Inderscience Publishers

Effects of satisfaction on service loyalty dimensions

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This study examines overall satisfaction effects on individual loyalty dimensions and causal relationships between the latter. Between the statistically significant effect estimates of satisfaction on loyalty dimensions the strongest was the one on 'word–of–mouth' followed by that on 'retention intentions'. The direct effect on 'business extension intentions' was statistically insignificant. Indirect effects on 'retention intentions' and 'business extension intentions', via 'word–of–mouth' were three–fold and four–fold stronger than the direct ones respectively. The causality of relationships between loyalty dimensions was found to run along the path: 'word–of–mouth' → 'retention intentions' → 'business extension intentions'. Previous findings indicating that service loyalty dimensions are interrelated and the causality runs from 'affectionate' to 'continuance' loyalty are supported. It is confirmed that 'word–of–mouth' communication enhances the communicators' own loyalty. Customer satisfaction campaigns, in services industries, would yield more if primarily targeted at enhancing customers' 'affectionate' rather than 'continuance' commitment.

Keywords: customer satisfaction, service loyalty, banking, Greece, word–of–mouth, WoM, services, retention intentions, business extension intentions

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