A contingency approach to a consumer loyalty model: An application to the mobile services context

Hee-jin Lim, Purdue University

Abstract

The primary purpose of this study is to establish a comprehensive model of consumer loyalty in the context of mobile services. The study has three objectives: (1) to identify multidimensional constructs of service quality and value in the context of mobile services, (2) to investigate the relative influences of main constructs (i.e., quality, value, satisfaction) on loyalty intention, and (3) to scrutinize the role of switching costs in a contingent relationship between customer satisfaction and loyalty intention. Implications for researchers and managers are drawn. ^ To achieve the study purposes, two research models are proposed, termed indirect and collective model, respectively. The indirect model was designed to develop multidimensional constructs of mobile service quality and perceived value, and investigate their influences on satisfaction and loyalty. Statistical analysis identified five distinct dimensions of mobile service quality, and their direct and indirect effects on economic value, emotional value, and satisfaction. The analysis confirmed two dimensions (i.e., economic value, emotional value) to be predictors of customer satisfaction. ^ The collective model was designed to investigate the relative influences of main constructs on loyalty intention as well as the role of switching costs on customer loyalty. Results showed that perceived service quality is the strongest predictor of consumer loyalty. Perceived value had only indirect effect on loyalty through satisfaction. ^ The moderating role of switching costs was investigated by hierarchical moderated regression analysis. Results showed that switching costs are not a significant moderator between satisfaction and loyalty. However, results from additional analysis involving multidimensional measures of switching costs (i.e., loss, adaptation, financial costs), indicated that adaptation costs and financial costs have direct influences on loyalty intention, and adaptation costs significantly moderate the relationship between satisfaction and loyalty. ^ Future researchers are recommended to investigate joints role of cognitive and affective responses and a multidimensional measure of switching costs in a consumer loyalty model. Mobile service managers are recommended to develop strategic promotion efforts based on targeted consumers' needs and pay attention to service quality to enhance customer retention. ^

Degree

Ph.D.

Advisors

Major Professor: Richard Widdows, Purdue University.

Subject Area

Business Administration, Marketing

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