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.

An alternative perspective on relationships, loyalty and future store choice

The purpose of this research was to provide an alternative perspective for retailers to develop relationships and loyalty. This study suggests that traditional trust and commitment theories are somewhat imperfect in predicting future store choice. Through path modelling, we introduce two additional constructs of store functional loyalty and relationship worth. These constructs together with commitment are powerful predictors of future store choice. Furthermore, the study examines the antecedents of relationships, loyalty and future store choice. We conclude with new insights and practical suggestions for retailers to build relationships, loyalty and influence customers' future store choice.

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.

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.

Relational bonds and loyalty : the bonds that tie

This paper explores the effect of financial, social and structural bonds on the loyalty of Arabic five star hotel guests. Three different measures of loyalty are used; attitudinal, behavioural and combined to identify how the three relational bonds affect loyalty. The results show that social and structural bonds increase all types of loyalty whereas financial bonds only increase attitudinal and combined loyalty. It is also found that bonds are perceived to be more important for high-loyal consumers as compared to low-loyal consumers. This all suggests that firms seeking to increase loyalty may need different strategies depending on the consumers being targeted.

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.

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.

Reasons why dissatisfied customers exhibit behavioral loyalty

The development of supplier loyalty and its potential application to the business-to-business settings has not been widely explored. Day (1969) cautions that loyalty viewed in terms of purchase decisions may not distinguish between loyalty and spurious loyalty. This study follows the composite loyalty approach providing both behavioral aspects (purchase intentions) and attitudinal loyalty in order to fully explain the concept of supplier loyalty. This framework has not been previously applied in the B2B literature.The objective of this research is to identify reasons why B2B customers do not show consistency between attitudinal and behavioral loyalty and why dissatisfied customers do not switch suppliers. A survey was conducted during 2006 with a sample of executives from 240 SME companies in a large Asian city. A range of measures was obtained including attitudinal loyalty, behavioral loyalty, satisfaction and open ended responses on nature of current problems. Following Dick and Basu (1994), customers are classified into loyalty groups. Customers having high and low attitudinal loyalty are compared on satisfaction, switching attitudes and problems within the relationship. Constraints to switching by the dissatisfied customers are discussed. A profile of the "Spurious Loyal" customer is provided. This study seeks to better understand the nature of dissatisfaction and loyalty within these long term focal relationships.

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.

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.