The moderating effects of purchase importance in customer satisfaction process: An empirical investigation

Customer satisfaction continues to draw the interest of researchers and practitioners because it can lead to long term benefits including customer loyalty. Purchase importance plays a role in pre‐purchase process, yet little is known about how it may influence customer satisfaction formation process and loyalty intentions. This study examines the moderating effect of purchase importance in the customer satisfaction formation process and in loyalty intentions. A survey was conducted with customers in a restaurant setting, and structural equation analysis via LISREL was performed. The results show that perceived performance has a stronger influence on satisfaction when purchase importance is low, whereas satisfaction seems to be influenced both by disconfirmation and perceived performance when purchase importance is high. Post‐consumption expectations were found to influence on loyalty intentions under both high and low importance purchase conditions. The implications of these findings are discussed and suggestions for future research are made. Copyright © 2011 John Wiley & Sons, Ltd.     

Does service failure influence customer loyalty?

There is a general consensus that customer loyalty to service providers is not solely dependent upon their level of satisfaction or dissatisfaction. However, the identified antecedents of loyalty remain, at best, highly speculative. The aim of this extensive literature review is to give some understanding of the nature of customer loyalty and the antecedent effects of service dissatisfaction. The research reviewed suggests that customer loyalty is an attitudinal state, reflecting value, trust and commitment within supplier–customer relationships. Satisfaction is one of several antecedents of loyalty. A key influence on loyalty is the offer of unique value‐delivering advantages not provided by competitors. Thus firms need to develop positive value‐based exit barriers to achieve loyalty. When service failures occur, the recovery process is likely to have a greater impact on loyalty than the original service failure. The key to successful recoveries was found to be the customer's perception of ‘fairness’. Recovery programmes must get it right first time. Customers who remain dissatisfied after a complaint has been handled are more dissatisfied than if no recovery attempt had been made. Dissatisfaction and customer satiation are major causes of a customer's exit. The solution to customer satiation is dynamic value creation. Collection and monitoring of customer data is needed for success and two‐way communication is vital. Copyright © 2002 Henry Stewart Publications.     

A Commentary on 'Exploring the Nature of Human Resource Developers' Expertise"

Previous research has shown that organizational identification (OI) of leaders is positively related to employee OI and, in turn, linked to positive behaviours of employees towards the organization. In the present study, we argue that leader OI does not only affect variables at the employee level but, through its influence on employees, also contributes to important customer outcomes (i.e., customer satisfaction, customer loyalty, and customer recommendations). Drawing on self-concept based theories of leadership effectiveness and insights from service linkage research, the present article proposes that OI plays an important role in these influence processes. Additionally, the article delineates the behavioural and psychological variables that intervene employee OI and customer outcomes. More specifically, we suggest that leader OI is positively related to follower OI, which results in customer-oriented service behaviour. Customer orientation, in turn, should positively affect customers' identification with the organization and, ultimately, result in customer satisfaction, customer loyalty, and customer recommendations. Results of a multilevel field study using data from leaders, employees, and customers provide support for our theoretical model.     

Satisfaction,loyalty and word of mouth within the customer base of a utility provider: differences between stayers,switchers and referral switchers

Research on satisfaction, loyalty and word of mouth (WOM) behaviour has made considerable progress within recent years, but important aspects remain neglected. In this paper, it is argued that, within the customer base of service providers, certain groups can be identified which differ from each other with regards to these variables. Hypotheses are developed and tested in a sample of 765 clients of a large German energy provider. The results show that recently acquired customers (switchers) differ from long‐term customers (stayers), and that switchers acquired through customer referrals differ from switchers recruited through advertising or direct mail in their satisfaction, loyalty and WOM behaviour. The paper ends with some important implications for management and future research. Copyright © 2004 Henry Stewart Publications Ltd.     

Customer Satisfaction and Switching Barriers: Effects on Repurchase Intentions,Positive Recommendations,and Price Tolerance1

The current article attempts to extend previous research by testing the effects of customer satisfaction and 2 types of switching barriers—negative and positive—on key manifestations of attitudinal loyalty (repurchase intentions, positive recommendations, and price tolerance). The work also studies whether the effect of customer satisfaction is linear or nonlinear. Finally, the paper analyzes whether switching barriers moderate the relative strength of the customer satisfaction/attitudinal loyalty relation. To this end, a total of 554 private mobile‐phone customers were surveyed. The distinction between negative and positive switching barriers is important to draw theoretical and managerial implications.     

Customer Loyalty to the Salesperson and the Store: Examining Relationship Customers in an Upscale Retail Context

Only recently has research interest in relationship marketing and customer loyalty converged in the retail context. Although this research shows that relationship customers maintain their primary loyalty to the salesperson, which then “spills over” and affects loyalty to the store, other research suggests that salesperson loyalty has direct effects on store-level outcomes, such as spending and word of mouth. However, this has not been comprehensively investigated, and relationship researchers have specifically called for research examining the effects of salesperson and store loyalty on store-level outcomes. Our research addresses this call, and shows that in an upscale retail context a relationship customer's loyalty to the salesperson is significantly related to store loyalty as well as the important store-level outcomes of share of purchases, word of mouth and competitive resistance.     

Review of the theoretical underpinnings of loyalty programs

A review of the extant literature reveals that the theoretical underpinnings of the majority of loyalty program research rest on psychological mechanisms from three specific domains—status, habit, and relational. We propose that to understand how loyalty programs actually work, a broader, more holistic research perspective is needed to account for the simultaneous effects across these three theoretical domains as well as both cross-customer and temporal effects. The contribution of this approach is a fresh research agenda advanced in 15 research propositions.     

Emerging perspectives on customer relationships,interactions and loyalty in Irish retail financial services

• This paper presents the key findings in relation to current consumer perspectives on the role of relationships, the nature of loyalty and types of customer interaction from an in‐depth qualitative consumer study of Irish retail banking.
• Although the literature proposes that the RM approach is particularly applicable to the financial services sector, the research findings identify key supply and demand‐related changes within Irish financial services and raise questions as to the appropriateness of general RM theory to the current nature of interaction between consumers and their financial suppliers.
• Key customer factors such as low involvement, apathy and dissatisfaction have resulted in much apparent customer loyalty actually being spurious. More important for customers in this study was how convenient the bank was for their lifestyle.
• In an age in which increased depersonalisation and automation impact upon the nature of consumer‐supplier interaction and service delivery, it would appear that the concepts of relationship and loyalty need to be fundamentally re‐examined and their role and relevance within current retail financial services re‐appraised.

Copyright © 2006 John Wiley & Sons, Ltd.     

When Brand Attitudes Affect the Customer Satisfaction‐Loyalty Relation: The Moderating Role of Product Involvement

Drawing on the attitude accessibility and stability theories, we investigate the moderating role of product involvement in the customer satisfaction‐loyalty relation. Structural equation modeling shows that customer satisfaction has both direct and indirect effects on loyalty, whereas ad attitudes and corporate image have only indirect effects through their mediating influence on brand attitudes. Furthermore, product involvement decreases the direct effects of satisfaction on brand attitudes and loyalty, but it increases the indirect effects of ad attitudes and corporate image.     

The Impact of Customer Service and Product Value on Customer Loyalty and Purchase Behavior

Based on research and theories on justice, it was predicted that customer service would be as important as, or even more important than perceived product value in determining customer loyalty and purchase behavior. This general hypothesis was tested by surveying 324 respondents who had just patronized several retail outlets. Results indicated that customer service was indeed more important than perceived product value in predicting customer loyalty, the amount of money spent in the visit, and the range of products purchased. In addition, customer service was a significant predictor of all 3 variables, whereas perceived product value was able to predict customer loyalty only. It was also found that for females and respondents with a higher income, customer loyalty was more influenced by customer service.     

Differential associations between maternal and paternal parenting and physical and relational aggression

A large number of studies have demonstrated that negative parenting is associated with greater levels of aggression (relational and physical) among school‐age children in Western cultures. However, the investigation of this association for children in non‐Western cultures is still in its infancy. The present study examines the associations between maternal and paternal parenting behaviours (conflict with the child, physical aggression toward the child and relational aggression toward the child) and forms of aggression, and explores gender differences in these associations among Japanese boys and girls. The participants were 130 fifth and sixth graders (age range: 10 to 12). Children reported maternal and paternal parenting behaviours, and classroom teachers assessed children's relational and physical aggression. Results show that boys and girls had more conflict, more relationally aggressive parenting experiences and more intimate relationships with their mothers than their fathers. Further, after controlling for grade and gender, greater maternal (but not paternal) relational aggression was associated with more peer‐oriented relational aggression for boys only and more peer‐oriented physical aggression for boys and girls. Greater paternal (but not maternal) conflict was predictive of more peer‐oriented physical aggression for boys and girls. The direction and strength of the associations between parenting behaviours and forms of aggression may be contingent upon the gender of the parent and the child. The findings are discussed from cultural, developmental and social perspectives, and implications for future research are discussed.     

The empirical link between relationship marketing tools and consumer retention in retail marketing

This article focuses on the key relationship marketing tools of customer service, loyalty/rewards programs, brand/store community, personalization and customization, and their relationship with customer retention. The relationship between customer service, loyalty/rewards programs, customization, personalization, brand/store community and customer retention were examined via an empirical investigation of 450 loyalty/reward program members of three retail stores in Malaysia. The administration of the survey was personally administered but self‐completed. Four of the five relationship marketing tools, namely, customer service, loyalty/rewards programs, brand/store community and personalization, had a significant positive relationship with customer retention. The findings provided valuable insights into the loyalty program management practices of retail stores in a developing country context. Copyright © 2013 John Wiley & Sons, Ltd.     

Modeling Customer Loyalty from an Integrative Perspective of Self-Determination Theory and Expectation–Confirmation Theory

Purpose  This research conceptualizes and tests an integrative model of customer loyalty by linking two important theories: expectation–confirmation theory and self-determination theory. Design/Methodology/Approach  The model is examined using data obtained from 207 part-time students who have encountered the service of a skincare and beauty salon in Taiwan. These students work as full-time professionals in a variety of industries during the daytime and are financially independent for their daily consumption. Findings  The empirical results of this study indicate that loyalty is positively influenced by both intrinsic regulation and identified regulation, while introjected regulation and external regulation are insignificantly related to loyalty. Affected positively by service expectation and service confirmation, satisfaction has positive influences on all four dimensions of self-determined motivation—namely, intrinsic regulation, identified regulation, introjected regulation, and external regulation. Implications  The findings of this study show that the proposed model helps to learn about loyalty formation and its mediating mechanism in service contexts. Intrinsic regulation and identified regulation may be applied as two potential checkpoints for management to learn the actual status of customer loyalty based on a constant service quality offered by the service provider. Originality/Value  This study is one of the earliest to integrate expectation–confirmation theory and self-determination theory to explore loyalty. Besides, this study transplants the traditional application of self-determination theory from educational service to commercial service in general so that efficient strategies can be made for boosting loyalty.     

Gratitude in buyer-seller relationships: a dyadic investigation

In addressing the call for research to understand affect in sales, this research uses moral affect theory and literature on emotional contagion to examine the effects of salesperson gratitude and customer gratitude on downstream relationship outcomes. The findings of this work suggest that salesperson prosocial behaviors account for the positive association between salesperson gratitude and customer gratitude. These prosocial behaviors – information sharing and extra-role behaviors – combined with customer gratitude serve as explanatory mechanisms for the positive effects of salesperson gratitude on customer commitment, which is an important result of buyer-seller interactions and an essential component of long-term relationships. Further, this research finds that salesperson extra-role behaviors and relationship length interact such that salesperson extra-role behaviors cultivate customer gratitude within developing and established relationships, but that these behaviors are particularly beneficial for less mature relationships. Understanding the role of salesperson gratitude and customer gratitude in driving relational outcomes contributes to both a theoretical understanding of the role of affect in sales and practical applications of emotions within buyer-seller relationships.     

Salesperson characteristics affecting consumer complaint responses

The important relationship between consumer complaint behaviour and brand and store loyalty is well established. The range of factors that favourably influence the outcomes of complaining have received relatively less research attention. Therefore, this study tests the effects of two salesperson source characteristics: willingness to listen and product/store knowledge, on consumer complaint‐related perceptions and intentions in a retail setting. Mall shoppers participated in a consumer complaint experiment to test the hypothesised effects. The results indicate that both characteristics affect customer complaint responses, as well as consumer perceptions of the salesperson and the retail store. The findings of the study demonstrate that salesperson characteristics are important influences on positive or negative consumer complaint responses. Copyright © 2001 Henry Stewart Publications.     

Linking organizational resources and work engagement to employee performance and customer loyalty: the mediation of service climate

This study examined the mediating role of service climate in the prediction of employee performance and customer loyalty. Contact employees (N=342) from 114 service units (58 hotel front desks and 56 restaurants) provided information about organizational resources, engagement, and service climate. Furthermore, customers (N=1,140) from these units provided information on employee performance and customer loyalty. Structural equation modeling analyses were consistent with a full mediation model in which organizational resources and work engagement predict service climate, which in turn predicts employee performance and then customer loyalty. Further analyses revealed a potential reciprocal effect between service climate and customer loyalty. Implications of the study are discussed, together with limitations and suggestions for future research.     

Enhancing Program Quality in a National Sample of After‐school Settings: The Role of Youth–Staff Interactions and Staff/Organizational Functioning

Using multilevel data from the national evaluation of Boys and Girls Clubs of America (BGCA), this study examined associations among programmatic structures, workplace and workforce characteristics, and relational practices of program staff as they relate to young people's ratings of their experience attending local clubs. The sample included 57,710 members and 5,231 staff members at 740 BGCA sites throughout the United States. Staff relational practices—including establishing caring relationships, setting high expectations, positive behavior management, encouraging youth input and agency, and cultural sensitivity—explained associations between staffing and organizational functioning and youths’ perceptions of the quality of their clubs. Findings suggest a central role of staff relational practices in establishing conditions that youth experience positively, and that staffing and organizational processes, including community engagement and teamwork and efficiency can be viewed as foundations for establishing a culture of positive adult‐youth interaction, which in turn can contribute to the promotion of positive youth development. Further, identification with the experiences of youth had a direct association with youths’ perceptions of club quality. These results underscore the importance of staff workforce development initiatives as key to improving youth experiences in after‐school programs.     

Effects of relational uncertainty in heightening national identification and reactive approach motivation of Japanese

This study investigated whether relational uncertainty poses uncertainty threat, which causes compensatory behaviours among Japanese. We hypothesised that Japanese, as collectivists, would perceive relational uncertainty to pose uncertainty threat. In two experiments, we manipulated relational uncertainty, and confirmed that participants exhibited compensatory reactions to reduce aversive feelings due to it. In Study 1, we conducted direct comparison between relational uncertainty, independent self‐uncertainty and control conditions. The results revealed that participants who were instructed to imagine events pertaining to relational uncertainty heightened national identification as compensation than did participants in the control condition, but independent self‐uncertainty did not provoke such effects. In Study 2, we again manipulated relational uncertainty; however, we also manipulated participants' individualism‐collectivism cultural orientation through priming, and the analyses yielded a significant interaction effect between these variables. Relational uncertainty evoked reactive approach motivation, a cause for compensatory behaviours, among participants primed with collectivism, but not for individualism. It was concluded that the effect of uncertainty on compensatory behaviour is influenced by cultural priming, and that relational uncertainty is important to Japanese.     

Brand growth in packaged goods markets: Ten cases with common patterns

The study examines 10 consumer goods brands that grew market share year on year, to identify if there are commonalities in the way that key brand performance metrics change during growth. The study uses consumer panel data from the UK and USA. Ten brands in a range of categories are examined. Brand metrics of penetration, repeat‐purchase loyalty, cross‐purchasing by other brand's buyers, the distribution of purchase frequency, and the brand's market share within buyer subgroups are analyzed. The principal findings are as follows: (1) as these brands grew, brand penetration increased far more than repeat‐purchase loyalty on average; (2) the most apparent change in the buyer base was the big increase in light or infrequent buyers; (3) they induced more cross‐purchasing from most or all other competitor brands' buyers; and (4) they grew their market share in all buyer demographic groups. Implications are that brand growth strategies should be geared towards enlarging the size of the customer base, with less emphasis on boosting loyalty. The results also suggest that specifically targeting certain sorts of buyers may be counterproductive. These findings challenge traditional assumptions in relation to brand growth and success. Copyright © 2016 John Wiley & Sons, Ltd.     

Relational Self‐Construal: Past and Future

Relational self‐construal is characterized as the extent to which a person defines the self in terms of close relationships. In this article, I distinguish relational self‐construal from collective‐interdependent self‐construal and from other similar‐sounding constructs. I review the history of the concept of relational self‐construal and how it is most frequently measured or manipulated. The remainder of the article focuses on research that examines the role of relational self‐construal in cognition, affect, motivation, and close interpersonal relationships.