• The Journal of Asian Finance, Economics and Business
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• v.9 no.9
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• pp.205-216
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• 2022

This study investigates the effect of serv-qual and reputation on customer loyalty through the trust of deposit customers in Micro Finance Institutions. The population was deposit customers at BMT distributed into 5 provinces of the Special Region of Yogyakarta, and a survey was conducted from January 2021 to February 2022. The probability random sampling technique was used to select the final sample, and a total of 221 responses were collected using a questionnaire. Technical data analysis was done using the Structural Equation Modeling (SEM), supported by AMOS 22.0 program. The results showed that serv-qual and reputation have a positive and significant impact on the trust and loyalty of deposit customers at BMT. Customers positively and significantly impact the relationship between serv-qual and reputation on customer loyalty. The biggest contribution to loyalty was generated by the variable customer trust (0.399), followed by service quality (0.359) and reputation (0.166). Micro Finance Institution needs to improve the management of deposit customers by improving serv-qual, reputation, and customer trust and conduct comparative research between conventional financial institutions and other informal financial service institutions.

• Korea Journal of Hospital Management
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• v.23 no.4
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• pp.1-14
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• 2018

Purpose : Customers with loyalty are very important to hospitals for sustainable growth in their medical market. Individuals with loyalty are likely to visit same hospital repeatedly when they need medical services. This study was to identify factors associated with selection of specialty hospitals among customers with loyalty. Methods : The subjects of this study were 735 inpatients in 22 specialty hospitals in 6 designated fields(joints, spine, colorectal-anal, obstetrics and gynecology, ophthalmology, otolaryngology). Customer types classified as customers with high loyalty, neutral customers, and customers with low loyalty according to net promoter score(NPS). Factor analysis was conducted to classify 22 hospital selection factors into some similar properties. Logistic regression analysis was conducted to confirm the selection factors related to loyal customers. Findings : Most of specialty hospitals received high NPS of 8 points or higher in all the designated fields. Five factors associated with selection of specialty hospital are (1) hospital facilities and convenience, (2) trust in doctor and hospital, (3) rapidness of treatment, (4) hospital awareness, and (5) accessibility. As a result of logistic regression analysis, selection factors related to loyal customers were 'hospital facilities and convenience', 'trust in doctor and hospital' and 'rapidness of treatment'. Differences in the degree of importance of three selection factors by customer types appeared for each designated field. Practical Implications : This study confirms the high level of patient experience among inpatients of specialty hospitals. Factors associated with selection of hospital among inpatients with loyalty are 'facilities and convenience of hospitals', 'trust of doctor and hospital' and 'rapidness of treatment'. This study will be meaningful as basic data to systematically enhance the roles and functions of the health care system and to provide securing competitiveness according to designated fields in the management aspect of specialty hospitals.

• Asia Marketing Journal
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• v.22 no.1
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• pp.1-26
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• 2020

Firms employing hierarchical loyalty programs (HLPs) periodically demote customers from higher to lower status level to divest from unprofitable customers and boost profitability. However, existing literature lacks objective evidence on how customer demotion affects demoted customers' future purchase behaviors and ultimately profitability for the firm. Moreover, customers in the HLP's higher position may respond to customer demotion differently from those in the HLP's lower position. Drawing upon emotions and equity theories, this study quantifies how the profits that customers contribute to the firm change after customer demotion, and compares demoted customers' behavioral reactions from top-tier with those from bottom-tier based on customers' actual behavior data from a major retail bank in South Korea. The findings show that withdrawing customer status actually deteriorates customer profitability, and customers with top-tier status decrease their profitability more dramatically than those with bottom-tier status after demotion. The results contribute to previous literature on customer demotion and relationship marketing, and provide specific guidelines into how firms should design and implement customer demotion in HLPs.

• The Journal of Information Systems
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• v.14 no.2
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• pp.293-317
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• 2005

Female customers form a major customer group for Internet shopping and their trust on Internet stores seems to be significantly related with their transactions. This paper focuses on female customers' trust on Internet stores, hypothesizing that online service quality has a positive impact on trust and that trust, in turn, together with service quality has a positive effect on loyalty. We investigate trust from three dimensions(benevolence, integrity, and ability) and at the same time, unlike existing research, treat service quality to have five dimensions (intangibles, reliability, responsiveness, assurance, and empathy) as known in SERVQUAL(Parasuraman et al., 1988). Survey data is obtained from the female college student sample. Our research model is justified in terms of construct validity, internal consistency, and goodness of fit. Research hypotheses are tested using SEM(Structural Equation Modeling). The results are as follows: First, assurance and empathy dimensions of service quality have significant impacts on benevolence/integrity dimension of trust. Second, out of the five service quality dimensions, only assurance has a positive effect on ability dimension of trust. Third, assurance dimension of service quality and ability dimension of trust are positively related with customer loyalty. The most important factors for female customers' loyalty are found to be assurance(service quality) and ability(trust). The significance of assurance is in line with findings from existing research. But its relationship with the trust dimensions is uncovered in this research, and the only dimension that impacts on ability is assurance. We find that female customers build trust about internet stores based on their ability rather than on their benevolence/integrity and that the female customers' perception on the internet stores' ability can be improved by higher service quality from the aspect of assurance. Importantly enough, these findings offer practical guidelines to Internet stores to boost female customers' loyalty.

• Journal of Information Technology Services
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• v.9 no.2
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• pp.43-72
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• 2010

The Korean mobile telecommunication service market is faced with a tremendous competitive period, in which the market is entering into the maturity stage with launching of the 3rd generation service and with introduction of mobile number portability. In general, it is more important to sustain the old customers than to attracting new customers, as the life cycle of an industry is entering the maturity stage in which the growth rate of new customers is decreasing gradually or becoming stagnant. Until now, many researches had tested whether the customer satisfaction and loyalty were the core factors of sustaining customers or not. Also service quality and switching cost were given a remarkable attention for their possibility of exogenous factors, which could exercise effects to customer satisfaction and loyalty. In the same context, mobile telecommunication business has to seek a way to maintain the existing customers instead of promoting new customers. So this study investigates whether the service quality and switching barrier of mobile telecommunication could have effects on the customer satisfaction and loyalty, which are recognized as an efficient means to sustain the current customers. In order to test the hypothesis on the effects of service quality and switching barrier of mobile telecommunication to customer satisfaction and loyalty in Korean telecommunication industry, this study collected the questionnaire response data of students including middle and high school students and undergraduates, who are regarded as the major customers in that mobile telecommunication industry.

• Korean Journal of Community Nutrition
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• v.5 no.2
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• pp.225-235
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• 2000

Service quality has become an important factor to meet customer satisfaction in the food service industry where competition is getting severe. Organizations are focused upon strengthening customer loyalty through customer satisfaction. Therefore, this study, taking customers as subjects, is intended to analyze factors affecting customer loyalty, on the basis of service quality satisfaction. In doing. so, the analysis has been done with 232 customers who are purchasing service from the food services industry, for general information, and service quality expectation, service quality satisfaction and overall satisfaction. The results of the study are as below. 1) From a factor analysis, the service quality expectation level of customer has been categorized into 4 factors, which are named General ′General management ′, ′Food′, ′Reliability′and ′Reputation′. 2) From the factor analysis, the service quality satisfaction level of customer has been categorized into 6 factors, which are named ′Employee attitude′, ′Food′, ′Reliability′, ′Atmosphere′, ′Reputation′ and ′Price′. 3) After classifying customers into 3 groups according to two criteria-"will buy the service again" and "will suggest to others", a comparison has been done for the service quality expectation dimension of customers by each customer group. The result shows that the group having both the "will buy the service again" and "will buy the service again "and "will suggest to others" criteria, that is, with higher customer loyalty, tend to have higher point than other group in factors of ′Food′, ′Reliability′, ′Reputation′(p〈.05). 4) As per the dimension of customer\`s service quality satisfaction level, factors like ′Employee attitude′, ′Food′, ′Reliability′, ′Atmosphere′, ′Reputation′, and ′Price′have shown differences according to each loyalty group(P〈.001). 5) Customers′overall satisfaction level according to each customer loyalty group has been found to be more important for the group having a higher loyalty level(p〈.001) 6) From the discriminant analysis with employing judging variables, such as the customer′s service quality expectation level, service quality satisfaction level and general satisfaction level, customer loyalty groups have been identified as accurately as 68.9% of the explanatory power.

• The Research Journal of the Costume Culture
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• v.20 no.1
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• pp.99-110
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• 2012

The purpose of this study was to explore differences in determinants of loyalty, including years of loyalty and use of word-of-Mouth (WOM), across rural and urban apparel shoppers. The secondary data used for this study was collected by BIG research in their Consumer Intentions and Actions Study. Hierarchical multiple regression analysis was conducted, and the results showed that four store attributes (fashionability, promotion, shopping environment, and retail basics) were positively related to store loyalty. Findings of the study also revealed that the effect of fashionability and retail basics on store loyalty differed significantly across rural and urban consumers while promotion and shopping environment were not different predictors of store loyalty between rural and urban apparel shoppers. Specifically, store attributes of fashionability were stronger antecedents of loyalty for women's clothing shoppers in urban areas than rural shoppers. The retail basics had a greater influence on store loyalty among women's apparel customers in rural areas than customers in urban areas.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1327-1338
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• 2021

This study aims to examine how experiential marketing and location influence customer loyalty mediated by customer satisfaction. This study's population was Cafe Excelso Rinjani customers in Semarang, Indonesia. The sampling employed a purposive sampling technique, with the following criteria: customers who visited and enjoyed Cafe Excelso Rinjani and aged more than 17 years. Data analysis used multiple regression analysis, and a single test was utilized to test for mediation. The results revealed that experiential marketing positively and significantly affected customers satisfaction. It showed that the better the experiential marketing was done, the more customer satisfaction would be. Location positively and significantly influenced customer satisfaction. It indicated that the more strategic the location, the more customer satisfaction increased. Meanwhile, experiential marketing had no impact on customer loyalty. Location positively and significantly affected customer loyalty at Cafe Excelso Rinjani Semarang. It denoted that the more strategic the location, the more customer loyalty increased. Besides, customer satisfaction had a positive and significant effect on customer loyalty. It signified that, when customer satisfaction increased, customer loyalty would increase. Finally, customer satisfaction perfectly mediated the influence of experiential marketing on customer loyalty, and customer satisfaction mediated the effect of location on customer loyalty.

• Journal of the Korean Society of Food Culture
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• v.24 no.5
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• pp.496-505
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• 2009

This study was conducted to provide basic data and insight into behaviors that result in increased continuous sales and competitiveness. This was done by examining the effect of personal involvement on customer satisfaction and trust, the effect of customer satisfaction on switching cost and loyalty, the effect of trust on switching cost and loyalty and by analyzing the indirect effect of trust and loyalty to personal involvement on switching cost and loyalty of the patrons of casual dining restaurants. In order to achieve the goals of the study, a hypothesis and structural equation were proposed based on preceding research and the proposed model was analyzed using LISREL 8.30 to prove the hypothesis and better understand the interactions between the cause and effect. The results were as follows: Six proposed hypothesis were chosen and the indirect effect was verified. In other words, customers' personal involvement was shown to have an effect on trust and devotion and satisfaction influenced switching cost and loyalty. Trust had an effect on switching cost and loyalty and by analyzing the indirect effect the customers' personal involvement was shown to affect the switching cost and loyalty through satisfaction and trust. The result of this analysis provides clues to better understand the eating-out behavior of customers and proves that personal involvement, satisfaction, trust, switching cost and loyalty are directly and indirectly related.

• Journal of Information Technology Applications and Management
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• v.14 no.1
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• pp.99-116
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• 2007

This study intends to examine the effects of CRM on the customer loyalty. Service quality, customer satisfaction, and organizational committment have been tested as mediating factors between the customers' perceived relational efforts and their loyalty. From 236 customers of insurance firms survey data have been collected and analyzed based on the structural equation modeling. The results show that firms' relational efforts have positive impacts on service quality and customer loyalty. Also, this study shows that service quality can play an important mediating role between CRM activities and customer satisfaction as well as organizational commitment, which have shown positive impacts on customer loyalty Consequently, firms need to design their CRM activities paying more attentions to the service qualify attributes, rather than asking too much from the target customers.