Towards a Further Understanding of the Antecedents of Retailer New Product Adoption

In addition to the traditionally investigated profit-drivers of retail adoption, such as gross margin, trade support, consumer marketing support, and product uniqueness, the authors investigate to what extent relatively under-investigated variables, such as relationship variables and category variables, are potential antecedents of retailers’ new product adoption decisions. Based on a sample of 392 new product adoption decisions by buyers of a Dutch food retailer, the authors provide evidence that both relationship and category variables do matter in new product adoption decisions by retailers. They show a significant negative effect of relationship dependence, and a significant positive effect of relationship length on a retailer's new product adoption probability. Furthermore, the authors show that higher levels of expected category growth due to the new product introduction are associated with higher levels of retailer adoption probability. Finally, in contrast with all previous retail adoption studies, this study shows a significant, positive relation between the relative gross margin of the new product and the retailer adoption probability.     

The role of customer loyalty as a brand extension purchase predictor

The paper explores the relationship between customer loyalty to the retail brand and the purchase of non-traditional products and services (NTPS) offered by grocery retailers with their private label (i.e. over-the-counter products, photo printing, mobile communication services and travel booking). Customer loyalty to the retail brand is measured through its behavioral and attitudinal components. A survey was conducted administering a questionnaire to 480 retail customers in two stores belonging to different retail grocers. A binary logistic regression was then applied using the buying of at least one NTPS as the dependent variable (1 = buy; 0 = no buy) and behavioral loyalty and attitudinal loyalty as independent variables. Results show that attitudinal loyalty plays a significant role as buying predictor, but this depends on the NTPS offered. Theoretical and managerial implications are derived.     

A Smart Card Based Internet Micropayment Infrastructure: Technical Development and User Adoption

As online shopping services proliferate, the need for a secure and convenient payment infrastructure becomes critical. While credit card payment has become common for online purchases, a payment solution has not yet been developed that can be used to support transactions involving a monetary value in the range of a few dollars or even cents. In this study, the authors report their experience in developing a smart card based micropayment infrastructure in collaboration with a major bank. The infrastructure makes use of Mondex, a cash card standard adopted by major financial institutions worldwide. The infrastructure provides a platform to support online transfer of Mondex value over the Internet. Unlike other cash card products, Mondex is the only standard that can support card-to-card transfer without a mediating party. The transactions are immediate and anonymous. This article outlines the technical approach used in the development of the infrastructure and presents a behavioral adoption model to identify and assess factors that may affect its adoption. The findings indicate that the use of the adoption model in the early stages of product development can provide valuable insights to a development team. Theoretical contributions and practical implications specific to the Mondex Internet micropayment infrastructure are also discussed.     

Drivers of customer likelihood to join grocery retail loyalty programs. An analysis of reward programs and loyalty cards

This paper aims to identify which personal features of customers may determine their likelihood to join a grocery retail loyalty program. We consider five aspects: price sensitivity, search for variety, shopping enjoyment, attitude toward loyalty schemes, and one personality trait: privacy concerns. Some of these variables have already been explored in the literature. Where our research breaks new ground is in establishing the difference between profiles of customers attracted by two of the most common types of loyalty programs currently used by grocery retail firms: a reward program and a loyalty card. The two kinds of program evidence differences in how they are managed, and we posit that the drivers of likelihood to take part in each are different. The study was carried out using logistic regression with a sample of 600 clients of a Spanish supermarket chain. Findings show that one particular type of customer is more likely to take part in these schemes: those displaying little shopping enjoyment, who are greatly concerned with privacy, and who show a favorable attitude toward loyalty programs in general. Furthermore, as expected, differences were observed between drivers of participation likelihood in reward programs and loyalty cards.     

Determinants of attitudinal loyalty in Nigerian telecom service sector: Does commitment play a mediating role?

This paper explores the mediating role of commitment in the relationships between service assurance, service reliability and attitudinal loyalty. A quantitative cross-sectional data generated from 138 experienced users of telecommunication services formed the final database. Attitudinal loyalty was found to be a process-based construct that starts from service assurance and proceeds to service reliability and finally to customer commitment and loyalty. The entire process explained 69 per cent of the total variance in attitudinal loyalty. The relationship between service assurance and attitudinal loyalty was insignificant. No support was found for the proposed mediating role of customer commitment in the relationship between service assurance and attitudinal loyalty. In contrast, the relationship between service assurance and attitudinal loyalty was fully mediated by service reliability. Finally, service reliability was both directly and indirectly related to attitudinal loyalty through customer commitment. To attract customers' attitudinal loyalty therefore, services companies especially those within the low-contact service category must deliver reliable services and make efforts to assure customers that their services are reliable. The implications for customer loyalty theory and future research are also discussed.     

Consumer loyalty in sport spectatorship services: The relationships with consumer satisfaction and team identification

This research aimed to investigate the possible relationships between the concepts of consumer loyalty (attitudinal and behavioral), satisfaction, and team identification in the context of sport spectatorship. Specifically, several models were tested to investigate (1) the direct influence of team identification, consumer behavioral loyalty, and consumer satisfaction on consumer attitudinal loyalty, and (2) the mediating or moderating role of team identification in the relationship between consumer satisfaction, behavioral loyalty, and attitudinal loyalty. Results from a sample of 395 spectators of French ice hockey first division clubs revealed that consumer transaction–specific satisfaction was found to be the stronger predictor for consumer attitudinal loyalty alongside team identification and the average number of home games attended per year. A second indirect route is possible because team identification was also found to play a mediating role between consumer transaction–specific satisfaction, home and away games attended per year, and some dimensions of consumer attitudinal loyalty. Finally, team identification was also found to moderate the impact of consumer satisfaction and the number of away games attended on different facets of attitudinal loyalty. Marketing and theoretical implications are discussed. © 2011 Wiley Periodicals, Inc.     

Creating Ultimate Customer Loyalty Through Loyalty Conviction and Customer-Company Identification

Why do customers’ attitudinal loyalty fail to predict their behavior? More importantly, what creates such latent loyalty? We attempt to answer these questions by examining the antecedents and outcomes of loyalty conviction, which represents the inherent strength/uncertainty in a customer’s attitudinal loyalty. For deep attitudinal loyalty (i.e., conative loyalty), the findings suggest that customer satisfaction creates loyalty held without conviction. In contrast, customer-company identification creates loyalty held with conviction. Importantly, attitudinal loyalty without conviction loses its ability to predict behavior when situational and competitive barriers are present whereas loyalty with conviction maintains a predictive relationship with behavior despite the same barriers.     

The effects of perceived value on loyalty: the moderating effect of market orientation adoption

This paper aims to identify the moderating effect of service firms’ adoption of market orientation on key variables of consumer behavior, namely perceived value and loyalty. The study took a business-to-customer perspective. First, the adoption of market orientation was measured, from the firm’s point of view. Second, customer perceptions were analyzed, using the two variables perceived value and loyalty. The sample comprised 100 service firms and 572 of their customers. The present work provides original insights, identifying that the effect of perceived value on loyalty depends on other variables external to the consumer, such as the market orientation approach.     

Indian Consumers' Value-Based New Food Product Adoption

In response to increased attention toward Indian markets in general and food markets specifically, multinational companies need to accurately identify the attitudinal and product attribute factors that impact new food product adoption among Indian consumers. Applying integrated decision utility theories, we examined the influence of product familiarity on value-based product purchase decisions and intentions. The results indicate that expected value, perceived value, and purchase intentions are influenced by familiarity; only expected value influences purchase intentions. Marketing implications are also discussed.     

Involvement, satisfaction, and brand loyalty in a small business services setting

Considerable resources are expended annually on building business brands, yet the literature is virtually silent on brand loyalty in a business setting. This study examines the relationship between attitudinal loyalty and behavioral loyalty in a business services context, and attempts to identify two key antecedents of loyalty in this context. In particular, little is known about small businesses as customers, despite their significant contribution to the economies of developed nations. A longitudinal design is implemented, and data are captured on both attitudinal loyalty and subsequent loyalty behaviors (i.e., actual purchase behavior). The findings demonstrate the value of conceptualizing and measuring both attitudinal and behavioral components of brand loyalty. Specifically, the results indicate that attitudinal loyalty mediates the effects of the antecedents studied (category involvement and purchase satisfaction) on behavioral loyalty. Implications for marketing theory and practitioners are discussed, and possible directions for future research are sketched.     

Analysis of the moderating role of the gender variable in service recovery processes

In this study, the authors focus on service recovery processes and identify a set of key factors that drive satisfaction with the recovery process, which ultimately leads to customer loyalty. In addition, the authors investigate the role of gender as a potential moderating variable in the recovery process. Using a sample of 202 customers who had experienced a problem with their provider, filed a complaint and received a response from the company, the authors empirically test the proposed framework in the mobile phone market. The findings reveal that men tend to be more demanding when dealing with service providers and less loyal, while women tend to exhibit a more fully-developed sense of justice and greater attitudinal and behavioral loyalty. These results provide valuable insights for the consumer services industry: Companies can use gender information to manage complaints in order to restore customer satisfaction and increase customer loyalty more efficiently.     

Influences of the perceived value on actual repurchasing behavior: Empirical exploration in a retailing context

Recent academic studies have reexamined the link between satisfaction and loyalty by introducing actual loyalty behavior. Results of these rare studies are still inconclusive and point out the weakness of the link between satisfaction and behavioral loyalty. This work extends these previous studies by investigating the links between perceived value, satisfaction, attitudinal loyalty and behavorial loyalty. It highlights that perceived value is a better predictor of attitudinal loyalty and behavorial loyalty (number of visits and total sales) than satisfaction. Individual moderating influences are also discussed.     

How trust mediate the effects of perceived justice on loyalty: A study in the context of automotive recall in China

Service recovery studies have claimed fairness wisdom by investigating the influence of justice on shaping attitude and behavior in the service recovery process. Considering product recall as special service recovery, this inductive study presents a conceptual model connecting justice to loyalty through trust. By using structural equation modeling to analyze a survey of 469 consumers involved in automotive product recall in China, we examine inductively the effects of distributive, procedural, and interactional justice on the trust and loyalty of consumers in the recall process. Distributive and procedural justice positively affects cognitive trust, whereby interactional justice positively affects affective trust, and cognitive trust can exert positive impact on affective trust. Furthermore, we detect that both cognitive and affective bases of trust affect attitudinal loyalty, whereas affective trust merely affects attitudinal loyalty. The effects of attitudinal loyalty on behavioral loyalty are examined.     

Revisiting the Satisfaction–Loyalty Relationship: Empirical Generalizations and Directions for Future Research

This extensive literature review highlights the state of the art regarding the relationship between customer satisfaction and loyalty, both attitudinal and behavioral. In particular, it brings to light several issues that should be carefully considered in analyzing the efficacy of customer satisfaction in explaining and predicting customer loyalty. In fact, for many years companies all around the world have heavily invested in customer satisfaction in the hope of increasing loyalty, and hence, consequently, profitability. But after having gone through a detailed analysis, it is clear that this link it is not as strong as it is believed to be and customer satisfaction is not enough to explain loyalty. In fact, the major findings of this review are captured in the form of a few empirical generalizations. We generalize that, while there is a positive relationship between customer satisfaction and loyalty, the variance explained by just satisfaction is rather small. Models that encompass other relevant variables as moderators, mediators, antecedent variables, or all three are better predictors of loyalty than just customer satisfaction. Further, the satisfaction–loyalty relationship has the potential to change over time. Similar weaker findings are uncovered and the study offers specific guidelines on who, when, and how much to satisfy. Finally, suggestions for future research to explore this domain are offered.     

Customer pre-participatory social media drivers and their influence on attitudinal loyalty within the retail banking industry: A multi-group analysis utilizing social exchange theory

Social media pervades everyday life and firms need to understand what consumer traits antedate participation over these channels. Utilizing social exchange theory (SET), this study seeks to determine what factors precede SET's cost-benefit analysis of social media participation along with these factors' influence on attitudinal loyalty. Important antecedents to this cost-benefit analysis for social media participation are online interaction propensity (OIP), participation attitude and trust. Further, demographic (age, gender, income) and social media page factors (perceived page size and page visit frequency) are identified as potential precursors to customers' cost-benefit analysis towards social media participation. A sample of 482 U.S. banking customers was collected via an online survey. The results found that OIP and trust had direct statistically significant effects on attitudinal loyalty and participation attitude's effect was fully mediated by trust. Age, gender and page visit frequency facets exhibited no differences between groups whilst income (with higher income groups displaying higher levels of loyalty) and page size groups (smaller page sizes demonstrated greater loyalty) demonstrated differing effects on attitudinal loyalty. The study contributes to knowledge and practice by extending particular pre-SET traits in social media to a U.S. retail banking context. The study also furthers academic and managerial capabilities for segmentation analysis' and explicating connections between pre-participatory influences and attitudinal loyalty.     

Exploring the customer's intention to switch firms: The role of customer‐related antecedents

This study examined the customer‐related antecedents of the customer's intention to switch firms. Customer citizenship behavior was a key element in this study. Scholars have extensively studied the antecedents of customer citizenship behavior. However, the way that customer citizenship behavior relates to other attitudinal variables and the intention to switch has scarcely been analyzed. The proposed hypotheses were verified using partial least squares variance‐based structural equation modeling applied to 947 users of beauty care service firms in five countries. The results suggest that customer citizenship behavior is an antecedent of satisfaction, trust, and attitudinal loyalty. Two of these variables influence customers’ intentions to abandon relationships with the service provider. The implications of these findings enhance managers’ and scholars’ understanding of the determinants of customers’ intentions to switch firms.     

An asymmetrical approach to understanding configurations of customer loyalty in the airline industry

This study employs fuzzy set qualitative comparative analysis (fsQCA) to examine asymmetrical relationships among service attributes, relationship quality, and customer loyalty in the airline industry. The study incorporates customers’ demographics and psychological variables to model customer loyalty. Customer loyalty is operationalised as behavioural and attitudinal dimensions in order to capture customers’ actual behaviours and behavioural intentions. Symmetrical testing is also used to compare findings with those from fsQCA application. The study provides various causal recipes or configurations for predicting relationship quality and customer loyalty. The comparison between symmetrical and asymmetrical findings presents deeper and more insightful information. These findings provide useful guidelines and references for the relevant researchers and practitioners. The study also contributes to the literature by utilising symmetrical and asymmetrical tools to advance understanding of antecedent conditions of relationship quality and customer loyalty.     

The Effect of National Culture on the Adoption of Innovations

Studies on the adoption of innovations by companies generally include micro-level and meso-level variables. This study adds to the literature by investigating the role of national culture (i.e. a macro-level variable) to explain differences in adoption rates across countries. In particular, we investigate the effects of the five Hofstede culture dimensions and the culture dimensions proposed by Hall on country adoption rates. Hypothesized effects were tested using a large-scale empirical study concerning the adoption of Enterprise Resource Planning (ERP) software by mid-size companies covering ten European countries. Results indicate that variables describing national culture have a significant influence on the country adoption rates.     

Multi-Brand Loyalty Cards: A Good Idea

The UK's leading coalition loyalty card scheme was launched at a time when questions were raised regarding the viability of such schemes. Two years into the scheme, it is now appropriate to review the scheme's relationship with its' customers and judge its' success in terms of its ability to influence card holders' behaviour.

To meet the objectives a survey methodology was adopted, and a new questionnaire devised for administration to a sample of coalition loyalty card scheme cardholders. The survey achieved 153 responses from the scheme members.

Findings from the study revealed that coalition loyalty card scheme holders' exhibit weak bonds between the card provider and its customers and that customers display signs of low commitment, low trust and low perceived relational benefits. There is a decisive lack of awareness of many sponsors and this confusion seemed to be leading to the use of coalition loyalty card scheme as a single-brand card. Although usage rates are on a par with other loyalty schemes, a lack of involvement seems apparent; indicating that no considerable increase in share of customer had occurred. This is mainly down to poorly targeted communications and irrelevant reward offerings.

Finally, there was little to suggest that coalition loyalty card scheme are currently having much influence over consumer behaviour, as the bonds between the two parties were not strong enough to encourage this. However, this does not indicate that the current market leader is currently unsuccessful, there is evidence to suggest consumers perceive real benefits in coalition schemes and that there is a willingness to alter their behaviour if the motivation is sufficient. Implications for future research include more specific investigations into the dynamic of the relationship between loyalty schemes and consumers and further research on coalition schemes per se.