Search results

This study aims to assess the usefulness of Dick and Basu's framework of customer loyalty to examine consumer loyalty on the grocery product market.

After a short presentation of Dick and Basu's framework, the article discusses a number of anticipated antecedents and consequences to consumer loyalty on the grocery product market. Next, the four loyalty categories and the hypothesized relationships with antecedents and consequences are tested on empirical data from a large survey investigating brand loyalty across five grocery product categories.

The results support the presence of Dick and Basu's four loyalty typologies within all the investigated product categories and further provide evidence for the expected differences between product categories with regard to the proportion of loyalty categories within each product category. The results also support relationships between relative attitude and corresponding antecedents and consequences as suggested by Dick and Basu. And, finally, men are found to be less loyal consumers when compared with women.

The study shows that, at least within some categories of grocery products, it is still possible for marketers to create loyal consumers. The importance of building true loyalty is highlighted by the evidence of true loyals being significantly more likely to postpone their purchases if the store is out of their favourite brand, the least likely to switch to another brand if on sale and less keen on variety seeking.

Survey data from 348 households were used to test the hypothesised relationships.

Low-income consumers (LICs) have gained more attention from marketers after Prahalad and Hart (2004) called attention to untapped opportunities among the world’s poorest. Once neglected and seen as price-driven, more recent research has depicted LICs as brand-conscious consumers who are willing to pay a premium for quality. However, because LICs must balance their tight budgets with aspirations for branded items, this perspective may be too optimistic. To address this issue, the purpose of this paper is to investigate brand consideration and loyalty among LICs across a wide range of products.

The authors used a qualitative-inductive approach to assess LICs’ brand considerations across ten fast-moving consumer goods. In-depth interviews with 20 Brazilian LICs were conducted.

The authors found that brand loyalty among LICs is both context- and category-dependent. Patterns of loyalty are influenced by five factors: perceived differentiation, perceived risk, contextual usage, proportion of the category expenditure to household income and hedonic vs functional consumption. It seems that the interplay of these factors ultimately shapes differently the attitudes and repeated patronage of brands within each category among LICs.

Generalizability of findings is limited owing to the qualitative method used.

The authors provide practical insights to managers concerning key attributes that influence brand consideration and loyalty among LICs.

This paper adds to the yet limited knowledge on LICs and provides a deeper and more holistic understanding of the relation of LICs with brands.

Seeks to revisit the theoretical basis for the concept of loyalty through a consideration of the state of “no loyalty”, which we term “disloyalty”. This category is present in the model proposed by Dick and Basu, but is seen to be of less interest than other categories. Here we argue that a more analytical approach to this category might provide a unique insight into loyalty behaviours, but specifically might aid an understanding of the nature of the challenge associated with widening the loyal customer base. We propose the following categories of disloyals: disturbed, disenchanted, disengaged and disruptive. These four categories can be mapped onto a grid with attitudinal and behavioural dimensions. The characteristics of each of these groups are outlined. Segmentation on the basis of these different types of disloyalty could have implications for marketing strategies. The relationships between the different categories of disloyals and Dick and Basu’s categories of loyals may be important in mapping the development of customer relationships. Finally, proposals are made for further research.

Relationship marketing requires a thorough understanding of the long‐run perspective of the supplier‐customer interaction. The concept of customer loyalty can be applied to emphasize the behavioural and attitudinal aspects of this interaction. This study investigates the antecedents of future customer loyalty in the commercial airline industry by applying structural models under four prototypical past loyalty conditions. These conditions are based on behavioural and situational descriptors and labelled in analogy to Day’s compositional approach. It is shown that the superiority of relative attitudes claimed by Dick and Basu cannot be confirmed. Corporate image of the service provider is, along with service quality and customer satisfaction, a powerful and illustrative component for explaining future customer loyalty. When comparing the a priori defined conditions (low, latent, spurious, and true loyalty) it turns out that the structural evaluative differences can be partially interpreted by the phenomena which are described as affective and calculative commitment in the literature. However, it is claimed to consider situational factors such as the character of the buying and decision‐making process in much more detail.

This paper aims to report two studies with the purpose of demonstrating and establishing the efficacy of using an alternative method of operationalizing relative brand attitudes based on Cheung's latent congruence model (LCM).

Data are collected concerning brand attitudes related to their product (study 1) and retailer (study 2) preferred and best alternative brands. Structural equation modeling is used to demonstrate and validate the LCM model, as well as to relate relative brand attitudes to satisfaction judgments and loyalty behaviors.

Two separate samples of respondents across two unique marketing settings (product and retailer brands) support the LCM‐based view of relative brand attitude proposed herein. In addition, results suggest that preferred brands are most strongly related to satisfaction with the preferred brand, however, relative brand attitudes are alternatively related to preferred brand loyalty. Thus, relative brand attitudes appear to have both direct and indirect (through satisfaction) influences on brand loyalty.

Practical implications include the availability of a usable method of operationalizing relative brand attitudes in a way that fully utilizes hedonic/utilitarian attitude scale for absolute and relative brand attitudes measures and can control for measurement error. The proposed method thus provides a means to strengthen measurement models associated with relative brand concepts.

The reported studies offer an alternative and practical method of measuring relative brand attitudes in a way that results in practical insights about consumer satisfaction and brand loyalty.

Extant literature on business-to-business (B2B) has largely ignored studying multi-homing through a psychological lens. This paper aims to outline the results of three constituent studies, which were designed to reveal potential differences in multi-homers’ versus single-homers’ loyalty behaviors in a B2B and supply chain management (SCM) setting; identify factors that differentiate single-homers and multi-homers in these settings; and examine the relevance and effect of perceived risk on multi-homing behaviors.

In Studies 1 and 2, the authors used a questionnaire-based survey to capture the perceptions of 503 and 458 SCM experts, respectively. They then deployed AMOS v.21 to perform structural equation modeling. In Study 3, the authors used a mixed-methods approach to interview 18 SCM experts and then applied these insights to a survey with 242 SCM experts.

Study 1 reveals that multi-homers’ loyalty toward their preferred SP has a weaker effect on willingness to pay premium prices and share-of-wallet than single-homers’ loyalty. Study 2 establishes that several attitudinal factors distinguish multi-homers from single-homers in a loyalty framework. Study 3 concludes that perceived risk dimensions promote multi-homing intention, which in turn promotes multi-homing behavior.

Through empirical investigation, the present research succeeds in establishing that multi-homing is a concern for SPs, deciphering the attitudinal factors that distinguish multi-homers and single-homers in a loyalty framework, and confirming the influence of perceived risk dimensions on multi-homing. Thus, the study has several theoretical and practical implications for B2B services in emerging economies.

To propose a categorisation of customer loyalty types to further increase our understanding of the nature of loyalty.

By segmenting customers who are both loyal in attitude and behaviour to a brand, a model is proposed that differentiates between customers whose loyalty is inertial, and those whose loyalty is positive.

Four categories of loyal customer are proposed: captive, convenience‐seekers, contented and committed. The behaviours and attitudes that can be expected of customers in these different categories are discussed. It is also suggested that customers in different categories will respond in different ways to triggers to switching. Further research that investigates customers' reasons for loyalty behaviour in relation to a portfolio of brands is recommended to validate the model and to enhance understanding and predictability of customer loyalty propensities.

There is agreement that loyals are important for the future of the business, and that this category is deserving of special attention. Since loyalty is key in customer development and profitability, it is important to understand the loyalty condition in more detail, and to use this understanding to develop further the relationship with customers in the loyal category. The model proposed here subdivides loyals in Dick and Basu's categorisation based on behaviour and attitudes. Four categories of loyalty are proposed: captive, contented, convenience‐seeker and committed. Each is described and discussed, and their management implications and research agendas identified. It is noted that any one individual is likely to exhibit the characteristics of each of these categories in relation to different products, services, outlets, and their associated brands. This is a speculative model at this stage of development, which is intended to provoke further thought about the nature of loyalty.

The paper aims to use Dick and Basu's two‐dimensional matrix that identifies four types of customer loyalty: true, spurious, latent and non‐loyal. It seeks to investigate if these four distinct clusters of loyalty existed both in terms of loyalty to the individual service worker (personal loyalty) and loyalty to the firm (service loyalty). The paper also aims to examine the stability of the loyalty clusters.

Using self‐completion mail questionnaires, females over 18 who frequently used the service were surveyed at two time periods, 18 months apart. Of the original 341 respondents at time 1, only 137 (40 per cent) of these successfully completed the questionnaire at time 2.

Even though the service context is such that the customer has the freedom of choice in selecting the service, the four loyalty clusters were found for both personal loyalty and service loyalty. Those customers who were originally classified as “true” loyals were the most stable group. Perceived credibility of the service worker and the length of the customer relationship with the service worker were found to be the main drivers of the type of customer loyalty cluster.

This study provides further empirical support of the value of true loyal customers, defined in terms of both a positive relative attitude towards the object of loyalty and high repeat patronage behavior. A higher proportion of true loyal customers were retained by both the service worker and firm compared to the other loyalty types.

Service industries have been, and will continue to be, largely responsible for much of the domestic and international economic growth in the USA. Service loyalty, which can be obtained by building relationships and providing excellent customer service, is often the key factor that builds competitive advantage for service providers. The main goal article is to provide a conceptual framework for service loyalty, but one that is not based on empirical support. Contends that this framework can assist service providers in determining the type of loyalty conditions that are likely to exist for specific service industries. Offers in addition some guidelines with which to devise appropriate marketing strategies for each service loyalty condition.

The purpose of this paper is to analyze consumer trust during a financial crisis, studying its antecedents and consequences. The perceptions of older and younger consumers are also compared.

The theoretical model of trust formation is tested on a random sample of 634 individuals from the three largest Spanish cities, Madrid, Barcelona and Valencia, in a period of economic crisis. Structural equation models were used to verify the global hypothesized relationships. Additionally, the total sample was divided into two groups (younger and older consumers) in order to test the moderating effect of age in the proposed relationships.

In a period of financial crisis, older consumers’ trust is protected by an emotional and experiential shield from the effects of negative news in the surrounding environment. In contrast, trust, although important, is not the core variable for the younger segment, whose preferences are the consequence of a broad range of cognitive and emotional variables.

This research was carried out on financial services. Emotional, relational and experience-linked variables acquire greater importance as the individual gets older, in contrast to more cognitive evaluations. The difference between the younger and the older segments is that the cornerstone of older consumers’ attitudinal loyalty is trust, whereas for younger people, it is positive switching costs or rewards. Further research on the proposed conceptual model across different industries and countries is needed to determine the generalizability and consistency of the findings from this study.

This paper has significant managerial implications. The authors believe that the best strategy for a bank during a period of crisis is to follow a customer-friendly orientation, as in the case of banks that took a long-term vision to look after their brand image. The study draws banking companies’ attention to the importance of using age as a segmentation criterion.

Based on the life-course paradigm, a theoretical model of trust formation is performed. In a period of economic crisis, trust becomes the key variable in determining older consumers’ preferences.