Mediating roles of commitment and corporate image in the formation of customer loyalty

• Published in: Journal of Indian business research 2013-01, Vol.5 (1), p.33-51
• Main Authors: Kaur, Harsandaldeep, Soch, Harmeen
• Format: Article
• Language: English
• Subjects: Attitudes; Behavior; Brand loyalty; Cellular telephones; Competition; Consumers; Consumption; Corporate image; Customer retention; Customer satisfaction; Customer services; Loyalty; Market strategy; Marketing; Mobile phones; Purchasing; Satisfaction; Service industry; Studies; Telecommunications
• ISSN: 1755-4195; 1755-4209
• DOI: 10.1108/17554191311303376

Purpose - Identifying the loyalty drivers to cell phone operators is extremely important in today's competitive environment. Consensus is absent in the marketing literature on how loyalty should be conceptualized and measured in the service industry. The purpose of this study is to test an integrative model to examine the relations among customer satisfaction, trust, commitment, corporate image, attitudinal loyalty and behavioural loyalty. It also aims to examine the mediating roles of commitment and corporate image on causal relationships between trust and loyalty.Design methodology approach - Data collection was done in two stages: in the first stage in which the primary purpose of analysis was pre-testing, the authors collected data from 250 respondents. In the second stage, data were obtained from 855 mobile phone users in India via questionnaire. The data were analysed by structural equation modelling (SEM) in order to test all the relationships between variables in the model.Findings - The findings supported the proposed hypotheses, which are consistent with the theoretical framework. Analysis showed that corporate image is an important determinant of attitudinal loyalty.Research limitations implications - In order to generalize the findings, the proposed model should be studied in different service industries. This research does not examine the interaction effects between customer satisfaction and trust. Future researchers can test these interaction effects and study its impact on development of behavioural and attitudinal loyalty. The proposed model should be tested using a longitudinal research design.Practical implications - Firms should focus both on attitudinal and behavioural loyalty to create truly loyal customers. A defensive marketing strategy is important for the highly competitive and maturing mobile telecommunications service market. Mobile phone companies should develop and reinforce marketing strategies focusing on factors (satisfaction, commitment, trust and corporate image) which have the greatest influence on retention.Originality value - This paper examines the mediating roles of commitment and corporate image in the formation of customer loyalty.