Corporate image,loyalty, and commitment in the consumer travel industry

Abstract

This article examines the impact and interrelationship of corporate image, satisfaction, and commitment on customer loyalty in the travel industry. A corporate image–commitment–loyalty model was developed and tested. Partial least squares (PLS) was used to test the direct and indirect linkages between the four variables, and an alternative model was proposed. The tourism and travel industry is highly price sensitive and competitive with low levels of customer loyalty. Customer loyalty is a valuable asset in highly competitive markets, and understanding factors affecting customer loyalty is important to travel agencies who are seeking ways to maintain a strong customer base. The results of a mail survey conducted in New Zealand indicate that corporate image has a positive significant influence on customer commitment and customer satisfaction. Affective commitment is the focal point in the relationship and contributed most in predicting customer loyalty. The influence of customer satisfaction, on the other hand, contributed a much smaller effect. The key implications for travel agencies are build strong emotional bonds with customers and improve corporate image through trust and service delivery.     

Effects of quality and corporate social responsibility on loyalty

The purpose is to investigate the impact of corporate social responsibility perceptions on three aspects of customer loyalty for a new bank service (Travel Card) relative to a recognised major predictor in service quality. Surveys were completed by 204 bank consumers in Australia. Using a series of regression equations, two sets of socially responsible perceptions had significant effects on purchase intention and positive word of mouth. In both cases, new socially responsible information was twice as strong a predictor as service quality. However, for affective commitment, service quality was the dominant predictor. Furthermore, existing perceptions of socially responsible performance had a negative effect on purchase intentions. The study presents the first evidence that new socially responsible perceptions for a service firm can be a more powerful predictor than corporate abilities. The findings further illustrate the differential impacts of socially responsible information on different loyalty conceptualisations.     

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.     

Antecedents and outcomes of brand love: the mediating role of brand loyalty

The purpose of this study was to propose and test an integrative conceptual model which incorporates experience-based (i.e. brand experience) and non-experience-based (i.e. self-congruity) antecedents and behavioural outcomes (i.e. brand loyalty and positive word-of-mouth) of brand love. The conceptual model and proposed hypotheses of the study are analysed with a sample of 361 consumers by using a structured survey as a data collection instrument. Structural equation modelling was used to examine the hypothesized linkages among the constructs. The findings of the study demonstrate strong associations between both experience-based and non-experience-based antecedents and brand love, and between brand love and its behavioural outcomes. This study also corroborates the mediating role of brand loyalty on the impact of brand love on positive word-of-mouth. This study is expected to contribute to the field of brand management by investigating the simultaneous impact of experience-based and non-experienced-based antecedents on brand love and the mediating role of brand loyalty on the association between brand love and positive word-of-mouth, which has not been addressed in the previous literature.     

Affective commitment and customer loyalty in crowdsourcing: antecedents,interdependencies, and practical implications

Crowdsourcing, the outsourcing of previously internal processes within the corporate value chain to an external crowd of people, has become increasingly popular in retail. In applying this practice, retailers aim not only at improving the effectiveness and efficiency of their value creation process, but also at increasing the affective commitment and loyalty of their customers. Surprisingly, the effects of crowdsourcing on affective commitment and customer loyalty, and the factors influencing these objectives have hardly been researched. This paper closes this research gap. Through expert interviews and experimental studies, it comes to the conclusion that especially satisfaction with the crowdsourcing process and sense of virtual community are relevant factors impacting affective commitment and customer loyalty. The paper concludes with recommendations for optimizing these factors in retail practice.     

Exploring the impact of product service quality on buyer commitment and loyalty in B TO B relationships

Purpose: The purpose of this study is to understand and empirically test causal relationships among components of product service quality and commitment and buyer loyalty in business-to-business (B to B) relationships.

Methodology/approach: Data were collected through a web-based survey from 314 buyers of B to B manufacturers in Korea.

Findings: Product quality enhances all three types of commitment in B to B relationships, service quality is positively associated with affective commitment, and support quality has a significantly positive effect on affective and normative commitment. Also, the moderating effects of competitive intensity are significant. If competitive intensity is low in the buyer’s market, product quality and service quality play important roles in deriving buyer commitment; however, if competitive intensity is high, support quality is effective in maintaining long-term committed relationships with buyers.

Research implications: To fully consider product service quality in this study, we established support quality, product quality, and service quality as discrete components of product service quality.

Practical implications: Previous quality-related works have focused on products and services with little research about support activities, and the literature is lacking empirical analyses of support activities. However, this study elucidates the importance of operational and technical support activities in B to B relationships. Specifically, in a fiercely competitive market, a high-quality consumer support strategy is shown to be highly effective in maintaining long-term committed relationships with buyers.

Originality/value/contribution: We analyzed the relationships among components of product service quality and commitment and buyer loyalty in B to B transactions. Our detailed results will help firms develop context-specific quality management strategies at the product service level in order to strengthen customer loyalty.     

The mediating role of commitment in healthcare B2B marketing

Business to business transactions in pharmaceutical and healthcare industries may differ from those in other industries in terms of relational marketing factors such as customer acquisition and retention. Purchasing representatives, including medical physicians, may differ in their levels of commitment; this difference plays a mediating role in satisfaction, dependence, and intention to repurchase. This article begins by analyzing the structural relationships among these three variables: commitment, satisfaction, and dependence. The relationships are dichotomized into two dimensions: individual and organizational, and marketing performance is measured as repurchase intention. A critical literature review was conducted to identify key variables and derive their constructs. The subsequent empirical analyses have far-reaching implications from a marketing perspective.     

Predicting behavioral loyalty through corporate social responsibility: The mediating role of involvement and commitment

This study examines whether consumers' perceptions of corporate social responsibility (CSR) activities can predict behavioral loyalty, and how two attitudinal constructs drawing from the means-end chain model—involvement and commitment—mediate this relationship. A field study of 634 customers of an Australian professional football team was conducted by combining attitudinal surveys with actual behavioral data collected one year later. The results revealed a positive mediating effect of involvement on the relationship between perceived CSR and behavioral loyalty. However, when the effect of involvement on behavioral loyalty was mediated by commitment, the indirect effect of perceived CSR turned negative. The findings of this study indicate that the contribution of CSR initiatives to behavioral loyalty is not as robust as past research suggests, and is also contingent upon specific psychological states activated by consumers' perceptions of such initiatives.     

The effects of store brand loyalty on store loyalty: evidence from the Spanish market

This article studies the impact of retailers' store brands on store performance. Specifically, we analyze the extent to which store brands contribute to store loyalty. On the one hand, a positive relationship between customers' familiarity with and loyalty to the retailer's own brand and customers' loyalty to the retailer should result from the potential of the store brand to differentiate the retailer. On the other hand, an negative relationship between customers' familiarity with and loyalty to the retailer's own brand and customers' loyalty to the retailer may result from store brands' association with more price-sensitive customers, who have a higher propensity to buy at different stores that offer the best bargain. The empirical analysis, conducted with a sample of customers of leading retailers in the Spanish detergent market, shows no relationship between store brand loyalty and loyalty to the retailer. Although the purchase of store brands relates positively to higher loyalty to the retailer, this relationship deteriorates with the degree of exclusivity of store brands within the customer's shopping basket.     

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.     

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.     

From active participation to engagement in online communities: Analysing the mediating role of trust and commitment

The advent of new media and the internet has brought social media to the fore of all brand communications. Marketers are looking at leveraging social media and all its capabilities to their advantage so as to build and manage customer relationships while also co-creating brand experiences. Online communities are one of the most preferred choices of marketers, from among all the tools and features that social media offers. The present study aims to understand how user’s active participation in online communities is instrumental in influencing their engagement with the community. The above relationship is tested on a sample of 203 respondents, using Structural Equation Modelling (SEM), where trust and commitment are explored as mediators. While trust is found to partially mediate the relationship between active participation and engagement, commitment acts as a full mediator. The influence of personal characteristics (membership duration, gender) is also explored as an ancillary outcome to the study.     

Impact of tacit knowledge on customer loyalty

Tacit knowledge about customers held by contact personnel is a priority for better satisfying customer needs and creating added value. This research project seeks to develop a model to analyse the impact of tacit knowledge on loyalty for rural tourism lodgings. A questionnaire was applied to the clients of rural tourism lodgings who had either already consumed rural tourism services at least once or were then currently consuming such services. By applying structural equation models, the results demonstrate how tacit knowledge does improve the performance of employees in engaging in affective bonds and enables better understanding of the needs and expectations of customers. Furthermore, the results confirm how tacit knowledge about customers represents a resource able to promote customer loyalty and thus a very strong potential source of competitive advantage.     

The impact of salespeople's relational behaviors and organizational fairness on customer loyalty: An empirical study in B-to-B relationships

Although customer loyalty has proved to be a powerful determinant of firms' profits, the drivers of loyalty in B-to-B relationships are still unclear. Recognizing that both interpersonal and interorganizational level variables are needed to predict customer loyalty, the aim of this study is to investigate the combined effects of salespersons' relational behavior and organizational fairness in predicting customer satisfaction and loyalty. Results from a field survey in a B-to-B setting show that buyer loyalty is largely determined by the quality of the interpersonal relationship with the seller. Perceived fairness is central for building overall customer satisfaction and loyalty toward the supplier.     

Exploring the mediating role of utilitarian value and hedonic value in the formation of oppositional loyalty in online communities

Our research expands the scope of the research on oppositional loyalty from brands to online communities. Online communities allow members to freely express their opinions and promote the occurrence of oppositional loyalty behaviours towards the communities. Oppositional loyalty is defined in this article that, for the purpose of strengthening the market position of their preferred community, members of the online community may express negative views or even show oppositional behaviour towards adversarial communities. In view of social capital theory, the study examines the effect of hedonic value and utilitarian value on oppositional loyalty in online communities. The results show that only hedonic value significantly affects oppositional loyalty; hedonic value mediates the effect of the three dimensions of social capital (network ties, identification, and common language) on oppositional loyalty. The study identifies that community type moderates the impact of social capital (identification and common language) on hedonic value but does not moderate the effect of social capital on utilitarian value. Finally, we find that members' oppositional loyalty towards their community can promote their community participation. This research provides recommendations for online community managers to manage and benefit from members' oppositional loyalty.     

Exploring the influence of three types of grocery retailer loyalty programs on customer affective loyalty

Loyalty programs have become a key tool in retailer marketing strategies. In order to manage client heterogeneity adequately, companies have implemented different types of programs: reward programs (RP), loyalty cards (LC) and VIP programs. This paper explores the effects of these three types of programs and provides a comparative analysis of the influence that these three types of programs have on the affective loyalty towards the retailer of customers participating in them. Results show that VIP programs are the most effective in achieving customer affective loyalty, whilst people taking part in reward programs and loyalty card schemes evidence no differences in their affective loyalty towards the store. It can thus be concluded that clients who are loyalty card holders do not value the intangible rewards (preferential treatment) they receive from the store.     

Outsourcing of advanced business services in the Spanish economy: Explanation and estimation of the regional effects

The use of advanced business services has become an essential element for competitiveness in modern economies in which traditional competitive advantages based on prices, lower labour costs or the abundance of natural resources are being replaced by new advantages based on higher quality, greater knowledge or the use of information and communication technologies (ICTs). Within this context certain services (computing, communications, human resources, engineering, consulting or management) are generally outsourced so as to exploit the advantages derived from specialisation and division of labour, as well as those of economies of scope and scale. However, some businesses, sectors or regions appear to have very different patterns of outsourcing advanced producer services. This paper presents an explanation of elements of business outsourcing decisions applied to the Spanish economy, applying discrete response models to the information obtained in a survey elaborated by the authors. The data thus obtained have enabled us to identify differences between the Spanish regions in the tendencies of businesses to use internal or external advanced services.     

Impacts of retail brand personality and self-congruity on store loyalty: The moderating role of gender

The present study was an effort to investigate the impacts of both retail brand personality and self-congruity, using them together in the same study, on store loyalty. Subsequently, this study explored the moderating role of gender in these relationships of retail brand personality and self-congruity with store loyalty. Questionnaire was used to collect data (n=355) using systematic sampling from department store shoppers of age 18 years and above in Kolkata, a metropolitan city of India. Multivariate data analysis techniques like exploratory factor analysis, structural equation modeling were used to analyse the data. Results revealed that both retail brand personality and self-congruity constructs have positive impacts on store loyalty and gender significantly moderates these impacts. Arguably, this paper is the first to examine the three constructs namely, retail brand personality, self-congruity and store loyalty using them together in the same model. Academic and managerial implications are further discussed.     

‘An Examination of the Ethical Commitment of Professional Accountants to Auditor Independence’

This research explores the relationship between work context and professional ethics. Specifically, we analyze through an online survey of professional accountants the degree to which changing work conditions have altered individual accountants’ commitment to the core professional value of auditor independence. We argue that certain changes in the condition of work have made some categories of accountants more susceptible to the logic of commercialism rather than the logic of professionalism. We find general support for this argument. We observe that accountants working outside of public accounting have a higher commitment to independence than do accountants working in the context of public accounting firms. We further observe that accountants in large international accounting firms (i.e. the “Big Four”) report lower commitment to auditor independence than do others in public accounting. And we observe that older accountants report stronger commitment to auditor independence. One finding, however, contradicts our general thesis. We find that commitment to one’s client does not necessarily result in a loss of commitment to the core professional value of independence. We conclude that changes in the context of work have contributed to the demise of ethics among professional accountants and suggest that further research be done to elaborate the relationship between client commitment and independence commitment.     

The link between customer satisfaction and loyalty: the moderating role of customer characteristics

This research examines whether trust and commitment mediate the extent to which satisfaction influences loyalty, and whether such mediation is conditional on certain demographic or situational customer characteristics. The findings suggest that assuming homogeneity supports the general notion that trust and commitment partially mediate the extent to which satisfaction influences loyalty. FIMIX-PLS and PLS-MGA analyses substantiate that this mediation differs between two distinct customer segments. The two segments reveal heterogeneity in how trust and commitment partially mediate the link between satisfaction and loyalty. That is, the effect of satisfaction on loyalty is fully mediated by trust and commitment in the segment of customers with high education, whereas satisfaction is partially mediated by trust, but not by commitment, in the other segment of customers with less education.