Investigating a Comparative Evaluation Approach in Explaining Loyalty

Anand Kumar Jaiswal, Jos Lemmink

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Purpose - The purpose of this paper is to examine the superiority of comparative evaluation or relative attitudinal measurement approach in which the respondent evaluates one object with direct comparison with other objects. The study uses comparative and non-comparative approaches to examine the effects of service quality, value, and customer satisfaction on attitudinal loyalty in a service setting.

Design/methodology/approach - The study uses the data collected from the survey of 300 customers of two large Indian banks.

Findings - The results provide partial support to the superiority of the comparative evaluation over non-comparative evaluation. Additionally, results indicate that service quality positively affects customer value, and both service quality and customer value have a direct positive effect on customer satisfaction. Customer satisfaction drives attitudinal loyalty which in turn leads to customers' willingness to pay more.

Research limitations/implications - In the study, two banks were used for comparative evaluation. Since consumers' consideration set can consist of more than two alternatives, future studies can include more than two objects.

Practical implications - Non-comparative measurements do not always adequately explain customer loyalty and superior performance of firms. This could potentially lead to misinterpretations of effects of service quality improvement programs and thus sub-optimal management decisions. Managers should use comparative evaluation approach for measuring marketing variables wherever possible.

Originality/value - Although the use of comparative evaluation is suggested in the literature (Dick and Basu, 1994), extant research has not systematically examined its superiority over non-comparative evaluation. This study empirically tests the comparative evaluation approach against the non-comparative approach by examining a comprehensive model involving the interrelationships among service quality, value, customer satisfaction, and their impact on attitudinal loyalty and willingness to pay more.

Original languageEnglish
Pages (from-to)937-954
Number of pages18
JournalMarketing Intelligence & Planning, Qualitative Market Research
Volume35
Issue number7
DOIs
Publication statusPublished - 2017

Keywords

  • Value
  • Service quality
  • Customer satisfaction
  • Attitudinal loyalty
  • Comparative evaluation
  • Relative attitude
  • SERVICE QUALITY
  • CUSTOMER SATISFACTION
  • CONSUMER SATISFACTION
  • BRAND LOYALTY
  • BEHAVIORAL INTENTIONS
  • COMPETITIVE ADVANTAGE
  • RELATIONAL EXCHANGES
  • EMERGING MARKETS
  • MODEL
  • CONSEQUENCES

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