the strength of affective commitment in securing loyalty in service relationships
TRANSCRIPT
THE STRENGTH OF AFFECTIVE COMMITMENT IN SECURING LOYALTY IN SERVICE RELATIONSHIPS
Heiner Evanschitzky, Gopalkrishnan R. Iyer, Hilke Plassmann, Joerg Niessing, Heribert Meffert
Gonzalez, Kara, Macazaga, Rellama, Velickaite, Wcislo
Services Marketing – IESEG School of Management
Background of the Study
Customer Loyalty• Attitudinal• Behavioral
Commitment• Affective• Continuance
Objective of the Study
To determine the importance of each of
the dimensions of commitment in achieving
customer loyalty.
H1: Affective commitment has a positive impact on attitudinal loyalty.
AC involves the self-evaluation of the consumption context and the active decision to engage in a long-term relationship.
AC → AL: Attitude strength and the extent to which the customer is willing to lock into a specific relationship.
AL is when the relative strength of the attitude towards the brand is stonger.
Reflective measurement models
Affective commitment
Capture the extent to which customers:
• Trust• Identify
• Emotional
Attitudinal loyalty
Was measured using:
• Satisfaction• Affective commitment SUPPORTED
H2: Continuance commitment has a positive impact
on attitudinal loyalty.
• Costumers may remain in a relationship for mainly 2 reasons:
1. They have no reason to evaluate the relationship or to take active measures to seek out alternative relationships.
2. High perceived costs.
Continuance Commitment:
• Definition: The consumer’s desire
to remain in the relationship when
the switching costs are high or
when the costumer perceives that
other viable alternatives are
scarce.
H2: Continuance commitment has a positive impact on attitudinal loyalty
Continuance commitment has a weak, yet significant, impact on attitudinal loyalty, and a relatively strong impact on behavioral loyalty.
Continuance commitment - a formative construct.
Formative indicators: the major factors that costumers identified as being important in their use of a particular service provider, and include:• measures for
scarcity of alternatives
• availability of options involuntary choiseloyalty program membership.
SUPPORTED
H3: Affective commitment has a positive impact on behavioral loyalty.
• Continuance commitment is based on consumers consumptions.
• In some cases…• Consumers are not able to manipulate direct on his/her
continuance commitment level• Example: Continuance commitment = lack of alternatives
• Some customers can be low-satisfaction consumers• Examples of low-satisfaction industries:
• airlines, local phones
SUPPORTED
H4: Continuous commitment has a positive impact on behavioral loyalty.• Model: Formative measurement model with 4 indicators
• Scarcity of alternatives• Availability of options• Involuntary choice• Loyalty program membership
• These indicators explain 60% of the variation (acceptable validity).
• Results: Continuance commitment has a relatively strong impact on behavioral loyalty.
SUPPORTED
H5: The impacts of affective commitment on both attitudinal and behavioral loyalty are greater than the impacts of continuance commitment on attitudinal and behavioral loyalty.• Method used: Multi-group causal analysis• End result: The critical value was high and significant,
thus supporting the claims of H5.
SUPPORTED
Summary of ResultsHypothesis Result
Affective commitment has a positive impact on attitudinal loyalty.
Supported
Continuance commitment has a positive impact on attitudinal loyalty.
Supported
Affective commitment has a positive impact on behavioral loyalty.
Supported
Continuous commitment has a positive impact on behavioral loyalty.
Supported
The impacts of affective commitment on both attitudinal and behavioral loyalty are greater than the impacts of continuance commitment on attitudinal and behavioral loyalty.
Supported
Managerial Implications• Loyalty has a multi-dimensional construct.• Affective commitment drives behavioral loyalty.
• Loyalty cards, discount cards may not be doing enough to secure loyalty.
• Deep discounts may not even be that necessary at all.• Service-providers must slowly switch to enhancing
customer attachment through non-economic means.• One possible solution: loyalty clubs where customers can share
their own experiences
Limitations and Recommendations• Limited to the Mass Transit industry• The study used cross-sectional survey data, rejecting
possible time-lag effects.
THANK YOU!