• Journal of the Korean Society of Clothing and Textiles
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• v.33 no.2
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• pp.331-342
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• 2009

The purposes of this study were to provide the apparel companies with a effective marketing strategy by identifying the present condition of loyalty programs and designing the type of reward and the timing of reward, and to investigate the effects of loyalty programs on customers' satisfaction and loyalty. The experimental study was conducted to examine the relationship between loyalty programs and performances. The experiment, which adopted a scenario methodology, was a 2(type of rewards)${\times}$2(timing of rewards) between subjects factorial design. The sample was based on 362 college students. The data analysis was completed on the basis of SPSS 12.0 package, using descriptive analysis, frequency, factor analysis, Cronbach's a, ANOVA, and regression analysis. The following results were found in this research. First the respondent's recognition of reward(benefit, reserve fund, experience) was not relatively high. Second, the interaction effect of type of rewards and timing of rewards on the loyalty programs' satisfaction(p<.01) and customer loyalty(p<.001) was significant, but that on customer satisfaction was not significant. Finally, loyalty programs' satisfaction positively affected customer satisfaction and loyalty. The implications of the research and directions for future researchers were discussed.

• Asia Marketing Journal
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• v.13 no.3
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• pp.25-53
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• 2011

This study probes the effect of loyalty program on the customer retention based on the real transaction data(n=2,892) acquired from education service industry. We try to figure out the outcomes of reward program through more than 1 year-long data gathered and analyzed according to quasi-experimental design(i.e., before and after design). We adopt this kinds of research scheme in regard that previous studies measured the effect of loyalty program by dividing the customers into two group(i.e., members vs. non-members) after the firms or stores had started the program. We believe that it might not avoid the self-selection bias. The research questions of this study could be explained such as: First, most research said that the loyalty programs could increase the customer loyalty and contribute to the sustainable growth of company. But there are little confirmation that this promotional tool could be justified in terms of financial perspective. Thus, we are interested in both the retention rate and financial outcomes caused by the introduction of loyalty programs. Second, reward programs target mainly current customer. Especially CRM(customer relationship management) said that it is more profitable for company to build positive relationship with current customer instead of pursuing new customer. And it claims that reward program is excellent means to achieve this goal. For this purpose, we check in this study whether there is a interaction effect between loyalty program and customer type in retaining customer. Third, it is said that dis-satisfied customers are more likely to leave the company than satisfied customers. While, Bolton, Kannan and Bramlett(2000) claimed that reward program could contribute to minimize the effect of negative service by building emotional link with customer, it is not empirically confirmed. This point of view explained that the loyalty programs might work as exit barrier to current customer. Thus, this study tries to identify whether there is a interaction effect between loyalty program and service experience in keeping customer. To achieve this purpose, this study adopt both Kaplan-Meier survival analysis and Cox proportional hazard model. The research outcomes show that the average retention period is 179 days before introducing loyalty program but it is increased to 227 days after reward is given to the customers. Since this difference is statistically significant, it could be said that H1 is supported. In addition, the contribution margin coming from increased transaction period is bigger than the cost for administering loyalty programs. To address other research questions, we probe the interaction effect between loyalty program and other factors(i.e., customer type and service experience) affecting it. The analysis of Cox proportional hazard model said that the current customer is more likely to engage in building relationship with company compared to new customer. In addition, retention rate of satisfied customer is significantly increased in relation to dis-satisfied customer. Interestingly, the transaction period of dis-satisfied customer is notably increased after introducing loyalty programs. Thus, it could be said that H2, H3, and H4 are also supported. In summary, we found that the loyalty programs have values as a promotional tool in forming positive relationship with customer and building exit barrier.

• Journal of Distribution Research
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• v.11 no.4
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• pp.97-124
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• 2006

This study investigates the relationship between the relationship marketing factors, relationship quality and store loyalty in retail specialty stores. The customization of a retail specialty store was found to be having a larger effect on relationship quality than other factors such as expertise, bonding and communication and the moderating effects of customer characteristic was found be having a larger effect on relationship quality all factors except to communication. The result of this study has some practical implications. First of all, the customization strategy for individual customers is needed because customers trusted employees who provide a customized service more. Second, the employees' expertise is important to obtain the trust of customers. Third, the findings of the study showed that the communication with employees did not affect the trust. Rather, customers more often want price discounts, useful information, other benefits related to transactions. The communication is also necessary to bond a strong relationship with customers, as well as to respond customer's requests immediately Fourth, the marketing managers of the store have to effectively manage the customer relationship with the special consideration to the customer's gender, transaction experience, and variety seeking disposition.

• Knowledge Management Research
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• v.12 no.3
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• pp.39-58
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• 2011

As the information from today's knowledge-based society alters the awareness of patients and provides a wider selection of medical institutions, the reality of medical institution management is struggling compared to the past. CRM was introduced to domestic hospitals as marketing strategy to dominate the competition under varying medical environment. Thus, this research invests on CRM activity types used in hospitals and the effects of CRM activities toward loyalty and switching intention. Futhermore, we investigate the mediating role of customer relationship commitment and termination in CRM activities. The subjects in this study included three hundred customers who are using hospital settings or who had experience with using the hospital settings. The researcher collected 262 survey questionnaires from May 23th, 2011 to June first. In order to evaluate the hypothesis in this study, structural equation model was analyzed by using AMOS 18.0.

• Journal of Global Scholars of Marketing Science
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• v.17 no.4
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• pp.91-111
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• 2007

Marketing is said to be a zero sum game i.e. each gain of customer for a firm is always at the expense of some other firm's customers. Therefore in a marketplace churn is a natural occurrence. Churn in Indian telecom market is among the highest in growing telecom markets. By using binary logistics regression analysis based models based covering a sample of 822 Indian telecom subscribers; this paper attempts to examine the determinants of churn. The future churn is found to be dependent on satisfaction level of the customer with the service provider, attitude and loyalty of the customer variables, intended churn (i.e. intention to churn) and current loyalty (defined as intention to recommend) and distraction (i.e. intention to experiment).

• Journal of the Korean Society of Clothing and Textiles
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• v.28 no.6
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• pp.862-871
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• 2004

This research is ultimately to understand the general behavior of luxury goods consumers and to diversify the consumer groups according to the relationships between their benefit seeking and brand loyalty. The subjects used for the research were 223 female consumers who purchased fashion luxury goods. The data were analyzed by factor analysis and multiple regression. The results showed that there were four factors in benefit seeking of luxury goods; self-improvement, aesthetics, uniqueness and quality. Each of the factors was analyzed in relation to brand loyalty and brand variety seeking motivations. Brand loyalty's factors were continuous brand loyalty, trademark brand loyalty and devoting brand loyalty. Brand variety seeking motivation factors were change/novelty seeking motivation, quality/recommendation, discounted price and unique types of product line. The consumers who were seeking self- improvement were showing trademark brand loyalty rather than continuous or devoting brand loyalty. Meanwhile, the quality benefit seeking customers showed continuous or devoting brand loyalty. The most important motivations in brand variety seeking was change/ novelty seeking. The implications and marketing strategies of the research were discussed.

• Journal of Global Scholars of Marketing Science
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• v.20 no.3
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• pp.269-277
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• 2010

Previous studies have shown that the most important factor affecting customer loyalty in the service industry is service quality. However, on the subject of whether service quality has a direct or indirect effect on customer loyalty, scholars' views apparently vary. Some studies suggest that service quality has a direct and fundamental influence on customer loyalty (Bai and Liu, 2002). However, others have shown that service quality not only directly affects customer loyalty, it also has an indirect impact on customer loyalty by influencing customer satisfaction and perceived value (Cronin, Brady, and Hult, 2000). Currently, there are few domestic articles that specifically address the relationship between service quality and customer loyalty in the mobile communication industry. Moreover, research has studied customer loyalty as a whole variable, rather than breaking it down further into multiple dimensions. Based on this analysis, this paper summarizes previous study results, establishes an effect mechanism model among service quality, customer satisfaction, and customer loyalty in the mobile communication industry, and presents a statistical test on model assumptions by using customer investigation data from Heilongjiang Mobile Company. It provides theoretical guidance for mobile service management based on the discussion of the hypothesis test results. For data collection, the sample comprised mobile users in Harbin city, and the survey was taken by random sampling. Out of a total of 300 questionnaires, 276 (92.9%) were recovered. After excluding invalid questionnaires, 249 remained, for an effective rate of 82.6 percent for the study. Cronbach's ${\alpha}$ coefficient was adapted to assess the scale reliability, and validity testing was conducted on the questionnaire from three aspects: content validity, construct validity. and convergent validity. The study tested for goodness of fit mainly from the absolute and relative fit indexes. From the hypothesis testing results, overall, four assumptions have not been supported. The ultimate affective relationship of service quality, customer satisfaction, and customer loyalty is demonstrated in Figure 2. On the whole, the service quality of the communication industry not only has a direct positive significant effect on customer loyalty, it also has an indirect positive significant effect on customer loyalty through service quality; the affective mechanism and extent of customer loyalty are different, and are influenced by each dimension of service quality. This study used the questionnaires of existing literature from home and abroad and tested them in empirical research, with all questions adapted to seven-point Likert scales. With the SERVQUAL scale of Parasuraman, Zeithaml, and Berry (1988), or PZB, as a reference point, service quality was divided into five dimensions-tangibility, reliability, responsiveness, assurance, and empathy-and the questions were simplified down to nineteen. The measurement of customer satisfaction was based mainly on Fornell (1992) and Wang and Han (2003), ending up with four questions. Based on the study’s three indicators of price tolerance, first choice, and complaint reaction were used to measure attitudinal loyalty, while repurchase intention, recommendation, and reputation measured behavioral loyalty. The collection and collation of literature data produced a model of the relationship among service quality, customer satisfaction, and customer loyalty in mobile communications, and China Mobile in the city of Harbin in Heilongjiang province was used for conducting an empirical test of the model and obtaining some useful conclusions. First, service quality in mobile communication is formed by the five factors mentioned earlier: tangibility, reliability, responsiveness, assurance, and empathy. On the basis of PZB SERVQUAL, the study designed a measurement scale of service quality for the mobile communications industry, and obtained these five factors through exploratory factor analysis. The factors fit basically with the five elements, indicating the concept of five elements of service quality for the mobile communications industry. Second, service quality in mobile communications has both direct and indirect positive effects on attitudinal loyalty, with the indirect effect being produced through the intermediary variable, customer satisfaction. There are also both direct and indirect positive effects on behavioral loyalty, with the indirect effect produced through two intermediary variables: customer satisfaction and attitudinal loyalty. This shows that better service quality and higher customer satisfaction will activate the attitudinal to service providers more active and show loyalty to service providers much easier. In addition, the effect mechanism of all dimensions of service quality on all dimensions of customer loyalty is different. Third, customer satisfaction plays a significant intermediary role among service quality and attitudinal and behavioral loyalty, indicating that improving service quality can boost customer satisfaction and make it easier for satisfied customers to become loyal customers. Moreover, attitudinal loyalty plays a significant intermediary role between service quality and behavioral loyalty, indicating that only attitudinally and behaviorally loyal customers are truly loyal customers. The research conclusions have some indications for Chinese telecom operators and others to upgrade their service quality. Two limitations to the study are also mentioned. First, all data were collected in the Heilongjiang area, so there might be a common method bias that skews the results. Second, the discussion addresses the relationship between service quality and customer loyalty, setting customer satisfaction as mediator, but does not consider other factors, like customer value and consumer features, This research will be continued in the future.

• International Journal of Quality Innovation
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• v.8 no.1
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• pp.76-86
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• 2007

This paper reports on a study investigating key attributes of service recovery strategies in internet shopping mall. In theses day, service recovery has received important attention in the service operation management literature. Service recovery involves those actions designed to resolve problems, alter negative attitudes of dissatisfied consumers and to ultimately retain these customers. The study examined that service recovery strategies (apology, compensation) impact on the customer satisfaction. And customer satisfaction impacts on customer loyalty with SEM (Structural Equation Modeling). This study can be used a strategic implication for internet shopping mall managers to develop successful service recovery strategies.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.8 no.6
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• pp.1662-1672
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• 2007

Focusing on the relationship marketing between the Department Store and customers, this study presents the following variables: three influential variables such as characteristics of the persons who serve, image property of the shop, and relationship-oriented property; mediation variables such as trust and satisfaction, relationship quality to maintain consistent relationship with customers; and achievement variable such as Loyalty to Department Store. And it examines and analyses the relations between the variables to present suggestions on marketing strategies of the Loyalty to Department Store through relationship marketing.

• Journal of Distribution Research
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• v.10 no.3
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• pp.59-86
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• 2005

This study examined whether the efforts of department store for recovering services may be perceived fairly from the standpoint of customers upon any occurrence of service failure, whether such perceived justice contributes to higher customer satisfaction and trust, and whether such customer satisfaction and trust have positive influence on store loyalty of customers, respectively. For this sake, this study investigated relevant literatures, set up some hypotheses to solve main questionable considerations and made a corresponding empirical analysis. For empirical analysis, a questionnaire survey was applied to total 204 customers who experienced in service recovery around domestic major department stores in the last one(1) year. With regard to empirical analysis to verify some hypotheses hereof, this study verified the reliability and validity of each questionnaire item by means of statistical programs like SPSS 10,0 and AMOS 4.0, followed by verifying hypotheses through SEM(structural equation modeling) analysis. These results indicate that positive efforts of department stores for service recovery upon their service failure may bring customer satisfaction and trust in department store, which result in boosting up store loyalty of customers. In this empirical study, it was notably demonstrated that despite any occurrence of service failure, the corresponding efforts of department stores to improve the level of justice perceived by customers in course of service recovery, had positive effects on better customer satisfaction, trust and store loyalty, and these effects induced customer's continuous repurchase, positive WOM(word of mouth) and recommendation about the use of appropriate department store, which may contribute to better its competitive edge.