The customer retail app experience: Implications for customer loyalty

Retailer mobile applications are one of the principal retail purchase and information search channels. Customer experience is key to retail app success. However, its dimensions and impact on retailer performance have been the subject of only a limited number of studies. This research builds on existing customer retail app experience literature by considering four dimensions as precursors of satisfaction with the retailers’ app and customer loyalty (cognitive, affective, relational and sensorial). Data were collected from a sample of 545 retailer app users and analysed using PLS-SEM. The results demonstrate that the affective dimension has the most influence and they highlight the importance of the sensory experience, which even surpasses the cognitive experience. The effect of the relational dimension on customer satisfaction, meanwhile, could not be positively confirmed. Analysis of the moderating effect of gender, age and device type used identifies effects that have not, until now, been demonstrated in current literature.     

Quality of channel integration and customer loyalty in omnichannel retailing: The mediating role of customer engagement and relationship program receptiveness

The aim of this study was to understand how omnichannel integration quality affects customer loyalty through customer engagement and relationship program receptiveness and to verify the relationship between customer engagement and relationship program receptiveness in omnichannel retailing. Data was collected through a questionnaire with 378 available respondents. PLS-SEM was exerted to examine the model. The results disclosed the positive influence of omnichannel integration quality on customer engagement and relationship program receptiveness, which consequently impacted customer loyalty. Also, the positive influence of customer engagement on relationship program receptiveness was proved. Further, the role as mediators of customer engagement and relationship program receptiveness was explored. This study contributed to the omnichannel literature by confirming that psychological and behavioral customer engagement plays a vital role in omnichannel retailing. This study also helped omnichannel retailers understand that providing a seamless, consistent and reassuring environment can facilitate customer engagement and thereby gain customer loyalty.     

Influence of customer application experience and value in use on loyalty toward retailers

This study aims to explain the mechanism by which user experience with retailer applications could lead to loyalty toward retailers. The data were collected through a survey in Indonesia (n = 717). The results support the positive impact of customer experience (i.e., sensorial experiential state, affective experiential state, interactivity, and relative advantage) on value in use. Value in use mediates the effects of customer experience on satisfaction and loyalty toward retailer application. In turn, these two constructs increase loyalty toward the retailer. These findings contribute to the theoretical and practical understanding of the impact of retailer applications on the customer-retailer relationship.     

Loyalty programs,loyalty engagement and customer engagement with the company brand: Consumer-centric behavioral psychology insights from three industries

Firms make large investments in loyalty programs (LPs) to build customer relationships with customer loyalty as one of their primary goals. Despite the popularity of LPs, their effectiveness is questioned and the subject of academic debates in relation to outcomes such as profitability. Moreover, extant research has not investigated if customers engage with LPs through LP perceived value and how LP engagement improves LP loyalty, brand loyalty, and customer engagement (CE) with the company brand. This study examines, from a consumer-centric behavioral perspective, LP engagement (LPE) behavior, and how LPE behavior impacts brand and LP loyalty, as well as CE. We introduce LPE behavior, a relatively new concept, in the form of a multi-dimensional set of hierarchically-ordered dimensions. We show a differentiated view of the relationship between the antecedents of brand loyalty as well as LP loyalty and CE. External, convergent and discriminant validity are confirmed by testing our model with a representative sample (n = 593) of the U.S. LP population with participants being members of either a grocery retail chain, department store chain, or airline frequent flyer LP. We show that perceived LP value engages customers with LPs. Subsequently, LPE behavior improves LP loyalty and brand loyalty as well as CE with the company brand.     

The influence of customer loyalty program design on the relationship between customer motives and value perception

Despite the strong use in marketing practice, the effectiveness of loyalty programs is still heavily questioned among researchers. In our study we present an empirically tested framework that views customer loyalty programs (CLPs) with their differing designs as a moderating tool in a means-end relationship between customer motives and value. By disentangling customer value perceptions of loyalty programs we contribute to the remaining question of the efficacy of CLPs and set the road for further research. Our results support the argument that CLPs can be an effective tool and are not only something that adds to the value of a product or service, but rather creates value by itself. However, this is only the case for programs that target prevailing customer motives and hence provide a higher level of perceived value.     

Driving marketing outcomes through social media-based customer engagement

Firms recognize the increasing potential of digital services to enhance customer engagement behaviors. Drawing on customer engagement and user gratification theory, two studies were conducted among Chinese consumers: an online survey and a field study. The results reveal varying effects of content types on customer engagement and underline a mediating role of engagement between content types and marketing outcomes. It is worth noting that the relational content type displays greater mediating effects compared to other content types. The findings provide new insights for development of digital content marketing strategies to enhance customer engagement and thereby generate marketing outcomes.     

Recipes for achieving customer loyalty: A qualitative comparative analysis of the dimensions of customer experience

Theoretical literature on customer experience (CX) agrees that the effects of customer experience on customer behavior depend on different combinations of its dimensions. In contrast with unidimensional or integrated approaches to CX, determining customer behavior requires specifying how the dimensions of CX interact. However, empirical research on the interactions between CX dimensions has not, to our minds, progressed sufficiently. Therefore, in this study, we have advanced CX research by empirically demonstrating the ways in which customer loyalty can result from various dimensions; we do this by focusing on synergies between different CX dimensions within a DIY sector. A sample of 603 consumers from France, applied to a fuzzy-set qualitative comparative analysis (fsQCA) model, reveals two configurations that firms can use to achieve superior customer loyalty. The findings also specify that complementarity and substitutability effects result among CX dimensions when they reflect a perfect match, and not simply by adding extra dimensions. Further analysis reveals both distinct features and similarities among generational cohorts, in terms of CX dimensions assessment, and their relevance for customer loyalty. This article thus contributes to existing research by tracing the multiple CX paths that can lead to enhanced performance for firms within the DIY sector.     

The influence of national culture and industry structure on grocery retail customer loyalty

This study examines, for the first time, the influence of national culture and industry structure on customer loyalty in grocery retailing. Grocery retailers have a long and continued history of international expansion and it is vital to understand how loyalty can be nurtured in different contexts. Thematic analysis of focus groups conducted in the culturally and structurally disparate countries of the United Kingdom and Sri Lanka provide unique insights. Key differences have been identified around consumer preferences and perceptions of loyalty programmes and the key drivers of different loyalty types. Theoretical and managerial implications are discussed.     

Effects of customer loyalty on customer entitlement and voiced complaints

The value of customer loyalty has been well documented by academicians and practitioners. Nevertheless, prior literature has paid little attention to the negative consequences of customer loyalty, for example, entitlement behaviors (e.g. requests for deeper discounts) and complaint behaviors (voicing dissatisfaction to the company). This research empirically examines the effects of customer loyalty on entitlement and voiced complaint behaviors in the context of Frequent Flyer programs in airline industry. Base on partial least squares-structural equation modeling, the results show that (1) customer loyalty has a positive effect on customer entitlement, which is the extent to which customers expect special treatment from the company; (2) the effect of customer loyalty on voiced complaints is fully mediated by customer entitlement; (3) perceived status of loyalty programs amplifies the entitlement behaviors of loyal customers, while tangible rewards of loyalty programs mitigate the entitlement behaviors of loyal customers. Theoretical and managerial implications are elaborated in the discussion section.     

Feel the VIBE: Examining value-in-the-brand-page-experience and its impact on satisfaction and customer engagement behaviours in mobile social media

A critical issue for marketing managers is how best to orchestrate branded social media consumption experiences via mobile applications. This is important because in a mobile first world, these experiences are perceived to be valuable to consumers which in turn facilitate positive consumer behaviour toward the brand. So far, marketing literature offering managerial guidance on this issue remains limited. To this end, this study investigates for the first-time consumer perceptions of ‘Value-In-The-Brand-Page-Experience’ (VIBE), a multidimensional construct, in an emerging market setting of China. China represents an appropriate contextual condition to study given its high mobile penetration and its integration within consumer's lifestyle. This study further examines the impact of VIBE on customer satisfaction and customer engagement behaviours toward the brand via a survey of 714 Chinese consumers. The results substantiate the VIBE framework which contributes to the sparse conceptual development of value perceptions in mobile social media. Furthermore, it confirms the existence of a value–satisfaction–customer engagement behaviour chain. The findings are managerially relevant and focus on leveraging the components of VIBE. These components act as key mechanisms for unlocking customer satisfaction and customer engagement behaviours for brands in the domain of mobile social media.     

Co-production and customer loyalty in financial services

Recent developments in marketing thought and practice highlight the opportunities that co-production of services provide for creating customer value. The authors propose a model of co-production with which they investigate the links between co-production and customer loyalty and the factors likely to increase the level of co-production in a financial services context, with support from an investigation in the medical services context. Further, the authors consider the relationships of customer expertise, customer–advisor communication, customer affective commitment, and interactional justice with the level of co-production. On the basis of testing with a sample of 1,197 customers of a large multinational financial services organization and 100 patients of medical services, the model is partially supported. Therefore, the authors suggest that co-production may have an important role as a basis for competition in the financial services industry.     

Impact of customer experience on loyalty: a multichannel examination

This article examines the relation between the five dimensions of customer experience advocated by Schmitt [1999a. Experiential Marketing. Journal of Marketing Management, 15, 53–67] (cognitive, affective, sensory, behavioural and social) and service provider loyalty. The examination focuses on two different channels, namely branch/agency (physical) and online (Web-based). A total of 484 panellists of a large Canadian polling firm self-administered a Web-based questionnaire regarding banking experience. The exercise was subsequently replicated in the tourism sector. Findings demonstrate that the main dimension impacting loyalty is the affective dimension (negative), thereby contributing handsomely to experiential marketing literature since negative emotions are rarely investigated. Findings also reveal that choice of channel exerts a moderating effect on the different dimensions influencing loyalty and that results vary from one sector to another. The multidimensional, multichannel, multisector approach selected for this study substantiates customer experience as complex and context specific. The authors also suggest practical implications and set out avenues of future research.     

The impact of affective and cognitive app experiences on loyalty towards retailers

Although mobile applications (apps) are now widespread, to date few studies have considered the effects that app use has on loyalty towards the retailer. This study aims to explore the impact of affective and cognitive app experiences on loyalty towards retailers. A theoretical model, validated empirically with data from a survey using partial least squares structural equation modelling (PLS-SEM), is proposed. The results show the key role of affective experience and its impact on cognitive experience and that both dimensions positively influence the satisfaction and trust that users have in apps, which in turn has a positive effect on loyalty felt towards the retailer. These findings contribute towards improving the theoretical knowledge of the impact of apps on the retailer-customer relationship, and guide businesses in developing and implementing appropriate app-related strategies.     

Quantifying the influence of customer experience on consumer share-of-category

Customer experience is an all-encompassing construct, and most companies go to considerable lengths to create memorable, extraordinary experiences. Nevertheless, customers experience offerings, companies, and their brands very differently. Using one qualitative and three quantitative studies we explore customers’ experiences from a financial perspective by measuring and quantifying the linkages between these and customers’ share-of-category. When measured by means of customers’ share-of-category, customers demonstrate significantly different purchasing intentions and behavior. In addition, customer retail service experiences that influence the share-of-category differ significantly between customers with a low and a high share-of-category. We expand our knowledge of customer experience by highlighting that different customer groups may perceive a similar retail experience differently, leading to a different purchasing behavior and influencing their respective share-of-category. This study expands existing research by providing empirical evidence of the link between the customer experience and customers’ purchasing behavior.     

Sustainable growth for the self-employed in the retail industry based on customer equity,customer satisfaction,and loyalty

In Korea, traditional retail districts face a serious situation whereby businesses in downtown areas face collapsing as local population declines: resulting in a decrease in self-employed sales and a declining local economy. Traditional retailers use ambiguous accounting and are reluctant to use credit cards, and thus, the overall reliability of their customer data is low. This paper solves this problem by applying the concept of customer equity (CE). We conducted an empirical analysis through questionnaires to identify differences in CE between traditional and new retail formats. The questionnaire consisted of questions related to CE (value equity, brand equity, relation equity), satisfaction, loyalty, and demographic characteristics. CE and satisfaction were measured on a 5-point Likert scale. A total of 400 surveys were completed, resulting in 391 usable returns for analysis in this study. In the regression analysis between CE and customer satisfaction, both old and new retail firms showed statistically significant effects. In the traditional retail industry, value equity and brand equity were statistically significant, while relation equity were not.     

Examining consumer experience in using m-banking apps: A study of its antecedents and outcomes

The purpose of this study is to examine the antecedents and outcomes of consumer experience (CX) with mobile banking (m-banking) apps. To understand the linkage of CX with other constructs, data collection was done using a structured questionnaire through an online survey. A sample of 473 respondents were analysed using structural equation modeling by testing the proposed hypotheses in AMOS (Analysis of Moment Structures) version 22.0. The findings revealed that convenience, trust, and social influence play a significant role in enhancing CX with the m-banking app use. Apps attributes was found to be relatively less important and no relationship was found between customer support and CX. Customer loyalty and customer intention to continue using the m-banking apps were observed as significant outcome variables. This study will contribute to the growing literature on CX and will guide managers in recognizing the importance of CX in designing appropriate strategies for the promotion of m-banking and engaging their customers in a developing country context.     

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.     

Social interaction,convenience and customer satisfaction: The mediating effect of customer experience

The present study is an effort to investigate the impact of both convenience and social interaction on customer satisfaction and the mediating role of customer experience. A structured questionnaire was used to collect data (n=840) using systematic sampling from department store shoppers of age 18 years and above in India. Multivariate data analysis techniques like Exploratory Factor Analysis and Structural Equation Modeling were used to analyze the data. Results revealed that convenience and social interaction affect both customer experience and customer satisfaction. Arguably, this paper is the first to examine the four constructs namely, social interaction, convenience, customer satisfaction and customer experience using them together in the same model. Academic and managerial implications are further discussed.     

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.     

Managing customer loyalty through the mediating role of satisfaction in the DIY retail loyalty program

The focus of this study is the determinants of customer loyalty among members of retail loyalty programs. With data collected from a DIY loyalty program in a Central European country (a preliminary sample of 116 club members and a representative sample of 416 members), the study empirically tests the nature of the effect of the quality of personal interactions and perceptions of the quality of the loyalty program on customer loyalty through the mediating variable of customer satisfaction. Although the findings suggest that the quality of personal interactions bears no direct influence on members’ loyalty, it has a stronger influence on members’ satisfaction than the perceived quality of the loyalty program does. Influence on members’ loyalty is stronger from the mediating variable of customer satisfaction than from perceived quality of the loyalty program. This finding confirms the role of customer satisfaction as an important determinant of customer loyalty in the DIY setting. Offering a diagnostic tool in terms of selected direct and indirect determinants influencing customers’ loyalty, the paper also contributes to comprehension of loyalty programs’ effectiveness and members’ responses to the quality of loyalty programs, which contribution provides important implications for management and development of retail loyalty programs.