Customer loyalty and the role of relationship length

Chung‐Yu Wang · Li‐Wei Wu

114 citations0/0 files storedManaging Service Quality

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Customer Service Quality and Loyalty Consumer Behavior and Marketing Influence Customer churn and segmentation

Abstract

Purpose The objective of this study is to examine the effect of corporate image, perceived value, and switching costs on customer loyalty in customer/provider relationships of different length. Design/methodology/approach Five key constructs, namely: corporate image, perceived value, switching costs, customer loyalty, and length of relationship, were employed. Using a systematic sampling technique, student interviewers randomly approached customers exiting hair salons. The final survey sample consisted of 279 respondents. Findings This paper supports a contingency model with regard to customer loyalty and its antecedents. The results suggest that corporate image impacts customer loyalty in both newer and older relationships. Whereas in newer relationships, corporate image has a cardinal influence on switching costs, in more‐established relationships switching costs are influenced primarily by perceived value. In both cases, switching costs influence customer loyalty. Research limitations/implications As extant research claims that relationship quality, and not length, moderates the relationship between loyalty/repurchase behavior and their antecedents, future research could adopt relationship quality as a moderator to test the model of the present study. Practical implications The results support the importance of enhancing corporate image to retain newer customers. In longer‐established relationships, corporate image remains a determinant of repurchase decisions. However, customer value also has a significant influence on switching costs and loyalty. Originality/value The current study moves beyond customer‐perceived value, switching costs, and corporate image to demonstrate that relationship length has a significant influence on customer loyalty.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 1992Alternative Ways of Assessing Model Fit 1994The Commitment-Trust Theory of Relationship Marketing 1980Competitive Strategy: Techniques for Analyzing Industries and Competitors 1996The Behavioral Consequences of Service Quality 1995Understanding Information Technology Usage: A Test of Competing Models 1995Testing Structural Equation Models.1999Whence Consumer Loyalty?

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2019Exploring the role of extrovert-introvert customers’ personality prototype as a driver of customer engagement: Does relationship duration matter?2013Investing in customer loyalty: the moderating role of relational characteristics 2014An empirical model of home internet services quality in Thailand 2014The impact of relational bonds on brand loyalty: the mediating effect of brand relationship quality 2015Switching barriers and customer retention 2021

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