The moderating effects of need for cognition on drivers of customer loyalty

Abstract

Purpose -While satisfaction, value, image, and credibility are commonly assumed to drive customer loyalty, there is nevertheless reason to question whether their effects vary across groups of consumers. This paper seeks to explore how individuals with contrasting need-for-cognition (NFC) levels differ in using memory-based information when forming behavioral intentions towards a current service provider. Design/methodology/approach -The authors tested the hypotheses by means of survey data from customers of retail banks, and applied two-group analysis using structural equation modeling (SEM) to test the moderating effects of NFC. Findings -Satisfaction positively affects loyalty for high NFCs, but not for low NFCs. Image is insignificant in both groups. Value positively affects loyalty for low NFCs, but not for high NFCs. Credibility has a positive effect for low NFCs, but not for high NFCs.Research limitations/implications -The limited sample size affects the power of the test methodology, but Chow-tests of regression models gave similar results. Further research should test the model in other contexts to enhance external validity. Practical Implications -To develop more effective customer strategies, both researchers and practitioners need to understand how different types of consumers attend to and utilize information when forming behavioral intentions. The standard practice of surveying customer satisfaction and loyalty typically requires the consumer to make a memory-based judgment. Originality/value -Previous research has primarily focused on how consumer demographics moderate satisfaction-loyalty links. This paper includes additional drivers of loyalty, and assesses moderation by a personality trait (NFC) not previously used in satisfaction-loyalty research. The results indicate that a consumer's dispositional tendency to think and elaborate (more or less) can bias survey results.

Influence of environmental stimuli on hotel customer emotional loyalty response: Testing the moderating effect of the big five personality factors

“…For instance, Walsh et al (2008) tested the moderating effects of several demographic variables (age, gender, income) on the satisfaction-loyalty link; results indicated that only income influenced the strength of the relationship. In studies reviewed by Hansen et al (2013), the majority indicate that demographics offered fewer explanations compared to psychological factors as moderators on the effects of loyalty antecedents to loyalty. On using need for cognition as a moderator on the satisfaction-loyalty relationship, Hansen et al (2013) noted that the variable significantly moderates the relationship.…”

“…Few studies (e.g. Gountas and Gountas, 2007;Han and Ryu, 2009;Hansen et al, 2013) have considered either the environmental or personal factor to be an antecedent of loyalty through mediators like consumption emotions, cognition, and satisfaction. Such an approach appears to provide a limited understanding of consumer loyalty which have been noted to be influenced by environmental factors (Han and Ryu, 2009) as well as personal factors (Bove and Mitzifiris, 2007;Lin, 2010).…”

“…In adapting the Stimuli-Organism-Response (S-O-R) model (Mehrabian and Russel, 1974) and Bitner's servicescape framework (1992), a model was developed and tested with hotel ambience as an antecedent to hotel guests' loyalty through the mediation effect of consumption emotions (positive and negative). Personality that refers to the stable, enduring individual characteristics pertaining to cognitive, emotion, and behavioral responses (Pervin and Cervone, 2010) was treated as a moderating variable in ambience-consumption emotion-loyalty relationships reflecting suggestions and findings from previous research (Hansen et al, 2013;Walsh et al, 2008). The S-O-R implies that environmental stimuli may be used to elicit responses in an organism, including emotional reactions that lead to a particular behavior.…”

“…The noted influential factors include Bitner (1992) three dimensions of servicescape (ambience, space, and sign/artifacts; Han and Ryu, 2009;Kim and Moon, 2009;Siu et al, 2012), personal factors like demographics (Han and Ryu, 2006) and personality variables (Hansen et al, 2013), and interactional factors like trust (Martinez and Bosque, 2013), perceived benefits (Chen and Hu, 2010) and other myriad of factors. These factors converge into the two broader factors of environmental and personal that influence consumer behavior (Schiffman and Kanuk, 2005).…”

Determinants of Hotel’s Service Standard: Reputation and Relationship Orientation

“…A positive image represents an asset to the service provider, and customers often trust that the provider will not jeopardize this by decreasing its service standard level [29]. Customers nowadays are reluctant to compromise on service standard, and therefore service standard has turn out to be the key to customer acknowledgement.…”