• Title/Summary/Keyword: Product loyalty

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The Effects of Service Quality on Customer's Loyalty in Automotive Parts Distribution Industry (자동차부품 유통기업의 서비스품질이 고객충성에 미치는 영향 연구)

  • Hong, Seong-Joon;Dong, Hak-Lim
    • Journal of Digital Convergence
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    • v.16 no.7
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    • pp.189-198
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    • 2018
  • Automotive parts distribution industry focused on increasing sales by product quality until early 2010, but as competition has recently intensified, each company has become interested in core values such as customer satisfaction, trust and loyalty. Therefore, effect of customer-oriented service mindset should be analyzed for the relationship between service quality and customer satisfaction, trust, and loyalty in this industry. For this, a questionnaire survey was conducted for 342 distributors. Structural equation models were analyzed using AMOS 23.0. Empirical results show service quality has positive effects on customer loyalty, and customer satisfaction and trust mediate between service quality and customer loyalty. The service quality became a key factor to elicit customer satisfaction, trust and loyalty. Following studies, it is expected to enhance service quality focusing on extending region coverages.

An Analysis of the Effect of Platform Information Quality and Customer Information Quality on Customer Loyalty to Online to Offline Platforms (O2O 플랫폼 충성도에 플랫폼 정보 품질과 고객 정보품질이 미치는 영향 분석)

  • Park, Jun Sung;Park, Heejun
    • Journal of Korean Society for Quality Management
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    • v.52 no.1
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    • pp.23-42
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    • 2024
  • Purpose: This study aims to investigate the impact of two types of information quality, which are platform-oriented information quality and customer-oriented information quality, on customers' decision-making processes in the Online to offline (O2O) platform environment. Grounded in the product brokering efficiency model, which encompasses screening cost, evaluation cost, and decision quality, a model framework was developed. Furthermore, this study explores how these decision-making processes affect customer loyalty. Methods: Given that food delivery apps are the most widely used O2O service in Korea, this study targeted users of these apps for data analysis. We conducted hypothesis testing through a purposive sampling methodology focusing on food delivery app users. A Partial Least Squares Structural Equation Modeling analysis was conducted to analyze the data. The data collection occurred via an online survey from October to December 2021, with a total of 212 respondents participating. Results: The results of this study revealed the significant role of information quality in helping customers' decision processes while using food delivery apps. Specifically, it was found that platform-oriented information positively influences decision quality, while customer-oriented information significantly affects both the reduction of evaluation cost and the enhancement of decision quality. Additionally, the study indicated that lower evaluation costs and higher decision quality lead to increased platform loyalty. However, a reduction in screening cost did not have a significant impact on platform loyalty. Conclusion: While previous studies have overlooked the existence of two sides, service provider and user, in a platform, this research holds significance in its analysis of how information quality impacts loyalty by utilizing the two kinds of information quality. Practitioners can enhance customer loyalty to the platform by enriching customer-oriented information, thereby reducing customers' evaluation costs and encouraging more loyal usage of the platform.

The Effects of Brand Loyalty on Corporate Social Responsibility(CSR) Activities (사회공헌활동이 브랜드충성도에 미치는 영향에 관한 연구)

  • Lee, Sung Hee;Kim, Youngjin;Jung, Goosang;Lee, Hyun-Soo;Kim, Sun Ah;Kim, Tae-Sung
    • Journal of Digital Convergence
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    • v.11 no.2
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    • pp.79-89
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    • 2013
  • The purpose of this study is to examine the moderating effects of social contribution activities perception between brand loyalty and marketing strategies. First, this thesis has reviewed that marketing mix 4P's(product, price, promotion, place) still influence on the brand royalty on smart-phone market. Second, this research examined that perception on social contribution activities is an important moderate variable between marketing activities and brand royalty. Also, this research found that moderating effect of social contribution activities perception is more significant at the high-perception group on social contribution activities than low-perception group. Finally, this study verified that product/price/promotion strategy and social contribution activities have effect on brand royalty depend on social contribution activities perception. Recently many businesses are using Corporate Social Responsibility(CSR) as a strategic tool and also social interests on the effect of CSR are increasing. Therefore, this study reaffirmed by the CSR that affect customer brand loyalty, are expected to contribute to improve awareness of CSR activities.

A Study on the Interrelationship among Service Quality, Customer Satisfaction and Customer Loyalty by Distribution Channel, in the Dehumidifier Goods Industry (제습기산업의 유통경로별 서비스품질이 고객만족 및 고객충성에 미치는 상호관계에 대한 연구)

  • Kim, Kyusik;Ree, Sangbok
    • Journal of Korean Society for Quality Management
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    • v.42 no.4
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    • pp.665-684
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    • 2014
  • Purpose: The purpose of this study was to test and verify on the interrelationship among Service Quality, and Customer Satisfaction and Customer Loyalty in the Humidifier Goods industry. Especially, we study on the relative importance of each CS variables by distribution channel. Nowadays, most of manufacturing companies are proceeding the product servitization, which is combined service contents with product characteristics in the field of manufacturing industries. Methods: We surveyed humidifier purchaser about the some of CS variables and analyzed it using SPSS 21.0 and AMOS 21.0 as a statistical analysis tool. We use the frequency analysis, confirmatory factor analysis, multi-regression analysis and structural equation modeling analysis for our empirical study. Results: As the result of study, we find that Service Quality(SQ) influence Customer Satisfaction(CS) and CS influence Customer Loyalty(CL). Also, we verify that CS works mediate interaction on the effects between SQ and CL. And there are the significant relative effect of SQ to Customer Satisfaction in some of distribution channel. Conclusion: Finally, we make certain that the market size of the Humidifier goods industry will be increased rapidly. And the distribution channe l is more important to medium and small-sized enterprise. So, we have to pay attention to the study on the distribution channel of the Humidifier goods industry. And then, we expect more researches and studies on Service Quality and Customer Satisfaction in the field of manufacturing industries.

Impact of Net-Based Customer Service on Firm Profits and Consumer Welfare (기업의 온라인 고객 서비스가 기업의 수익 및 고객의 후생에 미치는 영향에 관한 연구)

  • Kim, Eun-Jin;Lee, Byung-Tae
    • Asia pacific journal of information systems
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    • v.17 no.2
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    • pp.123-137
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    • 2007
  • The advent of the Internet and related Web technologies has created an easily accessible link between a firm and its customers, and has provided opportunities to a firm to use information technology to support supplementary after-sale services associated with a product or service. It has been widely recognized that supplementary services are an important source of customer value and of competitive advantage as the characteristics of the product itself. Many of these supplementary services are information-based and need not be co-located with the product, so more and more companies are delivering these services electronically. Net-based customer service, which is defined as an Internet-based computerized information system that delivers services to a customer, therefore, is the core infrastructure for supplementary service provision. The importance of net-based customer service in delivering supplementary after-sale services associated with product has been well documented. The strategic advantages of well-implemented net-based customer service are enhanced customer loyalty and higher lock-in of customers, and a resulting reduction in competition and the consequent increase in profits. However, not all customers utilize such net-based customer service. The digital divide is the phenomenon in our society that captures the observation that not all customers have equal access to computers. Socioeconomic factors such as race, gender, and education level are strongly related to Internet accessibility and ability to use. This is due to the differences in the ability to bear the cost of a computer, and the differences in self-efficacy in the use of a technology, among other reasons. This concept, applied to e-commerce, has been called the "e-commerce divide." High Internet penetration is not eradicating the digital divide and e-commerce divide as one would hope. Besides, to accommodate personalized support, a customer must often provide personal information to the firm. This personal information includes not only name and address, but also preferences information and perhaps valuation information. However, many recent studies show that consumers may not be willing to share information about themselves due to concerns about privacy online. Due to the e-commerce divide, and due to privacy and security concerns of the customer for sharing personal information with firms, limited numbers of customers adopt net-based customer service. The limited level of customer adoption of net-based customer service affects the firm profits and the customers' welfare. We use a game-theoretic model in which we model the net-based customer service system as a mechanism to enhance customers' loyalty. We model a market entry scenario where a firm (the incumbent) uses the net-based customer service system in inducing loyalty in its customer base. The firm sells one product through the traditional retailing channels and at a price set for these channels. Another firm (the entrant) enters the market, and having observed the price of the incumbent firm (and after deducing the loyalty levels in the customer base), chooses its price. The profits of the firms and the surplus of the two customers segments (the segment that utilizes net-based customer service and the segment that does not) are analyzed in the Stackelberg leader-follower model of competition between the firms. We find that an increase in adoption of net-based customer service by the customer base is not always desirable for firms. With low effectiveness in enhancing customer loyalty, firms prefer a high level of customer adoption of net-based customer service, because an increase in adoption rate decreases competition and increases profits. A firm in an industry where net-based customer service is highly effective loyalty mechanism, on the other hand, prefers a low level of adoption by customers.

A Study on the Influence of Eco-friendly Agricultural Products on Customer Satisfaction and Behavior Intention in Hotel Chinese Restaurants

  • Kim, Jung Tae;Jang, Hyuk-Rae;Cho, Sung-Ho;Hwang, Il Yeong
    • International Journal of Advanced Culture Technology
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    • v.5 no.4
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    • pp.63-70
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    • 2017
  • The purpose of the study is to analyze the effects of customer satisfaction verses eco-friendly agricultural products (ingredients) awareness factors in luxury hotel Chinese restaurants on hotel image and customer loyalty (repurchase intention). To analyze what kind of effects of customer satisfaction verses eco-friendly agricultural products (ingredients) awareness factors in Chinese restaurants have on hotel image and behavior intention (loyalty), the study identified eco-friendly ingredients awareness factors. The study aims to suggest implications on service strategies and marketing strategies in luxury hotel Chinese restaurants based on the influence of customer satisfaction on hotel image and behavior intention (loyalty) using the identified factors.

Impact of Net-Based Customer Service on Firm Profits and Consumer Welfare

  • Kim, Eun-Jin;Lee, Byeong-Tae
    • 한국경영정보학회:학술대회논문집
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    • 2007.06a
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    • pp.141-146
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    • 2007
  • The importance of the net-based customer service in delivering supplementary after-sale services associated with product has been well documented. The strategic advantages of a well-implemented the net-based customer service are enhanced customer loyalty and higher lock-in of customers, and the resulting reduction in competition and the consequent increase in profits. However, not all customers utilize such the net-based customer service. This is partly due to the e-commerce divide, and partly due to privacy and security concerns of the customer for sharing personal information with firms. The limited level of customer adoption of the net-based customer service affects the firm profits and the customers' welfare. We use a game-theoretic model in which we model the net-based customer service system as a mechanism to enhance customers' loyalty. We find that an increase in adoption of the net-based customer service by the customer base is not always desirable for firms. and that customers who utilize such services are better off only when the overall adoption is limited.

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Shopping Value, Shopping Goal and WOM - Focused on Electronic-goods Buyers (쇼핑 가치 추구 성향에 따른 쇼핑 목표와 공유 의도 차이에 관한 연구 - 전자제품 구매고객을 중심으로)

  • Park, Kyoung-Won;Park, Ju-Young
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.2
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    • pp.68-79
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    • 2009
  • The interplay between hedonic and utilitarian attributes has assumed special significance in recent years; it has been proposed that consumption offerings should be viewed as experiences that stimulate both cognitions and feelings rather than as mere products or services. This research builds on previous work on hedonic versus utilitarian benefits, regulatory focus theory, customer satisfaction to address two question: (1) Is the shopping goal at the point of purchase different from the shopping value? and (2) Is the customer loyalty after the use different from the shopping value and shopping goal? We surveyed 345 peoples those who have bought the electronic-goods within 6 months. This research dealt with the shopping value which is consisted of 2 types, hedonic and utilitarian. Those who pursue the hedonic shopping value may prefer the pleasure of purchasing experience to the product itself. They tend to prefer atmosphere, arousal of the shopping experience. Consistent with previous research, we use the term "hedonic" to refer to their aesthetic, experiential and enjoyment-related value. On the contrary, Those who pursue the utilitarian shopping value may prefer the reasonable buying. It may be more functional. Consistent with previous research, we use the term "utilitarian" to refer to the functional, instrumental, and practical value of consumption offerings. Holbrook(1999) notes that consumer value is an experience that results from the consumption of such benefits. In the context of cell phones for example, the phone's battery life and sound volume are utilitarian benefits, whereas aesthetic appeal from its shape and color are hedonic benefits. Likewise, in the case of a car, fuel economics and safety are utilitarian benefits whereas the sunroof and the luxurious interior are hedonic benefits. The shopping goals are consisted of the promotion focus goal and the prevention focus goal, based on the self-regulatory focus theory. The promotion focus is characterized into focusing ideal self because they are oriented to wishes and vision. The promotion focused individuals are tend to be more risk taking. They are more sensitive to hope and achievement. On the contrary, the prevention focused individuals are characterized into focusing the responsibilities because they are oriented to safety. The prevention focused individuals are tend to be more risk avoiding. We wanted to test the relation among the shopping value, shopping goal and customer loyalty. Customers show the positive or negative feelings comparing with the expectation level which customers have at the point of the purchase. If the result were bigger than the expectation, customers may feel positive feeling such as delight or satisfaction and they would want to share their feelings with other people. And they want to buy those products again in the future time. There is converging evidence that the types of goals consumers expect to be fulfilled by the utilitarian dimension of a product are different from those they seek from the hedonic dimension (Chernev 2004). Specifically, whereas consumers expect the fulfillment of product prevention goals on the utilitarian dimension, they expect the fulfillment of promotion goals on the hedonic dimension (Chernev 2004; Chitturi, Raghunathan, and Majahan 2007; Higgins 1997, 2001) According to the regulatory focus theory, prevention goals are those that ought to be met. Fulfillment of prevention goals in the context of product consumption eliminates or significantly reduces the probability of a painful experience, thus making consumers experience emotions that result from fulfillment of prevention goals such as confidence and securities. On the contrary, fulfillment of promotion goals are those that a person aspires to meet, such as "looking cool" or "being sophisticated." Fulfillment of promotion goals in the context of product consumption significantly increases the probability of a pleasurable experience, thus enabling consumers to experience emotions that result from the fulfillment of promotion goals. The proposed conceptual framework captures that the relationships among hedonic versus utilitarian shopping values and promotion versus prevention shopping goals respectively. An analysis of the consequence of the fulfillment and frustration of utilitarian and hedonic value is theoretically worthwhile. It is also substantively relevant because it helps predict post-consumption behavior such as the promotion versus prevention shopping goals orientation. Because our primary goal is to understand how the post consumption feelings influence the variable customer loyalty: word of mouth (Jacoby and Chestnut 1978). This research result is that the utilitarian shopping value gives the positive influence to both of the promotion and prevention goal. However the influence to the prevention goal is stronger. On the contrary, hedonic shopping value gives influence to the promotion focus goal only. Additionally, both of the promotion and prevention goal show the positive relation with customer loyalty. However, the positive relation with promotion goal and customer loyalty is much stronger. The promotion focus goal gives the influence to the customer loyalty. On the contrary, the prevention focus goal relates at the low level of relation with customer loyalty than that of the promotion goal. It could be explained that it is apt to get framed the compliment of people into 'gain-non gain' situation. As the result, for those who have the promotion focus are motivated to deliver their own feeling to other people eagerly. Conversely the prevention focused individual are more sensitive to the 'loss-non loss' situation. The research result is consistent with pre-existent researches. There is a conceptual parallel between necessities-needs-utilitarian benefits and luxuries-wants-hedonic benefits (Chernev 2004; Chitturi, Raghunathan and Majaha 2007; Higginns 1997; Kivetz and Simonson 2002b). In addition, Maslow's hierarchy of needs and the precedence principle contends luxuries-wants-hedonic benefits higher than necessities-needs-utilitarian benefits. Chitturi, Raghunathan and Majaha (2007) show that consumers are focused more on the utilitarian benefits than on the hedonic benefits of a product until their minimum expectation of fulfilling prevention goals are met. Furthermore, a utilitarian benefit is a promise of a certain level of functionality by the manufacturer or the retailer. When the promise is not fulfilled, customers blame the retailer and/or the manufacturer. When negative feelings are attributable to an entity, customers feel angry. However in the case of hedonic benefit, the customer, not the manufacturer, determines at the time of purchase whether the product is stylish and attractive. Under such circumstances, customers are more likely to blame themselves than the manufacturer if their friends do not find the product stylish and attractive. Therefore, not meeting minimum utilitarian expectations of functionality generates a much more intense negative feelings, such as anger than a less intense feeling such as disappointment or dissatisfactions. The additional multi group analysis of this research shows the same result. Those who are unsatisfactory customers who have the prevention focused goal shows higher relation with WOM, comparing with satisfactory customers. The research findings in this article could have significant implication for the personal selling fields to increase the effectiveness and the efficiency of the sales such that they can develop the sales presentation strategy for the customers. For those who are the hedonic customers may be apt to show more interest to the promotion goal. Therefore it may work to strengthen the design, style or new technology of the products to the hedonic customers. On the contrary for the utilitarian customers, it may work to strengthen the price competitiveness. On the basis of the result from our studies, we demonstrated a correspondence among hedonic versus utilitarian and promotion versus prevention goal, WOM. Similarly, we also found evidence of the moderator effects of satisfaction after use, between the prevention goal and WOM. Even though the prevention goal has the low level of relation to WOM, those who are not satisfied show higher relation to WOM. The relation between the prevention goal and WOM is significantly different according to the satisfaction versus unsatisfaction. In addition, improving the promotion emotions of cheerfulness and excitement and the prevention emotion of confidence and security will further improve customer loyalty. A related potential further research could be to examine whether hedonic versus utilitarian, promotion versus prevention goals improve customer loyalty for services as well. Under the budget and time constraints, designers and managers are often compelling to choose among various attributes. If there is no budget or time constraints, perhaps the best solution is to maximize both hedonic and utilitarian dimension of benefits. However, they have to make trad-off process between various attributes. For the designers and managers have to keep in mind that without hedonic benefit satisfaction of the product it may hard to lead the customers to the customer loyalty.

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Strategic Culture Marketing Enhancing Brand Image and Customers' Loyalty - Focusing on Multi-dimensional approach for Companies, Consumers, and Other Subjects - (브랜드의 이미지와 충성도를 높이는 문화마케팅 전략에 관한 연구 -기업, 소비자, 지원대상의 다차원적 접근을 중심으로-)

  • Lee, Yun-Kyung;Shin, Kyu-Hee;Hwang, Sun-Jin
    • Journal of the Korean Society of Costume
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    • v.59 no.5
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    • pp.167-179
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    • 2009
  • The purposes of this study were to explore the influence on fashion brand image and brand loyalty according to fit of the fashion brand with cultural art field, motivation in culture marketing of the apparel company, and involvement of the consumers in art activities. The subjects ware 274 male and female in 20s and 30s living in Seoul and Gyeonggi area. The study was obtained through the use of an experimental design which was $2{\times}[2{\times}2]$ mixed factorial design. The summary main results were as follows. First, as far as the effect of the three variables on the social contribution image of the fashion brand, the results of the 3-way interaction are positive. Second, as far as the effect of the three variables on the product image of the fashion brand, the data suggests that only the main-effect of motivation in culture marketing of the apparel company is meaningfully positive. Third, as far as the effect of the three variables on fashion brand loyalty, both fit of the fashion brand with cultural art field and involvement of the consumers in art activities variables show positive results.