Thus, knowing how poor loading can affect the validity of measurement model is a crucial issue. This paper attempts to compare the standardized loadings result between two prominent SEM methods (CBSEM and PLS-SEM) using three varied of simula-tion models (TRA, Loyalty and UTAUT model) to investigate their effects on reliability and validity of measurement model. The data for each model were generated using R software by setting the value of standardized loading and the construct correlations (N=50, 100, 200 and 500). The value of standardized loadings was set to 0.60 for each construct in the model while the construct correlations were set in the range between 0.45 to 0.65. Then, the AMOS 21.0 and ADANCO 2.0 were used to perform the statistical analysis. It shows that good standardized loading can increase the reliability and validity of construct representation. CBSEM is particularly yielded valid and unbiased estimation under confirmatory condition (established theory) compared with PLS-SEM. The results are illustrated with empirical examples. This paper provides updated evidence about CBSEM and PLS-SEM when assessing the measurement model.

The effect of clustering on competitiveness improvement in Hebron

2017 ◽  
Vol 28 (5) ◽  
pp. 631-654 ◽  
Author(s):  
Ibrahim M. Awad ◽  
Alaa A. Amro
Keyword(s):  
Structural Equation ◽  
Structural Model ◽  
Model Building ◽  
Measurement Model ◽  
Background Information ◽  
Equation Modeling ◽  
Future Research ◽  
Research Model ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to map the cluster in the leather and shoes sector for improving the competitiveness of the firms. Toward this end, the study is organized to examine the impact of clustering on competitiveness improvement. The influence of competitive elements and performance (Porter’s diamond) and balanced score card was utilized. Design/methodology/approach A random sample of 131 respondents was chosen during the period from May 2016 to July 2016. A structural equation modeling (SEM) analysis was applied to investigate the research model. This approach was chosen because of its ability to test casual relationships between constructs with multiple measurement items. Researchers proposed a two-stage model-building process for applying SEM. The measurement model was first examined for instrument validation, followed by an analysis of the structural model for testing associations hypothesized by the research model. Findings The main findings show that there is a unidirectional causal relationship between improvements of performance and achieve competitiveness and also reveal that the Palestinian shoes and leather cluster sector is vital and strong, and conclude that clustering can achieve competitiveness for small- and medium-sized enterprises. Research limitations/implications Future research can examine the relationship between clustering and innovation. The effect of clustering using other clustering models other than Porter’s model is advised to be used for future research. Practical implications The relationships among clustering and competitiveness may provide a practical clue to both, policymakers and researchers on how cluster enhances economic firms such as a skilled workforce, research, development capacity, and infrastructure. This is likely to create assets such as trust, synergy, collaboration and cooperation for improved competitiveness. Originality/value The findings of this study provide background information that can simultaneously be used to analyze relationships among factors of innovation, customer’s satisfaction, internal business and financial performance. This study also identified several essential factors in successful firms, and discussed the implications of these factors for developing organizational strategies to encourage and foster competitiveness.

Impact of environmental belief and nature-based destination image on ecotourism attitude

2020 ◽  
Vol 3 (4) ◽  
pp. 489-505
Author(s):  
Chi Nguyen Thi Khanh ◽  
Le Thai Phong
Keyword(s):  
Convergent Validity ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Time Perspective ◽  
Reliability And Validity ◽  
Destination Image ◽  
Equation Modeling ◽  
Content Type ◽  
Positive Effects ◽  
The Impact

PurposeThis study examines the direct and indirect impact of environmental belief, nature-based destination image and time perspective on tourist attitude towards ecotourism.Design/methodology/approachData was collected through a structured questionnaire survey conducted in Vietnam. The dataset consists of 479 valid responses by Vietnamese tourists. Correlation analysis and structural equation modeling (SEM) were used to test the causal relationships among time perspective, environmental belief, nature-based destination and ecotourism attitude. Confirmatory factor analysis (CFA) is conducted to verify the reliability and validity of each latent construct, and to evaluate the discriminant validity, convergent validity, composition reliability and average variance extracted (AVE) for the latent constructs.FindingsThis study finds statistically significant and positive effects of time perspective, environmental belief and nature-based destination image on ecotourism attitude. The results also indicate that environmental belief is found to have statistically significant effects both direct and indirect on ecotourism attitude; its indirect effect is transmitted through nature-based destination image. Our findings demonstrate empirically that tourists are mainly attracted by natural environment sites and that tourists having environmental beliefs are likely to engage in ecotourism than other types of tourism by first influencing their attitude.Research limitations/implicationsOne limitation is associated with our measurement method, which relies on respondents’ self-ratings of their activities. Second, our study is based on internal consistency assessments for establishing construct reliability and validity, which might be the problem of measurement misspecification in tourism research and hinder us to adequately capture the dynamic nature of the variables and the underlying relationships. Third, the survey is conducted in one specific ecotourism nation like Vietnam, and thus, the findings must also be explained in this case.Practical implicationsPolicymakers need to pay careful attention to the planning and conservation of local resources, as well as infrastructure, for ecotourism development. Moreover, the management of eco-site needs to maintain ecology properly, provide an authentic ecotourism experience to improve ecotourism destination. Otherwise, ecotourism operators should focus on marketing strategies to increase traditional and natural values and promote eco-friendly social standards for fostering demand.Originality/valueThis study examines an integrated model analyzing the impact of time perspective, environmental belief and nature-based destination on tourist attitude towards ecotourism. This study reveals the understanding of how individuals’ view towards belief in environment and location image, influences their attitude to engage in ecotourism. The study provides several implications for practice.

scholarly journals THE IMPACT OF SERVICE QUALITY AND CORPORATE REPUTATION TOWARD LOYALTY IN THE INDONESIAN HOSPITALITY SECTOR

2020 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Nicholas Wilson
Keyword(s):  
Service Quality ◽  
Least Squares ◽  
Partial Least Squares ◽  
Customer Loyalty ◽  
Corporate Reputation ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Hospitality Sector ◽  
The Impact

Penelitian ini dilakukan guna mengetahui bagaimana pengaruh service quality dan corporate reputation terhadap loyalty, baik secara langsung ataupun tidak langsung melalui trust. Penelitian ini mengimplementasikan metode survei, dimana, kuesioner digunakan sebagai alat untuk mengumpulkan data yang diperlukan pada penelitian ini. Sebanyak 200 responden berpartisipasi pada penelitian ini, dimana, dari 200 data yang terkumpul, sebanyak 191 data dinyatakan valid, reliable dan dapat digunakan untuk selanjutnya diproses pada penelitian ini. Data selanutnya dianalisa dengan metode partial least squares-structural equation modelling (PLS-SEM). Berdasarkan hasil analisis data yang diperoleh, peneliti dapat menyimpulkan bahwa service quality dan corporate reputation berpengaruh positif terhadap loyalty, baik secara langsung ataupun tidak langsung melalui trust pada industri Perhotelan di Indonesia. This research was conducted in order to determine the impact of service quality and corporate reputation toward customer loyalty, both directly and indirectly through trust in the Indonesian hospitality sector. This research implements ssurvey method, in which quaestionnaires were utilized as the tools to collect all of the data required for the completion of this study. A total od 200 respondents participate in this study, in which, out of 200, 191 data had been deemed valid, reliable and usable to be further processed in this research. All of the data then were analyzed using partial least squares-structural equation modeling (PLS-SEM) method. Based on the results of the data analysis, author would like to conclude that both service quality and corporate reputation had a positive impact on customer loyalty, both directly and indirectly through trust in the Indonesian hospitality sector.

scholarly journals THE IMPACT OF CUSTOMER SATISFACTION, CUSTOMER EXPERIENCE AND CUSTOMER LOYALTY ON BRAND POWER: EMPIRICAL EVIDENCE FROM HOTEL INDUSTRY

2018 ◽  
Vol 19 (2) ◽  
pp. 417-430
Author(s):  
Hossein Bodaghi Khajeh Nobar ◽  
Reza Rostamzadeh
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Strong Predictor ◽  
Hotel Industry ◽  
Tourism Industry ◽  
Influential Factor ◽  
Equation Modeling ◽  
Path Coefficient ◽  
The Impact

This research aims to investigate the impact of customer satisfaction, experience, and loyalty on brand power in the Hotel industry. This study used a descriptive-survey research design based on the correlation method. The selected populations were Pars Hotels’ customers. Sample size was 384, based on Krejcie and Morgan’s sampling table. The structural equation modeling was used to evaluate the causal simulation and to examine the reliability and validity of the measuring model. The research results showed that customer expectation has the most impact on customer satisfaction with path coefficient of 0.74. On the other hand, customer loyalty, with path coefficient of 0.65, is known as an influential factor. This study helps to understand that customer satisfaction and customer expectations are positive drivers of customer loyalty. Customer loyalty also is a strong predictor of brand power in hoteling and tourism industry. By strengthening that part, which you have better resources, you can have a better supply and thus, there would be more opportunities in establishing reputation and increasing visibility.

Corporate social responsibility toward stakeholders and customer loyalty: investigating the roles of trust and customer identification with the company

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niki Glaveli
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Social Exchange ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
Customer Trust ◽  
The Impact

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.

scholarly journals The Effect of Lean Manufacturing on a Supply Chain Relationship and Performance

2019 ◽  
Vol 11 (20) ◽  
pp. 5751 ◽  
Author(s):  
Assadej Vanichchinchai
Keyword(s):  
Supply Chain ◽  
Lean Manufacturing ◽  
Structural Equation ◽  
Reliability And Validity ◽  
Manufacturing Industries ◽  
Equation Modeling ◽  
Measurement Instruments ◽  
Literature Reviews ◽  
And Performance ◽  
The Impact

This study aims to explore the impact of lean manufacturing (LM) or transaction-based supply chain management (SCM) on a supply chain relationship (SCR) and supply performance (SP) in manufacturing industries in Thailand. The measurement instruments for LM, SCR, and SP were developed from comprehensive literature reviews, verified by experts, and statistical techniques to assure reliability and validity. The hypothesized model was tested with path analysis of structural equation modeling. It was found that the set of LM, SCR, and SP frameworks were reliable and valid for Thai manufacturing industries. LM had not only a direct effect on the SCR and SP but also an indirect effect on the SP through the SCR. The SCR also had a direct impact on the SP. This paper presents insights into the debate concerning the impact of transaction-based SCM on relationship-based SCM and SP.

scholarly journals Examining Predictors and Outcomes of Decent Work Perception with Chinese Nursing College Students

2019 ◽  
Vol 17 (1) ◽  
pp. 254
Author(s):  
Yin Ma ◽  
Junjer You ◽  
Yuanxiong Tang
Keyword(s):  
College Students ◽  
Structural Equation ◽  
Structural Model ◽  
Empirical Work ◽  
Career Exploration ◽  
Equation Modeling ◽  
Decent Work ◽  
Exploration Behavior ◽  
Nursing College ◽  
The Impact

Drawing on the psychology of working theory (PWT), the present study was performed to evaluate the predictor session of the PWT and career exploration behavior with a sample of Chinese nursing college students from diverse backgrounds. The research employed a cross-sectional research design and 854 nursing students were recruited from one health vocational college situated in Northwest China. Structural equation modeling was utilized to conduct the analysis; confirmatory factor analysis and structural model testing were performed accordingly. Moreover, mediation analysis that used bias-corrected percentile bootstrapping method and moderation analysis were carried out in accordance. Overall, most of the proposed direct paths were significant, but the mediation results were mixed. Proactive personality simply moderated the impact of economic constraints on career adaptability. The results suggest that PWT is applicable to nursing college students and the model is generally supported in the Chinese context. It is the first empirical work that used this model among nursing college students and future decent work perceptions contributed another important antecedent of career exploration behavior. The practical implications based on these findings are provided as well.

How important is CRM toward customer’s loyalty to conventional and Islamic bank marketing strategy?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jono Mintarto Munandar ◽  
Dewi Oktaviani ◽  
Yenni Angraini
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Relevant Literature ◽  
Internet Banking ◽  
Service Industries ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional Banks ◽  
The Impact

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.

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