Customer lifetime value: investigating the factors affecting attitudinal and behavioural brand loyalty

Abstract

PurposeThis paper investigates the factors affecting customer lifetime value from an attitudinal and behavioural brand loyalty perspective in the Internet service industry. Specifically, willingness to pay more and word of mouth are categorised under attitudinal loyalty, while repurchase intention is classified under behavioural loyalty.Design/methodology/approachA self-administered questionnaire online survey via Google Forms was employed comprising a sample of 481 participants from the Internet service providers. The partial least squares structural equation modeling (PLS-SEM) approach was applied for hypotheses testing.FindingsThe current study found that “brand credibility, special treatment benefits and confidence benefits had a positive and significant influence on willingness to pay more, word of mouth and repurchase intention, with confidence benefits and brand credibility showing as the greatest elements resulting in word of mouth and repurchase intentions, whereas special treatment benefits showing as the greatest element resulting in the willingness to pay more. The results of this study did not show any positive significant between service quality dimensions and true brand loyalty (word of mouth, willingness to pay more and repurchase intention). Results also found that confidence benefits, brand credibility and special treatment benefits had an indirect impact on true brand loyalty through customer satisfaction”.Practical implicationsInternet service providers should develop and maintain good relationships with their customers as the excellence of the customer–service provider relationship can enhance customer lifetime value.Originality/valueThe current work measured customer lifetime value in terms of both the behavioural and attitudinal aspects to represent loyalty, while most previous studies consider only one dimension for this representation. Particularly, customers' true brand loyalty is measured using separate components of repurchase intentions (RIs), willingness to pay more (WPM) and word of mouth (WOM) to deepen the understanding of both managerial interest and academic.

The Influence of Sharia Banks’ Corporate Image and Sharia Service Standardization on the Intention to Recommend to Others: The Mediating Role of Customer Satisfaction

“…The results of the SmartPLS analysis indicate a positive and significant influence between company image and customer satisfaction, which means that the better a company's image, the higher the satisfaction among customers. This is consistent with the research which shows that image has a positive effect on customer satisfaction (Dandis et al, 2021;Fauzi et al, 2022;Han & Hyun, 2017). Other studies have also shown that brand image significantly affects customer satisfaction (Mohammed & Rashid, 2018;Sharma et al, 2018;Yusfiarto et al, 2022).…”

The effect of brand experiences and relational benefits on loyalty in the fast-food restaurants

“…Channa et al (2022) found special treatment benefits significantly influence customer loyalty. Dandis and Eid (2022) contribute that special treatment benefits significantly impact WPM, WOM and RI. Similarly, Kim and Ok (2009) found special treatment benefits directly and indirectly impact affective commitment in the hospitality industry.…”

“…This position is supported by Yang et al (2017), who confirm that customer-CBs and identityrelated benefits precede other loyalty rewards and underpin incentives associated with loyalty programmes. Dandis and Eid (2022) found that confidence benefits significantly impact WPM, WOM and RIs. This position is supported by Gremler et al (2020), who found that loyalty is affected by relational benefits, although social and confidence benefits are more effective.…”

“…Previous research highlights the importance of relational benefits and brand experiences on loyalty, but few attempts have been made to understand how each of these individual constructs influences outcomes of CRM. Therefore, this study contributes to the existing literature (Dandis et al, 2022a;Dandis and Eid, 2022;Chatzigeorgiou et al, 2019;Dagger et al, 2011;Kim and Ok, 2009;Meldrum and Kaczynski, 2007), by recognising how each type of brand experience and relationship benefits influence RIs, WPM and WOM, in FFRs, instead of focussing entirely on relational benefits and brand experience. More specifically, the current study found that relational benefits dimensions (confidence, special treatment and social benefits), positively impact WPM, WOM and RI.…”

An Empirical Analysis of the Dimension of Loyalty to Determine Customer Retention for E-Commerce

“…Furthermore, loyalty is when customers repurchase/repeat behaviour, termed behavioural loyalty, and good word of mouth or favourable impression as attitudinal loyalty (Eid, 2021). However, studies rarely have taken these two dimensions (behavioural and attitude) together to determine whether customer repurchase response is profitable for marketers or the favourable impression they have for a brand (Kotler et al, 2019), retaining loyal consumers for online shopping platforms.…”