An empirical investigation of customer satisfaction and loyalty across two divergent bank segments

Customer satisfaction is an important indicator for customer loyalty, and numerous studies have identified the benefits that customer loyalty delivers to an organisation. Nevertheless, research also suggests that satisfied customers still defect. This study investigated the relationship between customer satisfaction and loyalty intentions within the Australian banking industry for two distinct customer segments, retirees and university students. Results indicate no significant difference in the satisfaction levels of either group; however, there were differences with respect to two of the five behavioural intentions dimensions: loyalty and switch. Satisfaction was found to have a significant impact on three of the five behavioural intentions dimensions: loyalty, pay more and external response, suggesting that management should initiate service policies aimed at securing improvements in customer satisfaction. However, there are also other constructs at work aside from satisfaction in determining future behavioural intentions.

An investigation of corporate image, customer satisfaction and loyalty-more than just monkey business

Prior research into corporate branding, of which corporate image is a key construct, has focused primarily on products. There has, however, been limited academic research focusing on corporate branding in the leisure services sector. However, in an increasingly competitive environment, leisure services need to treat branding and image management as more than just "monkey business". This study addresses this by developing a model and empirically testing the relationships between corporate image, the dimensions of corporate image, customer satisfaction and loyalty in the context of a Zoological garden. As predicted, a strong relationship was found between corporate image, customer satisfaction and customer loyalty. Our results also suggest that three dimensions of corporate image (adventure, mission/vision and agreeableness) explain a significant propOliion of the variance in satisfaction and loyalty.

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.

Identification and analysis of moderator variables:investigating the customer satisfaction-loyalty link

Purpose – Research on the relationship between customer satisfaction and customer loyalty has advanced to a stage that requires a more thorough examination of moderator variables. Limited research shows how moderators influence the relationship between customer satisfaction and customer loyalty in a service context; this article aims to present empirical evidence of the conditions in which the satisfaction-loyalty relationship becomes stronger or weaker. Design/methodology/approach – Using a sample of more than 700 customers of DIY retailers and multi-group structural equation modelling, the authors examine moderating effects of several firm-related variables, variables that result from firm/employee-customer interactions and individual-level variables (i.e. loyalty cards, critical incidents, customer age, gender, income, expertise). Findings – The empirical results suggest that not all of the moderators considered influence the satisfaction-loyalty link. Specifically, critical incidents and income are important moderators of the relationship between customer satisfaction and customer loyalty. Practical implications – Several of the moderator variables considered in this study are manageable variables. Originality/value – This study should prove valuable to academic researchers as well as service and retailing managers. It systematically analyses the moderating effect of firm-related and individual-level variables on the relationship between customer satisfaction and loyalty. It shows the differential effect of different types of moderator variables on the satisfaction-loyalty link.

One size doesn't fit all. Exploring marketing strategies for influencing three dimensions of brand loyalty

Brand loyalty is a concept that has garnered considerable interest over recent years from both marketing practitioners and academics alike. While marketers are primarily interested in ways they can generate and increase brand loyalty from their customers, academics strive to conducts research which investigates the antecedents and consequences of customer loyalty (See DeWitt, Nguyen and Marshall 2008; Russell-Bennett, McColl-Kennedy and Coote 2007).

The role of customer gratitude in making relationship marketing investments successful

This paper recognises that customer loyalty is important for many competitive organisations, and that retail firms make investments to build and maintain loyal relationships with their existing and potential customers (e.g. loyalty programs). However, there has been little focus on the mechanisms by which these relationship investments operate to achieve customer loyalty. This paper examines one mechanism, namely customer gratitude, which works to make a firm’s relationship marketing investment a success or a failure. Using data from 1600 undergraduate students, this study empirically confirms the mediating role of customer gratitude between the customers’ perceptions a firm’s relationship marketing investments and customers’ perceptions of the value of the relationship with the firm. Further, a significant moderating effect of perceived benevolence on the relationship between customers’ perceptions a firm’s relationship marketing investments and customer gratitude was identified. For theorists, this customer gratitude model offers a better psychological explanation of how relationship marketing investments operate to improve the value that customers place on their relationships with retailers. Our research suggests that managers should invest resources to stimulate customer gratitude in order to build strong customer–seller relationships.

Loyalty (Brand Loyalty)

Loyalty is a desired marketing outcome for products ranging from fast-moving consumer goods, services, durables, and ideas products such as political parties and social behaviors. Evidence has shown that a base of loyal customers is advantageous for an organization as it reduces the marketing cost of doing business and improves profitability. The approaches to loyalty have varied over the decades with various schools of thoughts toward definitions, conceptualizations, and measurement. The need for understanding the nature of the product and consumer's behavior to determine the appropriate approach to loyalty is emphasized in this article. In this article, we outline the historical development of brand loyalty, the major approaches to the construct (attitudinal and behavioral) and new approaches that deconstruct attitudinal loyalty into its subcomponent parts.

Antecedents of loyalty to a brand : Apple clients vs. non-clients

Apple is undoubtedly a sui generis and remarkable brand in what concerns to its branding and brand experience, and remains an indisputable reference in the consumer electronics and computer industries. The aim of this study encompasses the development and empirical testing of two conceptual models that evaluate and allow to draw a comparison between Apple clients and non-clients’ perceptions, regarding brand experience, brand perceived value, price perceptions and brand trust; and that determine the antecedents of clients’ loyalty to the brand. Therefore, the contribution of this study to the literature relies on the research of the impact of brand experience on brand perceived value and on price perceptions, as well as the influence of price perceptions (positive and negative) on trust, satisfaction, and commitment to the brand. Two surveys were used to test each conceptual model, through a sample collected across the portuguese academic community. The findings prove the strong influence of the sensory and affective aspects of brand experience on both clients and non-clients. They also reveal that the negative role of price is neutralized in the presence of strong brand experience, and that the fact that Apple is viewed as an “expensive brand” may highlight its association to higher quality and prestige. Also, this study reinforces the important role of satisfaction and commitment in building customer loyalty, corroborating the existent literature. Managerial implications derived from the findings are also discussed.

Impact of Product Quality, Service Quality and Contextual Experience on Customer Perceived Value and Future Buying Intentions

Recognizing that high satisfaction leads to high customer loyalty, companies today are aiming for total customer satisfaction. This article explains relative impact of product quality, service quality and contextual experience on customer perceived value and intention to shop in the future. The data has been collected using a questionnaire from 205 customers of a national retailer chain. The relative importance of product quality, service quality and contextual experience on customer perceived value and thus on customer preference and future intentions was measured using multiple regression. Also, the contribution of perceived value to preference and thus on future buying intention was also measured. Structural Equation Model (SEM) using Amos 4 was used to find the overall fitness of the model. It was found that product quality, service quality and contextual experience have a major influence on customer perceived value

Shopping motives as antecedents of e-satisfaction and e-loyalty

Customer loyalty is fundamental to the profitability and survival of e-tailers. Yet research on antecedents of e-loyalty is relatively limited. This study contributes to the literature by investigating the effect of motives for online shopping on e-satisfaction and e-loyalty. A structural equations model is developed and tested through data from an online survey involving 797 customers of two UK-based e-tailers focussing on hedonic products. The results suggest that convenience, variety seeking, and social interaction help predict e-satisfaction, and that social interaction is the only shopping motive examined with a direct relationship to e-loyalty. Data also show that e-satisfaction is a strong determinant of e-loyalty. These findings are discussed in the light of previous research and avenues of future research are proposed.

Customer repurchase intention: a general structural equation model

This paper develops a general service sector model of repurchase intention from the consumer theory literature. A key contribution of the structural equation model is the incorporation of customer perceptions of equity and value and customer brand preference into an integrated repurchase intention analysis. The model describes the extent to which customer repurchase intention is influenced by seven important factors – service quality, equity and value, customer satisfaction, past loyalty, expected switching cost and brand preference. The general model is applied to customers of comprehensive car insurance and personal superannuation services. The analysis finds that although perceived quality does not directly affect customer satisfaction, it does so indirectly via customer equity and value perceptions. The study also finds that past purchase loyalty is not directly related to customer satisfaction or current brand preference and that brand preference is an intervening factor between customer satisfaction and repurchase intention. The main factor influencing brand preference was perceived value with customer satisfaction and expected switching cost having less influence.

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.

Customer perceptions of responsible retailing in Australia

For retailers, the adoption of Corporate Social Responsibility (CSR) can act as a source of differentiation and affect reputation, customer loyalty, and competitive advantage. Despite these potential benefits, there has been limited empirical investigation of CSR within the retailing literature. This paper proposes that for retailers to implement CSR to strategic benefit, they must understand how their customers perceive the concept. This paper utilises Carroll’s (1979, 1991) four-part framework of corporate behaviours to operationalise the concept of CSR. To build on Carroll’s (1979, 1991) framework, respondents are asked to identify specific behaviours that constitute socially responsible behaviour for a retail supermarket. Results support the four corporate behaviours proposed by Carroll, but do not support the rank order of economic corporate behaviours being first and foremost. The findings suggest the inclusion of ‘supply chain management’ and ‘provision of customer value’ as additional factors for retailer CSR. From these findings, an initial model of retailer CSR is proposed for further investigation. For academics, such a model provides greater clarity in understanding CSR, allowing future development across alternative retail settings. The model provides retailers with a tool for implementing CSR for strategic benefit, by way of meeting customer CSR demands.

Assessing the relationship between loyalty program attributes, store satisfaction and store loyalty

After a decade of research there is still much to understand about the relationship between loyalty programs and whether they deliver on their promise of building customer loyalty towards a store and understanding the mediating role of store satisfaction. Our results suggest that loyalty program as a summary construct, explains a significant proportion of the variance in store satisfaction and store loyalty. However, disaggregation of the construct into hard versus soft attributes, promotes greater specificity, precision and accuracy in uncovering the differential impact on store satisfaction and store loyalty.