Service Loyalty: An Integrative Model and Examination across Service Contexts

Marketing academics and practitioners generally agree that customer loyalty is vital to business success. There is less agreement on the factors that determine customer loyalty, particularly in service contexts. Research on the determinants of service loyalty has taken three distinct paths: 1) quality/value/satisfaction; 2) relationship quality; and, 3) relational benefits. In this research, the authors coalesce these paths to derive a model that links dimensions of customer loyalty (cognitive, affective, intention, and behavioral) with a system of determinants. The model is tested with data from varied services (airlines, banks, beauty salons, hospitals, hotels, and mobile telephone) and 3,500 customers in China. Results are consistent across contexts and support a multidimensional view of customer loyalty. Key loyalty determinants are customer satisfaction, commitment, service fairness, service quality, trust, and a construct new to service loyalty models—commercial friendship. The research contributes to the literature by providing a more complete, integrated view of customer loyalty and its determinants in services contexts.

Co-criação de valor do consumidor : impacto na fidelização do paciente ao médico

RESUMO - Confrontados por uma procura mais ativa e exigente e pressionados por uma maior restrição orçamental, os prestadores de saúde têm vindo a reconhecer o Marketing de Fidelização como uma solução sustentável para o seu sucesso financeiro. Assim, a autora explora como se desenvolve a cocriação de valor do consumidor no setor de saúde, nomeadamente, as interações, os atores e as atividades envolvidas na gestão e tratamento da doença. O projeto de investigação foca-se particularmente na cocriação de valor entre o médico regular e o paciente. Foi realizada uma pesquisa exploratória de natureza qualitativa. Os dados recolhidos na APDP, a uma amostra de 16 pacientes diabéticos através da técnica de entrevistas aprofundadas, revelaram que os estilos práticos de criação de valor do consumidor (CVCPS) desenvolvido por McColl-Kennedy et al. (2012) adequam-se às características desta doença. Os resultados do estudo sustentam que os pacientes com estilos práticos de cocriação de valor do consumidor “Parceria” e “Gestor de equipa” tendem a estar associados a um nível de fidelização elevado, pelo que se sugere que estes estilos sejam encorajados pelos prestadores. Em contraste, o Estilo de cocriação “Colaboração Passiva” está potencialmente associado a níveis de fidelização reduzidos, o que também sugere que a participação do paciente no seu relacionamento com o médico possa ser um fator potenciador da sua fidelização. O presente projeto de Investigação pretende ser um contributo teórico para investigação futura na área da cocriação e fidelização, com uma aplicação empírica que contribui para uma maior extensividade dos benefícios da cocriação de valor do consumidor para a Gestão em Saúde.

Testing the factor structure of the behavioral-intentions battery: an empirical study of the Australian banking industry

The five-factor ‘Behavioural-Intentions Battery’ was developed by Zeithaml, Berry and Parasuraman (1996), to measure customer behavioural and attitudinal intentions. The structure of this model was re-examined by Bloomer, de Ruyter and Wetzels (1999) across different service industries. They concluded that service loyalty is a multi dimensional construct consisting of four, not five, distinct dimensions. To date, neither model has been tested within a banking environment. This research independently tested the ‘goodness of fit’ of both the four and five-factor models, to data collected from branch bank customers. Data were collected via questionnaire with a sample of 348 banking customers. A confirmatory factor analysis was conducted upon the two opposing factor structures, revealing that the five-factor structure has a superior model fit; however, the fit is ‘marginal’.

The robustness of the behavioural-intentions battery in services scenarios

The consensus among researchers is that loyalty is a very complex construct (Javalgi & Moberg 1997). Various typologies have been developed to measure the loyalty construct (e.g., Curassi and Kennedy 2002; Hoare 2000; Knox 1998; Zeithaml, Parasuraman & Berry 1996). Zeithaml, Berry & Parasuraman (1996) developed a service loyalty framework comprising 13 items across five dimensions: “loyalty”, “switch”, “pay more”, “external responses”, and “internal responses”. This framework was criticised by Bloemer, de Ruyter & Wetzels (1999) for having conceptual and empirical limitations. Upon re-examination of the same 13 items, they concluded that the loyalty construct comprised only four factors: “word-of-mouth”, “purchase intentions”, “price sensitivity”, and “complaining behaviour”. Questions remain as to the precise dimensionality of the service loyalty construct as proposed by Zeithaml, Parasuraman & Berry (1996), and its stability or robustness generically, i.e., to what extent is there an invariant factor structure across the range of marketing contexts to which the battery may be applied? This paper reports on the testing of the goodness-of-fit of the five and fourfactor models to data collected in a study of consumer reaction to the service supplied by an Australian Internet Service Provider (ISP), through a series of hypothetical scenarios. In addition, comparisons were conducted with the results of exploratory factor analyses of the eight scenarios. The results suggested that factor structures are unstable across the data subsets, thereby limiting the generalisability and utility of the proposed models.

Exploring the relationship between customer loyalty to the service worker and customer citizenship behaviors to the service organization

This paper conceptualizes the positive relationship between customer loyalty to the service worker (personal loyalty) and customer citizenship behaviors to the service organization including: positive word of mouth; suggestions for improvements; customer participation in activities; benevolent acts of service facilitation; customer policing; customer flexibility; customer voice and displays of relationship affiliation.

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.

How habits, social ties, and economic switching barriers affect customer loyalty in contractual service settings

While existing literature acknowledges positive effects of satisfaction and economic switching barriers for building customer loyalty, studies analyzing interactions of these antecedents reveal mixed findings. Prior research does not consider, as antecedents of switching barriers, either habits or social ties that result from shared service-usage within a family or community. This paper contributes to the literature, first, by replicating the effects of satisfaction, economic switching barriers, and their interaction with customer loyalty and word-of-mouth of subscribers to a contractual service. Second, the study empirically tests the role of social ties as a social switching barrier. Third, the study introduces and tests the effects of habits as a precursor of economic and social switching barriers. Results reveal significant positive effects of satisfaction, economic switching barriers, and social ties on customer loyalty and word-of-mouth. Additionally, economic switching barriers and social ties interact significantly with satisfaction and habits act as a precursor of economic switching barriers and social ties.

The relative strength of affective commitment in securing loyalty in service relationships

While commitment is an important antecedent to customer retention, a broad consensus has yet to emerge on the impacts of constituent dimensions of commitment on loyalty in service relationships. This study explores the impacts of affective and continuance commitment on attitudinal and behavioral loyalty in a service context. Since affective commitment is more positive and governed by free choice, whereas continuance commitment is more the result of perceived economic and psychological benefits of being in a relationship, the results of this study suggest that emotional bonds with customers provide a more enduring source of loyalty as compared to economic incentives and switching costs.

Spillover effects of service failures in coalition loyalty programs:the buffering effect of special treatment benefits

Coalition loyalty programs are on the rise, yet few studies investigate the impact of service failures in such programs. Using data from a retail context, the authors show that a program partner deemed responsible for a service failure suffers negative customer responses. However, customers' perceptions of the benefits of the coalition loyalty program buffer these consequences. Perhaps most importantly, when customers perceive the program's special treatment benefits as low, direct and indirect spillover effects occur, such that a service failure by one program partner has a negative effect on customer loyalty toward the program itself. © 2013 New York University.