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Article
Publication date: 4 May 2021

Ya Zhang and Jing Zhang

This study explores the impact of brand's psychological contract violation on customers' spurious loyalty, via the mediating effects of customers' brand commitments (affective…

Abstract

Purpose

This study explores the impact of brand's psychological contract violation on customers' spurious loyalty, via the mediating effects of customers' brand commitments (affective commitment, calculative commitment and normative commitment) and the moderating effects of justification for violation and nostalgia proneness in the link of psychological contract violation and three commitments.

Design/methodology/approach

Based on 427 valid responses collected from paper- and web-based survey questionnaires, a total of 21 hypotheses were tested by adopting a structural equation model, hierarchical regression technique and slope analyses.

Findings

The result indicates negative effects of psychological contract violation on customers' attitudinal loyalty and behavioral loyalty via affective commitment and normative commitment, as well as positive effects of psychological contract violation on customers' attitudinal loyalty and behavioral loyalty via calculative commitment. It explains the reason why some loyal customers show spurious loyalty after being psychological contract violated. Meanwhile, it also supports different moderating impacts of justification for violation and nostalgia proneness in these relationships.

Originality/value

This study underscores the importance of calculative commitment in mitigating the adverse effect of psychological contract violation on customers' loyalty. Also, managerial implications are put forward to prevent loyal customers from switching to a worse loyalty stage after being violated.

Details

Marketing Intelligence & Planning, vol. 39 no. 6
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 26 August 2021

Hai Minh Ngo, Ran Liu, Seifeddine Ben Taieb, Masahiro Moritaka and Susumu Fukuda

Expanding the market share of safe food through a modern retail system has faced a lot of difficulties in Vietnam. Thus, a further understanding of consumer behaviour and loyalty

Abstract

Purpose

Expanding the market share of safe food through a modern retail system has faced a lot of difficulties in Vietnam. Thus, a further understanding of consumer behaviour and loyalty towards such food is essential for food retailers. This study aims at exploring segments of consumer loyalty and its influential factors towards safe food brands in the country.

Design/methodology/approach

Based on a sample of 250 consumers buying safe food in Hanoi city in February 2019, two-step cluster and multinomial logistic regression analyses were applied.

Findings

The results show that four segments of brand loyalty were formed from the interaction between attitudinal and behavioural loyalty as the framework of Dick and Basu (1994), namely, true loyalty, spurious loyalty, latent loyalty and disloyalty. Notably, over 60% of the consumers were in latent loyalty and spurious loyalty, indicating variety-seeking behaviour, multi-brand loyalty or low recognition of the brand. Consumer satisfaction was the most vital motivating consumers to higher loyalty levels. Additionally, brand trust and brand familiarity played significant roles in developing true brand loyalty. An attractive selling store and friendly staff were also important in enhancing brand loyalty.

Originality/value

This study is one of the first to elicit consumer loyalty and identify factors driving the loyalty towards brands of safe food in a developing country like Vietnam.

Details

International Journal of Retail & Distribution Management, vol. 50 no. 4
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 February 1998

Lisa O’Malley

Customer loyalty schemes have blossomed in the era of customer retention, and have been willingly embraced by both retailers and consumers alike. Today’s loyalty schemes are…

25694

Abstract

Customer loyalty schemes have blossomed in the era of customer retention, and have been willingly embraced by both retailers and consumers alike. Today’s loyalty schemes are modelled on the AAdvantage Programme; a frequent flier programme initiated by American Airlines in 1981, and lessons from the air‐line industry are briefly introduced. The primary purpose of this paper is to evaluate the extent to which loyalty schemes really can build loyalty. In order to do this, four categories of loyalty as identified in the literature are considered. Given existing criticisms of loyalty schemes it is concluded that such schemes have an important role to play in situations where no loyalty or spurious loyalty is evident. However, where sustainable loyalty is the ultimate goal, customer loyalty schemes are of importance only as part of a coherent value proposition.

Details

Marketing Intelligence & Planning, vol. 16 no. 1
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 1 June 1997

Rajshekhar Raj G. Javalgi and Christopher R. Moberg

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…

9751

Abstract

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.

Details

Journal of Services Marketing, vol. 11 no. 3
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 1 August 2001

Andreas H. Zins

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…

22386

Abstract

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.

Details

International Journal of Service Industry Management, vol. 12 no. 3
Type: Research Article
ISSN: 0956-4233

Keywords

Article
Publication date: 1 March 2001

James M. Gladden and Daniel C. Funk

This paper examines the relationship between brand associations (anything in the consumer's mind linked to a specific team brand) and brand loyalty in US professional sport. To…

6357

Abstract

This paper examines the relationship between brand associations (anything in the consumer's mind linked to a specific team brand) and brand loyalty in US professional sport. To study the relationship between 13 brand association dimensions and brand loyalty, a survey of professional sport consumers was completed (N = 929). Results of multiple regression analysis revealed positive relationships between fan identification, escape, nostalgia, and product delivery, and brand loyalty. Negative relationships were found between tradition, star players, and peer group acceptance, and brand loyalty.

Details

International Journal of Sports Marketing and Sponsorship, vol. 3 no. 1
Type: Research Article
ISSN: 1464-6668

Keywords

Article
Publication date: 2 August 2011

Li‐Wei Wu

Empirical studies investigating the antecedents of customer loyalty typically focus on satisfaction. This study aims to develop and test a more comprehensive model of the…

7323

Abstract

Purpose

Empirical studies investigating the antecedents of customer loyalty typically focus on satisfaction. This study aims to develop and test a more comprehensive model of the antecedents of customer loyalty, including satisfaction and inertia. In addition, this study also considers how the effects of satisfaction and inertia on customer loyalty vary with differing levels of the zone of tolerance (ZOT), and how these are likely to change due to customers' alternative attractiveness.

Design/methodology/approach

Hierarchical moderated regression analysis was used to test the hypotheses.

Findings

The results show that a wider level of the ZOT strengthens the positive effect of inertia on customer loyalty, while also reducing the positive effect of satisfaction. The results also indicate that the negative moderating effect of the ZOT on the relationship between satisfaction and customer loyalty will reduce as alternative attractiveness increases. In contrast, the positive moderating effect of the ZOT on the relationship between inertia and customer loyalty will reduce as alternative attractiveness increases.

Originality/value

This study is a first attempt to integrate the ZOT to determine the relative importance of satisfaction and inertia in determining customer loyalty. In addition, this study suggests that customers with higher perceptions of alternative attractiveness are more likely to experience changes in the influence of the ZOT on their loyalty decisions.

Details

Journal of Services Marketing, vol. 25 no. 5
Type: Research Article
ISSN: 0887-6045

Keywords

Open Access
Article
Publication date: 1 July 2021

Makoto Kimura

This study presents the applicability of a model-based approach for loyalty program forecasting using smartphone app in the digital strategy of the retail industry.

6778

Abstract

Purpose

This study presents the applicability of a model-based approach for loyalty program forecasting using smartphone app in the digital strategy of the retail industry.

Design/methodology/approach

The authors develop a dynamic model with the cyclical structure of customer segments through customer experience. They use time-series data on the number of members of the loyalty program, “Seven Mile Program” and confirm the validity of the approximate calculation of customer segment share, customer segment sales share and aggregate sales performance. The authors present three medium-term forecast scenarios after the launch of a smartphone payment service linked with the loyalty program.

Findings

The sum of the two customer segment shares for forecasting (the sum of the quasi-excellent and excellent customer ratios) is about 30% in each scenario, consistent with an essential customer loyalty (true loyalty) share obtained in the existing empirical study.

Research limitations/implications

Digital strategy in the retail industry should focus more on estimating and forecasting average amounts of customer segments and the number of aggregated customers through the digitalization on the customer side than on individual customer journeys and responses.

Practical implications

Multi-scenario evaluation through simulation of dynamic models from a systemic view can be used for decision-making in retailing digital strategies.

Originality/value

This study builds a model that integrates the cyclicality of customer segment transition through customer experiences into a loyalty matrix framework, which is a method that has previously been used in the hospitality industry.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 34 no. 3
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 1 November 2000

Jennifer Rowley and Jillian Dawes

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…

4833

Abstract

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.

Details

Journal of Consumer Marketing, vol. 17 no. 6
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 11 June 2018

Veeva Mathew and Sam Thomas

The purpose of this paper is to investigate the role of product and customer dimensions in the contribution of brand experience to the formation of true brand loyalty. The…

4138

Abstract

Purpose

The purpose of this paper is to investigate the role of product and customer dimensions in the contribution of brand experience to the formation of true brand loyalty. The dimensions included are brand credibility, affective commitment and involvement. Synthesising past studies, the researcher proposes brand credibility and affective commitment to mediate the relationship between brand experience and true brand loyalty. Furthermore, the researcher investigates the variation in hierarchical pattern, i.e. brand experience-brand credibility affective commitment-true brand loyalty, under different levels of involvement.

Design/methodology/approach

The variations in hierarchy were compared by design. The authors investigated the variations in hierarchy on the basis of products which belong to different level of involvement, on the basis of individual differences in involvement, and on the basis of the interaction of product involvement and subject involvement. Multi-group invariance tests in SEM were used to explore model variations.

Findings

The hierarchy-of-effect model was found to vary based on the level of product involvement, subject involvement and interaction involvement. Three patterns of hierarchy have been observed: the first pattern was observed in high-high groups (both product involvement and subject involvement were high), the second pattern was observed in low-low groups (both product and subject involvements were low) and the third pattern among high-low or low-high groups.

Practical implications

The variation observed highlights the need to segment the market by interaction involvement. This would be useful for managers engaged in building sustainable consumer-brand relationships.

Originality/value

This study considered the interaction of product approach and subject approach in defining involvement which is rarely attempted in research. The study also integrates the variations in the role of customer dimensions, namely involvement, brand credibility and affective commitment with the relationship between the central constructs brand experience and true brand loyalty. The variations observed are among a socio-economically homogeneous sample of respondents.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 30 no. 3
Type: Research Article
ISSN: 1355-5855

Keywords

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