...Customer loyalty and the effect of switching costs as a moderator variable A case in the Turkish mobile phone market Serkan Aydin and Go¨khan O ¨ zer School of Business Administration, Gebze Institute of Technology, Gebze, Turkey, and O ¨ mer Arasil Telecommunications Authority, Ankara, Turkey Abstract Purpose – In the GSM mobile telephony sector, the main condition for protecting the subscriber base is to win customer loyalty, a key necessity for the maintenance of a brand’s life in the long term. To achieve this aim, customer satisfaction and trust must be measured and “switching costs” identified. The latter render subscribers’ preference for rival operators more expensive. In this connection, this paper’s aim is to measure the effects of customer satisfaction and trust on customer loyalty, and the direct and indirect effect of “switching cost” on customer loyalty. Design/methodology/approach – The data set covered 1,662 mobile phone users in Turkey. The data were analyzed by moderated regression analysis to test the hypotheses. Findings – The findings of this study show that the switching cost factor directly affects loyalty, and has a moderator effect on both customer satisfaction and trust. Therefore, it plays a crucial role in winning customer loyalty. In short, it is a quasi moderator. However, switching costs was measured as a unidimensional factor, but switching costs in fact contains psychological, financial and procedural sub-dimensions. Therefore...
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...com/locate/ijinfomgt Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China Zhaohua Deng a,∗ , Yaobin Lu a , Kwok Kee Wei b , Jinlong Zhang a a b School of Management, Huazhong University of Science and Technology, 1037 Luoyu Road, Hongshan District, Wuhan, China Department of Information Systems, City University of Hong Kong, Kowloon, Hong Kong a r t i c l e Article history: i n f o a b s t r a c t With the rapid development of mobile technology and large usage rates of mobile phones, mobile instant message (MIM) services have been widely adopted in China. Although previous studies on the adoption of mobile services are quite extensive, few focus on customer satisfaction and loyalty to MIM in China. In this study, we examine the determinants of customer satisfaction and loyalty. The findings confirm that trust, perceived service quality, perceived customer value, including functional value and emotional value, contribute to generating customer satisfaction with MIM. The results also show that trust, customer satisfaction and switching cost directly enhance customer loyalty. Additionally, this study finds that age, gender, and usage time have moderating effects. Finally, implications for the marketing of MIM are discussed. © 2009 Elsevier Ltd. All rights reserved. Keywords: Mobile instant message Trust Perceived customer value Perceived service quality Customer satisfaction Switching cost Customer loyalty 1. Introduction With...
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...The impact of corporate image and reputation on service quality, customer satisfaction and customer loyalty: testing the mediating role. Case analysis in an international service company Eman Mohamed Abd-El-Salam, Ayman Yehia Shawky and Tawfik El-Nahas Arab Academy for Science and Technology and Maritime Transport, College of Management and Technology, Alexandria, Egypt Keywords Corporate image, Service quality, Customer satisfaction, Customer loyalty, Egypt. Abstract The purpose of this paper is to explore the relationship among corporate image and reputation, service quality, customer satisfaction and customer loyalty through a case analysis on one of the biggest Egyptian company. A structured questionnaire was developed. The hypotheses were simultaneously tested on a sample of 650 customers out of 800 distributed, giving a response rate of 81.25 per cent. Several analytical techniques were used to assess the relationships among the variables under investigation such as Pearson correlation, chi-square, and multiple linear regressions. Hierarchical regression was used to assess the mediating role. The findings of this study have shown significant relationships among the variables under investigation. It is imperative to explore how an international company can effectively and efficiently work in the Egyptian culture gaining their customers satisfaction and loyalty. The research was limited to one of the biggest international company that is working in Egypt. Also the...
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...Important of Customer Satisfaction and Loyalty in Business. 1.0 Introduction Customer satisfaction and loyalty is two important keys to be success in the business. It must be implement in all business areas such as servicing, hospitalisation, health care and others. In business environment, quality improvement have become part of everybody life and not a task or duty anymore. (Mehra & Ranganathan, 2008). It is not enough if only focus to satisfy the customer and it won’t be good to business until get the repurchase power from customer.(Kandampully & Suhartanto, 2000) Lot of research on customer satisfaction and loyalty has been done, especially on retention and economic performance.(Kristensen & Martensen, 1996; Rucci, 1998; Duboff & Heaton, 1999; Edvardsson, 2000; Bernhardt, 2000; Eskilden & Kristensen, 2013). More than that, this two keys also play role in business for revenue improvement, profitability and cash flows.(Heskett, 1994; Reichheld & Teal; 1996, Itner & Larcker; 1998; William & Nauman, 2011). This to make sure company has more than enough fund, can expend and become stronger. We will see how important this two keys in order to make business running smooth and at the same time can achieve company target. At the end, customer will get what they expected and business will get positive impact and avoid something bad from appear. 2.0 Customer Satisfaction and Customer Loyalty 2.1 Customer satisfaction...
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...consumer brand relationship depends on largely on the successful establishment of the brand meaning. In highly competitive markets brand loyalty generates numerous benefits like erecting barriers to competitors, generating greater sales and revenues, reducing customer acquisition costs, and inhibiting customers' susceptibility to marketing efforts of competitors (Knox and Walker, 2001; Rundle-Thiele and Mackay, 2001). The primary objective of this research is to select three brand loyalty influences (from the twelve) in the article by Moola and Bisschoff (2014) then motivate why the three can be grouped together logically. The secondary objectives are to: * Expand on Moolla's questions by doing a literature study on three brand loyalty influences selected. * Select a company / product of choice to apply questionnaire to * Analyse the data at least on inferential statistical level * Indicate expected outcomes the results will provide * Interpret the results and write a short report on what the data tells you * Apply result to management and managerial decision-making to show the advantage of the analysis. Figure 1.1: The conceptual model Adapted from Moolla (2010:197) 1.2 Hypotheses The following hypotheses were tested in order to assist in meeting the research objectives: H1: There is a relationship between customer satisfaction and customer trust when purchasing a home appliance brand. H2: There is a relationship between customer satisfaction...
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...players looking to grab a share of the market. Along with domestic companies such as TATA, Future Group etc, Tesco of the UK and Wal-Mart from the USA have already set up plans to expand their business in the country, these are two of the heavy weights in the global retail industry. The organised sector in an effort to retain customers have introduced a variety of loyalty programmes and schemes, however due to the dominance of the unorganised sector in India the effectiveness and the consumer’s perception about such schemes have not been studied comprehensively. Therefore this dissertation aims to understand the consumer’s perception towards such loyalty schemes, how effective they are in building loyalty amongst the organization and the consumer, and to also understand the future and roles of the two retail sectors in the Indian retail industry. Key literature regarding this topic has been reviewed by the author, which focuses on: 1. Relationship Marketing. 2. The constructs in building a relationship. 3. Customer Loyalty 4. Customer Loyalty and Behaviour 5. Customer Satisfaction and Service quality 6. Loyalty Programmes & its effect on Customer loyalty These have then been conceptualized...
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...IMPACT OF BRAND SWITCHING, BRAND CREDIBILITY, CUSTOMER SATISFACTION AND SERVICE QUALITY ON BRAND LOYALTY Idrees Akbar, waheed Naseer, Shoaib Ahmed Amin , Abdul Muqtadir , Hafsa Zia, Urooj Shafique Department of Management Sciences, the Islamia University of Bahawalpur Pakistan, Abstract: To be a leading company, it is a massive task to build brand loyalty. Brand is the only word that differentiates the goods and services from the other ones. Therefore the dominated companies spend a lot on the brand to make it unique in order to develop the brand loyalty. Brand loyalty can be created by the numerous ways and strategies but most convenient ones are how much you fulfill your promises in the light of brand credibility, and so on service quality is how much strong if the customer is satisfied then it will show its loyalty towards brand and if not then it shift the intention towards other brand in term of brand switching. This study measures brand loyalty of banking clients of Bahawalpur in Pakistan. A field survey was conducted in Islamia University of Bahawalpur. the study was conducted by 200 respondents, analysis werecoducted by mean of exploratory and confirmatory factor, for checking the data and common method variance. For checking the relationship regression analysis were done. The results were quit significant. Findings indicate that bank has performed satisfactorily in presenting a desired image of the target market. Hence future researchers in the area should be...
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...Customer Loyalty in Indonesia (study case Honda beat and Telkomsel) Nur Endah Lizarifin Customer Loyalty Customer loyalty is the result of consistently positive emotional experience, physical attributebased satisfaction and perceived value of an experience, which includes the product or services. Customers exhibit customer loyalty when they consistently purchase a certain product or brand over an extended period of time. As an example, many customers stick to a certain travel operator due to the positive experiences they have had with their products and services. Customer loyalty is the key objective of customer relationship management and describes the loyalty which is established between a customer and companies, persons, products of brands, the individual market segments should be targeted in terms of developing customer loyalty. Four different reasons for loyalty should be promote Psychological Customer might also developing a sense of loyalty to a certain person working for a company. People can build up a good relationship with a bank advisor they have known for several years and who has always fulfilled their expectations. The fact that people develop a sense of loyalty can be described as a psychological reason to stick to a specific product. Economic In business to business markets, it might also be possible that customer loyalty results from the fact that switching to another company would lead to the company facing economic disadvantages. In this case, loyalty...
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... CUSTOMER RELATIONSHIP MANAGEMENT ARTICLE REVIEW: RELATIONSHIP MARKETING AND CUSTOMER LOYALTY: EVIDENCE FROM THE GHANAIAN LUXURY HOTEL INDUSTRY. GROUP 3 MEMBERS THOMAS ATANGA BBAM/ED/122566 ERNEST FIIFI DES-BORDES BBAM/ED/118290 FRANK AMUZU MAWULI BBAM/ED/112043 ESTHER FREMPONG BBAM/ED/120613 DELPHINE AMO-MENSAH BBAM/ED/122735 JOANA KUMI BBAM/ED/122925 ZARATU ISSAKA BBAM/ED/121827 EVANS YEBOAH BBAM/ED/123604 ADIZA ISSAH BBAM/ED/112448 JULIUS ARMAH NII TETTEH BBAM/ED/120608 MERCY ETRUBA ASARE BBAM/ED/122114 INTRODUCTION 1.1 BACKGROUND OF STUDY Acquiring and building relationship with new customers takes time. This effort could be saved by concentrating most efforts on retaining the existing customers. Globally, the use of customer relationship management as a key driver in the sustenance and growth of customer base of businesses. According to Zeithaml and Bitner (2000) relationship marketing is a philosophy of doing business, a strategic orientation that focuses on keeping and improving current customers, rather than acquiring new customers. This philosophy...
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...Introduction This report discusses the impact of pricing, relationship management, prestige seeking consumer behavior on customer satisfaction. Specifically as it relates to formulating a marketing strategy focused on long-term customer relationship management. This thesis discusses the existing consumer knowledge dealing with aspects of pricing. The purpose of this thesis is to combine the concepts of existing research on impacts of pricing on customer satisfaction and studies, which examined entirely different aspects of customer satisfaction, and synthesize valuable new information. Objectives The objectives of the study can be summarized as follows: * Contribute to the emerging literature on pricing and consumption in examining and defining the key perceived values. * Interpret and expand existing consumer behavior models. * Generate a framework to help marketers to build and monitor the pricing of products. * Stimulate further research on pricing and customer satisfaction. Problem Statement How can mangers use various pricing strategies to build stable, long-term relationships with their customers? Pricing has a significant and broad impact on how consumers view and use products, However, it is more difficult to judge the effects that pricing has on product consumption. The relationship between pricing and consumption lies at the core of customer strategy. The extent to which a customer uses a product during a certain time period often determines...
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...Customer Satisfaction and Customer Loyalty among Grocery Shoppers a research done in The Netherlands [pic] ERASMUS UNIVERSITY ROTTERDAM Faculty of Economic Science Author: Stephan (S.A.) de Jong Supervisor: Drs. Jordana Liberali Exam number: 311458 E-mail address: 311458sj@student.eur.nl / s.a.jong@hotmail.com Course : Economics and Business Economics (Marketing) Thesis: Master thesis Date: August 11, 2011 Preface This master thesis is considered as the final exam before graduating in a Master of Economic Science. With this last piece of work I will complete my study Economics and Business Economics, specialized in Marketing at the Economic Faculty at the Erasmus University of Rotterdam. The topic of this thesis is customer satisfaction and customer loyalty among grocery shoppers in the Netherlands. The focus of this research will be on the region ‘Het Westland’, a district in the southwest of the Netherlands. The purpose of this research is to investigate the relationship between customer satisfaction and customer loyalty and the main drivers of those two. The research took me about seven months and it was very interesting to see the different aspects of doing a research like this. I wish to pay special thanks to Drs. Jordana Liberali, my supervisor at the Erasmus University of Rotterdam, for advising, supporting and providing me with useful information but also criticism...
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...Role of Service Excellence on the satisfaction of Customers and Customer Loyalty/Service Quality (SQ) Introduction In market private & public sectors banks, Islamic and microfinance banks are functioning. In this situation only those companies can stay alive which offer the most excellent products and services to their customers, because customers have so many options in the same market place and it’s really tough job and banking sector is also the part of this competitive environment. Because banking sector have to become more towards customized their services and creates customer oriented atmosphere to meet the basic needs of their customers and to attract them. "Success of the baking organization starts from retention and loyalty of the...
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...The relationship between online environments And Customer Satisfaction (Iran Computer Hardware Industry) Mahmoud Manafi (mahmoud_manafi@yahoo.com) Roozbeh Hohabri (rhojabri@gmail.com) Kamran Karimi (kami_harmonica@yahoo.com) Seyed Mehdi Fatemi (mehdi_fatemi_drh@yahoo.com) Seyed Salman Fatemi (salmanfatemi@gmail.com) Kaveh Mehrnia (k_m261156@yahoo.com) Abstract In this quantitative article research first, the main factors in customer satisfaction in online environment of Iran in hardware industry with process based-view are identified. Secondly relationships between identified factors in online environment of Iran and customer satisfaction are investigated. Keywords: Online Environment, Customer satisfaction, and Process Based-View Introduction Experimental studies show that enterprises with high customer satisfaction, has more return on economic in comparison with others (Eugene W. Anderson, 1993). Others implied that firms should try to seek profitable way to differentiate their services and deliver high quality services (A. Parasuraman 1998, Adam Finn 2003, Hsu, 2008). Additionally, quality of the quality of customer interface in online shopping is positively related to intention to buy and consequently future financial performance of the firm (Hsin Hsin Chang, 2009) This is the reason that currently firms using customer satisfaction and loyalty improvement strategies to sustain in current competition environment and create value for all stakeholders and...
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...CUSTOMER LOYALTY : THE CASE OF MOBILE PHONE USERS IN UNIVERSITI UTARA MALAYSIA Prepared by Meguellati Achour Pn. Nor Pujawati Md. Said Dr. Ali Boerhannueddin Abstract Service quality, switching barriers, and brand image are the major antecedents of customer loyalty, and loyal customers may buy more, accept higher prices and have a positive word-of-mouth effect. Also we know that the cost of selling to new customers is much higher than the cost of selling to existing customers, also the cost of attract new customers is much higher than the cost protect existing customers ten times. Although this fact is apparent to everyone, many companies are still losing customers at a formidable rate. In this context the main aim of this research is to examine the relationships between these factors and customer loyalty in the Universiti Utara Malaysia sector. Based on the theoretical model, a comprehensive set of hypotheses were formulated and a methodology for testing them was outlined. These hypotheses were tested empirically by questionnaires to demonstrate the applicability of the theoretical model. The results indicate that service quality, switching barriers, and brand image are separate constructs that combine to determine the loyalty, with service quality and switching barriers exerting a stronger influence than brand image. Finally hypotheses H1, H2 were supported, while hypothesis...
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...CUSTOMER LOYALTY : THE CASE OF MOBILE PHONE USERS IN UNIVERSITI UTARA MALAYSIA Prepared by Meguellati Achour Pn. Nor Pujawati Md. Said Dr. Ali Boerhannueddin Abstract Service quality, switching barriers, and brand image are the major antecedents of customer loyalty, and loyal customers may buy more, accept higher prices and have a positive word-of-mouth effect. Also we know that the cost of selling to new customers is much higher than the cost of selling to existing customers, also the cost of attract new customers is much higher than the cost protect existing customers ten times. Although this fact is apparent to everyone, many companies are still losing customers at a formidable rate. In this context the main aim of this research is to examine the relationships between these factors and customer loyalty in the Universiti Utara Malaysia sector. Based on the theoretical model, a comprehensive set of hypotheses were formulated and a methodology for testing them was outlined. These hypotheses were tested empirically by questionnaires to demonstrate the applicability of the theoretical model. The results indicate that service quality, switching barriers, and brand image are separate constructs that combine to determine the loyalty, with service quality and switching barriers exerting a stronger influence than brand image. Finally hypotheses H1, H2 were supported, while hypothesis...
Words: 4026 - Pages: 17
