Measuring Consumer Loyalty : the loyalty orientation scale

Reflecting its importance to thc financial success of organisations, interest in consumer loyalty continues unabated. However, there are still many unanswered questions about its conceptualisation and measurement.These questions must he resolved before academics and practitioners can usefully apply the concept. We argue that consumer loyalty is best conceptualised as a multi-dimensional phenomenon. Based on this multi-dimensional view, we develop and test a new measure of consumer loyalty. We hypothesise a threedimensional structure containing affective, temporal and instrumental dimensions, Results from a preliminary test are reported. The results indicate that the construct can be reprcxeuted with two dimensions: affective and temporal loyally. As an additional check on the reliability of our results, we find significant correlations between these two dimensions and a measure of behavioural loyalty.

Understanding consumer loyalty to technology-based self-services with credence qualities

Purpose This paper aims to use the Model of Goal-Directed Behavior (MGB) to examine the factors affecting consumers’ continued use of emerging technology-based self-services (TBSSs) with credence qualities. Professional services, which traditionally require specialized knowledge and high levels of interpersonal interaction to produce owing to their credence qualities, are increasingly delivered via self-service technologies. Health services delivered via mobile devices, for example, facilitate self-care without direct involvement from health professionals. Design/methodology/approach A mental health service delivered via the Internet and mobile phone, myCompass, was selected as the research context. Twenty interviews were conducted with users of myCompass and the data were thematically analyzed. Findings The findings of the study showcase the unique determinants of consumers’ continued use of TBSSs with credence qualities relative to the more routine services which have been the focus of extant research. The findings further provide support for the utility of the MGB in explaining service continuance, although the importance of distinguishing between extrinsic and intrinsic motivational components of behavioral desire and capturing the impact of social influence beyond subjective norms is also highlighted. Originality/value This study contributes to recent research examining differences in consumer responses across TBSSs and behavioral loyalty to these services. It also provides empirical evidence for broadening and deepening the MGB within this behavioral domain.

Consumer loyalty versus propensity to switch between providers in mature IT markets (the case of mobile phone market)

The example of the youth mobile phone market is used for pilot empirical testing of a model of consumers’ decision making, based on common features of consumer behaviour in mature markets of information and high technology products. Firstly, we discuss the key properties of mature high technology markets which affect market behaviour and strategies. These properties include: established customer and provider bases; the elements of both oligopolistic and monopolistic competition; very short product life cycle; considerable product differentiation; and using product quality, versioning and price discrimination as planning and marketing tools. Secondly, a model of consumers’ decision making in such markets is suggested on the assumption that a choice is to be made between the following options: to continue using the existing version of the product, to upgrade it with the current provider or to switch to another provider. Product price, quality characteristics, switching costs and network effects are demonstrated to be the variables affecting consumers’ decisions and therefore, these variables should be considered by competing providers when they choose production and marketing strategies. In conclusion, the results of the empirical study are discussed in the context of their possible application to other information and high technology markets.

Consumer loyalty in South Asia: A double edged sword?

Within the growing literature on corporate social responsibility (CSR) in developing countries, almost no attention has been paid to the link between consumer awareness about their rights, adoption of socially responsible (SR) practices by small scale individual entrepreneurs (SIEs) and how these impact on consumer loyalty in a developing country context thus leaving a significant knowledge gap. This paper builds on the work of Azmat and Samaratunge (2009) on SIEs to address this gap in literature in the context of South Asia. South Asia as a region is growing rapidly and is moving to become a new powerhouse of economic development, yet the responsible business practices of SIEs who form a significant proportion of businesses operating in this region remain severely under-researched. We draw upon the existing literature to develop a comprehensive framework which presents a set of propositions specifying the relationship between consumer awareness, socially responsible business practices adopted by SIEs and consumer loyalty. The framework offers insight into understanding consumer loyalty in the context of developing countries.

"Deal of the day” platforms: what drives consumer loyalty?

Maintaining a loyal customer base is challenging for “Deal of the Day” (DoD) platforms. DoD providers market and sell deals on products and services, yet it is the merchants who ultimately deliver those to consumers. Low entry and switching costs drive competition in this market. However, research on the determinants of user loyalty in the DoD context is limited. This study uses Grounded Theory and Structural Equation Modeling to explore the phenomenon of DoD platform loyalty. Particularly, monetary benefits, signal-to-noise ratio, perceived risk, and service friendliness during a merchant encounter emerge as powerful determinants of loyalty in this novel context.

A fogyasztói lojalitás előzményei a magyar mobiltelefonos szolgáltatási piacon – A bizalom szerepe (Antecedents of the consumer loyalty in the Hungarian telecommunication market – the role of trust)

A fogyasztói lojalitás kritikus versenyelőnynek számít a szolgáltatóknak a telekommunikációs szektorban, ahol a piac növekedésének lassulásával és az erősödő piaci verseny folytán a vállalatoknak inkább a fogyasztók megtartására kell fókuszálniuk. Egyre fontosabbá vált és válik a piaci részesedés, illetve a már meglévő ügyfelek megtartása, mivel az új ügyfelek megszerzésének költsége és nehézsége is megnőtt. Az ügyfelek megtartásához ki kell vívni a hosszú távú kapcsolat fenntartását, vagyis a fogyasztók lojalitását. A korábbi marketing-irodalomban a fogyasztók elégedettségének szerepe a lojalitás kialakításában vitathatatlan, azonban felmerül a kérdés, hogy mennyire közvetlen ez a hatás. Így érdemes megvizsgálni, mint közvetítő változónak az elégedettség és lojalitás között, a fogyasztói bizalom szerepét is a fogyasztói lojalitás formálódásában. A szerző empirikus kutatásának eredményei azt támasztják alá, hogy a fogyasztói elégedettség hatása a fogyasztói lojalitásra nem feltétlenül közvetlen, hanem a fogyasztói bizalom játszik közvetítő szerepet, és a bizalom a fogyasztói lojalitás erősebb indikátorának bizonyult, mint egyedül az elégedettség. / === / The consumer loyalty is a crucial competitive advantage in the telecommunication sector, which has a decreasing growth rate and increasing market competition, so the companies should focus on the consumer retention. The market share and the retention of present consumers become more and more important, because both the cost and the difficulty of the acquisition of new consumers are increased. The previous marketing literature states that the role of satisfaction in loyalty is evident, but the effect is not necessary a direct one. Worth to examine the role of consumer trust in loyalty creation, where trust is a mediator variable between satisfaction and loyalty. The author’s empirical results suggest the direct effect of satisfaction on loyalty is not necessary direct, but indirect, where the consumer trust is the link. The effect of trust on loyalty is higher than the satisfaction alone.

Antecedents of consumer brand loyalty in the Chilean wine industry

The wine industry has become fiercely competitive worldwide, and consumers are increasingly exposed to a wider range of wines in retail outlets. Therefore, wineries need to develop and build consumer loyalty toward their brands. The authors empirically test a model of wine brand loyalty in a Latin American context which considers wine brand trust, brand satisfaction, wine knowledge and wine experience as antecedents. Hypotheses are tested with structural equation modeling (SEM). Findings show that wine experience is positively related to brand trust and brand satisfaction. In addition, results show that consumer satisfaction with a wine brand is the strongest driver of brand loyalty.

Antecedents of consumer brand loyalty in the Australian wine industry

The wine industry has become fiercely competitive worldwide and as a result, consumers are increasingly exposed to a wider range of wines in retail outlets. This expanding consumer choice means that there is a need for Australian wineries to develop and build consumer loyalty toward their brands. This paper aims to empirically examine the factors influencing consumer loyalty to wine brands. Using data from Australian wine consumers, the authors empirically test a model of antecedents of wine brand loyalty. The model considers wine brand trust, wine brand satisfaction, wine knowledge, and wine experience. Hypotheses were tested with structural equation modeling. The findings of this study show that wine knowledge and wine experience affect wine brand loyalty indirectly through wine brand trust and wine brand satisfaction. In addition, it is demonstrated that consumer satisfaction with a wine brand is the strongest driver of wine brand loyalty. The result of this study has value for Australian wineries, wine retailers, and wine marketers.

Using consumer search cost and loyalty to explain dispersion in banking fees

Pode-se observar uma considerável dispersão entre os preços que diferentes bancos comerciais no Brasil cobram por um mesmo pacote homogêneo de serviços— dispersão esta que é sustentada ao longo do tempo. Em uma tentativa de replicar esta observação empírica, foi desenvolvido um simples modelo que lança mão do arcabouço da literatura de custos de procura (search costs) e que baseia-se também na lealdade por parte dos consumidores. Em seguida, dados de preços referentes ao setor bancário brasileiro são aplicados ao modelo desenvolvido e alguns exercícios empíricos são então realizados. Esses exercícios permitem que: (i) os custos de procura incorridos pelos consumidores sejam estimados, ao fixar-se os valores dos demais parâmetros e (ii) as correspondentes perdas de peso-morto que surgem como consequência dos custos de procura incorridos pelos consumidores sejam também estimadas. Quando apenas 80% da população é livre para buscar por bancos que cobrem menores tarifas, à taxa de juros mensal de 0,5%, o valor estimado do custo de procura médio incorrido pelos consumidores chega a 1805,80 BRL, sendo a correspondente perda de peso-morto média na ordem de 233,71 BRL por consumidor.

Visitor loyalty in sport tourism: an empirical investigation

This paper reports research regarding the relationship between consumer loyalty, satisfaction,and novelty seeking, including an analysis of these constructs as reflected in the published literature. A telephone survey was conducted of 500 city residents, focusing on their visitation of special events, including sporting events. It was found that satisfaction was somewhat positively related to interest in attending the same sporting event, and the intention to actually visit the sporting event again. However, novelty seeking was virtually unrelated to both interest in attending the same sporting event, and the intention to actually visit the sporting event, and unrelated to satisfaction. Novelty seeking in general, or in relation to special events particularly,performed similarly as a predictor. Further research is needed to clarify the role of other moderating variables, such as the feeling of involvement in sporting events, and to investigate segmentation aspects which might be operating in relation to specific sporting events and tourists.

Effects of differential methods of compensation and employee empowerment on customer satisfaction and loyalty in service recovery

This research examined the effects of varying compensation (refund and replacement) and employee empowerment (empowered and non-empowered) in service recover situations, using a 2x2 experiment. Analysis was undertaken using mean contrasts and ANOVA's. Findings suggest that empowerment and refund independently impact on post recovery consumer loyalty and satisfaction, but there is no interaction effect.

Exploring the links between relational bonds and customer loyalty : the case of loyal Arabic guests at five-star hotels

Relationship marketing aims to build and maintain relationships between customers and organizations. While building strong bonds is a key objective of relationship marketing, limited empirical attention has been paid to the role of relational bonds on enhancing loyalty. This study explores the impact of financial, social and structural bonds on consumer loyalty, using a sample of loyal Arabic hotel guests. The results of this study suggest that structural bonds increase loyalty, although financial and social bonds were not found to have a significant impact on loyalty.