What Drives Customer Loyalty? Nonlinear Effects of Customer Delight and Satisfaction on Loyalty and the Moderating Role of Service Experience

Ahrholdt, Dennis C., Gudergan, Siegfried P., and Ringle, Christian M. (2016) What Drives Customer Loyalty? Nonlinear Effects of Customer Delight and Satisfaction on Loyalty and the Moderating Role of Service Experience. In: Looking Forward, Looking Back: Drawing on the Past to Shape the Future of Marketing: Proceedings of the 2013 World Marketing Congress. pp. 742-750. From: 2013 World Marketing Congress, 17-20 July 2013, Melbourne, VIC, Australia.

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Abstract

We substantiate—theoretically and empirically—the important parallel roles of delight and satisfaction in influencing loyalty in service settings. Our results of a PLS-SEM study support a negative quadratic (i.e., concave) relationship of satisfaction with loyalty and a negative cubic relationship of delight. When allocating (incremental) resources to create customer loyalty, managers should recognize that delight reaches its full impact only after an initial threshold. Similar to satisfaction, this effect reaches a saturation point after an upper threshold at very high levels of delight. Moreover, our results suggest that both delight and satisfaction effects weaken when experience increases.

Item ID: 75225
Item Type: Conference Item (Research - E1)
ISBN: 978-3-319-24182-1
Keywords: Customer Involvement, Customer Loyalty, Customer Satisfaction, Service Experience, Service Setting
Date Deposited: 02 Aug 2022 23:23
FoR Codes: 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3506 Marketing > 350605 Marketing management (incl. strategy and customer relations) @ 50%
35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3508 Tourism > 350803 Tourism management @ 50%
SEO Codes: 15 ECONOMIC FRAMEWORK > 1503 Management and productivity > 150303 Marketing @ 100%
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