Purpose
This paper aims to examine loyalty formation, including service quality, perceived value, image and satisfaction as determinants, and their effect on the financial performance of Islamic ...banks.
Design/methodology/approach
Data were collected from 280 Islamic bank clients in Indonesia and bank financial performance data from bank financial reports. Variance-based partial least square modelling was used to assess the relationships between loyalty, its determinants and their influence on bank financial performance.
Findings
This study finds that client loyalty towards Islamic banks is most influenced by perceived service quality and perceived value. Further, this study documents the importance of client loyalty in influencing bank financial performance and indirect effect of clients’ satisfaction on financial performance through the strengthening of client loyalty.
Practical implications
This study offers a path for the managers of Islamic banks to enhance financial performance by enhancing client loyalty. To develop client loyalty, this study suggests that Islamic banks should offer economical and service-derived benefits that are superior to those other banks offer. Further, Islamic banks need to ensure that their business operations are compatible with Islamic values.
Originality/value
This is an early empirical study attempting to examine the link between customer loyalty and its impact on Islamic bank financial performance.
Mobile banking (MB) is one of the most recent innovations for financial sectors which could have practical value to both users and banks. This study aims to explore the dimensions affecting mobile ...banking loyalty intention and examine their interrelationships and effects on service quality and loyalty. By referring to service quality model, customised factors affecting mobile banking service quality and loyalty intention were proposed. Survey data were collected from 224 mobile banking users and were analysed based on structural equation modelling (SEM). The results of SEM analysis directly or indirectly highlight the importance of the interface design, system quality, security assurance and service quality in mobile banking loyalty intention. Meanwhile, the implications of the findings on both theoretical and managerial are discussed, as well as the limitation of this study.
PurposeThis study aims to investigate the process of developing loyalty in the Chinese mobile health community from the information seeking perspective.Design/methodology/approachA covariance-based ...structural equation model was developed to explore the mobile health community loyalty development process from information seeking perspective and tested with LISREL 9.30 for the 191 mobile health platform user samples.FindingsThe empirical results demonstrate that the information seeking perspective offers an interesting explanation for the mobile health community loyalty development process. All hypotheses in the proposed research model are supported except the relationship between privacy and trust. The two types of mobile health community loyalty—attitudal loyalty and behavioral loyalty are explained with 58 and 37% variance.Originality/valueThis paper has brought out the information seeking perspective in the loyalty formation process in mobile health community and identified several important constructs for this perspective for the loyalty formation process including information quality, communication with doctors and communication with patients.
Given the growing commercial importance of the “user experience”, better application of gamification. Thus, this study aims at exploring the antecedents and consequences of user experience and its ...mediating role in an online gamification context. Specifically, this study uses structural equation modeling to test the causal relationships among perceived mobility, utilitarian and hedonic features, user experience, perceived benefits (self-benefit and social benefit), types of perceived value (information value, experiential value, social value, and transaction value), and brand equity (perceived quality, brand loyalty, brand associations, and brand trust) in an online gamification context. Results show that perceived mobility has a significant impact on utilitarian and hedonic features, while perceived mobility and utilitarian and hedonic features influence user experience, which in turn, affects perceived benefits, types of perceived value, and brand equity. Additionally, the mediating effect of user experience is also confirmed in this study. In summary, the findings of this study can help website managers improve their users' perception of benefits, value, and brand equity more effectively and act as a guide to research and development (R&D) of gamification to obtain competitive advantage in the online context.
•Using gamification to improve user experience is proposed.•Perceived mobility, utilitarian and hedonic feature significantly affect user experience.•User experience significantly affects perception on benefits, value, and brand equity.•The mediating effect of user experience is confirmed.•Suggestions for improvement in the gamification mechanisms are proposed.
Purpose
The purpose of this paper is to identify the impacts of brand personality and functional congruity on various components of brand loyalty (i.e. cognitive, affective, and conative) by ...examining the moderating role of gender.
Design/methodology/approach
The proposed model is examined by considering car as a product brand stimulus. Using a self-structured questionnaire, 263 usable responses are considered for data analysis by applying the structural equation modelling method.
Findings
The findings indicate that all hypotheses on the relationships between brand personality, functional congruity, and stages of brand loyalty are supported except for the relationship between brand personality and conative loyalty, whereby brand personality indirectly have impacts on conative brand loyalty via functional congruity. The outcome of the multi-group analysis shows that the impact of brand personality and functional congruity on cognitive, affective, and conative brand loyalty varies across gender groups.
Practical implications
The results indicate that if marketing managers are willing to create cognitive, affective as well as conative brand loyalty among consumers, they ought to tally their consumers’ purchasing and evaluation criteria with the functional and symbolic attributes. If the target consumers were motivated to purchase the product based on the symbolic attributes (as preferred by females in the present study), more attention should be focussed on communicating and delivering the symbolic attributes during their marketing campaign; on the other hand, if the consumers were inclined to buy product based on the utilitarian functions (as preferred by males in the current study), more emphasis should be placed on the functional values and attributes.
Originality/value
This study is the first to utilise self-congruity and the elaboration likelihood model to explain the influence of brand personality and functional congruity on each component of brand loyalty within the automobile industry’s context. This study on the moderating role of gender shows that the effect of brand personality and functional congruity is different across gender groups. The findings can help marketers to design an effective brand positioning and marketing strategies in order to stay competitive.
Live streaming commerce services that utilize social network platforms are gaining popularity in China. We examined the effect of value and perceived risk on customer satisfaction and trust, and the ...influence of this satisfaction and trust on customer loyalty. Perceived value was divided
into economic, social, and emotional types, and the impact of each type on customer loyalty was examined separately. This study also investigated the impact of perceived risk on customer loyalty in live commerce. The research model was analyzed using structural equation modeling with 214 customers
who watched real-time broadcasts on the Chinese Taobao platform. The results indicated that both customer satisfaction and trust had a significant impact on customer loyalty. Economic and emotional values played an important role in enhancing customer satisfaction and trust, respectively.
However, perceived risk did not have a significant impact on either customer satisfaction or trust. Implications of our findings are discussed.
Purpose As internet dividends are gradually disappearing, loyalty programs have become the panacea for monetizing traffic, attracting new customers and retaining existing customers. Improving their ...effectiveness has thus become key to enterprises’ market competitiveness. However, member customers’ hedonic adaptation to this relationship strategy undermines its effectiveness. Based on the hedonic adaptation theory, this study aims to analyze the process of member customers' hedonic adaptation to preferential treatment in loyalty programs and explore the boundary conditions of alleviating this effect. Design/methodology/approach This study surveyed 271 member customers in China and tested the hypothesized relationships using structural equation modeling and multigroup analysis. Findings Preferential treatment suffers from hedonic adaptation to member customer engagement and customer gratitude, and customer tenure is a key condition for these effects. Customer gratitude is an intermediary mechanism that explains the hedonic adaptation effect of preferential treatment to member customers engagement. In addition, the structural characteristics of loyalty programs form the boundary condition that alleviates hedonic adaptation. The authors found that high-tier and -payment strategies are more likely to mitigate hedonic adaptation of preferential treatment to customer gratitude. Originality/value This study elucidates the factors that influence the effectiveness of preferential treatment and provides constructive insights into customer relationship management and for improving enterprise performance.
Purpose This study aims to investigate the effect of financial satisfaction (FS) on customer loyalty in the banking industry. Design/methodology/approach The study followed an explanatory research ...design using responses from 334 respondents from commercial banks in Tanzania. A stepwise regression analysis was used to validate the relevance of the study model. Findings The results indicate a positive and statistically significant association between customer loyalty and FS with levels of assets ( β = 0.598, p < 0.001), savings ( β = 0.186, p < 0.001) and debts ( β = 0.065, p < 0.001). Of the three dimensions of FS, the level of assets had the strongest contribution to customer loyalty, followed by the level of savings and debts, in that order. Research limitations/implications The study used a model of FS that was linked to customer loyalty in the Tanzanian banking industry. It is recommended that the model be tested in other environments to increase the generalizability of the findings. Practical implications This study provides an alternative way for banks to strengthen customer loyalty by enhancing FS. Originality/value The FS model (Joo and Grable, 2004) and the social exchange theory (Blau, 1964) are used in this study to propose a model of customer loyalty in the banking industry. Customer loyalty and FS have not been connected in prior studies.
Recent studies have highlighted the importance of social media brand communities to brand loyalty. This paper aims to stress the role of the brand in that relationship, suggesting a conceptual model ...in mass-market products in which consumers’ engagement in social media brand communities, brand identity, and consumer-brand identification are related to brand outcomes, such as trust and loyalty. A qualitative analysis was conducted, through in-depth interviews with experts and focus group discussions with consumers, so as to evaluate their experience with brands on social media. The findings indicated that in mass-markets, consumers engaged in social media brand communities may develop positive attitudes towards the brand, such as trust and loyalty, and that consumer-brand identification may have a fundamental role in transforming consumer-brand community interactions into consumer-brand relationships.
This article is the first to empirically examine the effect of customer loyalty in retail price negotiations. Across three field studies and one negotiation experiment, the authors establish what ...they call the "loyalty-discount cycle": in price negotiations with salespeople, loyal customers receive deeper discounts that, in turn, increase customer loyalty, resulting in a downward spiral of a company's price enforcement. The reason for the positive effect of customer loyalty on discount is twofold: (1) loyal customers demand a reward for their loyalty and invoke their elevated perceived negotiation power, and (2) to retain loyal customers, salespeople grant discounts more willingly. Furthermore, the mechanisms are moderated by the basis of a customer's loyalty (price vs. quality) and the length of the relationship between the salesperson and the customer. To escape the loyalty-discount cycle, salespeople can use functional and relational customer-oriented behaviors. The study helps managers and salespeople optimize their price enforcement and servicing of loyal customers.
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