• Title/Summary/Keyword: Customers' loyalty

Search Result 674, Processing Time 0.023 seconds

Effects of Visible and Invisible Factors and Buying Impulse Intention upon Store Loyalty: Focused on Physical Evidence and Word-of-Mouth of Discount Store

  • Yang, Hoe-Chang;Ahn, Ho-Keun;Lee, Young-Chul
    • Journal of Distribution Science
    • /
    • v.11 no.11
    • /
    • pp.57-61
    • /
    • 2013
  • Purpose - This study aimed to understand the influence of visible factors directly shown to and experienced by consumers such as physical evidence, and invisible factors obtained through acquaintances or other experienced consumers such as word-of-mouth, in the discount stores' marketing communication on impulse buying intention and store loyalty. Research Design, Data, and Methodology - This study examined the effect of factors in discount stores' marketing communication, for instance, physical evidence, word-of-mouth, and buying impulse intention. The questionnaire survey resulted in 68 completed questionnaires. Results - Physical evidence and word-of-mouth have a statistically significant positive effect on store loyalty. The results of regression analysis regarding whether visible or invisible factors have more impact showed that word-of-mouth has a statistically significant positive effect on store loyalty. With regard to impulse buying intention, only word-of-mouth was statistically significant. Conclusion These results suggested that visible and invisible factors that appeal to customers are very important. In particular, the results suggested that stores should create invisible factors (e.g., positive word-of-mouth) for their customers.

Impact of Service Quality, Customer Satisfaction and Switching Costs on Customer Loyalty

  • NGUYEN, Do Thanh;PHAM, Van Thanh;TRAN, Dung Manh;PHAM, Duyen Bich T.
    • The Journal of Asian Finance, Economics and Business
    • /
    • v.7 no.8
    • /
    • pp.395-405
    • /
    • 2020
  • This study examines the relationships and the impacts of service quality, customer satisfaction and switching costs on customer loyalty of e-banking in commercial banks. This study uses questionnaires with 7-point Likert scale to collect data from 227 e-banking users, who are mainly students and paid employees in Hanoi City, Vietnam. The collected data are analyzed by using multivariate linear regression method. The results show that all five factors of service quality in e-banking - reliability, responsiveness, service capacity, empathy and tangibility - have positive correlations with customer satisfaction. Among these determinants, service capacity and tangibility have the strongest impact. It means that, by increasing the quality of their services through five above factors, especially through improving capacity and tangibility, commercial banks can satisfy their customer better. In addition, customer satisfaction is strongly and positively correlated to customer loyalty. It means that, if customers are satisfied with e-banking services of one bank, they not only continue to do more businesses with this bank, but also recommend this bank to other people. Lastly, customer loyalty also has a strong and positive correlation with switching costs, which means customers tend to be loyal to one bank if the barriers to switching banks increase.

Factors Affecting Online Purchase Decision, Customer Satisfaction, and Brand Loyalty: An Empirical Study from Indonesia's Biggest E-Commerce

  • HARTANTO, Nico;MANI, La;JATI, Mustika;JOSEPHINE, Ruth;HIDAYAT, Z.
    • Journal of Distribution Science
    • /
    • v.20 no.11
    • /
    • pp.33-45
    • /
    • 2022
  • Purpose: The development of online shopping trends in Indonesia is increasing, and Tokopedia is becoming one of the most popular e-commerce websites. The purpose of this study is to obtain empirical evidence whether mobile shopping, customer review, perceived credibility, and Korean celebrity endorsement affect online purchase decision, whether online purchase decision affects customer satisfaction, and whether customer satisfaction affects brand loyalty of customers in Tokopedia e-commerce. Research Design, data and methodology: Quantitative survey with data was collected using an online questionnaire with sample characteristics were Tokopedia customers who lived in Jakarta by 385 samples using the purposive sampling method, and data analysis was conducted using the Smartpls application program version 3.0. Results: Mobile shopping, customer review, and perceived credibility had positive effects on online purchase decision at Tokopedia in Jakarta. However, Korean celebrity endorsement did not have a positive effect on online purchase decision at Tokopedia in Jakarta. Furthermore, online purchase decision had a positive effect on customer satisfaction at Tokopedia in Jakarta, and customer satisfaction had a positive effect on brand loyalty at Tokopedia in Jakarta. Conclusions: This study proposes significant implications for maintaining customer relationships to achieve purchasing decision, customer satisfaction, and brand loyalty in the e-commerce industry.

An Exploratory Study on the Effects of Relational Benefits and Brand Identity : mediating effect of brand identity (관계혜택과 브랜드 동일시의 역할에 관한 탐색적 연구: 브랜드 동일시의 매개역할을 중심으로)

  • Bang, Jounghae;Jung, Jiyeon;Lee, Eunhyung;Kang, Hyunmo
    • Asia Marketing Journal
    • /
    • v.12 no.2
    • /
    • pp.155-175
    • /
    • 2010
  • Most of the service industries including finance and telecommunications have become matured and saturated. The competitions have become severe while the differences among brands become smaller. Therefore maintaining good relationships with customers has been critical for the service providers. In case of credit card and debit card, the similar patterns are shown. It is important for them to maintain good relationships with customers, and therefore, they have used marketing program which provides customized services to customers and utilizes the membership programs. Not only do they build and maintain good relationships, but also highlight their brands from the emotional aspects. For example, KB Card or Hyundai Card uses well-known designers' works for their credit card design. As well, they differentiate the designs of credit cards to stress on their brand personalities. BC Card introduced the credit card with perfume that a customer would like. Even though the credit card is small and not shown to public easily, it becomes more important for those companies to touch the customers' feelings with the brand personalities and their images. This is partly because of changes in consumers' lifestyles. Y-generations becomes highly likely to express themselves in many different ways and more emotional than X-generations. For the Y-generations, therefore, even credit cards in the wallet should be personalized and well-designed. In line with it, credit cards with good design can be seen as an example of brand identity, where different design for each customer can be used to recognize the membership groups that customers want to belong. On the other hand, these credit card companies offer the special treatment benefits for those customers who are heavy users for the cards. For example, those customers who love sports will receive some special discounts when they use their credit cards for sports related products. Therefore this study attempted to explore the relationships between relational benefits, brand identification and loyalty. It has been well known that relational benefits and brand identification lead to loyalty independently from many other studies, but there has been few study to review all the three variables all together in a research model. Furthermore, as reviewed above, in the card industry, many companies attempt to associate the brand image with their products to fit their customers' lifestyles while relational benefits are still playing an important role for their business. Therefore in our research model, relational benefits, brand identification, and loyalty are all included. We focus on the mediating effect of brand identification. From the relational benefits perspective, only special treatment benefit and confidence benefit are included. Social benefit is not applicable for this credit card industry because not many cases of face-to-face interaction can be found. From the brand identification perspective, personal brand identity and social brand identity are reviewed and included in the model. Overall, the research model emphasizes that the relationships between relational benefits and loyalty will be mediated by the effect of brand identification. The effects of relational benefits which are confidence benefit and special treatment benefits on loyalty will be realized when they fit to the personal brand identity and social brand identity. In the research model, therefore, the relationships between confidence benefit and social brand identity, and between confidence benefit and personal identity are hypothesized while the effects of special treatment benefit on social brand identity and personal brand identity are hypothesized. Loyalty, then, is hypothesized to have positive relationships with personal brand identity and social brand identity. In addition, confidence benefit among the relational benefits is expected to have a direct, positive relationship with loyalty because confidence benefit has been recognized as a critical factor for good relationships and satisfaction. Data were collected from college students who have been using either credit cards or debit cards. College students were regarded good subjects because they are in Y-generation cohorts and have tendency to express themselves more. Total sample size was two hundred three at the beginning, but after deleting those data with many missing values, one hundred ninety-seven data points were remained and used for the model testing. Measurement items were brought from the previous literatures and modified for this research. To test the reliability, using SPSS 14, chronbach's α was examined and all the values were from .874 to .928 exceeding over .7. Using AMOS 7.0, confirmatory factor analysis was conducted to investigate the measurement model. The measurement model was found good fit with χ2(67)=188.388 (p= .000), GFI=.886, AGFI=.821, CFI=.941, RMSEA=.096. Using AMOS 7.0, structural equation modeling has been used to analyze the research model. Overall, the research model fit were χ2(68)=188.670 (p= .000), GFI=.886, AGFI=,824 CFI=.942, RMSEA=.095 indicating good fit. In details, all the paths hypothesized in the research model were found significant except for the path from social brand identity to loyalty. Personal brand identity leads to loyalty while both confidence benefit and special treatment benefit have a positive relationships with personal and social identities. As well, confidence benefit has a direct positive effect on loyalty. The results indicates the followings. First, personal brand identity plays an important role for credit/debit card usage. Therefore even for the products which are not shown to public easy, design and emotional aspect can be important to fit the customers' lifestyles. Second, confidence benefit and special treatment benefit have a positive effects on personal brand identity. Therefore it will be needed for marketers to associate the special treatment and trust and confidence benefits with personal image, personality and personal identity. Third, this study found again the importance of confidence and trust. However interestingly enough, social brand identity was not found to be significantly related to loyalty. It can be explained that the main sample of this study consists of college students. Those strategies to facilitate social brand identity are focused on high social status groups while college students have not been established their status yet.

  • PDF

Effects of Service Value on Attitude, and Loyalty in Food-Service Franchise (외식프랜차이즈의 서비스 가치가 인지적 태도, 정서적 태도, 그리고 충성도에 미치는 영향)

  • LEE, Shin-Hwa;LEE, Yong-Ki;LEE, Jae-Gyu
    • The Korean Journal of Franchise Management
    • /
    • v.10 no.3
    • /
    • pp.13-23
    • /
    • 2019
  • Purpose - The recent franchise industry is rapidly developing. Some franchisees have a low barriers to entry and competition among companies is intensifying. In this dynamic competitive environment, companies need to focus on customer preferences, quality, and technical interfaces to gain competitive advantage. As a result, companies are required to measure the performance of service values in order to provide differentiated services from competitors. In the franchise industry, customer experience marketing of service values will enable companies to create new businesses. Franchise firms should explore a variety of services to increase service value and reduce failures. Research design, data, methodology - The questionnaire of this study was based on the previous research. Surveys were conducted on panels of online surveys. Surveys were conducted on the panel who had visited the restaurant franchise within the past month. The survey was conducted for about 7 days from February 13, 2019 to February 19, 2019. Total 300 samples, 293 were used in the analysis except for seven unfair questionnaires. Results - The findings of this study are as follows: Emotional, monetary, and reputation values have positive effects on cognitive and affective attitudes. Quality value and behavioral value did not effect cognitive attitude and affective attitude significantly. In addition, affective attitude has positive effect on loyalty, but cognitive attitude did not significant effect on loyalty. Conclusions - First, food-service franchise company should develop a service that enables customers to use the store conveniently. We need to develop a comfortable environment for our customers and provide intangible services. Second, food-service franchise company should provide a reasonable price service. Food-service franchise company needs to sell a high quality menu at a reasonable price to generate profits. Third, food-service franchise companies need to strategically respond to their reputation. In other words, food-service franchise company needs to constantly monitor the reputation of its customers and respond appropriately to market conditions. Fourth, food-service franchise company needs to develop a service method capable of emotional interaction with customers. Food-service franchise firms need to develop ongoing service methods and educate their staff.

The Impact of Food Service Franchisee's Customer-oriented Activities on Hedonic, and Utilitarian Values and Loyalty

  • JANG, Hae-Jin;WOO, Sung-Keun;LEE, Yong-Ki
    • The Korean Journal of Franchise Management
    • /
    • v.11 no.1
    • /
    • pp.7-17
    • /
    • 2020
  • Purpose - As the competition in the foodservice franchise industry and the market becomes fierce and the entry barrier is lowered, the foodservice franchisor and franchisees strive to increase their competitive advantage in the market. Therefore, the franchisor and franchisees use experience management strategies to enhance the positive experiences of customers visiting the stores. In this regard, this study examines the effects of customer-oriented activities (physical-, social-, health-, and service-oriented activities) on utilitarian and hedonic values, and loyalty using stimulus-organism-response (S-O-R) model and value-expectancy theory. Research design, data, methodology - The data were collected from panels of online survey company, who visited a foodservice franchisee within last month. The survey was conducted for about 15 days from March 7, 2019 to March 21, 2019, and about 3,500 e-mails and messages were distributed to ask for the survey. A total 412 responded and completed the questionnaires. Of the 412 completed questionaires, 12 were discarded due to missing and misinformation data and 400 were retained for further data analysis. Results --The results showed that social oriented activities, health oriented activities, and service oriented activities had positive effects on hedonic value, while physical oriented activities did not have a significant effect on hedonic value. Health oriented activities and service oriented activities had positive effects on utilitarian value, while physical oriented activities and social oriented activities had no significant effects on utilitarian value. Hedonic and utilitarian values also have a positive effect on loyalty. Conclusions - First, food service franchises should provide services and menus in consideration of the health of customers. When a customer visits the store, franchisee should provide more health-oriented food or materials and clean and comfortable conditions so as not to threaten the health of the customer. Second, the food service franchise must build a service-oriented system. Foodservice franchisor need to provide continuous service training not only to the franchisees, but also to the employees of the franchisees. Third, franchise should design a store where customers can form social exchanges through providing various information exchange to customers and making the store as a local community center.

Effective Marketing Proposals Enhancing Customer Loyalty

  • Chen, Tser-Yieth;Hsu, Hsin-Swai
    • Journal of Distribution Science
    • /
    • v.12 no.5
    • /
    • pp.5-13
    • /
    • 2014
  • Purpose - We seek feasible strategies to draw customers into a state of attitudinal/behavioral loyalty through perceived quality and perceived risk in the experienced food industry. Research design, data, and methodology - We utilize the LISREL model to examine the cause and effect relationships between customer loyalty, perceived quality, perceived risk, and three marketing proposals (brand image, store image, and promotion). We employed the quota sampling method to conduct the survey questionnaires, collecting365 effective customer samples in coffee shops/stores in Taipei City. Results - We find that store image substantially benefits consumer loyalty through perceived quality. Marketing managers can enhance store environment and atmosphere to elicit both attitudinal and behavioral aspects of customer-perceived quality and loyalty. Conclusions - This is the first paper to investigate simultaneously customer loyalty across brand image, store image, and promotion/marketing proposals in the food industry. Managers can promote brand image and store image at the same time to enhance customer-perceived quality.

Determinants of Customer Loyalty on the Portal Sites (온라인 상에서의 고객 충성도에 영향을 미치는 요인에 관한 연구: 포탈 사이트를 중심으로)

  • Kim, Myoung-Soo;Ahn, Jae-Hyeon;Lee, Yung-Seop
    • Asia pacific journal of information systems
    • /
    • v.13 no.1
    • /
    • pp.171-195
    • /
    • 2003
  • Providers for the commercial web sites are seriously competing for attraction and retention of customers. However, customer loyalty in the on-line business could be determined by factors different from those in the off-line business. In this paper, determinants for the customer loyalty in the on-line business are analyzed as two parts. The first part includes determinants that foster voluntary customer loyalty, such as satisfaction, self-involvement, and positive characteristics of Internet. The second part includes determinants that foster involuntary customer loyalty, such as switching barrier and bonds. Through the empirical study of 399 survey of Korean Internet users, both voluntary and involuntary factors contributing to the customer loyalty were found. Also, relationship between the positive characteristics of Internet and customer loyalty were found. The understanding of the determinants of customer loyalty will be an important information developing a winning strategy in the on-line business.

The Effects of Rapport Building Behavior on Customer Loyalty in the Banking Service Environment : Through Customer Attitude (은행서비스 환경에서 라포형성행동이 고객충성도에 미치는 영향 : 고객태도를 매개로)

  • Kim, Cheon-wook;Hwang, Chan-kyu
    • Journal of Venture Innovation
    • /
    • v.6 no.2
    • /
    • pp.67-82
    • /
    • 2023
  • The purpose of this study is to investigate the effect of Rapport Building Behavior on Customer Loyalty through Customer Attitude in the banking service environment targeting bank customers residing in Seoul and the metropolitan area. This study applied a significant sampling method, and the number of samples used in the final analysis was 201, and statistical analysis was performed on the input data using the SPSS 20.0 program. As a result of the analysis, first, it was found that the sub-factors of Rapport Building Behavior in the banking service environment, Attentive, Courtesy, and Information Sharing, had a significant positive (+) effect on customer loyalty, and Connecting was found that there was no positive (+) effect on customer loyalty. Second, Attentive, Courtesy, and Information Sharing, which are sub-factors of rapport building behavior, were shown to have a significant positive (+) effect on customer attitude, and Connecting was found that there was no positive (+) effect on customer attitude. Third, customer attitude was found to have a significant positive (+) effect on customer loyalty. Fourth, customer attitude was shown to mediate the relationship between rapport building behavior and customer loyalty. Therefore, it was found that rapport building behavior is a factor influencing customer attitude and customer loyalty in the banking service environment. This means that rapport building behavior between customers and banks can change customer attitudes and have a positive effect on customer loyalty. It can be seen as implying that customer management is necessary to increase customer loyalty through rapport building between customers and banks even in the changing banking service environment.

A Study on Promotional Plans of Local Business by using SNS (Social Network Service): Focused on Naver Band, Blog, Kakao Talk and Facebook

  • Jang, Yu-Ri;Youn, Won Bae
    • The Journal of Economics, Marketing and Management
    • /
    • v.2 no.2
    • /
    • pp.1-9
    • /
    • 2014
  • This study investigated solutions of not only weak organization but also poor communication with customers from point of view of SNS such as Naver blog, Naver band, Kakao Talk and Facebook to promote local business market. The study gave strategies: First, SNS marketing strategy shall be used to do public relations and communicate in accordance with features of each SNS. Naver Blog that is opened SNS shall be used to do public relations and to invite new customers, and Kakao Talk that is closed SNS shall be used to increase customers having high loyalty, and Facebook that has both properties of SNS, that is to say, openness and closure, shall be used to raise effects of word-of-mouth to make use of new sales window. The communication can find out customers' needs to provide customers with customized services. Second, Naver Band and/or cafe shall be opened to increase link and friendliness and to have community consciousness realizing common goal and to destroy merchants' helplessness and individualism and to make change of the market for the place of community. Changes among the merchants may get better ideas to do events continuously and to get more SNS marketing effects and synergy. Third, the merchants shall make change not momentarily but continuously by making efforts steadily. Good communication in and out of the market may create inherent brand value to differ from super chain and/or SSM and to increase sales as well as traditional market image and to attain customers' loyalty.