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•Customer satisfaction relationships differ in online and offline purchasing.•Perceived value is a stronger driver of satisfaction in online purchases.•Overall quality and ...expectations are stronger drivers of satisfaction offline.•Customers are more satisfaction-sensitive when purchasing online.•Differences generally persist across customer demographics and retail categories.
Retailers seek to utilize both online and offline purchase channels strategically to satisfy customers and thrive in the marketplace. Unfortunately, current multichannel research is deficient in answering what drives customers’ satisfaction, and consequently their loyalty, differently when customers purchase online versus at a physical store. This gap in knowledge can be a significant concern for retailers due to the negative impact of having dissatisfied customers on their bottom lines. Using a version of the American Customer Satisfaction Index (ACSI) model, we demonstrate several important purchase-channel differences in the antecedents of customer satisfaction and its subsequent effect on customer loyalty. Specifically, we show that when retail customers buy electronic goods online they view purchase value as a significant attribute in rating satisfaction, and are more satisfaction-sensitive when making repurchase decisions than when they purchase offline. On the other hand, the overall quality of the purchase experience and customer expectations are stronger drivers of customer satisfaction in the offline purchases. We provide evidence that these differences between the channels generally persist across customer demographics (gender, age, and education) and broader product categories, and we also discuss the specific contexts where they do not. Our work offers actionable guidance to retailers seeking to enhance customer satisfaction and loyalty across both the online and offline channels.
Prevailing wisdom assumes that female consumers are more loyal than male consumers. The authors report conditions under which the reverse is found, depending on the object of customer loyalty. For ...example, whereas female consumers tend to be more loyal than male consumers to individuals, such as individual service providers, this difference is reversed when the object of loyalty is a group of people. The authors find a similar crossover interaction effect for loyalty to individual employees versus loyalty to companies. This effect is mediated by self-construal in terms of relational versus collective interdependence. The authors discuss the managerial and theoretical implications of these gender differences. PUBLICATION ABSTRACT
Service firms are encouraged by historic evidence that loyal customers are less price sensitive. Yet, some research has challenged the assertion while others have demonstrated considerable ...heterogeneity within loyal segments. Aiming to reconcile this debate, we investigate the relationship between customers’ behavioral loyalty and the importance they place on price relative to two managerially relevant service attributes: rewards and convenience. We also assess the moderating role of attitudinal loyalty resulting from superior service experience. Results from a longitudinal survey and transaction data from an airline carrier show that as customers’ behavioral loyalty increases, they place
more
importance on price and
less
importance on rewards and convenience, revealing that behavioral loyalty causes a shift in emphasis toward price. As a result, behaviorally loyal customers spend less and revenue decreases. However, by improving attitudinal loyalty, firms achieve the desired outcome of reducing price sensitivity and increasing revenue. Specifically, after experiencing better service, behaviorally loyal customers focus less on price and instead shift their focus toward rewards and convenience, and this results in revenue gains for the firm. Overall, attitudinal loyalty from better service experience acts as a key mitigator of the positive link between behavioral
loyalty
and price sensitivity.
Building on the meta-analytic model suggested by Palmatier et al.
Journal of Marketing, 70,
136–153, (
2006
), this study extends the relationship marketing framework to the domain of online ...retailing to identify what strategies help build relationships with online customers. Specifically, this meta-analytic study identifies key antecedents and consequences of relationship marketing in online retailing. The study also examines the relationship between the four mediators—trust, commitment, relationship quality, and relationship satisfaction— and the antecedents and consequences of relationship marketing. Similarity and seller expertise were found to have the strongest impact on relational mediators, and word of mouth was the most critical outcome of relationship marketing efforts. The model proffered in this study will motivate hypotheses to be examined by future researchers. The model also helps managers to identify the key drivers of relationship marketing in online retailing.
The study examines customer attitudes towards fast moving consumer goods (FMCG) retail outlets based on customer engagement, loyalty programmes, customer satisfaction and customer loyalty towards ...customer repurchasing decisions. More specifically, this study investigates the past, present, and future trajectories of loyalty programmes in South Africa. This study followed a descriptive and a quantitative research method. A non-probability sampling method was implemented using quota and convenience sampling. The study included a sample of 272 FMCG members that participated in the study. An adapted questionnaire was used as the data collection instrument in the study. This instrument contained 59 items on demography, behavioural, and psychographic customer relationship management (CRM) based variables. The data was collected through web-based questionnaires using Google Forms. Using SPSS 28 and AMOS 28, the data analysis included both descriptive and inferential analyses tools such as factor analysis, regression analysis, cluster analysis, and structural equation modelling.
Purpose
Loyalty programs are pervasive across service industries. However, the examination of cross-customer effects represents a critical gap in the loyalty literature. To address this gap, this ...research conducts two between-subjects experimental design studies to examine traditional versus endowed loyalty status earner attitudinal loyalty intention toward the company, switching intentions and perceived unfairness.
Design/methodology/approach
Study 1 conducts a 2 (self: earned vs endowed) × 2 (others: earned vs endowed) between-subjects experimental design on the direct effects of attitudinal loyalty intention toward the company and switching intentions. Study 2 builds upon these findings by examining the mediation effect of perceived unfairness on the attitudinal loyalty intention toward the company and switching intentions.
Findings
Results from Study 1 find that cross-customer comparisons exist, and traditional loyalty members have negative attitudinal loyalty intention toward the company and switching intentions when comparing their rewards to endowed earner rewards. Study 2 examines an airline context and finds that unfairness mediates the relationship.
Originality/value
The research builds upon the literature surrounding cross-customer comparisons, loyalty programs, equity theory and endowed status and discusses the unintended negative consequences related to endowed loyalty rewards on other customer intentions that have critical managerial implications.
Many studies have modeled several different concepts to explain destination loyalty; however, none have integrated place-oriented (e.g., destination image, place attachment) and people-oriented ...concepts (e.g., cultural distance, social distance, and emotional solidarity) for their relative influences on loyalty. The current study tested the influence of destination image (place-oriented) and perceived distances (people-oriented) as antecedents of place attachment (place-oriented) and emotional solidarity (people-oriented) for their relative influences on destination loyalty. Survey data collected from both domestic (n=260) and international (n=250) visitors to a city in Turkey, Antalya, revealed that place-oriented concepts (cognitive and affective destination images and place attachment) are better predictors of destination loyalty than people-oriented concepts (cultural distance, social distance, and emotional solidarity). Together, they explain about half of the variance in destination loyalty, 42% in past loyalty and 60% in future loyalty.
Loyalty programs (LPs) are an important marketing instrument used to promote repeat purchases and customer relationships. Although numerous studies have shed light on the adoption, design, and ...outcomes of LPs, research that reviews the accumulated knowledge in a holistic manner is sparse. Against this background, this study reviews 131 LP-related articles following the Theory–Context–Characteristics–Methodology (TCCM) review protocol. By considering the theories, contexts, characteristics, and methodologies used in LP research, this study (1) paints the most comprehensive picture of the field to date and (2) develops a future research agenda to help advance the field further. Our review reveals that existing studies mostly rely on status-based, inertia-based, or relationship-based mechanisms to theoretically explain LP-related effects, while multi-theoretical perspectives are rare. LP research focuses strongly on a few key industries, such as retail, airlines, and hotels, but lacks insights into the design and outcomes of LPs in online and B2B contexts. Furthermore, we diagnose a need for more research on the role of competition among LPs and the impact of recent technological advances on LP management.
Loyalty programs play a prominent role in many firms’ customer relationship management programs, but not all programs are successful. Providers need to understand not only what benefits customers ...want in a program, but also how they want to be treated as a loyalty member. We posit that because loyalty programs offer rewards that are time-bound (immediate or delayed), and that loyalty programs seek to develop a relationship that extends over time, an important, but overlooked dimension for hospitality managers to consider is how their customers view time. Our research focuses on customers’ temporal orientation—the tendency to think in the present, future, or past. We use depth interviews to explore existing casino loyalty program participants’ thoughts and feelings about their ideal loyalty program. We find the customers’ temporal orientation influences the type of relationship as well as the type of benefits sought in the loyalty program. Our research offers managerially practical insights for identifying customers more likely to engage in co-production of a long-term loyalty relationship as well as for creating communication strategies that are likely to interest and provoke different temporal mindsets.
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