Defensive strategies for managing satisfaction and loyalty in the service industry

The investment model is used to predict customer responses to defensive value‐added and value‐recovery strategies. The two strategies were manipulated under different competitive environments with airline services scenarios in a controlled experiment. Hypotheses were affirmed as value‐added and valu...

Full description

Saved in:
Bibliographic Details
Published in:Psychology & marketing 1998-12, Vol.15 (8), p.775-791
Main Authors: Dubé, Laurette, Maute, Manfred F.
Format: Article
Language:English
Subjects:
Customer satisfaction
Hypotheses
Loyalty
Psychological aspects
Service industries
Statistical analysis
Studies
Citations: Items that this one cites
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The investment model is used to predict customer responses to defensive value‐added and value‐recovery strategies. The two strategies were manipulated under different competitive environments with airline services scenarios in a controlled experiment. Hypotheses were affirmed as value‐added and value‐recovery strategies influenced customer satisfaction and loyalty with varying sensitivities to the competitive environment and different mechanisms consistent with prediction derived from the investment model. Regardless of value‐added strategy and competitive environment, value‐recovery strategy strongly and positively influenced customer satisfaction, situational loyalty, and enduring loyalty. Value‐added strategy also had a positive effect on customer satisfaction and loyalty, but these effects emerged primarily when a value‐recovery strategy was already present, and under conditions of less intense competition. Satisfaction was found to mediate strategic effects on loyalty, with more pronounced effects observed for value‐recovery strategy and situational loyalty. © 1998 John Wiley & Sons, Inc.
ISSN:0742-6046
1520-6793
DOI:10.1002/(SICI)1520-6793(199812)15:8<775::AID-MAR4>3.0.CO;2-#