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Customer repurchase intention: A general structural equation model

Phillip K. Hellier (School of Accounting, Economics and Finance, Faculty of Business and Law, Deakin University, Warrnambool, Australia)
Gus M. Geursen (School of Marketing, University of South Australia, Adelaide, Australia)
Rodney A. Carr (School of Information Systems, Faculty of Business and Law, Deakin University, Warrnambool, Australia)
John A. Rickard (Southern Cross University, Lismore, Australia)

European Journal of Marketing

ISSN: 0309-0566

Article publication date: 1 December 2003

41384

Abstract

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.

Keywords

Citation

Hellier, P.K., Geursen, G.M., Carr, R.A. and Rickard, J.A. (2003), "Customer repurchase intention: A general structural equation model", European Journal of Marketing, Vol. 37 No. 11/12, pp. 1762-1800. https://doi.org/10.1108/03090560310495456

Publisher

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MCB UP Ltd

Copyright © 2003, MCB UP Limited

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