“Towards a co-creation framework in the retail banking services industry: Do demographics influence?”

Although many firms profess to adopt a customer-centric approach many are yet to embrace the notion that value is not solely created within the boundaries of the firm, that it is created co-jointly with outside parties. As such, value co-creation has increasing importance in modern marketing, impulsed by Service-Dominant Logic. While co-creation is a hot-topic in the marketing literature, services marketing literature recognizes the impact of demographic characteristics in consumer behavior. However, literature analysing the effects of demographics in co-creations models is very scarce.Therefore, the aim of this paper is to examine a set of outcomes of co-creation (satisfaction, loyalty and WOM) from a customer perspective. More, this research also analyses the potential moderating effect of demographic characteristics such as gender and age in this co-creative framework.The results show that co-creation directly affects customer satisfaction, customer loyalty and WOM. Co-creation also results in increased levels of customer satisfaction, which in turn mediates the effect of co-creation on customer loyalty and positive WOM. Data also reveal different patterns of behavior depending on gender and age.This paper contributes to the understanding of co-creation from a customer viewpoint. Firms should strive to foster co-creation initiatives as this can lead to increased levels of customer satisfaction, more loyal customers and the possibility of attracting new customers through positive WOM by current customers. Customers databases must be segmented for higher levels of marketing campaigns efficiency.     

The interrelationships among service quality,customer satisfaction,and customer loyalty: Examination of the fast-food industry

The purpose of this study was to use customers’ perspectives to develop a conceptual model for improving service quality and enhancing customer satisfaction and loyalty. The 197 samples were selected from customers of leading fast food franchise enterprises in Taiwan. The research results indicate that service quality positively influences customer satisfaction and customer loyalty. Service quality positively influences customer loyalty through customer satisfaction. The research findings indicate that managers need to ensure they have efficient service quality to enhance customer satisfaction and customer loyalty levels.     

The influence of satisfaction on customer retention in mobile phone market

This study examines the determinants of customer satisfaction and customer loyalty in the Peruvian mobile phone market. Based in a survey to 1259 customers, Multinomial Logit and GSEM estimations show how determinants of customer satisfaction can be assessed when satisfaction is measured through ordered categorical data. The results confirm that in mobile phone market Customer Satisfaction influences strongly on Customer Loyalty, and in turn Loyalty is an important determinant of Customer Retention. In contrast with previous literature, this study identified the differentiated influence of diverse factors on positive and negative customer satisfaction categories. Indeed while results show that quality of service assessments made by customers had a significant impact on both negative and positive customer satisfaction categories; assessments of other service attributes like customer care, information on tariffs and plans and billing clarity, only showed a significant statistical influence on positive categories of customer satisfaction. Similar asymmetrical results were found with regard to other economic, socioeconomic and geographical determinants of customer decisions. As well, an analog effect is also observed in the relationship between customer satisfaction and loyalty, where only positive satisfaction assessments helps to explain the loyalty of users. Finally, results show that while satisfaction can be identified as a powerful cause of CR, switching barriers did not deter more demanding customers to switch to alternative carriers, suggesting that recent pro-competition regulatory reforms implemented in Peru contributed to reduce these barriers to competition in mobile markets.     

Integration of standardization and customization: Impact on service quality,customer satisfaction,and loyalty

The basic objective of this study is to analyse the direct and indirect impacts of standardization and customization on customer satisfaction and loyalty through service quality. The service quality has two dimensions: technical quality and functional quality. A framework is developed by extending Grӧnroos’ model of service quality by including the antecedents of service quality. A questionnaire-based survey collected data from 315 customers of three service industries: healthcare, hospitality, and education. The data was analysed and the model validated using PLS-SEM. The findings show that: (1) integration of standardization and customization of service offerings is critical for improved service quality; (2) standardization has higher impact on service quality when compared to customization; (3) functional quality has higher impact on customer satisfaction when compared to technical quality; and (4) customer satisfaction has a significant effect on customer loyalty. The contribution of this study is the development of an integrated framework to analyse the roles of standardization and customization on service quality.     

An adaptive nonlinear approach for estimation of consumer satisfaction and loyalty in mobile phone sector of India

To facilitate business growth assessment of customer׳s, satisfaction and loyalty levels in mobile sector are two important issues which need in-depth investigation. These two levels of customers are nonlinearly related to their corresponding attributes. The past studies have mostly assumed linear relation and have mostly used regression based models for estimation of these levels and the results are not encouraging. To overcome this limitation, the present study has developed simple nonlinear models for accurate estimation of these two parameters using their related key factors and results obtained are shown to be much better. This paper has also observed the positive effect of satisfaction on the loyalty estimation of customers. Employing the proposed nonlinear adaptive models, the service provider can also predict the satisfaction and loyalty levels of each of its customers which help the organization to determine the number of possible future churners.     

An integrative framework for customer switching behavior

Due to increased intensity of competition, retention of customers has become a major concern in many service industries. Although researchers have investigated customer switching intention and its influential factors, the complex structural mechanisms that reduce the likelihood of switching intention in the field of financial services, especially in the banking context, have remained understudied. This paper addresses the role of customer satisfaction, customer loyalty, customer trust, and customer perceived value within a new conceptual model for customer switching intention in the banking services. In particular, the paper contributes to examine the potential moderating effect of switching barriers on the relationship between customer loyalty and switching intention as well as the relationship between satisfaction and switching intention of customers in the banking services. Data are collected through a questionnaire survey, and partial least squares-structural equation modeling is used for data analysis. Empirical results confirm the proposed model and hypotheses and show that switching barriers strengthen the impact of both customer loyalty and satisfaction on switching intention. The findings of this research offer a unified view of the structural relationships that contribute to reduced switching intention and provide more in-depth insights into the role of switching barriers in the banking context.     

Customer value and customer loyalty: Is competition a missing link?

This study is aimed at providing an insight into the effects of competition on customer value delivery for customer loyalty. Data were collected using a questionnaire on dyads of service employees and customers. The techniques of ANOVA, ordinary least squares, and logistic regression were used to analyze the dyad data in terms of research purposes. Results show that competition is a moderator of the relationship between customer value and customer loyalty from the consumer perspective. Also, competition is a predictor of customer loyalty from the employee perspective. Insights into this asymmetry in the view on competition between employees and consumers are found. Findings of the moderating effects of competition on the customer value-customer loyalty relationship suggest the significance of competition in the service encounter. In addition, this study found that the predictive validity of the loyalty model for consumers is significantly higher than that for employees. This finding suggests that the factors driving customer loyalty are better captured from the consumer perspective. Findings of the impact of competition on the consumer’s experience of different types of value provide insights as to where to invest in generating customer value to achieve desired customer loyalty. This study also suggests to managers how service employees could be recruited and managed to achieve a service competitive advantage. This study extends our understanding of the customer value–customer loyalty relationship by uncovering the significant role of competition from a dyadic viewpoint.     

What drives Gen Y loyalty? Understanding the mediated moderating roles of switching costs and alternative attractiveness in the value-satisfaction-loyalty chain

Generational theory presumes that generational cohorts develop similar attitudes and beliefs with regard to their market behaviors. This study examined the attitudes and beliefs of the Gen Y members towards mobile Internet service providers (MISPs). Gen Yers have the highest adoption of mobile Internet. They are also the most value-conscious, least satisfied and loyal customers compared with all other generations. This study therefore proposed a research model to elucidate the relationship between perceived value, satisfaction, switching costs (SC), alternative attractiveness (AA) and loyalty, and tested it using empirical data collected from 417 Gen Y mobile Internet subscribers. The results indicated that perceived value significantly influenced the satisfaction of Gen Y customers and, in turn, their loyalty towards MISPs. The results also confirmed the existence of mediators and moderators in the relationship between customer satisfaction and loyalty. Both SC and AA proved to be partial mediators, whereas AA was a moderator. Further, it was found that the moderating effect of AA on the association between customer satisfaction and loyalty was contingent upon the mediating effect of SC. Finally, the implications of these findings are delineated.     

Competitiveness vis-à-vis service quality as drivers of customer loyalty mediated by perceptions of regulation and stability in steady and volatile markets

The purpose of this research is to investigate predictors of customer loyalty in order to identify alternatives to customer satisfaction with service quality, which has been traditionally accepted as the primary predictor of customer loyalty, particularly for services. A stratified sample of bank customers was surveyed to collect information on customer perceptions and behaviors in relation to satisfaction with service quality, competitiveness, risk, regulation, stability and loyalty. Partial least squares path modelling (PLSPM) was applied to develop loyalty models for a steady market (Australia) and a volatile market (Greece). This study's empirical findings support theoretical arguments for the inclusion of customer perceptions of competitiveness in loyalty modelling. Perceptions of regulation and stability intervene in the relationship between drivers of loyalty and loyalty itself. For bankers, the study emphasizes the need to move away from customer satisfaction with service quality to explain customer loyalty, towards focusing efforts on achieving relative superiority in competitiveness, namely competitive productivity and products. Profiling customers based on their perceptions of a bank's competitiveness can provide additional explanatory power beyond traditional satisfaction based loyalty models. Services marketing has focused on the service components, and there is no doubt about its crucial role. But given this focus, other factors, such as the actual product component, have been somewhat overlooked in services research. The study makes a unique contribution to understanding and modelling customer loyalty by demonstrating the importance of the inclusion of customer perceptions of other factors as appropriate to market conditions.     

How quality, value, image, and satisfaction create loyalty at a Chinese telecom

This study proposes and tests an integrative model to examine the relations among service quality, value, image, satisfaction, and loyalty in China. Analysis of survey data from 118 customers of a Chinese mobile communications company reveals that service quality directly influences both perceived value and image perceptions, that value and image influence satisfaction, that corporate image influences value, and that both customer satisfaction and value are significant determinants of loyalty. Thus, value has both a direct and indirect (through satisfaction) impact on customer loyalty. Other variables mediate the impact of both service quality and corporate image on customer loyalty.     

The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image

This study examines the mediating role of customer relationship management (CRM) quality to better explain the effects of service evaluation variables (service quality, customer satisfaction and customer value) on customer loyalty. The study also investigates the moderating effect of brand image on these mediated relationships. The mediating role of CRM quality on the relationship between the service evaluation variables and customer loyalty is supported. Further, it is found that the indirect effect of customer satisfaction on customer loyalty via CRM quality is stronger when perceived brand image is high than when it is low. The results have implications for relationship managers, brand managers and scholars who use service evaluation and relational metrics to predict customer loyalty.     

Effect of customer involvement on co-creation of services: A moderated mediation model

The study explored the influence of customer involvement on co-creation directly and indirectly through three customer engagement dimensions, namely identification, interaction, and absorption from lens of customer-dominant logic and stimulus-organism-response framework. Data were collected from 211 Chinese service customers in Hong Kong. Results of IBM SPSS PROCESS models showed that customer involvement influenced co-creation directly and indirectly through absorption and interaction, but not identification. Customer involvement was found to exert a greater impact on co-creation of services for those with a high rather than low relation orientation. Thus, service providers should utilize mass media effectively to arouse customers’ feelings of relevance and important of services to them. They should also interact with customers continuously through social media that can be enhanced by various kinds of immersion technology.     

Customer satisfaction in European food retailing

Customer satisfaction and customer loyalty is becoming an increasingly important factor in modern retailing—a market characterized by slow growth and intense competition. Big non-European chains such as Walmart are already present in some countries and consider buying some of the retail chains in other countries, e.g. in the Scandinavian countries. This development will demand even more focus on customer satisfaction and customer loyalty in order to stay in business and may also demand that existing actors on the market place form new coalitions. Promising new partners may be identified, partly based upon measures identifying how potential partners are perceived by the customers. Based on results from the European Customer Satisfaction study, a comparative analysis of customer satisfaction in Europe is conducted. Some specific Danish results are shown and the relationship between customer loyalty, supermarket type and ownership structure is studied. The relationship between results after taxes and customer loyalty is documented.     

Weathering consumer pricing sensitivity: The importance of customer contact and personalized services in the financial services industry

In a low-cost switching environment, certain firm actions undertaken by service employees can improve consumer loyalty, satisfaction and reduce price sensitivity. Interestingly, consumers' satisfaction levels can actually increase when experiencing a price increase. Counterintuitively, when consumers experience a price decrease, their loyalty decreases, suggesting that it might be in the firm's best interest to not offer such pricing discounts as these customers may be hypersensitive to price. Overall, it appears much easier for service employees to positively influence customer satisfaction than customer loyalty; satisfied consumers do not necessarily become loyal consumers.     

Value co-creation via information and communications technology

The aims of the present work centre on determining whether co-created value constitutes a competitive advantage for firms, and whether it is capable of influencing consumer behaviour. Applying the service-dominant logic perspective, the work examines the firm's capabilities in the context of its business-to-customer (B2C) interactions, focusing on information and communications technology (ICT) as a particular driver of value co-creation. Taking this B2C perspective, ICT is measured, from the firm's point of view, and customer perceptions are analysed, using the variables ‘value co-creation’, ‘perceived value’ and ‘loyalty’. The sample consists of 100 service firms and 572 of their customers. The findings indicate that ICT capabilities have a direct effect on value co-creation, as does value co-creation on perceived value and loyalty.     

An empirical study of the relationship between shopping environment,customer perceived value,satisfaction, and loyalty in the UAE malls context

This study aims to investigate through structural equation modelling (SEM) the relationships between the shopping environment, customer perceived value, customer satisfaction, and customer loyalty in regard to malls in the United Arab Emirates (UAE). The main results of this study show that the mall environment is an antecedent of the customer perceived value of malls (MALLVAL) and customer satisfaction. MALLVAL has a significant positive effect on both customer satisfaction and customer loyalty to malls. In addition, MALLVAL and customer satisfaction mediate the relationship between the mall environment and customer loyalty. Finally, customer satisfaction mediates the relationship between MALLVAL and customer loyalty to malls. Some theoretical and managerial implications of these findings are discussed.     

E-retail factors for customer activation and retention: An empirical study from Indian e-commerce customers

Customer satisfaction has emerged as one of the most important factors that guarantee the success of online store; it has been posited as a key stimulant of purchase, repurchase intentions and customer loyalty. A comprehensive review of the literature, theories and models have been carried out to propose the models for customer activation and customer retention. Five major factors that contributed to the success of an e-commerce store have been identified as: service quality, system quality, information quality, trust and net benefit. The research furthermore investigated the factors that influence the online customers repeat purchase intention on the basis of the Means End Chain theory (MEC) and Prospect theory. By hypothesising that a combination of both utilitarian value and hedonistic values are needed to affect the repeat purchase intention (loyalty) positively, Structural equation model has been presented on the primary data collected from the Indian online shoppers. Results indicate the e-retail success factors, which are very much critical for customer satisfaction. By increasing the utilitarian value and hedonistic values derived by the customers, customer satisfaction and hence the customers repeat purchase intention can be increased significantly.     

Customer retailer loyalty in the context of multiple channel strategies

With an increasingly competitive retail environment and decreasing customer switching costs, customer retailer loyalty is a critical goal for merchants of all types. We investigate customer retailer loyalty in the context of multiple channel retailing strategies. Results show that multiple channel retail strategies enhance the portfolio of service outputs provided to the customer, thus enhancing customer satisfaction and ultimately customer retailer loyalty. These results suggest that multiple channel retailing can be a useful strategy for building customer retailer loyalty.     

Customer loyalty through social networks: Lessons from Zara on Facebook

Companies’ escalating investment in social media—in particular, in Facebook—has become reality. However, most firms still do not see social networks as a vehicle for cultivating and winning customer loyalty, but rather as a resource for creating brand awareness. In this article, we offer a different view. By examining fans and non-fans of the Zara brand on Facebook, we discovered that Facebook enhances the relations that increase loyalty via trust, customer satisfaction, perceived value, and commitment. Our results revealed that these relations are stronger for fans of the brand than for non-fans, and suggest that customer satisfaction is the strongest determinant of loyalty. This indicates a new opportunity for marketing managers to achieve customer loyalty: Facebook.     

Bridging the valuescape with digital technology: A mixed methods study on customers’ value creation process in the physical retail space

This mixed methods study investigated how value is created in the physical retail space and how the customer experience is influenced by digital technology. A cross-sectional survey, with both qualitative and quantitative components, was distributed across a heterogeneous sample of 832 customers. The results revealed an overarching model comprised of three interrelated clusters: customer, service provider, and digital technology. We propose that this model can be understood as a valuescape, where customers' specific goals, needs, and desires drive them to interact and co-create value with service providers in the physical retail space, with digital technology either enhancing or disrupting this value co-creation process. The results also show that the importance of aligning digital solutions with customers’ drives increases at the same pace as reliance on technology. The findings offer guidelines on how to utilize digitalization to leverage customer experiences and thus strengthen the attractiveness of physical retail spaces.