scholarly journals The Causal Effect of Service Satisfaction on Customer Loyalty

2019 ◽  
Author(s):  
Guofang Huang ◽  
K. Sudhir
2020 ◽  
Author(s):  
Guofang Huang ◽  
K. Sudhir

We propose an instrumental-variable (IV) approach to estimate the causal effect of service satisfaction on customer loyalty by exploiting a common source of randomness in the assignment of service employees to customers in service queues. Our approach can be applied at no incremental cost by using routine repeated cross-sectional customer survey data collected by firms. The IV approach addresses multiple sources of biases that pose challenges in estimating the causal effect using cross-sectional data: (1) the upward bias from common-methods variance resulting from the joint measurement of service satisfaction and loyalty intent in surveys, (2) the attenuation bias caused by measurement errors in service satisfaction, and (3) the omitted variable bias that may be in either direction. In contrast to the common concern about the upward common-methods bias in estimates using cross-sectional survey data, we find that ordinary-least-squares substantially underestimates the causal effect, suggesting that the downward bias resulting from measurement errors and/or omitted variables is dominant. The underestimation is even more significant with a behavioral measure of loyalty, where there is no common-methods bias. This downward bias leads to significant underestimation of the positive profit impact from improving service satisfaction and can lead to underinvestment by firms in service satisfaction. Finally, we find that the causal effect of service satisfaction on loyalty is greater for more difficult types of services. This paper was accepted by Juanjuan Zhang, marketing.


2015 ◽  
Vol 4 (1and2) ◽  
Author(s):  
Sanjit Singh H.

This research explores the impact of service satisfaction, relational satisfaction, price satisfaction, and commitment on customer loyalty in logistics outsourcing relationships in Indian scenario. 254 users of logistics services from India were selected for investigating the potential linkages among the aforementioned satisfaction aspects and loyalty. Structural equation modeling (SEM) was employed to test the reliability and validity of the measurement and structural model developed to study the relationship among the linkages. Findings from the study supports that logistics service satisfaction, price satisfaction, relational satisfaction and commitment do influence loyalty positively. The analysis suggests that service satisfaction is the most important antecedent having primary influence in the formation of customer loyalty. Service satisfaction also has secondary influence on loyalty by acting as a strong driver in both relational satisfaction and commitment aspects of the service dimensions. Price satisfaction though positively been driven by service satisfaction, was found to have less significant effect as a predictor of loyalty in this context. The present study suggests that relational satisfaction is the second major predictor of loyalty which also drives commitment. This research is not an end-point but an attempt to establish the linkages and the effect among the antecedents driving the building and retention of good buyer-seller relationship in logistics outsourcing.


IQTISHODUNA ◽  
2017 ◽  
Vol 12 (1) ◽  
pp. 9-18
Author(s):  
Virgistira Mulya Hutami ◽  
Yayuk Sri Rahayu

The study aims to determine the effect of brand image IM3 to loyalty, either directly or indirectlythrough the satisfaction. This research used a quantitative approach and the respondents which the customersof Indosat IM3 on four Universities in Malang . The data collection used accidental sampling method. Pathanalysis was used to test and analyze hypotheses by considering the classical assumption test. The resultsof the study showed that the brand image significantly affect the service satisfaction and customer loyalty.Indicators of Brand image contributed 47.5% to total customer satisfaction. Meanwhile satisfaction accountedfor 30.7% of customer loyalty. Two indicators of brand image consist of guarantees and social identificationhas no significant effect on customer satisfaction. While, two other indicators of brand image consist ofpersonal identification and status has a significant influence on customer satisfaction. From path analysisknown that there is indirectly influence of the status of personal identification to loyalty through customersatisfaction.


2021 ◽  
Vol 5 (1) ◽  
pp. 113-135
Author(s):  
R. Agoes Kamaroellah ◽  
Anis Eliyana ◽  
Reza Mubarak

Automated Teller Machines (ATMs) are a medium for financial transactions. This study investigates the impact of service distribution and service satisfaction on customer loyalty on ATM usage of the BRI Syariah Sub-Branch Office (KCP) Pamekasan. Data obtained from primary data in ATM user respondents' Form, the data analyzed by SEM with PLS approach. The calculation is carried out in two phases, the first-order phase, and the second-order phase. A validity and reliability test revealed that all three variables were valid and reliable in the first-order phase. At the same time, the second-order phase was used, CFA, and Construct Reliability. Subsequently, an Inner Model test uncovered that the Service Distribution has no significant effect on Customer Loyalty. Contrastively, Service Satisfaction has a significant positive impact on customer loyalty. The goodness of Fit based on R-Square reveals that Service Distribution and Service Satisfaction can explain Service Loyalty at BRI Syariah KCP Pamekasan ATM very well.


2020 ◽  
Vol 7 (1) ◽  
pp. 32-39
Author(s):  
Suwarsito Suwarsito ◽  
Syukri Ghozali ◽  
Herlin Widasiwi Setianingrum ◽  
Sufi Alawiyah

The purpose of the research is to analyze and identify the effect of the service quality and satisfaction variables toward customer loyalty. the data collection method used in this researchi uses the survey method with questionnaires. This research population is the customers of Indosat Unlimited in Depok. From the results of the analysis, it shows that the service quality significantly influences the customer loyalty, proven by the t significant value of 0.000 smaller that α 0.05 with the coefficient of 2.537. Quality of service has a significant effect on the customer loyalty ishown by the t significant value 0.000 less than 0.05. service quality and satisfaction significantly influence the customer loyalty shown by F value of 0.000 smaller than 0.05 and are able contribute to the customer loyalty variables of 0.504 or 51.7%. the remaining 48.3% is influenced by other variables that are not analized in this research.


2021 ◽  
Vol 13 (13) ◽  
pp. 7404
Author(s):  
Md. Alamgir Hossain ◽  
Most. Nirufer Yesmin ◽  
Nusrat Jahan ◽  
Minho Kim

Today, the banking sector plays a significant role due to the substantial increase in the number of banks and has become an intensely competitive field. The purpose of this paper is to strengthen knowledge of retail banking services by finding the interrelationships between service justice, service quality, social influence, and corporate image concerning service satisfaction and loyalty. In addition, we sought to determine the moderating effect of bank ownership (i.e., state-owned and private sector banks) on the above relationships. Data were collected at random through online surveys that were analyzed using structural equation modeling. Empirical findings revealed that service justice and quality have a significant effect on service satisfaction and customer loyalty. Social influence has a significant effect on customer loyalty, but not on service satisfaction; however, corporate image is positively related to service satisfaction, but not to customer loyalty. Understandably, service satisfaction was assumed to have a fundamental relationship to consumer loyalty. However, moderation results indicated that state or private sector ownership of banks was an equally important moderating factor for almost all dimensions relevant to customer loyalty, other than service justice, social influence, and service satisfaction. The study presents theoretical contributions and considers the managerial implications for banking services that are potentially applicable to other financial institutions.


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