• Title/Summary/Keyword: service loyalty

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Determinants of the customer loyalty in the Korean 3G telecommunications market: The role of the customer's innovativeness

  • Lee, Dong-Joo;Kim, Myoung-Soo
    • Asia-Pacific Journal of Business
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    • v.6 no.1
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    • pp.1-15
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    • 2015
  • In our study, we tried to develop and test a model that aids further understanding of the sources of customer loyalty in the 3G telecommunications service. In addition, as the 3G could be understood as an innovative telecommunications service, we assume that the impact of factors related service attributes affecting customer loyalty is moderated by the customer's innovativeness. We analyzed our research model using 3G service users' data in Korea. Our results will have significant strategic implications for firms in this highly competitive industry. Particularly, it can be useful for mobile carriers interested in customer retention management and supposed to deliver a new telecommunications service like the 4G service that is on the horizon.

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A Study on the Effect of Service Quality on Attitudinal and Behavioral Loyalty by Different Types of Restaurants (레스토랑 유형에 따라 서비스 품질이 태도적, 행동적 충성도에 미치는 영향력 차이에 관한 연구)

  • Ahn, Sung-Sik;Park, Yeon-Ok;Kang, Beong-Ho
    • Culinary science and hospitality research
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    • v.17 no.1
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    • pp.26-43
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    • 2011
  • This study aims to give insight into better understanding how service quality influences customers' attitude and behavior in terms of loyalty as well as how its effects vary by the types of restaurants (family restaurants or fast food restaurants). The results of the study are summarized as follows. First, perceived service quality, which consists of food, service, menu and atmosphere, made a significant impact on customer satisfaction for food, menu, atmosphere, and service, respectively. Second, the study examined how perceived service quality affected future expectations, and found only food turned out to be a significant factor. Third, customer satisfaction affected future satisfaction and customer loyalty, and it had a greater impact on attitudinal loyalty than behavioral loyalty. Fourth, future satisfaction affects customer loyalty, and it had a greater impact on attitudinal loyalty than behavioral loyalty. Fifth, the study examined how service quality, customer satisfaction and future expectation affected attitudinal loyalty and behavioral loyalty differently by different types of the food service industry (family restaurants or fast food restaurants) and found out there were some differences in the effects of customer satisfaction on behavioral loyalty and the future expectations and attitudinal loyalty on behavioral loyalty. The marketing implication is that service providers should be one step ahead in understanding the service quality perceived by customers (food, service, menu, and atmosphere). In addition, they should understand that establishing long-tenn relationships with customers by providing high quality service bas a direct impact on their business performance. Furthermore, management in family restaurants and fast food restaurants should include the improvement of service quality in their employee training programs.

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Female Customers' Trust on Internet Stores and its Relationships with Service Quality and Loyalty (인터넷 상점에 대한 여성고객의 신뢰와 서비스 품질$\cdot$고객 충성도 간의 관계)

  • Min Dong-Kwon
    • 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.

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The Effect of Information Service Quality on Customer Loyalty: A Customer Relationship Management Perspective (정보서비스품질이 고객로열티에 미치는 영향에 관한 연구: 고객관계관리 관점)

  • Kim, Hyung-Su;Gim, Seung-Ha;Kim, Young-Gul
    • Asia pacific journal of information systems
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    • v.18 no.1
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    • pp.1-23
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    • 2008
  • As managing customer relationship gets more important, companies are strengthening information service using multi-channels to their customers as a part of their customer relationship management (CRM) initiatives. It means companies are now accepting such information services not as simple information -delivering tools, but as strategic initiatives for acquiring and maintaining customer loyalty. In this paper, we attempt to validate whether or not such various information services would impact on organizational performance in terms of CRM strategy. More specifically, our research objective is to answer the next three questions: first, how to construct the instruments to measure not information quality but information service quality?; second, which attributes of information service quality can influence corporate image and customer loyalty?; finally, does each information service type have unique characteristics compared with others in terms of influencing corporate image and customer loyalty? With respect to providing answers to those questions, the previous studies had been limited in that those studies failed to consider the variety of types of information service or restricted the quality of information service to information quality. An appropriate research model answering the above questions should consider the fact that most companies are utilizing multi channels for their information services, and include the recent strategic information service such as customer online community. Moreover, since corporate information service could be regarded as a type of products or services delivered to customer, it is necessary to adopt the criteria for assessing customer's perceived value when to measure the quality of information service. Therefore, considering both multi-channels and multi-traits may enable us to tell the detailed causal routes showing which quality attributes of which information service would affect corporate image and customer loyalty. As information service channels, we include not only homepage and DM (direct mail), which are the most frequently applied information service channels, but also online community, which is getting more strategic importance in recent years. With respect to information service quality, we abstract information quality, convenience of information service, and timeliness of information service through a wide range of relevant literature reviews. As our dependant variables, we consider corporate image and customer loyalty that both of them are the critical determinants of organizational performance, and also attempt to grasp the relationship between the two constructs. We conducted a huge online survey at the homepage of one of representative dairy companies in Korea, and gathered 367 valid samples from 407 customers. The reliability and validity of our measurements were tested by using Cronbach's alpha coefficient and principal factor analysis respectively, and seven hypotheses were tested through performing correlation test and multiple regression analysis. The results from data analysis demonstrated that timeliness and convenience of homepage have positive effects on both corporate image and customer loyalty. In terms of DM, its' information quality was represented to influence both corporate image and customer loyalty, but we found its' convenience have a positive effect only on corporate image. With respect to online community, we found its timeliness contribute significantly both to corporate image and customer loyalty. Finally, as we expected, corporate image was revealed to provide a great influence to customer loyalty. This paper provides several academic and practical implications. Firstly, we think our research reinforces CRM literatures by developing the instruments for measuring information service quality. The previous relevant studies have mainly depended on the measurements of information quality or service quality which were developed independently. Secondly, the fact that we conducted our research in a real situation may enable academics and practitioners to understand the effects of information services more clearly. Finally, since our study involved three different types of information service which are most frequently applied in recent years, the results from our study might provide operational guidelines to the companies that are delivering their customers information by multi-channel. In other words, since we found that, in terms of customer loyalty, the key areas would be different from each other according to the types of information services, our analysis would help to make decisions such as selecting strengthening points or allocating resources by information service channels.

A Study on Determinants of Customer Loyalty on SNS (SNS 충성도에 영향을 미치는 요인에 관한 연구)

  • Jun, Byoung Ho;Kang, Byung Goo
    • Journal of Korea Society of Digital Industry and Information Management
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    • v.10 no.1
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    • pp.169-179
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    • 2014
  • Customer loyalty in on-line context could be determined not only by voluntary factors but also by involuntary factors. Even though customer doesn't satisfy with certain technology and service, customer loyalty could be fostered by involuntary factors such as network effect, bonds, and switching cost. The purpose of this study is to investigate the determinants of customer loyalty on SNS in terms of voluntary and in voluntary factors. Based on prior studies on satisfaction and customer loyalty, usability and familiarity were identified as voluntary factors and network effect, bonds, and switching cost were identified as involuntary factors. Through the empirical study of 199 survey of SNS users, voluntary factors are found to be significantly related to the satisfaction and customer loyalty. Among involuntary factors, bonds are not found to be significantly related to customer loyalty.

The Effects of Mobile Shopping Mall Attributes on Consumer Loyalty : Consumers' Experience with O2O Service as a Moderating Variable (모바일 쇼핑몰의 속성이 소비자의 충성도에 미치는 효과 : 소비자의 O2O 서비스 경험여부를 조절변수로)

  • Kim, Hye Jin;Lee, Jung Seung;Song, Yong Uk;Kim, Soo Kyung
    • Journal of Information Technology Applications and Management
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    • v.27 no.3
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    • pp.77-92
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    • 2020
  • As mobile shopping has been increasing, the competition has been also increasing to satisfy various consumers' needs. Despite such increase in terms of the volume of the consumers who use mobile shopping, there has been very few studies to examine characteristics of mobile shopping malls. The purpose of this empirical study is to investigate the effect of characteristics of mobile shopping malls on consumer loyalty and the interaction effect of the O2O experience on the relationship between the characteristics of mobile shopping malls and consumer loyalty. Using a sample of 276 individuals who have experienced mobile shopping, we found that certain characteristics such as ubiquity, personalization, or convenience have a positive impact on consumer loyalty and a design characteristic solely has an interaction effect on consumer loyalty. As consumer loyalty has a critical factor on mobile shopping mall's profit, examining which factor has a positive effect on consumer loyalty is beneficial for mobile shopping malls. The results of the study have both practical and empirical implications.

A Study on the Effect of Customer's Awareness of the Food Service Industry's Customer Reward Program Value on Customer Loyalty (외식 업체의 고객 보상 프로그램에 대한 고객의 가치 지각이 고객 충성도에 미치는 효과에 관한 연구)

  • Son, Young-Jin;Lee, Kwang-Ock;Yoo, Hee-Jeong
    • Culinary science and hospitality research
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    • v.13 no.4
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    • pp.80-91
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    • 2007
  • The purpose of the study is to investigate how customer reward programs that are provided strategically to develop customer favors are assessed by customers, if they affect customer loyalty and what effect using membership card(how many possess and use it) takes. The findings from the study can be summarized as follows. Firstly, customer loyalty showed high when shared value and convenient value are felt for preference and referring effect and when shared value and allied value were felt for revisit. Secondly, when the number of cards in possession was a lot, high customer loyalty existed. Thirdly, when the number of cards in use was a lot, the customer loyalty was high. The customer's awareness of values, e.g. economic, shared, use, convenience and allied values, put a very meaningful positive effect on loyalty, i.e. preference, referring effect and revisit. The more the number of food service provider's' membership cards in use and in possession was, the higher customer loyalty was. This implies that continued development of business partners and quality control are critical for various benefits and shared value of the customer reward pro-grams and service upgrade.

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Dual Path Model in Store Loyalty of Discount Store (대형마트 충성도의 이중경로모형)

  • Ji, Seong-Goo;Lee, Ihn-Goo
    • Journal of Distribution Research
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    • v.15 no.1
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    • pp.1-24
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    • 2010
  • I. Introduction The industry of domestic discount store was reorganized with 2 bigs and 1 middle, and then Home Plus took over Home Ever in 2008. In present, Oct, 2008, E-Mart has 118 outlets, Home Plus 112 outlets, and Lotte Mart 60 stores. With total number of 403 outlets, they are getting closer to a saturation point. We know that the industry of discount store has been getting through the mature stage in retail life cycle. There are many efforts to maintain existing customers rather than to get new customers. These competitions in this industry lead firms to acknowledge 'store loyalty' to be the first strategic tool for their sustainable competitiveness. In other words, the strategic goal of discount store is to boost up the repurchase rate of customers throughout increasing store loyalty. If owners of retail shops can figure out main factors for store loyalty, they can easily make more efficient and effective retail strategies which bring about more sales and profits. In this practical sense, there are many papers which are focusing on the antecedents of store loyalty. Many researchers have been inspecting causal relationships between antecedents and store loyalty; store characteristics, store image, atmosphere in store, sales promotion in store, service quality, customer characteristics, crowding, switching cost, trust, satisfaction, commitment, etc., In recent times, many academic researchers and practitioners have been interested in 'dual path model for service loyalty'. There are two paths in store loyalty. First path has an emphasis on symbolic and emotional dimension of service brand, and second path focuses on quality of product and service. We will call the former an extrinsic path and call the latter an intrinsic path. This means that consumers' cognitive path for store loyalty is not single but dual. Existing studies for dual path model are as follows; First, in extrinsic path, some papers in domestic settings show that there is 'store personality-identification-loyalty' path. Second, service quality has an effect on loyalty, which is a behavioral variable, in the mediation of customer satisfaction. But, it's very difficult to find out an empirical paper applied to domestic discount store based on this mediating model. The domestic research for store loyalty concentrates on not only intrinsic path but also extrinsic path. Relatively, an attention for intrinsic path is scarce. And then, we acknowledge that there should be a need for integrating extrinsic and intrinsic path. Also, in terms of retail industry, this study is meaningful because retailers want to achieve their competitiveness by using store loyalty. And so, the purpose of this paper is to integrate and complement two existing paths into one specific model, dual path model. This model includes both intrinsic and extrinsic path for store loyalty. With this research, we would expect to understand the full process of forming customers' store loyalty which had not been clearly explained. In other words, we propose the dual path model for discount store loyalty which has been originated from store personality and service quality. This model is composed of extrinsic path, discount store personality$\rightarrow$store identification$\rightarrow$store loyalty, and intrinsic path, service quality of discount store$\rightarrow$customer satisfaction$\rightarrow$store loyalty. II. Research Model Dual path model integrates intrinsic path and extrinsic path into one specific model. Intrinsic path put an emphasis on quality characteristics and extrinsic path focuses on brand characteristics. Intrinsic path is based on information processing perspective, and extrinsic path emphasizes symbolic and emotional dimension of brand. This model is composed of extrinsic path, discount store personality$\rightarrow$store identification$\rightarrow$store loyalty, and intrinsic path, service quality of discount store$\rightarrow$customer satisfaction$\rightarrow$store loyalty. Hypotheses are as follows; Hypothesis 1: Service quality perceived by customers in discount store has an positive effect on customer satisfaction Hypothesis 2: Store personality perceived by customers in discount store has an positive effect on store identification Hypothesis 3: Customer satisfaction in discount store has an positive effect on store loyalty. Hypothesis 4: Store identification has an positive effect on store loyalty. III. Results and Implications We examined consumers who patronize discount stores for samples of this study. With the structural equation model(SEM) analysis, we empirically tested the validity and fitness of the dual path model for store loyalty in discount stores. As results, the fitness indices of this model were well fitted to data obtained. In an intrinsic path, service quality(SQ) is positively related to customer satisfaction(CS), customer satisfaction(CS) has very significantly positive effect on store loyalty(SL). Also, in an extrinsic path, the store personality(SP) is positively related to store identification(SI), it shows significant effect on store loyalty. Table 1 shows the results as follows; There are some theoretical and practical implications. First, Many studies on discount store loyalty have been executed from various perspectives. But there has been no integrative view on this issue. And so, this research was theoretically designed to integrate various and controversial arguments into one systematic model. We empirically tested dual path model forming store loyalty, and brought up a systematic and integrative framework for future studies. We want to expect creative and aggressive research activities. Second, a few established papers are focused on the relationship between antecedents and store loyalty; store characteristics, atmosphere, sales promotion in store, service quality, trust, commitment, etc., There has been some limits in understanding thoroughly the formation process of store loyalty with a singular path, intrinsic or extrinsic. Beyond these limits in single path, we could propose the new path for store loyalty. This is meaningful. Third, discount store firms make and execute marketing strategies for increasing store loyalty. This research provides real practitioners with reference framework needed for actual strategy formation. Because this paper shows integrated and systematic path for store loyalty. A special feature of this study is to represent 6 sub dimensions of service quality in intrinsic path and 4 sub dimensions of store personality in extrinsic path. Marketers can make more analytic marketing planning with concrete sub dimensions of service quality and store personality. When marketers of discount stores make strategic planning like MPR, Ads, campaign, sales promotion, they can use many items which are more competitive than competitors.

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How Are Consumers, Service and Market Factors Related to Customer Loyalty in Medical Service? -Targeting the Medical Consumer in a City- (의료소비자, 서비스 및 시장 특성요인과 고객충성도와의 관계 분석 -1개 중소도시의 의료이용 경험자를 대상으로-)

  • Lee, Sun-Hee;Kim, Hyun-Mi;Kim, Ju-Hye;Ha, Gwi-Yeom
    • Journal of Preventive Medicine and Public Health
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    • v.41 no.5
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    • pp.315-322
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    • 2008
  • Objectives : This study was performed to explore customer royalty and the related factors. Methods : 900 households(a 1% sample) were randomly selected from the total population of K city located in Kangwon province. An interview survey was performed with using a structured questionnaire for the subjects(923 persons) who had used medical service during the year before the survey, and the survey was done September, 2002. Results : When comparing the relating factors related with customer royalty according to the sociodemographic characteristics, the older group showed a significantly higher level of recognition for service quality, service reputation, internal customers' attitudes and switching cost. The lower income group showed a higher level of recognition for service quality, service image and switching cost. The lower educated group showed a higher level of recognition for service reputation, service image and internal customers' attitudes. The higher educated group showed a higher level of recognition for perceived risk, and seeking variety. In addition, the expert group or the service and manufacturing workers group showed a higher level of recognition for service involvement. On multiple regression analysis, internal customers' attitudes, service image, service reputation, service quality, switching cost, and substitutability showed significant relations with customer loyalty. Conclusions : This study showed that customer loyalty was significantly influenced by service factors like internal customers' attitudes, service image, service reputation, and service quality, and by market factors like switching cost, and substitutability. The results of this study can be used as a baseline for developing strategies to create and keep customers with high loyalty.

Causal Role of Emotionally based Satisfaction and Service Reputation in Explaining Relationship between Service Quality, Satisfaction and Service Loyalty in Mobile Telecommunication Company (이동통신사의 서비스품질과 만족 및 서비스충성도 관계에서 감정적 만족과 서비스명성의 인과적 역할)

  • Choi, Chul-Jae;Park, Seung-Whan
    • The Journal of the Korea Contents Association
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    • v.9 no.6
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    • pp.344-356
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    • 2009
  • The purpose of this paper is to identify the causal role both emotionally based satisfaction and service reputation by examining the relationships among each dimensions of service quality, cognitive satisfaction, emotionally based satisfaction, service reputation and service loyalty in mobile telecommunication company. The results of the study are as follows: First, conviction quality had not influence on both cognitive satisfaction and emotionally based satisfaction, but tangibles quality had more influence on cognitive satisfaction than emotionally based satisfaction and responsiveness quality had more influence on emotionally based satisfaction than cognitive satisfaction. It found that there was a significant positive relationship between dimensions of the service quality, cognitive satisfaction and emotionally based satisfaction, and dimensions of the service quality affect satisfaction either directly or indirectly through emotion. Second, consumer satisfaction had more effect on service loyalty through service reputation than direct effect. Therefore, service loyalty can be build by increasing emotionally based satisfaction and service reputation to customer who is perceived as good service.