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Book part
Publication date: 26 November 2021

Paulina N. Adzoyi, Robert J. Blomme and Ben Q. Honyenuga

The competitive nature of the hotel industry has given the impetus to practitioners and researchers to invest in Customer Retention strategies and research. Although numerous…

Abstract

The competitive nature of the hotel industry has given the impetus to practitioners and researchers to invest in Customer Retention strategies and research. Although numerous studies have investigated Customer Retention in the hotel industry, there is still uncertainty regarding Customer Retention in emerging markets. This study, therefore, adds to the existing knowledge by exploring Customer Retention in Ghana, an emerging market. The study adopted a cross-sectional survey of 873 customers of 56 hotels in four regional capitals located in the southern part of Ghana. Findings indicate that service Tangible and Reliability indirectly relates hotel Customer Retention in Ghana, an emerging market.

Details

Advances in Hospitality and Leisure
Type: Book
ISBN: 978-1-80071-272-0

Keywords

Open Access
Article
Publication date: 11 July 2023

Oussama Saoula, Amjad Shamim, Norazah Mohd Suki, Munawar Javed Ahmad, Muhammad Farrukh Abid, Ataul Karim Patwary and Amir Zaib Abbasi

This study aims to examine the impact of website design, reliability and perceived ease of use as an engagement motivational factors on customer e-trust and e-retention in online…

6706

Abstract

Purpose

This study aims to examine the impact of website design, reliability and perceived ease of use as an engagement motivational factors on customer e-trust and e-retention in online shopping.

Design/methodology/approach

By using deductive approach, quantitative methods and purposive sampling technique, this study has collected the data from 295 young online customers to enhance an understanding of website design, reliability and perceived ease of use in an online shopping context.

Findings

The findings revealed interesting insights where reliability is the most significant predictor of customer e-trust in online shopping, followed by perceived ease of use and website design. In addition, a significant mediating effect of e-trust is found between customer e-retention, website design, reliability and perceived ease of use.

Research limitations/implications

Future research is recommended to predict the antecedents of online engagement motivational factors with value co-creation and co-creation experience in online shopping context.

Originality/value

This study offers fresh insights about driving elements and impediments of online customer retention. Customer engagement comprising of website design, reliability and perceived ease of use appear to influence the online customer retention through direct and indirect effect.

Article
Publication date: 1 November 2022

Zhiyong Li, Mang Long, Songshan (Sam) Huang, Zhaohan Duan, Yingli Hu and Rui Cui

This paper aims to examine the effect of consumer inertia – a tendency to adhere to prior purchase decisions despite the existence of preferable alternatives – on the…

Abstract

Purpose

This paper aims to examine the effect of consumer inertia – a tendency to adhere to prior purchase decisions despite the existence of preferable alternatives – on the relationships between switching costs and customer retention, and explain the controversy within them in the context of budget hotels.

Design/methodology/approach

An empirical test was conducted via structural equation modelling based on 337 self-administered questionnaires from customers at six of Chinese popular budget hotels.

Findings

Consumer inertia was a significant mediator between switching costs and customer retention. Specifically, consumer inertia completely mediated the effects of financial switching costs on customer retention, but partially did between procedural switching costs and customer retention. By introducing consumer inertia, the explanatory power of customer retention improved significantly by 19%.

Originality/value

This paper clarifies the effects of multiple dimensions of switching costs on customer retention via the mediating role of consumer inertia and partly addresses the inconsistency in the prior studies from an inertia perspective.

Details

International Journal of Contemporary Hospitality Management, vol. 35 no. 3
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 1 March 2001

Bernd Stauss, Klaus Chojnacki, Alexander Decker and Frank Hoffmann

Customer clubs belong to the most important and particularly cost‐intensive elements of customer retention systems. By offering specific advantages to club members, they are…

8448

Abstract

Customer clubs belong to the most important and particularly cost‐intensive elements of customer retention systems. By offering specific advantages to club members, they are supposed to increase customer satisfaction and loyalty. However, up to now there is no certainty with respect to the existence and degree of the expected loyalty effects. Thus, there still is also no sufficient foundation for an estimation whether investments in customer clubs can be justified in comparison to several alternatives of gaining new customers or customer retention. To fill this gap in information, this paper focuses on the question of which kind of retention effects of customer clubs might exist and whether there is a scientific evidence of these effects. In the first step, a theoretical model and propositions of different retention effects of customer clubs are developed. Afterwards the results of an empirical study among members of the Volkswagen Customer Club, Germany’s largest automotive customer club are presented. They indicate that customer club satisfaction has a remarkable impact on the customer’s relationship satisfaction and customer retention. Consequently it can be concluded that a customer club certainly is an important issue of retention management.

Details

International Journal of Service Industry Management, vol. 12 no. 1
Type: Research Article
ISSN: 0956-4233

Keywords

Article
Publication date: 30 May 2018

Mushtaq Ahmad Darzi and Suhail Ahmad Bhat

The purpose of this paper is to report the findings of a study undertaken to understand customer satisfaction and customer retention in business-to-consumer markets. The study…

2912

Abstract

Purpose

The purpose of this paper is to report the findings of a study undertaken to understand customer satisfaction and customer retention in business-to-consumer markets. The study investigates the effect of personnel capability and customer satisfaction on customer retention in the banking sector. The influence of the control variable (gender) on customer retention and mediating role of customer satisfaction has also been examined.

Design/methodology/approach

The study has used structural equation modeling (SEM) for data analysis across a sample of 409 bank customers of a private bank operating in Jammu and Kashmir state of India. Questionnaires were distributed and respondents were selected through a cluster sampling technique.

Findings

The empirical analysis through SEM has confirmed that personnel capability and customer satisfaction have a significant positive impact on customer retention. Customer satisfaction partially mediates the effect of personnel capability on customer retention. Moderation analysis was performed and established that gender moderates the effect of personnel capability on customer satisfaction. It was also found that gender has no effect on other relations. Furthermore, the study shows that personnel capability has a stronger impact on customer retention as compared to customer satisfaction. However, the relationship between personnel capability and customer satisfaction is significant.

Research limitations/implications

The study has been conducted on the customers of a private bank in India. Therefore, generalizations may be limited. As personnel capability is the predictor of satisfaction and retention, individuals with proper social and technical skills – in addition to other skills – should be hired for managing relationships with customers.

Originality/value

The study has added to the understanding of the relationship which exists among the following variables: gender, personnel capability, customer satisfaction and customer retention. These variables have not been studied together previously.

Details

International Journal of Bank Marketing, vol. 36 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 1 February 2004

Ove C. Hansemark and Marie Albinsson

The purpose of this study was to explore how the employees of a company experience the concepts of customer satisfaction and retention. A phenomenological method was used…

43196

Abstract

The purpose of this study was to explore how the employees of a company experience the concepts of customer satisfaction and retention. A phenomenological method was used, allowing the informants’ own interpretations to be discovered. Satisfaction was discussed from three perspectives: definition of the concept, how to recognise when a customer is satisfied, and how to enhance satisfaction. The informants’ experience pertaining to these three categories varied, and a total of seven ways to define, recognise or enhance satisfaction were discovered. These were: service, feeling, chemistry, relationship and confidence, dialogue, complaints and retention. All except the first two of these categories of experience were found to enhance retention, implying that the informants have found that strategies for enhancing both satisfaction and retention are similar. The strongest connection between retention and satisfaction strategies turned out to be in terms of relationship and confidence.

Details

Managing Service Quality: An International Journal, vol. 14 no. 1
Type: Research Article
ISSN: 0960-4529

Keywords

Article
Publication date: 1 January 2006

Lawrence Ang and Francis Buttle

Customer retention has been a significant topic since the mid‐1990s, but little research has been conducted into management processes that are associated with excellent customer

23259

Abstract

Purpose

Customer retention has been a significant topic since the mid‐1990s, but little research has been conducted into management processes that are associated with excellent customer retention performance. This research investigates the associations between customer retention outcomes and a number of management processes including customer retention planning, budgeting and accountability and the presence of a documented complaints‐handling process.

Design/methodology/approach

This is carried out using a quantitative survey of 170 companies in Australia. Participants represented all major standard industrial classification (SIC) codes.

Findings

It was found that excellence at customer retention is positively and significantly associated with the presence of documented complaints‐handling processes. None of the other variables is significantly associated with the dependent variable.

Research limitations/implications

This research has limited generalisability to other regions and the self‐report nature of the data is not independently corroborated.

Practical implications

The research emphasises the importance of developing and implementing documented complaints‐handling processes. Future research should examine whether standardised processes such as those embodied in ISO 10002 are more effective than ad hoc processes.

Originality/value

The major contribution of this paper is the clear link that it establishes between customer retention performance and the presence of a documented complaints‐handling process.

Details

European Journal of Marketing, vol. 40 no. 1/2
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 October 2003

Chatura Ranaweera and Jaideep Prabhu

Adopts a holistic approach that examines the combined effects of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting. Argues that…

21447

Abstract

Adopts a holistic approach that examines the combined effects of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting. Argues that such an approach helps uncover hitherto neglected effects on retention and, in the process, unveils more cost effective ways of retaining customers. Drawing on this framework develops several hypotheses regarding the main and interaction effects of customer satisfaction, trust and switching barriers on retention. Tests these hypotheses on data from a large‐scale mail survey of fixed line telephone users in the UK, finding that both customer satisfaction and trust have strong positive effects on customer retention. Contrary to some assertions in the literature, however, finds that the effect of trust on retention is weaker than that of satisfaction. Nevertheless, the interaction between trust and satisfaction also has a significant effect on retention, indicating that building both customer satisfaction and trust is a superior strategy to a focus on satisfaction alone. Qualitative evidence from the survey offers further support for this finding. Even a “satisfying” service recovery process might be inadequate to prevent loss of trust, with significant implications for future consumer behaviour. Finally, the results show that switching barriers have both a significant positive effect on customer retention as well as a moderating effect on the relationship between satisfaction and retention. While service providers may be able to retain even dissatisfied customers who perceive high switching barriers, argues that ideally, firms should aim at a combined strategy that makes switching barriers act as a complement to satisfaction.

Details

International Journal of Service Industry Management, vol. 14 no. 4
Type: Research Article
ISSN: 0956-4233

Keywords

Article
Publication date: 6 September 2011

Jiun‐Sheng Chris Lin and Chung‐Yueh Wu

Customer uncertainty of future contacts with the service provider creates a wide range of expectations of the relationship. Such variation and effective management of customer

3046

Abstract

Purpose

Customer uncertainty of future contacts with the service provider creates a wide range of expectations of the relationship. Such variation and effective management of customer expectations have been not been well studied. The purpose of this research is to investigate the role of customers' expected future use in relationship based customer retention for continuously provided services, proposing and testing an empirical model that explores the interconnectedness of relationship quality, expected future use and customer retention.

Design/methodology/approach

A theoretical framework is developed to suggest the role of expected future use in relationship‐based retention. Extant research from various academic fields, including marketing and psychology, is reviewed, deriving our hypotheses. Data collected from customers of a health club is examined through structural equation modeling (SEM).

Findings

The study supports the assertion that that the effect of relationship quality (trust, commitment, and satisfaction) on service retention is mediated by customers' expected future use. Results show that relationship quality (satisfaction, trust and commitment) is related to expected future use and retention, while expected future is also related to retention.

Research limitations/implications

This study represents an early attempt at exploring the role of customer's anticipation of future use in service retention. Future research is discussed, with an emphasis on developing additional indicators of relationship quality and future expectation related variables.

Practical implications

Service firms can increase retention through enhancing relationship quality and expected future use. Customers' expected future use plays an important role in service retention, and represents a valuable marketing opportunity in customer relationship management. Marketing managers will find it beneficial to integrate expected future use into marketing communication, retention‐based marketing, and other marketing interactions.

Originality/value

This research represents one of the first studies in service retention literature by empirically examining the role of expected future use in relationship‐based retention. Existing theories of relationship quality may also be improved with such an inclusion of customer psychological mechanism. The model provides insights into the effects of customer's expectations of future usage on customer intentions beyond traditional relationship marketing models.

Details

Managing Service Quality: An International Journal, vol. 21 no. 5
Type: Research Article
ISSN: 0960-4529

Keywords

Article
Publication date: 12 February 2018

Dian Anggraece Sigit Parawansa

The purpose of this paper is to investigate the effect of commitment and customer’s satisfaction on the relationship between service quality and customer retention.

2657

Abstract

Purpose

The purpose of this paper is to investigate the effect of commitment and customer’s satisfaction on the relationship between service quality and customer retention.

Design/methodology/approach

The research was conducted on the entire customer rural banks (BPR) in Makassar, South Sulawesi Province; the sample size comprised 300 respondents. Analysis equipment used in this study is a quantitative approach that is inferential statistical analysis with structural equation modeling based variance is known as a method WarpPLS.

Findings

The results of the analysis show that there is significant influence between the variables of service quality, commitment, customer satisfaction, and customer retention. It was also found that the results of the variables commitment and customer satisfaction mediate the effect of service quality on customer’s retention.

Originality/value

The study showed the mediation effect (using the Sobel test) of service quality on customer retention using commitment and customer satisfaction as intervening variables in rural banks; and the study was conducted in the customer rural banks (BPR) in Makassar, South Sulawesi Province, where no such study for this relationship has been conducted previously.

Details

Journal of Management Development, vol. 37 no. 1
Type: Research Article
ISSN: 0262-1711

Keywords

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