The Effect of Relationship Quality on Customer Advocacy: The Mediating Role of Loyalty

Abstract

Advocacy is a strategic choice for companies responding to the new reality that customers power increased. Potential customers see information from peers or even strangers as less biased and reliable than those of an economic entity. Thus, the information conveyed by a satisfied customer is more believable than that delivered by the business entity. Customer advocacy is very important in the company's efforts to get new customers. Based on social exchange theory, advocacy can be generated from the satisfaction, trust, commitment and loyalty. The purpose of this study was to analyze the influence of satisfaction, trust and commitment to loyalty and its impact on customer advocacy. The hypotheses were tested with structural equation modeling using survey data from 178 customers of a commercial bank in Indonesia. Satisfaction and commitment have direct effect on advocacy, but trust hasn't. Loyalty mediates the relationship between trust and advocacy, while commitment has the greatest effect on advocacy. Findings hold implications for future research as well as for managerial practice

A Study of Indonesia Original Brands Financial Performance

“…Customer advocacy intended to create profound customer relationships by gaining new degrees of commitment and trust and by building mutual transparency, dialogue, and partnership with customers (Schepers and Nijssen, 2018). Consumers will take action as promoters for a brand or a product or service, as they give positive comments and recommend it to others (Susanta et al 2013). Customer advocacy ,at times, designated as positive word-of-mouth (Schepers and Nijssen, 2018).…”

The Influence of Customer Satisfaction on Financial Performance Through Customer Loyalty and Customer Advocacy: A Case Study of Indonesia’s Local Brand

“…Consumer behavior theory asserts the existence of a difference between loyalty and advocacy, where customers are loyal not necessarily be advocacy, but customers who are truly loyal, likely to be 3rd ICEEBA advocacy. Susanta et al (2013) show that the customer loyalty recommended as predictors of customer advocacy on the product/service that exist. Based on the explanation above, hypothesis can be formulated as follows:…”

“…Customers who are satisfied with a good or services, then it will often to use this product. This is the underlying customer loyalty will increase naturally due to the increasing of customer satisfaction [12,24,25].…”

“…Reference [24] describe a customer loyalty is understood as the desire of the customer to buy products and continue the relationship with the provider. Customer loyalty is very important because it has a positive impact on sales and customer retention, while advocacy is the customer desire to give a strong recommendation and praise for the manufacturer of a product or service to other customers.…”

The effect of perceived value-in-use in advocacy behavior of private higher education institutions in Malaysia: A conceptual paper

“…When it comes to understanding relationship between perceived value and advocacy rates, many researchers have included different variables to such as autonomy, relatedness, competence (Jillapalli & Wilcox, 2010), satisfaction (Susanta, Alhabsji, Idrus & Nimran, 2013), self-brand connection (Kemp, Childers & Williams, 2012). More than 90 percent of customers identify word-of-mouth as the best, most reliable and relevant source of ideas and information about products and services (Lowenstein, 2012).…”