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.

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.

Experience as a moderator of involvement and satisfaction on brand loyalty in a business-to-business setting 02-314R

This paper examines the relative influence of two key antecedents of brand loyalty—satisfaction and involvement and the moderating role of experience, using a sample of business buyers. The central argument of this paper is that the strength of the effect of these variables on attitudinal brand loyalty will vary with the level of customer experience with purchasing the service. Building on previous research which examined low-risk, customer product settings [Kim, J., Lim, J.S., & Bhargava, M. (1998). The role of affect in attitude formation: A classical conditioning approach. Journal of the Academy of Marketing Science 26 (2): pp. 143–152; Shiv, B., & Fedorikhin, A. (1999). Heart and mind in conflict: The interplay of affect and cognition in consumer decision-making. Journal of Consumer Research 26: 278], this study shows that for a high-risk setting, involvement with the service category will be more dominant in its influence on brand loyalty than satisfaction with the preferred brand. Furthermore, it was found that experience moderated the influence of involvement and satisfaction on attitudinal brand loyalty for a high-risk business-to-business service. This study provides new insights into the theory and practice of buyer behavior and business-to-business brands.

Online retail loyalty strategies

This paper investigates how e-tailers design and implement their loyalty marketing strategies. The majority of the research was carried out via interviews with directors or senior managers from multi-channel and pure-play online retailers from across the world, and supported by secondary research. The main finding is that the loyalty marketing strategy employed is dependent upon the fundamental structure of the retailer-customer relationship. Other findings indicate that the importance of new customer acquisition and customer retention (loyalty) online depends on how long the retailer has been operating online; customer loyalty is created by implementing actions throughout the firm, rather than just relying on isolated marketing actions; communications with the customer should be at a frequency relative to customer purchasing frequency; and successful e-tailing practices consists of continually measuring and modelling customer sales, satisfaction and value, both in terms of absolute figures and trends.

Testing the circumplex model of emotions in a consumer setting

There is widespread belief that more positive emotional reactions to consumption situations will lead to positive business outcomes such as increased market share through the combination of increased loyalty, repeat purchase and strengthened reputation. However, most of the psychological work on emotions has not dealt directly with consumption experiences, but rather broader everyday experiences. In this study, psychological models of emotion were tested using magazine subscribers, specifically looking at their emotional responses to the magazine and the overall subscription package. The aim was to determine whether one of the major theories on emotional structure, the circumplex model, is relevant and consistent when applied specifically to a consumption experience. The results are positive, with the model being supported, and they provide insight into the structure and relations of different emotional responses (e.g., satisfaction, delight) consumers might have to a consumption experience.

Customer satisfaction, novelty-seeking, and loyalty in intermittently available services

The marketing literature identifies customer satisfaction as an immediate antecedent to customer loyalty. Recently, some marketing researchers have questioned the strength of this link. This thesis provides insight into the relationship between customer satisfaction and loyalty and determines the effects of moderating factors, particularly the need for variety, on the satisfaction-loyalty relationship.

Brand affinity and consumer repurchase behaviour : an empirical analysis

This research established a construct termed brand affinity, comprising the measures of anticipation of usage, social attraction, commitment, loyalty, and trust. In the context of a highly uncertain, intermittently available service, it was found that brand affinity had greater influence over consumers' repurchase intentions than the typical antecedents of overall and attribute level satisfaction.

Business to consumer eCommerce : implications for employee management

This research explored the way service organisations deal with employee management issues when implementing eCommerce technologies. The thesis proposes a framework for understanding the technology-mediated context of the customer-employee interaction in service organisations when implementing eCommerce. The framework assists in achieving a balance between achieving efficiencies and maintaining customer loyalty.

Using brand knowledge to predict beer brand preference and loyalty for samples of new frequent users in Perth and Beijing

This study tests a model of Brand Knowledge and Brand Equity of brands of beer on new and frequent users in two populations that differ in their stage of the beer product life cycle and culture. Using Multiple Logistic Regression (MLR) and Binomial Logistic Regression (BLR), models based on the respondents' Brand Knowledge are able to correctly identify Chinese respondents’ preferred brand of beer 56% of the time, while correctly identifying 77% of respondents in an Australian sample when three top brands are tested. The model could further identify 67% of those that stay or switch in both the Australian and the Chinese samples.

The influence of cultural values on brand loyalty

It is well documented that culture can influence consumer attitudes and behavior. While there have been numerous studies on how culture influences the four Ps of the marketing mix, few researchers have examined its effect on customer loyalty. More specifically, how consumers who identify more with certain cultural traits are likely to be more brand loyal. Using Hofstede’s cultural dimensions, this study empirically examines cultural effects on consumer-reported “proneness” to brand loyalty and finds that those who scored highly in individualism and uncertainty avoidance have greater affinity for exhibiting loyalty to a brand.