The moderating effect of channel use on the quality‐loyalty relationship in multi‐channel e‐services

Abstract

Purpose

Services provided through the internet (e‐services) are typically offered as part of a broader Multi‐Channel (MC) service package, combining these services with services delivered through traditional channels (e.g. phone, physical facilities). Customers of e‐services display heterogeneity in channel use, ranging from customers with a high Degree of Focus on the Internet (DFI) channel (internet‐oriented customers) to customers with a low DFI (low focus on the internet and strong reliance on traditional channels). The purpose of this study is to examine whether a customer's DFI moderates the relationship between e‐service quality (eSQ) and e‐loyalty behavioral intentions in an MC e‐service.

Design/methodology/approach

Perceptual and objective data were collected from multiple sources in a major retail MC e‐banking service (survey of online customers, transactional data and customer database).

Findings

First, there is high diversity in DFI among e‐service customers; second, a customer's DFI negatively moderates the quality‐loyalty relationship.

Research limitations/implications

The study should be extended to other types of e‐services.

Practical implications

eSQ seems to be a more important driver of e‐loyalty behavioral intentions for low DFI customers than for high DFI (internet‐oriented) customers. Different strategies may need to be employed to drive retention across customers with different levels of DFI. Specifically, driving e‐loyalty among internet‐oriented customers may require complementing eSQ investments with additional retention mechanisms (e.g. building communities or creating switching barriers). DFI should be recognized as a useful and readily available customer segmentation variable for devising loyalty strategies.

Originality/value

The study pioneers the examination of the impact of channel use on the quality‐loyalty relationship. It breaks new ground in proposing DFI as a relevant customer segmentation variable for e‐service research and practice. External validity is enhanced by the use of objective (rather than self‐reported), real‐world data to measure customer channel use.

Citation

Sousa, R. (2012), "The moderating effect of channel use on the quality‐loyalty relationship in multi‐channel e‐services", International Journal of Quality & Reliability Management, Vol. 29 No. 9, pp. 1019-1037. https://doi.org/10.1108/02656711211272935