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1 – 10 of 19The purpose of this paper is to examine how firms can influence customer loyalty through customer commitment by leveraging two constructs of service quality: service assurance and…
Abstract
Purpose
The purpose of this paper is to examine how firms can influence customer loyalty through customer commitment by leveraging two constructs of service quality: service assurance and service reliability.
Design/methodology/approach
The analyses are based on 138 responses retrieved from experienced users of mobile phone services in one of the big cities in the South-eastern part of Nigeria through a survey questionnaire. The validity and reliability of the measurement model as well as the proposed hypotheses were examined through the partial least squares structural equation modelling procedure.
Findings
Service reliability is a direct predictor of customer loyalty while service assurance is not. Affective commitment has a direct positive effect on customer loyalty and partially mediates the relationship between service reliability and customer loyalty. In contrast, the mediating effects of affective and continuance commitment on the relationship between service assurance and customer loyalty were positive but insignificant. Finally, affective commitment mediates the effect of continuance commitment on customer loyalty.
Research limitations/implications
The mediating role of the individual components of commitment in the links between the individual dimensions of service quality and customer loyalty is largely untested in the literature. This line of inquiry can form the basis for future research proposals. Additionally, the outcomes that emerged from this research must be interpreted with caution due to the size of the sample on which analyses were based. Future research should employ larger samples.
Practical implications
Services organisations especially telecommunication firms may benefit from customer loyalty by pursuing a combined strategy of increasing service assurance, service reliability, affective commitment and continuance commitment both independently and in tandem.
Originality/value
As far as could be established, this paper is the first to explore the mediating effects of affective and continuance commitment on the links between service quality dimensions and customer loyalty.
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Ernest Emeka Izogo, Abdi Reza, Ike-Elechi Ogba and Chukwunonso Oraedu
The purpose of this paper is to explore the determinants of relationship quality (hereafter referred to as RQ) and its impact on customer loyalty within an emerging retail banking…
Abstract
Purpose
The purpose of this paper is to explore the determinants of relationship quality (hereafter referred to as RQ) and its impact on customer loyalty within an emerging retail banking market through a dual-lens theory.
Design/methodology/approach
The research informants were recruited from a city in South-eastern Nigeria. A quantitative data obtained through bank-intercept method and online survey from 332 customers of retail banking services formed the final database. The proposed model and by implication the research hypotheses were tested using partial least squares structural equation modelling procedure.
Findings
The results show that customer orientation, expertise and information sharing are stimulus factors that directly influence the constructs of RQ (i.e. trust and satisfaction and indirectly influence customer loyalty through the constructs of RQ. The paper also demonstrates that the stimulus factors are direct predictors of consumers’ response. The proposed model explained 49 per cent of the total variance in customer loyalty.
Research limitations/implications
Customer orientation, expertise and information sharing are stimulus factors that improve RQ and customer loyalty. However, the explanatory power of the proposed model is modest. Future research should therefore integrate other determinants of RQ.
Practical implications
The paper provides clear insights into how retail bank managers operating in a very competitive and emerging market can improve RQ and subsequently attract customer loyalty.
Originality/value
The paper contributes to the growing body of stimulus-organism-response (S-O-R) literature within the retail environment by exploring unique stimulus and organism variables from an emerging retail banking market perspective. Additionally, by showing that the stimulus factors are direct predictors of consumers’ response, the paper challenged the existing tenets of the S-O-R framework and deepened the current understanding of the model. The paper also contributes to the social exchange theory by demonstrating how the components of RQ mediate the antecedents and consequences of the construct.
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Ernest Emeka Izogo and Mercy Mpinganjira
Although previous research emphasized the importance of inspiration in influencing consumer behavior, there is no categorical response to how social-media inspirational content…
Abstract
Purpose
Although previous research emphasized the importance of inspiration in influencing consumer behavior, there is no categorical response to how social-media inspirational content inspires consumers across cultures. This paper aims to take on this agenda through a vignette experimental study.
Design/methodology/approach
This paper devised a vignette study involving subjects (n = 370) recruited from Nigeria and South Africa. The structural equation modeling procedure, analysis of variance (ANOVA) and regression analysis aided the examination of the scale psychometrics and hypotheses testing.
Findings
Among other findings, this study shows that: inspirational content (utilitarian vs hedonic) exerts a positive differential effect on customer inspiration (CI) such that the effect of hedonic content is more pronounced than utilitarian content; collectivistic consumers are inspired more than individualists; CI triggers customer engagement behaviors (CEBs) and purchase intention, and an inspired-to component of CI mediates the effect of inspired-by on CEBs and purchase intention.
Research limitations/implications
While this study makes significant contributions to knowledge on CI, the focus on firm-generated content limits the scope of this study. Future research should examine the effect of consumer-generated content on CI. Additionally, the likely contextual influence of product type on CI and its triggers in the context of the foote, cone and belding grid creates the room to further interrogate the research model under conditions of high/low involvement products.
Originality/value
By showing how social-media inspirational content and cultural orientation separately influence and interact to influence CI which consequently triggers CEBs and purchase intention, the findings highlight the psychological mechanisms through which CEBs and purchase intention can be simultaneously triggered.
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Ernest Emeka Izogo and Mercy Mpinganjira
Marketer-generated value-laden social media digital content marketing (VSM-DCM) relates to content that is neither too “pushy” nor too “pully.” On the foundation of media…
Abstract
Purpose
Marketer-generated value-laden social media digital content marketing (VSM-DCM) relates to content that is neither too “pushy” nor too “pully.” On the foundation of media engagement, motivation- and attitude-based theories, this study rationalizes and investigates the mechanism that underlies the effect of VSM-DCM on electronic word-of-mouth (eWOM) intention.
Design/methodology/approach
The authors devised a 2 (product type: search vs. experience) × 3 (VSM-DCM: utilitarian vs. hedonic vs. utilitarian + hedonic) between-subject design (N = 360) after three pre-tests (N = 223).
Findings
The authors show that VSM-DCM formats are effective in enhancing brand attitude and eWOM intention for different products. Specifically, market-generated VSM-DCM that simultaneously embeds utilitarian and hedonic values is the most effective for optimizing brand attitude and eWOM intention in both search and experience product contexts. The effect of VSM-DCM formats on eWOM intention is mediated by brand attitude, while product type (search vs. experience) moderates this indirect effect.
Originality/value
This paper breaks new ground by highlighting the relevance of marketer-generated VSM-DCM in the DCM context and by illustrating the mechanism through which it leads to consumers’ intention to engage in eWOM. In so doing, it contributes to the debate on DCM implementation and the contextual factors that moderate the optimization of DCM outcomes.
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Ernest Emeka Izogo, Chanaka Jayawardhena and Alexanda Ogbonna Udu Kalu
Although customer experience has been widely researched, its effects on behavior toward a government policy are still unclear. Drawing on two theories with some similar and…
Abstract
Purpose
Although customer experience has been widely researched, its effects on behavior toward a government policy are still unclear. Drawing on two theories with some similar and opposing perspectives, the purpose of this paper is to investigate the effect of three components of customer experience (i.e. utilitarian experience, hedonic experience and relational experience) and customers’ intention on behavior within the context of the BVN policy implemented by the Nigerian apex bank.
Design/methodology/approach
Data emerged from one of the most populous districts in south-eastern Nigeria. Participants were recruited by mall-intercept. Out of the 283 participants approached, 246 participated but only 82.9 percent were valid for analysis. After subjecting data to statistical screening to confirm its suitability for parametric statistical analysis and examining data for the potential effects of common method variance as well as sample representativeness, a partial least squares structural equation modelling technique and the Preacher and Hayes bootstrapping procedures were utilized to test the hypothesized relationships.
Findings
Based on data obtained from Nigerian bank customers, the paper demonstrated that the customer loyalty arising from the implementation of a government policy is determined more by hedonic experience, followed by relational experience and very much less by utilitarian experience. Findings also indicate that the relationship between the components of customer experience and customer loyalty is complementarily mediated by intention to open new account(s).
Research limitations/implications
Though the theoretical grounding of the paper strongly supports the study design, the authors strongly recommend that future research should examine customer experience-customer behavior models in situations of policy implementation with longitudinal design. Additionally, since intention to open new account(s) is a complementary mediator of the links between the components of customer experience and customer loyalty, there is need for future researchers to integrate other mediators into the conceptual framework that the authors examined in this paper.
Practical implications
This paper cautions that whilst the research findings play out effectively in situations where the benefits of the introduced policy and the consumers’ belief in the good intent of the policy are congruent and customers are susceptible to the manipulations of the social class leading to absence of volitional control; firms should not be deceived into relying too heavily on this kind of loyalty because it is situational and consequently promiscuous. Nevertheless, deploying more resources to seamlessly meet the needs of customers in such situations is counter-productive for service organizations.
Social implications
Based on the findings, it has come to the fore that consumers will be at the receiving end of a government policy poorly implemented by service organizations. When such policies are rolled out therefore, governments should enforce operational modalities that will forestall potential negative experiences that consumers could possibly encounter.
Originality/value
By examining the effects of three components of customer experience and intention to open new account(s) on customer loyalty within the context of BVN implementation in an emerging banking sector, the authors contribute to the broad stream of literature that focuses on the effect of customer experience on company bottom-line. The strength of this contribution is based on the premise that this paper draw on the similarities and opposing orientations of two theories to uncover these effects. The authors show that the effects of the three components of customer experience on customer loyalty is different from the results of previous research because of the unique perspective adopted in this paper.
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Chukwunonso Oraedu, Ernest Emeka Izogo, Justie Nnabuko and Ike-Elechi Ogba
This paper aims to advance knowledge on the influencers of positive electronic and face-to-face word-of-mouth (WOM) behaviour by examining an interrelationship model of…
Abstract
Purpose
This paper aims to advance knowledge on the influencers of positive electronic and face-to-face word-of-mouth (WOM) behaviour by examining an interrelationship model of relationship quality (RQ) components and antecedents in the telecommunication service setting.
Design/methodology/approach
A survey design was used to generate data from informants and was analysed using the partial least square structural equation modelling technique.
Findings
Findings indicate that service quality and relationship value have positive effect on trust and satisfaction, while service communication is positively related to trust but not satisfaction. Both trust and satisfaction have positive effect on face-to-face word-of-mouth (fWOM) and electronic word-of-mouth (eWOM). Additionally, relationship value directly influences fWOM but not eWOM, while service quality did not directly influence either mode of WOM behaviour.
Research limitations/implications
The study was conducted in a single service setting, and thus, outcomes cannot be generalised. Further, the authors limited the study of electronic WOM to only Facebook, WhatsApp and Twitter media. As such, caution should be applied in generalising the research findings across contexts.
Practical implications
This paper provides a guide on how telecom service managers can develop and manage their relationship network. Specifically, it demonstrates how business referrals can be generated and harnessed to build customer retention from different relationship building strategies. The study suggests that service providers that deliver quality services, engineer superior value and provide reliable information are better placed to develop resounding relationships with customers and consequently get them to engage in positive referrals.
Originality/value
This study is unique because it investigates the antecedents of WOM from an inter-relational perspective. By simultaneously examining the direct effects of RQ, and its antecedents on both fWOM and eWOM in a single model, the authors illustrate the antecedents and outcomes of RQ in a distinctive way.
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Ernest Emeka Izogo, Chanaka Jayawardhena and Heikki Karjaluoto
Based on the foundations of the schema theory, the elaboration likelihood model (ELM) and customer experience literature, this research examines how the interplay between a…
Abstract
Purpose
Based on the foundations of the schema theory, the elaboration likelihood model (ELM) and customer experience literature, this research examines how the interplay between a consumer's previous shopping experience(s) and perceived credibility of negative online word-of-mouth (PCNWOM) leads to improved consumer–firm relationship quality (RQ).
Design/methodology/approach
The authors utilised series of scenario-based experiments (N = 918) to test the research hypotheses.
Findings
The authors show that a focal customer's previous shopping experiences attenuate the perceived credibility of negative word-of-mouth on social media by other customers, which in turn weakens consumer–firm RQ. The authors also show that positive and negative perceptual experiences are asymmetric.
Research limitations/implications
First, the online shopping experiences described in the experimental scenarios were generic and did not refer to any particular product/service. Thus, calibrating products and services into categories, and studying how product type differences impact online shopping experiences warrant further research.
Practical implications
From a practical perspective, the authors demonstrate that not only does enhancing consumer–firm relationship quality demand meticulous integration of consumers' website and social media experiences but also in positive vs negative perception scenarios, RQ wane as review frequency increases.
Originality/value
The authors contribute significant insight into the existing literature by specifically adopting the premise that consumers' previous online shopping experience(s) will influence how credibly they will perceive negative online WOM posted on social media.
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Ernest Emeka Izogo and Mercy Mpinganjira
Despite wide acknowledgment in research of the benefits of customer engagement to firms, the customer engagement process and how it leads to positive marketing outcomes remains…
Abstract
Purpose
Despite wide acknowledgment in research of the benefits of customer engagement to firms, the customer engagement process and how it leads to positive marketing outcomes remains underexplored. Extending existing research, this paper aims to develop and test a conceptual model that outlines the effect of passive and active customer behavioral engagement on customer loyalty and the role of customer involvement in the process, as both an antecedent and a moderator.
Design/methodology/approach
Data collected from 362 millennials in Johannesburg, South Africa through a scenario-based experiment was submitted to a partial least square structural equation modeling and moderated-mediation analyses after examining the manipulation effectiveness of the experimental scenarios. The unit of analyses is hotel patrons.
Findings
The findings include customer involvement is a significant predictor of passive and active customer behavioral engagement both of which consequently influence customer loyalty; customer involvement moderates the effect of passive engagement on active engagement; and not only is passive engagement indirectly related to customer loyalty through active engagement, the indirect relationship is the strongest at the highest level of customer involvement.
Research limitations/implications
The current study provides notable insights into the relationship between customer involvement, customer behavioral engagement and customer loyalty. However, there is need for further studies to validate our model across different brand categories and different social media platforms as well as in offline settings with a more diverse sample because the scope of this study is limited to millennials that use Facebook brand communities.
Originality/value
This study contributes to the customer engagement literature by rationalizing and demonstrating the importance of customer involvement as a precursor of the behavioral engagement process (comprising the passive and the active components) and loyalty among hotel patrons.
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Ernest Emeka Izogo, Mathias Egede Elom and Mercy Mpinganjira
Although scholars highlighted the need to close the interactive marketing gap and enhanced understanding of willingness to pay more in settings where customer participation in the…
Abstract
Purpose
Although scholars highlighted the need to close the interactive marketing gap and enhanced understanding of willingness to pay more in settings where customer participation in the service delivery process is paramount, research addressing this issue is scare. This study investigates the effect of perceived employee commitment to service delivery and customer involvement on customer value and willingness to pay more. The study also examines the extent to which customer value mediates the effect of employee commitment and customer involvement on willingness to pay more for banking services.
Design/methodology/approach
The analysis was based on a sample of 211 Nigerian bank customers procured through a mall-intercept survey technique. The partial least squares structural equation modelling procedure and the Preacher–Hayes Bootstrapping technique aided hypotheses testing.
Findings
This study demonstrates that elements of employee commitment to service delivery and customer involvement have significant positive effect on the components of customer value. It also shows that customer value components have significant effect on customers' willingness to pay more. Additionally, the study shows that components of customer value mediate the effect of employee commitment to service delivery and customer involvement on willingness to pay more.
Research limitations/implications
The study contributes to closing gaps in interactive marketing literature by uncovering how willingness to pay more for services is influenced by customer perceptions of employee commitment (affective and calculative) service delivery, customer involvement and customer value (hedonic and utilitarian).
Practical implications
It is important for managers to put in place measures that will help them know the kind of commitment cues their employees are emitting to customers as well as levels of customer involvement during service encounters.
Originality/value
This study breaks new ground in three unique ways. First, the study represents the first attempt to examine the combined effect of employee commitment to service delivery and customer involvement on consumer value perceptions. Second, the study also demonstrates that hedonic value has a more pronounced effect on willingness to pay more for banking services than utilitarian value. Finally, the study shows the extent to which customer value (hedonic vs utilitarian) mediates the effect of employee commitment to service delivery and customer involvement on willingness to pay more.
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Ernest Emeka Izogo and Mercy Mpinganjira
Although digital content marketing (DCM) research and industry-wide expenditure is growing very rapidly owing to the positive outcomes associated with this new pull marketing…
Abstract
Purpose
Although digital content marketing (DCM) research and industry-wide expenditure is growing very rapidly owing to the positive outcomes associated with this new pull marketing strategy, research has not completely mapped how DCM activities can be optimized in the social media brand community context. This paper seeks to understand how social media DCM activities can be optimized to achieve greater relational and monetary outcomes for different products.
Design/methodology/approach
A structural equation modeling procedure was used to analyze 416 survey responses obtained from members of Facebook brand communities in South Africa.
Findings
The results reveal that social media DCM consumption motives exert significant differential effects on both relational and monetary marketing outcomes in search and experience product contexts while also demonstrating the mechanism through which social media DCM consumption motives lead to contributing social media engagement behaviors.
Practical implications
The study findings call for the need for firms to understand the motives that drive the consumption of DCM in social media brand communities. Specifically, marketers of search products should deploy more of hedonic contents such as images while simultaneously keeping highly textual DCM to a minimum in Facebook brand communities as this works better for experience products. Finally, more authentic SM-DCM activities that effectively address the authenticity SM-DCM consumption motive can result from the DCM activities of social media opinion leaders and genuine consumer–brand interactions in the context of Facebook brand communities.
Originality/value
This paper broke new grounds in three unique directions in terms of: (1) the relative salience of SM-DCM consumption motives in enhancing WTP and different aspects of SMBE; (2) the contextual influence of product type on SM-DCM activities optimization and (3) the mechanisms that underlie the effects of SM-DCM consumption motives on contributing SMBE in the Facebook brand community context.
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