Member loyalty and WOM in co-operative and mutual enterprises

Abstract

Purpose

The purpose of this paper is to present findings from a large-scale survey of members of co-operative and mutual enterprises (CMEs) that examines the factors influencing members’ intentions to remain loyal to the enterprise and to provide word of mouth (WOM).

Design/methodology/approach

A model was suggested and tested to examine the interrelationships between constructs measuring emotional, functional and financial value, affective and continuance commitment, intention to remain loyal to a CME and WOM communication. A large sample was drawn from a range of co-operative and mutual enterprises, and the suggested model was estimated using a partial least squares approach.

Findings

Significant relationships were found between all constructs. However, emotional value and affective commitment were found to have particularly strong relationships. Emotional value had a strong influence on both affective and continuance commitment, while affective commitment had a strong influence on loyalty and WOM.

Originality/value

This paper provides empirical support for suggestions about the factors that influence member loyalty within CMEs and the relative importance of non-financial motivations. It also provides a strong foundation upon which directors and executive managers of CMEs can build more effective member marketing and communications strategies.

Citation

Mazzarol, T., Soutar, G. and Mamouni Limnios, E. (2019), "Member loyalty and WOM in co-operative and mutual enterprises", Journal of Services Marketing, Vol. 33 No. 3, pp. 303-315. https://doi.org/10.1108/JSM-07-2018-0195