Investigating temporal effects of risk perceptions and satisfaction on customer loyalty

Abstract

Purpose – The purpose of this paper is to examine how product usage satisfaction mediates the link between two types of perceived risk and loyalty intentions, and investigate the three moderating effects (overall satisfaction of provider, switching costs, and remaining contract time) of the product usage satisfaction-loyalty intentions linkage. Design/methodology/approach – Using a longitudinal study, a total of 253 usable responses are collected from time T to time T+1. The paper uses the partial least squares (PLS-Graph 3.0) approach for structural parameters in the proposed model. Findings – The findings show that the temporal effect of performance risk and product usage satisfaction negatively increases, whereas the temporal effect between product usage satisfaction and loyalty intentions decreases over time. While the moderating effect between overall satisfaction of provider and product usage satisfaction strengthens loyalty intentions, the switching costs attenuate loyalty intentions. The proposed model can be used to predict both the change in customer behavior and the moderating effects of overall satisfaction of providers (or switching costs) in the context of smartphone replacement period. Originality/value – This paper makes unique contributions to the literature. First, using the consumption-system approach as a theoretical base, the paper extends the product usage satisfaction-loyalty intentions linkage that can appear as a dynamic spiral during subsequent periods. Second, considering the temporal effects of the proposed relationships, the paper identifies the role of perceived risk that reveals how product usage satisfaction mediates the link between two types of perceived risk and loyalty intentions. Third, the paper emphasizes the importance of moderating effects when considering smartphone usage with a particular brand.

Are all customers really the same? Comparing service quality and satisfaction between residential and business telecommunications customers

“…There are as many attempts to define customer satisfaction as there are scholars. Despite these attempts, there still does not appear to be an agreed-upon definition of customer satisfaction (Beneke et al 2012;De Jagger & Du Plooy 2007;Ha & Son 2014). According to Kuo et al (2009), customer satisfaction refers to the customer's total response to the purchase experiences of a particular product, that is, the total consumption perception of consumers when using services.…”

“…Customer satisfaction was measured using six items on a Likert scale anchored by 1 ('strongly disagree') and 7 ('strongly agree') as shown in Appendix 1. The items were adopted from Ha and Son (2014), Kuo et al (2009), Tam (2004) and Thaichon et al (2014) and modified to suit the context of this study.…”

“…Source: Adapted from Coetzee et al (2013), Taylor (1992, 1994), Ha and Son (2014), Kuo et al 2009;Olorunniwo et al 2006;Tam (2004); Thaichon et al (2014) and Wang and Shieh (2006) Appendix 1…”

“…Despite increased interest in the study of service quality and customer satisfaction (Baumann et al 2007;Beneke et al 2012;De Jagger & Du Plooy 2006Ha & Son 2014;Kuo, Wu & Deng 2009;Seth, Deshmukh & Vrat 2005;Thaichon et al 2014;Wang & Shieh 2006), to date no study in the public domain has compared the effect of service quality on customer satisfaction between business to business (B2B) and business to consumer (B2C) markets. Furthermore, the effect of the individual dimensions of service quality (namely tangibility, reliability, responsiveness, assurance and empathy) on customer satisfaction has not been given much scholarly attention (Aghdaie & Faghani 2012;Baumann et al 2007;Wang & Shieh 2006).…”

Determination of Brand Loyalty in Telecommunication Industry: a Literatur Review

“…Other studies outside of the telecommunication context find an indirect relationship in the relationship of customer satisfaction with loyalty through commitment (19,28). Although overall customer satisfaction can be used to build a telecom brand loyalty model, low customer satisfaction can reduce customer loyalty to the brand, and even overall satisfaction can affect customer loyalty to the brand (29,30). Differences in the proposals in previous research encourage writers to try to reformulate the determinants in the brand loyalty model in the telecommunications industry.…”