Agency and Trust Mechanisms in Consumer Satisfaction and Loyalty Judgments

Abstract

The authors propose a framework for understanding key mechanisms that shape satisfaction in individual encounters, and loyalty across ongoing exchanges. In particular, the framework draws together two distinct approaches: (1) agency theory, rooted in the economic approach, that views relational exchanges as encounters between principals (consumers) and agents (service providers) and (2) trust research that adopts a psychological approach toward consumer-provider relationships. In so doing, the authors specify how trust mechanisms cooperate and compete with agency mechanisms to affect satisfaction in individual encounters and influence loyalty in the long run. Because a multidimensional conceptualization of trust is used, the hypothesized framework offers a fine-grained understanding of the interrelated mechanisms. The high level of specificity allows extraction of multiple propositions, facilitates empirical testing, and encourages theoretical development of the proposed model. Several directions to guide future research are provided.

A Modified Decomposed Theory of Planned Behaviour Model to Analyze User Intention towards Distance-Based Electronic Toll Collection Services

“…Therefore, Singh and Sirdeshmukh [25] divided the trust construct into two parts which consisted pre-purchase performance expectations and post-purchase performance evaluations among agency and trust mechanisms, and it validated that the satisfaction had significant positive effect on post-purchase performance evaluations.…”

“…Many previous studies demonstrated the importance of satisfaction in behaviour assessment, showing that it has positive effect on the behaviour intention and trust [23][24][25]. Satisfaction has been noted as a special form of consumer attitude.…”

“…Satisfaction has been noted as a special form of consumer attitude. It is a post purchase phenomenon to reflect how much the consumer likes or dislikes the service after experiencing it [25]. Such as experience-based, global attitude construct as customer satisfaction should strongly influence the connective constructs, such as behaviour intention and repeat purchase behaviour.…”

The impact of value equity and brand equity on loyalty : an empirical investigation in retail banking

“…The technical component of quality shows the outcome obtained by the customer by using the service whereas the functional component reflects the relation between the customer and the organization and the assessment of the place (or environment) where the service was provided (Grönroos, 1990). Tangible and intangible constituents of quality were important in evaluating either customer view of an organization or trust (Doney & Cannon, 1997;Garbarino & Johnson, 1999;Singh & Sirdeshmukh, 2000).…”

“…There are controversial data about the link of primary level antecedents with loyalty or secondary level antecedents. Some authors proved that price as a primary level antecedent influences customer satisfaction and has an effect on loyalty through satisfaction (Bolton & Lemon, 1999); other authors argue that price has an effect on trust and loyalty (Singh & Sirdeshmukh, 2000). There is no consensus as to the components of the primary level antecedents of customer loyalty (e.g.…”