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Service quality, customer satisfaction and customer value: holistic determinants of loyalty and word-of-mouth in services

Anabela Maria Bello de Figueiredo Marcos (Coimbra Business School|ISCAC, Polytechnic Institute of Coimbra, Portugal and CeBER - Centre for Business and Economics Research, Faculty of Economics, University of Coimbra, Coimbra, Portugal)
Arnaldo Fernandes de Matos Coelho (Faculty of Economics, University of Coimbra, Coimbra, Portugal and CeBER - Centre for Business and Economics Research, Faculty of Economics, University of Coimbra, Coimbra, Portugal)

The TQM Journal

ISSN: 1754-2731

Article publication date: 27 May 2021

792

Abstract

Purpose

The objective of this paper is to understand the relationships between service quality, perceived value and satisfaction because several studies endeavored to model these linkages. It is important to test these relationships with loyalty and word-of-mouth (WOM). Thus, it is important to test these relationships in the insurance sector since the relationship between these variables and WOM has not been studied in insurance.

Design/methodology/approach

This investigation proposes a theoretical model tested using structural equation modeling (SEM). A questionnaire survey was developed to explore the relationships among service quality, perceived value, satisfaction, loyalty and WOM. For this study, 744 valid questionnaires were collected from a sample of Portuguese car insurance holders.

Findings

The results revealed that service quality has a direct relationship with perceived value and satisfaction. In turn, perceived value has a direct relationship with satisfaction. Perceived value and satisfaction influence loyalty and WOM. Finally, loyalty influences WOM.

Originality/value

This investigation examines the mediating role of perceived value and satisfaction in the relationship between service quality (facility and interactive) and loyalty and WOM in the insurance industry. It fills a gap in the literature by exploring the variables that lead to positive WOM in the insurance industry; the authors do not know any study that links these variables with WOM. Also, the relationship between loyalty and WOM has been poorly studied, although it is well known that in services, loyal customers speak well of the companies. Thus, the authors try to fill this gap in the academic literature by analyzing these relationships.

Keywords

Citation

Marcos, A.M.B.d.F. and Coelho, A.F.d.M. (2021), "Service quality, customer satisfaction and customer value: holistic determinants of loyalty and word-of-mouth in services", The TQM Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/TQM-10-2020-0236

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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