How Service Quality Affects Customer Loyalty in the Travel Agency: The Effects of Customer Satisfaction,Service Recovery,and Perceived Value

This study develops a conceptual model of the effects of service quality on customer loyalty that reflects the mediating role of customer satisfaction and the moderating role of service recovery and perceived value, and applies this model to the travel industry. A survey and analysis confirm that customer satisfaction is positively influenced by service quality, and customer loyalty is positively influenced by customer satisfaction. Furthermore, customer loyalty is indirectly influenced by service quality through the mediator of customer satisfaction. The relationship between service quality and customer satisfaction is found to be stronger for customers who have a positive experience of service recovery; and the correlation between customer satisfaction and customer loyalty is stronger for customers who perceive high service value.     

Antecedents of mandatory customer participation in service encounters: An empirical study

The literature on service quality and customer loyalty has long focused on enhancing the work of service providers. This study examined “the other side of the coin” in service co-production or value co-creation in service encounters by investigating how service providers might take a proactive approach to building relationships based on mandatory customer participation (MCP). The research evaluated how such antecedents as role clarity, self-efficacy, purchase importance, and servicescape could influence MCP. Path analysis revealed that these four factors significantly influenced different dimensions of MCP; which in turn had a significant impact on customer loyalty. Using these insights, managers could develop a strategic approach to managing customer roles in the service delivery process. This study adds to the body of knowledge on service quality by demonstrating empirically the determinants and structure of MCP and their relationships with customer loyalty in service co-production processes in a hospitality setting.     

Why do satisfied customers switch? Focus on the restaurant patron variety-seeking orientation and purchase decision involvement

Company efforts to make customers switch from competitive brands to their own or induce them to repurchase their own brands are very important in their marketing activities and in this regard studies of customer variety-seeking orientation and level of involvement in decision making play a crucial role in explaining customers’ product selection activities. The purpose of this study intends to examine interrelationships among customer satisfaction, loyalty, and switching intent in family restaurants and verify the moderating effect of customer variety-seeking orientation and purchase decision involvement. A total of 305 patrons in Korea participated. The results showed a positive relationship between customer satisfaction and loyalty. Participants expressing a high level of satisfaction were more likely to switch restaurants. Whether customers feel loyalty determines their switching intent. There were moderating effects related to customer variety-seeking orientation in the causal relationships between customer loyalty and switching intent. Limitations and future research directions are also discussed.     

Do reward programs truly build loyalty for lodging industry?

Hotel brands have sought numerous ways to build the relationship with their customers. Inspired by the airlines’ success, most major hotel chains have developed loyalty programs that reward customers for repeat business. However, the effectiveness of reward programs has been questioned. To explore reward programs’ potential to alter normal patterns to behavior, this research investigates how the timing of rewards affects customer loyalty for hotels and whether the effectiveness of these reward structures is moderated by customer satisfaction. This research also examines whether customer's value perception of loyalty program truly affect brand loyalty or program loyalty. In order to test the research framework, a 2 × 2 full-factorial, randomized, between-subject experimental design was conducted. In total, 209 respondents participated in the study. The results indicate that immediate rewards are more effective in building a program value than delayed rewards. Moreover, the value of loyalty program affects customer loyalty only through program loyalty to the extent that the program provides value to the customer. Finally, satisfaction plays an important moderating role on reward timing. Delayed rewards work better than immediate rewards only if customers are satisfied with hotel experience. In contrast, the immediate rewards in the dissatisfied experience become effective in their capacity to invoke customer loyalty.     

“货币补偿”总是最优策略吗?——高星级酒店不同服务失误归因下的情境研究

酒店服务的异质性和顾客需求的多样性使得服务失误在所难免。服务补救成为酒店修复服务失误,赢得顾客口碑和再次光顾的重要举措。在酒店管理实践中,货币补偿颇受管理者青睐,通常被作为应对服务失误的首要选择。然而,货币补偿是否为服务失误发生时的最优选择?文章以高星级酒店为研究背景,对服务失误进行情境设计,检验不同失误归因下货币补偿和非货币补偿的补偿满意度差异。数据分析结果显示:酒店因素导致的服务失误情境下,相比货币补偿而言,非货币补偿具有更好的补偿效果;其他顾客因素和顾客自身因素导致的服务失误情境下,货币补偿与非货币补偿间没有显著效果差异。此外,补偿满意度对顾客信任、重购意向与口碑有显著正向影响。     

RELATIONSHIP INTENTION AS A MEDIATOR BETWEEN RELATIONAL BENEFITS AND CUSTOMER LOYALTY IN THE TOUR OPERATOR INDUSTRY

Relationship and customer loyalty management have been an important field of research in marketing for decades. However, the focus for many years was mainly on the benefits of relationship marketing for companies. This article contributes to a deeper understanding of the benefits of relationship marketing for customers in the travel industry. It investigates the effects between relational benefits, relationship intention and intentional loyalty using the tour operator industry as an example. Relationship intention will be introduced as a variable influencing intentional loyalty. The role of relationship intention in the customer benefit‐intentional loyalty context will be analyzed by testing different path models. The measurement model is estimated, based on a confirmatory factor analysis using LISREL with a sample of 1,702 tour operator customers. The structural model as well as the estimate path coefficients were analyzed applying a partial least square approach (PLS) using SmartPLS. This article not only contributes to the further development of models explaining intentional loyalty, but also to the development of practical insights about the influence of different measures and tools on intentional loyalty from a customer benefit perspective. It can be concluded that the intention of a customer to invest in a relationship is dependent on the perceived level of relationship benefits. Further, the results show, that the buying behavior of customers is influenced by the perceived relational benefits. With the management of customer relations, a provider can influence the behavior of the customer to exploit the earning potential efficiently. Therefore, a provider has to be successful in creating new relational benefits for his customers through measures of customer relation management.     

How Customer Personality Traits Influence Brand Loyalty in the Coffee Shop Industry: The Moderating Role of Business Types

This study examines how perceptions associated with customer personality traits can affect customer satisfaction, customer brand identification (CBI), and involvement as well as the development of brand loyalty. Social identity theory was applied to explain these effects as it relates to coffee shop businesses and further investigate relationships between customers and a brand. The verified model with a survey sample of 743 customers confirmed that customer personality traits had significant effects on customer satisfaction and CBI. Customer satisfaction had positive effects on CBI, involvement, and brand loyalty. CBI had significant influences on involvement and brand loyalty. Involvement was, in turn, positively associated with brand loyalty. In addition, the relationships between these variables were moderated by business type (i.e., independent coffee shop vs. franchise coffee shop).     

心理契约违背对饭店顾客忠诚的影响——服务补救策略的调节效应

针对服务企业普遍面对的服务补救低效与顾客忠诚保持的挑战,文章基于心理契约与前瞻性服务补救理论,构建了顾客心理契约违背、服务补救和顾客忠诚间关系的分析框架,实证分析了心理契约违背对顾客忠诚的作用机理,并检验了服务补救策略对这一关系的调节效应。通过对262名饭店顾客的问卷调查,采用回归分析法处理数据,研究结果表明:心理契约违背两个维度与饭店顾客忠诚两个维度均呈显著负相关关系,顾客心理契约违背程度越高,顾客忠诚度越低;服务补救在心理契约违背与饭店顾客忠诚的关系中起到部分调节作用,即当企业服务出现失误而使顾客感知心理契约违背发生时,如果能采用恰当的服务补救策略,可以降低心理契约违背对顾客忠诚的负面影响。     

The Moderating Role of Water Park Service Quality,Environment, Image,and Food Quality on Perceived Value and Customer Loyalty: A South Korean Case Study

This study empirically examined not only the relationship between perceived value and customer loyalty, but also the moderating role of service quality, environment, image, and food quality at a water park, a segment of the tourism industry. In particular, the current study, using hierarchical regression analyses, examined the direct effects of perceived value on customer loyalties—loyalty and behavioral loyalty—as well as the moderating effect of four elements. As anticipated, this study showed that perceived value has significant and positive effect on both types of loyalty. In addition, the result of the interaction effects showed that service quality and food quality acted as moderators on the relationship between perceived value and attitudinal loyalty; however, water park image acted as a moderator on the relationship between perceived value and behavioral loyalty only. Finally, these results indicated that three elements—service quality, water park image, and food quality—have significant interaction on the relationship between perceived value and attitudinal/behavioral loyalty. These findings may provide water park operators with useful and detailed guidelines for satisfying customer loyalty levels, both attitudinally and behaviorally. More detailed findings and implications are also discussed.     

New or repeat customers: How does physical environment influence their restaurant experience?

This study proposed a conceptual model to examine how customers’ perceptions of the physical environment influenced disconfirmation, customer satisfaction, and customer loyalty for first-time and repeat customers in upscale restaurants. Using a structural equation modeling analysis, this study showed that facility aesthetics, lighting, layout, and service staff had significant effects on disconfirmation. Moreover, disconfirmation exerted a direct influence on customer satisfaction and customer loyalty. Customer satisfaction also positively influenced customer loyalty. Finally, the impacts of facility aesthetics, lighting, table settings, and service staff on disconfirmation significantly differed between first-time customers and repeat customers. More specifically, facility aesthetics, lighting, and service staff were significant predictors of both first timers’ and repeaters’ perceived disconfirmation, while layout and table settings were significant determinants of only repeat visitors’ perceived disconfirmation. The implications for academic researchers and marketing practitioners are discussed.     

Engagement-Based Loyalty: The Effects of Social Media Engagement on Customer Loyalty in the Travel Industry

In this article, we investigate the relation between customer loyalty and social media engagement. Two dimensions of customer loyalty are considered: affective and conative loyalty. We distinguish two forms of social media engagement: consuming of social media (passive engagement) and contribution to social media (active engagement). In a survey among 1,050 customers of a travel agency, the level of engagement of customers with the company’s social media activities is measured in relation to their degree of loyalty. Results show a partial positive relationship between social media engagement and customer loyalty: only consuming social media is directly related to affective loyalty.     

Enhancing customers’ brand loyalty via branded hotel apps

Many hotels have launched their own branded mobile applications to develop relationships with customers. Yet, research examining the benefits of branded hotel apps on brand loyalty is scant. The current research investigates the role of branded hotel apps on brand loyalty through customer engagement and brand trust in the hotel industry, based on uses and gratifications theory. Results identified cognitive and social benefits of the branded hotel apps positively influenced customer engagement and brand trust. Hedonic benefits positively influenced customer engagement and they indirectly influenced brand trust through customer engagement. Both customer engagement and brand trust positively influenced brand loyalty. Moreover, mediation effects of customer engagement and brand trust were identified. Results highlight how branded hotel apps serve as a facilitator of brand loyalty, providing theoretical and managerial implications.     

Customer loyalty: the future of hospitality marketing

For many years hospitality firms have believed that the goal of marketing is to create as many new customers as possible. While hoteliers believed it was important to satisfy the guests while they were on the property, the real goal was to continue to find new customers. This constant search for new customers is called conquest marketing. In the future, conquest marketing will not be sufficient. Instead firms need to practice loyalty marketing or retention marketing. The authors believe that this will be the successful wave of the future in hospitality. The goal of this paper is to present a framework for understanding customer loyalty. We do this first by examining the economics of loyalty. We then define loyalty and explain the difference between frequency programs and loyalty programs. We also show why satisfaction does not equal loyalty. We then introduce the Loyalty Triangle^©, which provides a framework for building customer loyalty. Each leg of the Loyalty Triangle^© is then examined in-depth, including examples of how hotel companies use the Loyalty Triangle^© to develop strategy. Next we present ways to measure the success of loyalty programs. Finally, we present future research issues.     

The information quality and source credibility matter in customers’ evaluation toward food O2O commerce

This study examines customer’s decision making when purchasing food product through O2O commerce applying the elaboration likelihood model (ELM) and the technology acceptance model (TAM). Further, this research investigates which information processing path, central route (information quality) or peripheral route (source credibility), is related to purchase frequency. Results of the data analysis demonstrate (1) the positive relationship between information quality, perceived usefulness, and perceived ease of use; (2) the significant relationship between source credibility, perceived usefulness, and perceived ease of use; (3) the significant influence of perceived usefulness and perceived ease of use on customer trust; and (4) the significant relationships among customer trust, attitudes, and behavioral intentions. In addition, customers with high purchase frequency tend to process messages via the central route, while customers with low purchase frequency focus on the peripheral route. These findings provide theoretical and managerial implications that contribute to O2O commerce marketing.     

Influence of sustainable hospitality supply chain management on customers’ attitudes and behaviors

This study aims to identify the impact of the environmental, social and economic dimensions of sustainable hospitality supply chain management actions on customers’ attitudes and behaviors including satisfaction, loyalty and willingness to pay a premium for sustainable hospitality goods and services utilizing data collected from U.S. consumers who frequently stay at hotels. Findings suggest that while both environmental and economic dimensions’ actions of sustainable hospitality supply chain management have positive influences on customer satisfaction, loyalty and willingness to pay a premium for sustainable hospitality goods and services, the social dimension actions are found to have a positive influence on customer satisfaction and a negative influence on customer willingness to pay a premium. Results also indicate that customer satisfaction fully mediates the relationship between social dimension actions and customer loyalty. In addition, customer satisfaction positively influences customer loyalty, which ultimately increases customer willingness to pay a premium. The implications of the research findings are provided.     

Complaint Behavior as a Factor in Cruise Line Losses

Abstract

This paper examines the complaint behavior and financial loss to a cruise line that result from brand switching by their most loyal customers. These effects are based on the fact that passengers can be classified by their type of brand loyalty. Based upon the previously published works of Jones and Sasser (1995) and validated by Cartwright and Baird (1999), the following classification is used in this paper. “Apostles” are the most brand loyal customers who also bring in additional cruise passengers. “Loyalists” are considered highly satisfied customers. They are also repeat passengers, but do not bring in as many additional cruise customers as Apostles. “Mercenaries” are driven by price. This group is only loyal so long as that cruise line maintains the cheapest price. The fourth group, “Hostages,” is loyal to the cruise line because there is no viable alternative. The final group in this classification is “Guerrillas” who are Apostles who have been scorned. An Apostle becomes a Guerrilla because of an inappropriate response by the cruise line to complaint behavior.

Classifications of brand loyalty will be discussed leading to the development of the five types of cruise passengers. This paper will show that inappropriate responses to complaint behavior can result in the loss of over $1,775,000 to the cruise line.     

When social phobia meets excessive service: Effects on customer delight and loyalty

Based on the stress-vulnerability model, this study aims to investigate how social anxiety moderates the customer outcomes of excessive employee effort. Empirical data were collected from 525 respondents. All data were analyzed using PLS-SEM. Our findings indicated that customer delight fully mediated the relationship between excessive employee effort and customer loyalty. Both the negative effects of excessive employee effort on customer delight and customer loyalty were stronger for those high in social anxiety than for those low in social anxiety. The findings provide specific theoretical and practical implications for academics and service operators regarding the implementation of personalized service about delighting customers based on individual heterogeneity and psychological characteristics.     

Customers’ Perceptions of Employee Engagement: Fortifying the Service–Profit Chain

This study investigated the three dimensions of employee engagement: dedication, energy, and absorption from the customer’s perspective. The service–profit chain (SPC) and employee behavior that promotes customer satisfaction and loyalty were examined. The results revealed that certain aspects of employee engagement are more readily perceived by consumers and more likely to promote customer satisfaction and loyalty. Findings showed that energy and dedication combined were most likely to foster feelings of satisfaction and loyalty among hospitality patrons. From a theoretical perspective, the study contributes to the literature by enhancing the SPC, revealing new insight into employee engagement, and linking employee engagement to positive consumer outcomes. Hospitality industry professionals may find that employee engagement benefits the customers’ perceptions of the establishment, ultimately increasing profitability. This study utilizes the SPC in the hospitality context and proposes a new link in the chain: employee engagement.     

Understanding food truck customers: Selection attributes and customer segmentation

Given the steadily increasing popularity of food trucks among consumers, this study investigated customer selection attributes and dining intention toward food trucks and compared the importance of the selection attributes by customer segments based on respondents’ food-related lifestyle. The results of an online survey from 421 food truck customers indicated that out of the six food truck selection attributes identified (i.e., marketing/setting, food quality/value, service quality, dietary considerations, reputation, and experience), food quality/value ranked the highest among general food truck customers who were classified into four groups: health-conscious, price-oriented, taste-oriented, and convenience-oriented. Among them, two groups—health-conscious and taste-oriented—had a higher dining intention at a food truck than other types of customers, and the importance of all six attributes differed significantly across customer segments. The findings of this study provide meaningful theoretical and practical implications.     

Gender,loyalty card membership,age, and critical incident recovery: Do they moderate experience-loyalty relationship?

The study examines the critical role of customer experience in determining hotel brand loyalty and the moderating role of gender, loyalty card membership, age, and critical incident recovery in this relationship. Based on a sample of 408 hotel guests and employing structural equation modeling approach, dimensions that comprise ‘customer experience with hotel brands’—hotel location, hotel staff competence, hotel stay, and ambience, hotel website and social media, and guest-to-guest experience—are found to have relative effects on hotel brand loyalty. The results contribute to hospitality realm by suggesting the moderating effect of gender, loyalty card membership, age, and critical incident recovery on customer experience-loyalty relationship. Implications for managerial practice and theory are discussed together with limitations and further research directions.