Risk and perceived value: antecedents of customer satisfaction and loyalty in a sustainable business model

Abstract

In the contemporary economic environment, each company that succeeds in creating and offering value to its clients/consumers will be able to survive in the market and even record profit for the medium and long timethus value represents a driving force for a sustainable business model. Considering the significant role of perceived value within strategic management, the main purpose of this research is to identify and test an adequate conceptual frame in order to study the value concept and its connections with satisfaction, loyalty and perceived risk in order to offer a proper management tool for monitoring the sustainability of an existing business. So, this study proposed and tested concepts in the context of the S.M.E. market in Romania. Results show that both risk and value play a significant role in influencing satisfaction and customer loyalty, thus, in the end, company bottom line. ARTICLE HISTORYare individuals in this study, we will refer to both enterprises and individuals without taking into consideration the differences between them. Some remarks on enterprises' acquisition process need to be pointed out: decision-makers from the acquisition department are usually involved in the purchase decision, along with other departments such as finance, production, etc.; therefore more people are involved in the supplier selection process, enterprises deal with budget constraints, and consultations between requirements, budget, and acquisition processes take place in order to improve the acquisition process.Many companies recognise the significant role of perceived value within strategic management (Spiteri and Dion, 2004). Slater (1997) stated that the existence of a successful company is driven by its own capacity to create and to offer real value for consumers.Following this idea, increasing value for consumers became a strategic point for companies to develop and maintain a competitive advantage. Both loyalty and the company's profitability are strongly related to the process of the creation and delivery of customer value. Customer value, defined by Woodruff as 'a customer perceived preference for and evaluation of those products attributes, attribute performances, and consequences arising from use that facilitate (or block) achieving the customer's goals and purposes in use situations', is considered to be 'a crucial strategic factor in gaining a competitive advantage' (Mele, 2007). We can assert that the consumers' increasing value plays a critical role in companies' strategies in the context of an increasingly competitive environment. In this context both loyalty and the company's profitability are strongly related to the process of the creation and delivery of customer value. The main purpose of our research is to identify and test an adequate conceptual frame in order to study the concept of value, and also the connections between value and other concepts such as satisfaction, loyalty and perceived risk. This study is conducted on the Romanian small to medium enterprise (S.M.E.) market, and the obtained...

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