FACTORS AFFECTING CUSTOMER LOYALTY IN THE BUSINESS MARKET - AN EMPIRICAL STUDY IN THE REPUBLIC OF SERBIA

Vinko Lepojević, Suzana Đukić

DOI Number
https://doi.org/10.22190/FUEO1803245L
First page
245
Last page
256

Abstract


In modern business conditions characterized by the requirements for achieving superior profit margins, customer satisfaction and loyalty have become the basic company business priorities. The ability of the company to achieve a high level of customer loyalty, in conditions of intense competition is determined by delivery of superior quality service, but also by creating a positive overall customer experience with the company. Such a situation implies the relationship development based on the trust and commitment of the buyer to the supplier. The aim of the author is to investigate the impact of satisfaction, trust, buyer loyalty and perceived quality of services on the level of achieved loyalty. Empirical research was carried out on a sample of small and medium-sized enterprises in order to identify loyal and disloyal customers. Statistical analysis is based on the application of multivariate techniques that enabled simultaneous analysis of the mutual relationship between the identified four independent variables on the dependent variable, i.e. on degree of buyer loyalty.


Keywords

customers, loyalty, satisfaction, trust, commitment, business market

Full Text:

PDF

References


Anderson W. E. & Mittal, V. (2016). Strengthening the Satisfaction-Profit Chain. Journal of Service Research 3 (2), 107-120.

Bowen, J. T. & Chen, S. L. M. (2015). Transitioning loyalty programs: A commentary on “The relationship between customer loyalty and customer satisfaction”. International Journal of Contemporary Hospitality Management, 27 (3), 415-430.

Caruna, A., Money, A. & Berthon, P.R. (2000). Service quality and satisfaction: the moderating role of value. European Journal of Marketing, 34 (11/12), 1338-1352.

Cohen, J.W. (1988) Statistical power analysis for the behavior science (2nd edn.). Hillsdale, NJ:Lawrence Erlbuaum Associates.

Diller, H. (2000). Customer Loyalty: Fata Morgana or Realistic Goal? In: Relationship Marketing,Gaining Competitive Advantage through Customer Satisfaction and Customer Retention, Editors: Henning-Thurau, Th., Hansen, U., Springer.

Ghijsen, P., Semeijn, J. & Ernstson, S. (2010). Supplier satisfaction and commitment: the role of influence strategies and supplier development. Journal of Purchasing and Supply Management, 16 (1), 17–26.

Gruca, S.T. & Rego, L.L. (2005). Customer Satisfaction, Cash Flow, and Shareholder Value. Journal of Marketing, 69 (3), 115-130.

Jain, S.K. & Gupta, G. (2004). Measuring Service Quality: SERVQUAL vs. SERVPERF Scales. The Journal for decision makers-Vikalpa, 29 (2), 25-37.

Kotler, P. & Keller L. K. (2007). A Framework for Marketing Management, third edition, Prentice Hall International, Inc., Upper Saddle Reviver, New Jersey.

Kumar, V., Batista, L. & Maull, R. (2011). The impact of operations performance on customer loyalty. Service Science, 3 (2), 158-171.

Kumar, V., & Shah, D. (2004). Building and sustaining profitable customer loyalty for the 21st century, Journal of Retailing, 80 (4), 317-330.

Kundu, S. & Datta, S.K. (2015). Impact of trust on the relationship of e-service quality and customer satisfaction, EuroMed Journal of Business, 10 (1), 21–46. https://doi. org/10.1108/EMJB-10-2013-0053

Lovelock H.C. & Wirtz J. (2011). Service marketing: people, technology, strategy,, 7th edition, McGraw Hill, Prentice Hall.

Mittal V. & Kamakura, W. (2001). Satisfaction, Repurchase Intent, and Repurchase Behavior: Investigating the Moderating Effect of Customer Characteristics. Journal of Marketing Research, 38 (1), 131-142.

Moorman, C., Despandé, R. & Zaltman, G. (1993). Factors Affecting Trust in Market Research Relation. Journal of Marketing, 57 (19) 57, 81-101.

Moreira A.C. & Silva P.M. (2015). The trust-commitment challenge in service quality-loyalty relationships. Internationa Journal of Health Care Quality Assurance, 28(3), 253-66.

Morgan, R. M. & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58 (3), 20-38.

Ndubisi, N. O. (2011). Conflict handling, trust and commitment in outsourcing relationship: The Chinese and Indian study. Industrial Marketing Management, 40, 109–117.

Palmatier, R. W. (2008). Interfirm relational drivers of customer value. Journal of Marketing Research, 72 (4), 76–89.

Paquette, S. (2006). Customer Knowledge Management. Idea Group Inc.: 1-7http://www3.fis.utoronto.ca/phd/paquette/docs/Paquette%20-%20Customer%20Knowledge%20Management.pdf, (20.05.2010.).

Peppers, D. & Rogers, M. (2004). Managing Customer Relationships. Strategic Frameworks, John Wiley/Sons, New Jersey.

Pollack, B.L. (2008). The nature of the service quality and satisfaction relationship: empirical evidence for the existence of satisfiers and dissatisfiers. Journal Managing Services Quality, 18 (6), 537-558.

Rauyruen, P. & Miller, K. (2007). Relationship quality as a predictor of B2B customer loyalty. Journal of Business Research, 60 (1), 21-31.

Rust, R. T. & Ming-Hui, H. (2014). Handbook of Service Marketing Research. Cheltenham: Edward Elgar.

Tikkanen, H., Alajoutsijärvi, K. & Tahtinen, J. (2000). The Concept of Satisfaction in Industrial Markets: A Contextual Perspective and a Case Study from the Software Industry. Industrial Marketing Management, 29 (4), 373-386.

Trasorras, R., Weinstein, A. & Abratt, R. (2009). Value, satisfaction, loyalty and retention in professional services. Marketing Intelligence & Planning, 27 (5), 615-632.

Ulaga, W., & Eggert, A. (2006). Relationship value and relationship quality: broadening the nomological network of business-to-business relationships. European Journal of Marketing, 40 (3/4), 311-327.

Veljković, S. (2009). Marketing usluga [Marketing of Services]. Beograd: CID Ekonomskog fakulteta u Beogradu

Wilson, A., Zeinthaml, A.V., Bithner, J.M. & Gremler, D.D. (2012). Services Marketing: Integrating Customer Focus Across the Firm. McGraw Hill.

Woon, C.L., Kee, L.K., Hwee, T. G., Lee, T. L. & Cheng, T.S. (2015). Factors Influencing Customer Loyalty in Airline Industry in Malaysia, Retrieved from: http://eprints.utar.edu.my/1802/1/BAC-2015-1206820-1.pdf, Accessed on: 20 March 2018.




DOI: https://doi.org/10.22190/FUEO1803245L

Refbacks

  • There are currently no refbacks.


© University of Niš, Serbia
Creative Commons License CC BY-NC-ND
ISSN 0354-4699 (Print)
ISSN 2406-050X (Online)