The Driving Forces of Customer Loyalty

2009 ◽  
pp. 1540-1557
Author(s):  
T. C.E. Cheng ◽  
L. C.F. Lai ◽  
A. C.L. Yeung
Keyword(s):  
Hong Kong ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Driving Forces ◽  
Corporate Image ◽  
Equation Modeling ◽  
Internet Service ◽  
Broadband Market

In this study we examine the driving forces of customer loyalty in the broadband market in Hong Kong. We developed and empirically tested a model to examine the antecedents of customer loyalty towards Internet service providers (ISPs) in Hong Kong. Structural equation modeling (SEM) was used to evaluate the proposed model. A total of 737 valid returns were obtained through a questionnaire survey. The results show that customer satisfaction, switching cost, and price perception are antecedents that lead directly to customer loyalty, with customer satisfaction exerting the greatest influence. Although we found that service quality significantly influences customer satisfaction, which in turn leads to customer loyalty, we did not find a direct relationship between service quality and customer loyalty. Our results also reveal that corporate image is not related to customer loyalty. Our empirical investigation suggests that investing huge resources in building corporate image can indeed be a risky strategy for ISPs.

The Driving Forces of Customer Loyalty

2011 ◽  
pp. 44-61
Author(s):  
T. C.E. Cheng ◽  
L. C.F. Lai ◽  
A. C.L. Yeung
Keyword(s):  
Hong Kong ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Driving Forces ◽  
Corporate Image ◽  
Equation Modeling ◽  
Internet Service ◽  
Broadband Market

In this study we examine the driving forces of customer loyalty in the broadband market in Hong Kong. We developed and empirically tested a model to examine the antecedents of customer loyalty towards Internet service providers (ISPs) in Hong Kong. Structural equation modeling (SEM) was used to evaluate the proposed model. A total of 737 valid returns were obtained through a questionnaire survey. The results show that customer satisfaction, switching cost, and price perception are antecedents that lead directly to customer loyalty, with customer satisfaction exerting the greatest influence. Although we found that service quality significantly influences customer satisfaction, which in turn leads to customer loyalty, we did not find a direct relationship between service quality and customer loyalty. Our results also reveal that corporate image is not related to customer loyalty. Our empirical investigation suggests that investing huge resources in building corporate image can indeed be a risky strategy for ISPs.

scholarly journals Quality and image: The role of satisfaction and trust as intervening variables on loyalty of customer’s internet service providers

2021 ◽  
Vol 14 (2) ◽  
pp. 282
Author(s):  
Teuku Meldi Kesuma ◽  
Mukhlis Yunus ◽  
M. Ridha Siregar ◽  
Abdul Muzammil
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Service Providers ◽  
Corporate Image ◽  
Equation Modeling ◽  
Internet Service ◽  
Customer Trust

<p class="5abstrak"><span lang="EN">Many factors can affect customer loyalty that some of them are service quality and corporate image. There are two objectives of this study. First, this study explains service quality and corporate image effects as antecedents for customer satisfaction, trust, and loyalty. </span><span class="tlid-translation"><span lang="IN">Second, </span></span><span class="tlid-translation"><span lang="EN-US">this study </span></span><span class="tlid-translation"><span lang="IN">investigate</span></span><span class="tlid-translation"><span lang="EN-US">s</span></span><span class="tlid-translation"><span lang="IN"> the role of customer satisfaction and trust in mediating the service quality and</span></span><span class="tlid-translation"><span lang="EN-US"> corporate </span></span><span class="tlid-translation"><span lang="IN">image </span></span><span class="tlid-translation"><span lang="EN-US">effects </span></span><span class="tlid-translation"><span lang="IN">on customer loyalty in the context of ISP customers</span></span><span class="tlid-translation"><span lang="EN-US">. </span></span><span class="shorttext"><span lang="EN">By using the purposive sampling technique,</span></span><span lang="EN"> </span><span lang="EN-US">this study researched 270 ISP customers. The sample of data was statistically analyzed with the Structural Equation Modeling (SEM) and the Confirmatory Factor Analysis (CFA). This study confirmed that </span><span lang="SV">customer satisfaction, customer trust, and loyalty were directly affected by</span><span lang="EN-US"> service quality and corporate image</span><span lang="SV">. Customer satisfaction and customer trust </span><span lang="EN-US">influenced</span><span lang="SV"> customer loyalty significantly. The role of customer satisfaction and customer trust indirectly in mediating service quality and corporate image effects on customer loyalty was also confirmed by partial mediation. </span><span class="jlqj4b"><span lang="EN">This study concludes by arguing that it needs to pay attention to service quality and the company’s good name levels to maintain customer loyalty.</span></span></p>

scholarly journals The Effect of Service Quality, Corporate Image, and Price Perceived in Creating Customer Satisfaction and Loyalty on Education Business

2020 ◽  
Vol 10 (1) ◽  
pp. 45-56
Author(s):  
Slamet Heri Winarno ◽  
Aloysius Rangga Aditya Nalendra ◽  
Bryan Givan
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Quantitative Research ◽  
Corporate Image ◽  
Equation Modeling ◽  
Business Services ◽  
Price Perception ◽  
Customer Satisfaction And Loyalty

Competition in business services, especially education services show a trend that increasingly tight nowadays. Each school is required to be able to create a level of satisfaction and loyalty for its service users. This study was conducted to determine the effect of service quality, corporate image and price perception in creating customer satisfaction and loyalty. In this study using 173 respondents as a sample by using the method of saturated sampling. This research is a quantitative research using the observation method, interview, and spreading of the questionnaire. The analysis technique used is Structural Equation Modeling (SEM) with the path diagram. Variables used include quality of service (X1), corporate image (X2), price perception (X3), customer satisfaction (Y1) and customer loyalty (Y2). The results showed that customer satisfaction is influenced by corporate image and price perception of 18.4% while customer loyalty is influenced by price perception and customer satisfaction of 60.5%. This suggests that service quality is not always a decisive factor in customer satisfaction and loyalty.

scholarly journals Pengaruh Kualitas Layanan Terhadap Loyalitas Nasabah Melalui Kepuasan Nasabah Dengan Citra Perusahaan Sebagai Variabel Moderating (Studi Kasus Pada PT. Bank BRI Persero Tbk.Cabang Tenggarong)

2021 ◽  
Vol 21 (2) ◽  
pp. 17-35
Author(s):  
Deri Pranoto ◽  
Mawardi Mawardi
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Positive Relationship ◽  
Marketing Research ◽  
Statistical Test ◽  
Corporate Image ◽  
Equation Modeling ◽  
Service Excellence

Abstract:                The purpose of this study was to determine the effect of service quality on customer loyalty and to determine the effect of service quality on customer satisfaction at PT. Bank BRI Tenggarong Branch. As one of the state-owned banks with the largest profits in Tenggarong District, the problems that occur in Bank BRI are the Marketing Research Indonesia Survey (MRI) on customer loyalty and The Best Bank Service Excellence 2016 to 2017 shows that Bank BRI's score in terms of service and customer loyalty is still far from expectations. This means that Bank BRI has not succeeded in creating and managing customer loyalty properly. This study uses data analysis using Structural Equation Modeling (SEM) assisted by SmartPLS version 3.2.8. by testing the hypothesis using the t statistical test. The number of samples used amounted to 143 people.                The results showed that the service quality variable had a significant effect on customer loyalty. The service quality variable has a significant effect on customer satisfaction. The variable of customer satisfaction has a significant effect on customer loyalty. The corporate image variable has no significant effect on customer loyalty. The service quality variable indirectly has a significant effect on customer loyalty through customer satisfaction so that the customer satisfaction variable is partially proven or there is partial mediation and the corporate image variable has no significant effect in moderating the customer satisfaction variable on customer loyalty with a positive relationship direction (strengthening) and the image variable. companies in this study are included in the Moderation Potential type (Homologiser Moderator)   Keywords: Service Quality, Customer Loyalty, Customer Satisfaction, Satisfaction Customers, Company Image

scholarly journals Analisis Pengaruh E-Service Quality Dan Perceived Value Terhadap Kepuasan Pelanggan Dan Loyalitas Pelanggan Layanan Internet Indihome

2019 ◽  
Vol 3 (1) ◽  
Author(s):  
Lia Arisyanti Ndun
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Random Sampling ◽  
Structural Equation ◽  
Strong Influence ◽  
Perceived Value ◽  
Sampling Technique ◽  
Equation Modeling ◽  
Internet Service

The purpose of this study was to analyze the effect of e-service quality and perceived value towards customer satisfaction and its impact towards customer loyalty for IndiHome customers and internet service customers. Using random sampling technique, the questionnaire was well-collected and was used in data processing using the Structural Equation Modeling (SEM) method with the Smart PLS program. This analysis was conducted on 135 respondents as customers of IndiHome's internet service. Variables that are used in this study were e-service quality, perceived value, customer satisfaction and customer loyalty. Based on the results of the study, it was found that e-service quality and perceived value have influence towards customer satisfaction, customer satisfaction have strong influence towards customer loyalty, yet e-service quality and perceived value have weak indirect influence towards customer loyalty.

scholarly journals Effect of Service Quality and Corporate image on Customer Loyalty with Customer Satisfaction as Mediation Variables (Study at PT. BPR. Padma, Denpasar-Bali)

2020 ◽  
Vol 11 (01) ◽  
pp. 21729-21740
Author(s):  
Made Sukerta ◽  
Anak Agung Putu Agung ◽  
I Wayan Sujana
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Sampling Technique ◽  
Total Sample ◽  
Corporate Image ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling

The aim of this study is to know and test the effect of service quality, corporate image and customer satisfaction on customer loyalty at PT. BPR. Padma Denpasar-Bali, and to find out and test the effect of service quality, and corporate image on customer satisfaction at PT. BPR. Padma Denpasar-Bali. The study population was all customers at PT. BPR. Padma Denpasar-Bali, with 15,318 people. The number of samples was calculated using the Slovin method and obtained a total sample of 100 people, to determine the sample members used proportional random sampling technique that is the sample members taken proportionally in each part of the PT. BPR. Padma Denpasar-Bali. Data analysis techniques to answer the hypothesis of this study using Structural Equation Modeling (SEM) based on Partial Least Square (PLS). The results showed that (1) service quality had a positive and significant effect on customer loyalty, (2) corporate image had a positive and significant effect on customer loyalty, (3) service quality had a positive and significant effect on customer satisfaction, (4) corporate image had a positive effect and significantly to customer satisfaction (5) corporate image has a positive and significant effect on customer satisfaction, (6) customer satisfaction positively significantly mediates the effect of service quality on customer loyalty and (7) customer satisfaction positively significantly mediates the effect of corporate image on customer loyalty.

scholarly journals PENGARUH KUALITAS LAYANAN DAN CITRA PERUSAHAAN TERHADAP KEPUASAN DAN LOYALITAS NASABAH

2018 ◽  
Vol 10 (2) ◽  
pp. 201
Author(s):  
Mutmainnah Mutmainnah
Keyword(s):  
Structural Equation Modeling ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Service Industry ◽  
Service Providers ◽  
Corporate Image ◽  
Equation Modeling

<p><em>As a primary factor in satisfaction and loyalty,</em><em> </em><em>service quality and image has been given a lot of attention</em><em>. </em><em>This research used a sample of 120 respondents and analyzed the data using structural equation modeling. Findings reveal that service quality and corporate image are antecedents of customer satisfaction, but customer satisfaction surprisingly does not have positive and significant effect on customer loyalty. </em><em>The implications for service providers in any platform service industry is that customer satisfaction has not key success to loyalty but continuously improves the quality of service and corporate image of satisfaction, but it creates loyalty to buy services and recommend to others.  </em><em></em></p><p><em> </em></p>

scholarly journals Analysing Service Quality and its Relation to Customer Satisfaction and Loyalty in Sportswear Retail Market

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Canan Saricam
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Equation Modeling ◽  
Retail Market ◽  
Ancillary Service ◽  
Confirmatory Factor ◽  
Order Construct ◽  
Primary Focus

Abstract The sportswear industry has a growing market globally. In the sportswear retail market, where the primary focus is on providing customers the product, but provision of the necessary ancillary service also takes place, the service quality and its relation to customer satisfaction and customer loyalty are important. With an attempt to find out this relationship, the data for this study was obtained from 251 people living in Turkey. The service quality was described as a second-order construct with the dimensions proposed in SERVQUAL scale. Confirmatory factor analysis and structural equation modeling were used to analyze and validate the model. The findings showed that the service quality, together with the relevant dimensions, tangibles, reliability, and assurance, has an influence on the customer satisfaction but not on the customer loyalty. Nonetheless, it was confirmed the customer satisfaction has an impact on the customer loyalty.

scholarly journals EFFECT OF SERVICE QUALITY AND RELATIONSHIP MARKETING ON CUSTOMER SATISFACTION AND ITS IMPACT ON LOYALTY SERVICE ON WISMA SOEWARNA BRACH OFFICE (KCP) OF BNI OF TANGERANG

2020 ◽  
Vol 1 (2) ◽  
pp. 154-164
Author(s):  
Ela Ratna Yuwita ◽  
Arissetyanto Nugroho
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Relationship Marketing ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Survey Methods ◽  
Sampling Technique ◽  
Equation Modeling ◽  
Descriptive Research ◽  
Marketing Variables

The purpose of this study is to determine the Effect of Service Quality and Relationship Marketing on Customer Satisfaction and Its Impact on Loyalty by measuring indicators that affect the variable Service Quality and Relationship Marketing on customer satisfaction variables and their implications on customer loyalty variables. This research applies a descriptive research design using survey methods. Sampling uses convinient sampling as a sampling technique. This study was tested using the structural equation modeling (Lisrel) approach to test the significance of the significance of the overall model and predetermined pathway. The findings show that Service Quality and Relationship Marketing variables significantly influence customer satisfaction variables. Further findings indicate that Service Quality and Relationship Marketing variables directly have a significant effect on customer loyalty variables. This study also shows that customer satisfaction has an influence on customer loyalty variables. It is recommended to companies to improve the excellence of Service Quality and Relationship Marketing.

scholarly journals Analysis of Halal Certification Renewal Service Quality and Their Effect on the Customer’s Satisfaction and Loyalty in Yogyakarta (Case Study in Meatball Stall)

2021 ◽  
pp. 372-383
Author(s):  
Jumeri Jumeri ◽  
Khosyani ◽  
Falah M.A.F
Keyword(s):  
Structural Equation Modeling ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Latent Variables ◽  
Structural Equation ◽  
Equation Modeling ◽  
Satisfaction Index

The society awareness in consuming halal, safe, and healthy foodstuff within these past few years kept on increasing. This was closely related to responsible food manufacturers which produced sustain halal foods, as evidenced by ownership halal certification. In order to increase the satisfaction of food producers and to maintain their commitment to extend the halal certificates, the quality of halal authority service should always be enhanced. This study aims to identify the Customer Satisfaction Index (CSI) value, to determine the influence of halal label and product attributes toward customer’s satisfaction and loyalty of meatball stalls in Yogyakarta, and to identify the influence of halal label toward selling volume on certified meatball stalls. The instruments used were questionnaires containing 21 quality attributes of halal certificate renewal service. Analyses were performed using Structural Equation Modeling (SEM). The model was composed of seven latent variables: halal certification, brand, price, taste, service, customer satisfaction and customer loyalty. Result of the research showed that taste and halal certification have significant effect on the customer’s satisfaction and loyalty of certified meatball stalls. Halal certification have affected the certified meatball stalls in Yogyakarta by increasing the selling volume of 25-37.5%.

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