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Article
Publication date: 10 April 2023

Xiaoxian Ji, Juan Luis Nicolau and Xianwei Liu

Repeat customers play an important role in the restaurant sector. Previous studies have confirmed the positive effect of managerial responses on customer relationship management…

Abstract

Purpose

Repeat customers play an important role in the restaurant sector. Previous studies have confirmed the positive effect of managerial responses on customer relationship management. However, the practice of managerial response strategies toward repeat customers in the restaurant sector remains unclear. This study aims to explore how social influence and the revisit intention of customers affect the responding behavior of restaurant managers.

Design/methodology/approach

This study collects information of 251,944 customer reviews and managerial responses from 1,272 restaurants on Yelp (a leading restaurant review website around the world) and builds four econometric models (with restaurant and month fixed effects) to test the hypotheses empirically.

Findings

The empirical results show that restaurant managers are less likely to respond to reviews posted by repeat customers (10% lower than that of new customers). This effect is moderated by customer social influence, which entails that repeat customers with great social influence are more likely to receive managerial responses. Moreover, reviews from repeat customers who have had a longer time since their last consumption are also more likely to receive managerial responses.

Practical implications

The results present implications for restaurant managers in business practice regarding managerial response. Managers should take advantage of platform designs and tools (i.e. customer relationship management programs to keep track of repeat customers) to locate repeat customers and avoid the potential negative effects caused by their selected response strategies.

Originality/value

To the best of the authors’ knowledge, this study is among the first attempts to examine empirically how restaurant managers respond to reviews generated by repeat customers in real business practice and reveals what drives such activities from the perspectives of social influence and revisit intention.

Details

International Journal of Contemporary Hospitality Management, vol. 35 no. 12
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 12 June 2017

Bee-Lia Chua, Sanghyeop Lee and Heesup Han

This study aims to test the relationships among involvement, perceived price, perceived quality, affective satisfaction, perceived value, attitudinal loyalty and behavioral…

2032

Abstract

Purpose

This study aims to test the relationships among involvement, perceived price, perceived quality, affective satisfaction, perceived value, attitudinal loyalty and behavioral loyalty in the cruise line industry. In addition, this study attempted to identify whether the differences in these variables exist across first-time and repeat cruise customers.

Design/methodology/approach

The web-based survey was used. A total of 403 complete responses were used for data analysis. Anderson and Gerbing’s (1988) two-step approach was used to achieve study objectives.

Findings

The t-test analyses demonstrated that repeat cruise customers expressed significantly lower perceived price and higher affective satisfaction, perceived value and behavioral loyalty than first-time cruise travelers. The structural equation modeling results revealed that involvement has an important role in loyalty generation process. However, the structural model did not significantly differ across first-time and repeat customers.

Practical implications

Overall, the results indicated the critical needs to develop individuals’ interest in cruise vacation with a particular cruise line. Cruise line operators who undertake promotion efforts that enhance people involvement with their cruise line should result in greater likelihood of choosing the same cruise line in the future.

Originality/value

With a lack of research about cruise line involvement and loyalty, this research contributes to theoretical understanding of intricate attitudinal and behavioral loyalty generation process across first-time and repeat cruise passengers.

Details

International Journal of Contemporary Hospitality Management, vol. 29 no. 6
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 23 October 2018

Jennifer A. Espinosa, David J. Ortinau, Nina Krey and Lisa Monahan

The purpose of this paper is to study how repeat customers utilize their established overall restaurant brand image (ORBI), overall restaurant loyalty, satisfaction and behavioral…

5808

Abstract

Purpose

The purpose of this paper is to study how repeat customers utilize their established overall restaurant brand image (ORBI), overall restaurant loyalty, satisfaction and behavioral intentions (revisit, recommend) to reengage with a casual-dining restaurant brand.

Design/methodology/approach

The study design consists of a mixed-methods, two-phase research approach that includes both qualitative and quantitative data. First, focus groups and in-depth interviews with adult customers reveal preliminary insights on restaurant dining patterns and familiarity with franchised casual dining restaurants. Second, an online self-administered survey tests the influence of ORBI on repeat customers’ overall restaurant loyalty, satisfaction and behavioral intentions.

Findings

For repeat customers, ORBI positively predicts loyalty and satisfaction. Loyalty and satisfaction mediate the relationship between ORBI and intentions to recommend, while loyalty alone mediates the relationship between ORBI and intentions to revisit a casual dining restaurant.

Practical implications

Managers looking to stimulate recommendation intentions can increase ORBI, loyalty or satisfaction among repeat customers; or choose some combination of these three predictors. To improve revisit intentions, managers should first increase loyalty, followed by ORBI. Importantly, management needs to tailor information given to repeat customers differently than other customers.

Originality/value

This paper provides a first conceptualization of how both loyalty and satisfaction jointly mediate the relationships between ORBI and two behavioral intentions (revisit, recommend). The results show that loyalty plays a significant role in these predictive relationships and is more important than satisfaction for enhancing intentions to revisit a restaurant.

Details

Journal of Product & Brand Management, vol. 27 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 13 April 2020

Alexandra Polyakova, Zachary Estes and Andrea Ordanini

Companies often provide preferential treatment, such as free upgrades, to customers. The present study aims to identify a costly consequence of such preferential treatment (i.e…

Abstract

Purpose

Companies often provide preferential treatment, such as free upgrades, to customers. The present study aims to identify a costly consequence of such preferential treatment (i.e. opportunistic behavior) and reveal which type of customer is most likely to engage in that negative behavior (i.e. new customers).

Design/methodology/approach

Across two experimental studies, the authors test whether preferential treatment increases customers’ entitlement, which in turn increases their propensity to behave opportunistically. Moderated mediation analysis further tests whether that mediated effect is moderated by customers’ prior relationship with the company.

Findings

Preferential treatment increases feelings of entitlement, which consequently triggers customers’ opportunistic behaviors. New customers are more likely to feel entitled after preferential treatment than repeat customers, and hence new customers are more likely to behave opportunistically. Preferential treatment also increases customers’ suspicion of the company’s motives, but suspicion was unrelated to opportunistic behavior.

Research limitations/implications

Future research may focus on other marketplace situations that trigger entitlement and explore whether multiple occurrences of preferential treatment provide different effects on consumers.

Practical implications

Present findings demonstrate that preferential treatment can evoke opportunistic behaviors among customers. The authors suggest that preferential treatment should be provided to customers who previously invested in their relationship with a company (i.e. repeat customers) rather than new customers.

Originality/value

Prior research has focused more on the ways companies prioritize their repeat customers than how they surprise their new customers. The present research instead examines preferential treatment based on customers’ relationship with a firm (i.e. both repeat and new customers) and demonstrates behavioral and contextual effects of entitlement.

Details

European Journal of Marketing, vol. 54 no. 4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 6 August 2018

Meili Lu, Zuoliang Ye and Yufei Yan

The purpose of this paper is to study the regularity of the e-commerce customer repeat purchase behavior, and provide new ideas and methods for e-commerce vendor’s e-commerce…

1434

Abstract

Purpose

The purpose of this paper is to study the regularity of the e-commerce customer repeat purchase behavior, and provide new ideas and methods for e-commerce vendor’s e-commerce customer management.

Design/methodology/approach

Through analysis of the priority in activity mechanism and new customers’ dynamic growth in customer’s purchase behavior, this paper builds a model of the customer’s purchase frequency, which can be verified by the empirical data gathered from www.taobao.com, www.jd.com, www.yhd.com and www.amazon.com.

Findings

This paper discovers the regularity that the customer’s purchase frequency obeys power law distribution. Empirical data show that this model can represent the real repeat purchase process well. At the same time, it provides the theoretical basis for the vendor regional management by introducing the concept of stickiness and the corresponding methods of calculation.

Research/limitations/implications

This study only focuses on the basic model of e-commerce customer’s repeat purchase and lack of study on influence factors about the characteristics of different vendors and it needs to make extensions considering fluctuation of new customers, or customer aging and loss.

Practical/implications

This study provides a theoretical basis for vendor to take different marketing strategies through classifying customers based on the characteristic of purchase stickiness.

Originality/value

The definition and calculation method of purchase stickiness is put forward for the first time, and the value of purchase stickiness changes with the number of purchase. It provides the theoretical basis for the vendor regional management, and will be good for further studying the e-commerce market about customer’s purchase behavior.

Details

Nankai Business Review International, vol. 9 no. 3
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 2 April 2021

Jina Kim, Yeonju Jang, Kunwoo Bae, Soyoung Oh, Nam Jeong Jeong, Eunil Park, Jinyoung Han and Angel P. del Pobil

Understanding customers' revisiting behavior is highlighted in the field of service industry and the emergence of online communities has enabled customers to express their prior…

Abstract

Purpose

Understanding customers' revisiting behavior is highlighted in the field of service industry and the emergence of online communities has enabled customers to express their prior experience. Thus, purpose of this study is to investigate customers' reviews on an online hotel reservation platform, and explores their postbehaviors from their reviews.

Design/methodology/approach

The authors employ two different approaches and compare the accuracy of predicting customers' post behavior: (1) using several machine learning classifiers based on sentimental dimensions of customers' reviews and (2) conducting the experiment consisted of two subsections. In the experiment, the first subsection is designed for participants to predict whether customers who wrote reviews would visit the hotel again (referred to as Prediction), while the second subsection examines whether participants want to visit one of the particular hotels when they read other customers' reviews (dubbed as Decision).

Findings

The accuracy of the machine learning approaches (73.23%) is higher than that of the experimental approach (Prediction: 58.96% and Decision: 64.79%). The key reasons of users' predictions and decisions are identified through qualitative analyses.

Originality/value

The findings reveal that using machine learning approaches show the higher accuracy of predicting customers' repeat visits only based on employed sentimental features. With the novel approach of integrating customers' decision processes and machine learning classifiers, the authors provide valuable insights for researchers and providers of hospitality services.

Details

Data Technologies and Applications, vol. 55 no. 4
Type: Research Article
ISSN: 2514-9288

Keywords

Article
Publication date: 1 July 2002

Carolyn Folkman Curasi and Karen Norman Kennedy

Research in customer satisfaction over the past decade has lead to a much richer understanding of service quality and customer expectations. In trying to untangle the linkage…

4553

Abstract

Research in customer satisfaction over the past decade has lead to a much richer understanding of service quality and customer expectations. In trying to untangle the linkage between satisfied customers and long‐term success for the organization, however, attention has evolved from a focus on customer satisfaction to a realization that retaining customers and developing loyalty are essential for organizational success. This interpretive investigation focuses on customer retention and loyalty in an effort to understand better these variables in the context of service organizations. In so doing we review the rise of managerial concern for customer retention and loyalty and examine the definitions and relationships of these constructs. Then, to develop a richer understanding of repeat buyers, semi‐structured interviews were conducted with consumers identifying themselves as “loyal”. A typology of loyalty is offered consisting of five levels of repeat buyers, ranging from “prisoners” to “apostles”. Additionally, the managerial implications of this typology are discussed.

Details

Journal of Services Marketing, vol. 16 no. 4
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 25 December 2023

Hongying Zhao and Christian Wagner

The purpose of this paper is to examine how different types of user experience in TikTok impact purchase intention via commitment to the influencer and commitment to the platform…

2747

Abstract

Purpose

The purpose of this paper is to examine how different types of user experience in TikTok impact purchase intention via commitment to the influencer and commitment to the platform, with customer type included to determine moderating effects. Three types of user experience are considered: information experience, entertainment experience and parasocial-relationship-based experience.

Design/methodology/approach

This study collected 458 valid questionnaires from TikTok users, employing the structural equation modeling approach to examine the proposed research model.

Findings

Information experience, entertainment experience and parasocial-relationship-based experience are found to critically stimulate user commitment to the influencer and commitment to the platform, in turn driving TikTok-based purchase intention. Tests incorporating customer type reveal that commitment to the influencer more strongly influences the purchase intention of repeat customers, with commitment to the platform more likely to stimulate purchase intention among potential customers.

Research limitations/implications

On a theoretical level, the paper is among the first to examine TikTok-based user purchase intention with customer type as a moderator. On a practical level, the results can guide marketers to effectively promote products using TikTok and inspire TikTok managers to develop customized strategies to stimulate initial and repeat sales.

Originality/value

TikTok is moving to the stage of commercialization and monetization by introducing e-commerce features. Although this move should cultivate particularly fertile ground for companies to sell products, TikTok user purchase behavior has yet to receive sufficient research attention, with little currently known about their purchase motivations. The current study uncovers the significant antecedents of users' purchase intention through TikTok, and further reveals the motivational differences among potential and repeat customers.

Details

Internet Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 9 April 2019

Karen L. Xie, Linchi Kwok and Jiang Wu

The purpose of this study is to examine the effects of host attributes and travelers’ frequency of past stays and their interaction on the likelihood of repeat purchase of…

Abstract

Purpose

The purpose of this study is to examine the effects of host attributes and travelers’ frequency of past stays and their interaction on the likelihood of repeat purchase of home-sharing services at both the host and listing levels.

Design/methodology/approach

A combination of econometrics analyses using a large-scale, granular online observational data set collected from a home-sharing platform was performed.

Findings

Travelers exhibit salient loyalty to home-sharing services. At the host level, host attributes including acceptance rate and listing capacity positively affect travelers’ likelihood of repeat purchase; such effects diminish as travelers’ frequency of past stays with a host/listing increases. At the listing level, confirmation efficiency and acceptance rate are critical, and travelers’ frequency of past stays matters.

Research limitations/implications

Responding to the call for more research on customer loyalty of sharing economy, this study instantiated on a home-sharing website in China and adds a unique perspective to the research domain, but its findings may not be generalized in other settings.

Practical implications

This study identifies the factors affecting customersrepeat purchase behaviors at both the host and listing levels, allowing the hosts, webmasters of home-sharing websites and even hoteliers to advance specific tactics to promote repeat purchase among travelers.

Originality/value

Loyalty was measured with real-time internet-enabled observational data about travelers’ actual repeat purchase behavior on a home-sharing website, rather than assessing consumers’ behavioral intentions through the conventional survey method. Two specific levels of customer loyalty were analyzed, including the ones towards a service provider (host) and a service product (listing).

Details

International Journal of Contemporary Hospitality Management, vol. 31 no. 3
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 15 November 2018

N. Nuruzzaman and Deeksha Singh

This paper aims to attempt to examine the effect of firm-customer exchange characteristics, frequency and specificity, on the likelihood of the firm to generate customer-driven…

Abstract

Purpose

This paper aims to attempt to examine the effect of firm-customer exchange characteristics, frequency and specificity, on the likelihood of the firm to generate customer-driven innovation. The authors draw from social capital theory and argue that repetitive and customer-specific exchange improves the trusts between firm and customers, which in turn ease the flows of tacit knowledge from customers to the firm. From the perspective of customer knowledge management, the authors contribute by examining the mechanism by which a firm can acquire knowledge from and about customers. The authors further argue that a firm’s ability to absorb knowledge from customers and turn them into innovation also depends on its internal capability. A firm that consistently upgrades its capacity is more likely to generate customer-driven innovation than those that do not. Also, the authors argue that the joint effect of exchange characteristics and internal capability upgrading can further increase the likelihood of customer-driven innovation. Such a joint force implies the positive moderating effect of internal capability upgrading to the relationship between exchange characteristics and customer-driven innovation.

Design/methodology/approach

The authors test the hypotheses on 3,000 firms from six countries in Latin America. They take advantage of the 2017 World Bank Enterprises Survey. This most recent of the survey asks questions on various types of innovation and firm-customers exchange characteristics and other firm-level variables.

Findings

The authors find support for our hypotheses that repeated exchange and exchanges tailored to specific customers have a positive effect on customer-driven innovation. Also, they find the support that internal capability upgrading, in the form of investment in product design, marketing and organizational development has a positive effect on customer-driven innovation. The authors also find that investment in product design positively moderates the impact of exchange characteristics on the likelihood of customer-driven innovation.

Originality/value

While past studies focus on strategies to acquire and manage customers’ knowledge, little has been said about how exchange attributes can encourage or discourage innovation? This question is important because various theoretical perspectives may have a different prediction on the effect of firm-customer relationship and innovation. This study attempts to bridge such theoretical tension.

Details

Journal of Knowledge Management, vol. 23 no. 9
Type: Research Article
ISSN: 1367-3270

Keywords

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