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European
Journal of Linking perceived service
Marketing
33,11/12
quality and service loyalty: a
multi-dimensional perspective
1082 JoseÂe Bloemer
Received January 1998 Faculty of Applied Economics, Limburg University Centre,
Revised May 1998, Diepenbeek, Belgium, and
August 1998
Ko de Ruyter and Martin Wetzels
Maastricht University, Maastricht, The Netherlands
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Introduction
The literature on services marketing has advanced to a level of considerable
sophistication and researchers are ready to take on the fundamental questions
concerning an in-depth understanding of the concept of service quality
(GroÈnroos, 1993; Patterson and Johnson, 1993; Anderson and Fornell, 1994;
Rust and Oliver, 1994; Taylor and Baker, 1994). In defining the key constructs
in the discipline, conceptual advances and nuances have been achieved, though
differences of opinion remain. For instance, concerning the role of expectations
in the formation of evaluative judgements and the sequential order of the
constructs of service satisfaction and service quality (Cronin and Taylor, 1992;
Zeithaml et al., 1996). One area that has remained relatively underdeveloped,
however, is the relationship between evaluations of service quality and loyalty
of service customers (Gremler and Brown, 1996), despite the fact that loyalty is
essential for service business survival (Reichheld, 1993).
While loyalty is often included in service quality models as an outcome
variable (Cronin and Taylor, 1992; Boulding et al., 1993), there are a number
of factors that limit an in-depth understanding of customer loyalty in services
and prevent the generalisability of research findings. First, it has remained
European Journal of Marketing,
unclear whether or not there is a direct relationship between service quality
Vol. 33 No. 11/12, 1999,
pp. 1082-1106. # MCB University
and loyalty. Zeithaml et al. (1996) report such a relationship, whereas Cronin
Press, 0309-0566 and Taylor (1992) failed to find one. Secondly, the operationalisation of the
construct of service loyalty has often remained limited, ignoring the full range Service quality
of conceivable loyalty (re)actions that may follow the evaluation of a service and service
(Zeithaml et al., 1996). Cronin and Taylor (1992), for instance, focused solely loyalty
on repurchase intentions (measuring this construct as a single item), while
Boulding et al. (1993) operationalised repurchase intentions and willingness
to recommend (as two single items in one study and six items in a follow-up
study). As Zeithaml et al. (1996) argue, dimensions of loyalty, such as, for 1083
instance, willingness to pay more and loyalty under increased pricing, have
often been left out in previous research. Similarly, customer evaluations
following a negative service experience have received only limited attention
in scales designed to measure customer loyalty intentions and behaviour
(Singh, 1991). Furthermore, loyalty has frequently been formulated in
positive terms. However, variables and linkages predicting positive outcomes
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Czepiel, 1990). Furthermore, the influence of perceived risk is greater in the case
of services, as customer loyalty may act as a barrier to customer switching
behaviour (Zeithaml, 1981; Klemperer, 1987; Guiltinan, 1989). Indeed, it has
been demonstrated that loyalty is more prevalent among service customers
than among customers of tangible products (Snyder, 1986). In the services
context, intangible attributes such as reliability and confidence may play a
major role in building or maintaining loyalty (Dick and Basu, 1994).
As most research originated from the field of packaged consumer goods
(Jacoby and Chestnut, 1978), a strong emphasis has been on behavioural
measures. In a services context, loyalty is frequently defined as observed
behaviour (Liljander and Strandvik, 1995). Ultimately it is actual behaviour
that drives a service organisation's performance. However, behavioural
measures, such as repeat purchasing and purchasing sequence, have been
criticised for a lack of a conceptual basis and for having a narrow, i.e. outcome-
focused view of what is in fact a dynamic process (Day, 1969). For instance, a
low degree of repeat purchasing of a particular service may very well be the
result of situational factors such as non-availability, variety seeking and lack of
provider preference. However, with regards to actual behavior, recent research
in loyalty behavior has shown that loyalty is fairly consistent over time
(DeKimpe et al., 1998). Therefore, the behavioural approach to loyalty may not
yield a comprehensive insight into the underlying reasons for loyalty, instead it
is a consumer's disposition in terms of preferences or intentions that plays an
important role in determining loyalty (Jain et al., 1987; Bloemer and Kasper,
1995). Furthermore, repeat purchasing behaviour may not even be based on a
preferential disposition but on various bonds that act as switching barriers to
consumers (Storbacka et al., 1994; Liljander and Strandvik, 1995). During the
past decades, therefore, customer loyalty has also been approached as an
attitudinal construct (Biong, 1993; Hallowell, 1996). This is reflected, for
instance, in the willingness to recommend a service provider to other
consumers (Selnes, 1993).
Finally, in addition to the behavioural and attitudinal approach to customer
loyalty, it has been argued that there is also a cognitive side to customer loyalty
European (Lee and Zeiss, 1980). In this sense, customer loyalty is frequently
Journal of operationalised as the product or service that first comes to mind when making
Marketing a purchase decision (Newman and Werbel, 1973; Bellenger et al., 1976; Dwyer
et al., 1987); the product or service that is a customer's first choice among
33,11/12 alternatives (Ostrowski et al., 1993) or price tolerance (Anderson, 1996; Fornell
et al., 1996). Therefore, operationalisation of service loyalty would have to
1086 consider behavioural, attitudinal and cognitive aspects in the development of a
composite index. These elements are present in the behavioural intentions
battery that was developed by Zeithaml et al. (1996) with regards to services
loyalty, which will be discussed in the following section.
Word-of-mouth communications
1. Say positive things about XYZ to other people
2. Recommend XYZ to someone who seeks your advice
3. Encourage friends and relatives to do business with XYZ
Purchase intentions
4. Consider XYZ your first choice to buy . . . services
5. Do more business with XYZ in the next few years
6. Do less business with XYZ in the next few years
Price sensitivity
7. Take some of your business to a competitor that offers more attractive prices
8. Continue to do business to a competitor that offers more attractive prices
9. Pay a higher price than competitors charge for the benefits you currently receive
from XYZ
Complaining behaviour
10. Switch to a competitor if you experience a problem with XYZ's service
11. Complain to other consumers if you experience a problem with XYZ's service
12. Complain to external agencies, such as the Better Business Bureau, if you experience
a problem with XYZ's service
Table I. 13. Complain to XYZ's employees if you experience a problem with XYZ's service
Service loyalty
dimensions Source: Zeithaml et al. (1996)
On the basis of factor analysis on the 13-item scale, five dimensions were Service quality
identified by Zeithaml et al. (1996): and service
(1) loyalty to company; loyalty
(2) propensity to switch;
(3) willingness to pay more;
(4) external response to problem; and 1087
(5) internal response to problem.
Conceptually, however, the five factor solution does not appear to provide an
unambiguous and consistent factor pattern. In the first place, the so-called
loyalty dimension is in essence comprised of both word-of-mouth as well as
customer preference, represented by three scale items each. Furthermore, various
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Research questions
While there is ample empirical verification for the five dimensions of service
quality as proposed by Parasuraman et al. (1990), questions have remained as
to the precise dimensionality of the service loyalty concept as presented by
Zeithaml et al. (1996) recently. This is clearly a topic that merits replication and
possibly extension (Hubbard and Armstrong, 1994). Therefore, we formulated
the following research question: ``Which service loyalty dimensions can be
discerned?''
A significant gap exists in the services marketing literature in explaining the Service quality
relationship between service quality dimensions and service loyalty and service
dimensions. The relationship at the level of the individual dimensions has loyalty
remained virtually unexplored. Even though there are some suggestions that
the reliability dimension is the most important service quality aspect, evidence
is lacking as far as the generalisability of this argument across different types
of service industries is concerned. Intuitively, one would expect differences 1089
with regards to the relative importance of the individual SERVQUAL
dimensions. For instance, empathy and assurance may be considered more
important in health care than in entertainment services. However, since the link
between service quality and loyalty dimensions has not been systematically
investigated across different service settings, we formulated the following
second research question: ``How are the service loyalty dimensions related to
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An empirical study
Research setting
Customers from four service industries in Belgium were interviewed on the
basis of a structured questionnaire with respect to their perception of the
quality of the service offered by the firm and their behavioural intentions
regarding service loyalty. Our sample included services associated with the
marketing of goods, such as supermarkets and fast food restaurants or
``customer services'' as well as ``pure'' services, such as entertainment
(amusement parks) and health care services (outpatient clinics) (GroÈnroos,
1983). Data was gathered by means of personal interviews with service
customers in several Belgian cities during a two-week period in the summer of
1995. Interviewers were instructed to screen respondents as to whether or not
they had used the particular service within the last two months to ensure an up-
to-date evaluation of service quality and service loyalty intentions. In total, 708
respondents participated in our study. The response of each service industry
was: ``entertainment'' 203, ``fast food'' 200, ``supermarkets'' 118 and ``health care
services'' 187. For the entertainment, fast food and health care industries two
competitive service providers were surveyed. In addition, we surveyed
customers from one supermarket.
In order to interpret and cross-validate the findings of our quantitative
study, a small-scale qualitative, follow-up study was conducted. Sixteen in-
depth interviews (four respondents for each service setting) were held with
regular customers of the service providers in our sample. In the interviews,
which lasted approximately half an hour, we were able to zoom in on the
relationships between the service quality and service loyalty dimensions. The
information gathered from the interviews was used to facilitate the
interpretation of the results of our survey (see discussion section).
European Questionnaire design
Journal of Service loyalty intentions were measured with the Zeithaml et al. (1996)
Marketing behavioural intention battery (see Table I). Each of the 13 items was
accompanied by a nine-point scale ranging from 1 (= not at all likely) to 9
33,11/12 (= extremely likely). The items were translated into Dutch via a procedure of
double-back translation as the study was conducted in the Flemish part of
1090 Belgium (Brislin, 1980). Moreover, the wording of the items was adapted to
each service setting (see Appendix). Perceived service quality was measured on
the basis of the 22-item SERVPERF instrument with a nine-point scale ranging
from 1 (= completely disagree) to 9 (= completely agree) (Parasuraman, 1995).
Small adaptations to the service setting were made for this part of the
questionnaire also (see Appendix).
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Results
Descriptive analysis
Mean scores as well as standard deviations for the SERVQUAL and service
loyalty dimensions per service industry are shown in Table II. From Table II it
can be observed that a fairly consistent pattern exists across the four service
industries.
In Table III the intercorrelations between the quality and loyalty dimensions
are depicted. Essentially, we find relatively high correlations between the
service quality dimensions, ranging from 0.59 to 0.83. The intercorrelations
between the loyalty items are somewhat lower, especially the lack of correlation
between complaining behaviour and the other loyalty dimensions is notable.
Measurement properties
The factor structure of both the service quality and customer loyalty items was
explored using confirmatory factor analysis (Bagozzi, 1994; Bollen, 1989). First
Industry
Entertainment Fast food Supermarkets Health care
Mean Sd Mean Sd Mean Sd Mean Sd
Quality dimensions
Reliability 6.58 1.56 6.80 1.30 7.53 1.37 7.46 1.43
Responsiveness 6.60 1.57 6.68 1.38 7.78 1.19 7.81 1.18
Assurance 6.59 1.75 6.68 1.45 7.80 1.16 8.06 1.22
Empathy 6.33 1.51 6.49 1.34 7.45 1.35 7.94 1.31
Tangibles 7.09 1.32 6.90 1.51 7.15 1.33 7.62 1.23
Behavioural intentions
Word-of-mouth 6.72 1.87 6.39 1.96 7.06 1.92 7.52 1.60
Purchase intention 6.07 2.10 6.04 2.00 6.85 2.01 6.95 2.10
Price sensitivity 4.46 1.91 4.40 1.86 4.39 2.01 6.41 2.05
Complaining behaviour 5.28 1.53 5.78 1.39 5.30 1.57 4.88 2.36
Table II.
Descriptive analysis n 203 200 118 187
1 2 3 4 5 6 7 8 9 Service quality
and service
1. Reliability 1.00 loyalty
2. Responsiveness 0.80*** 1.00
3. Assurance 0.72*** 0.78*** 1.00
4. Empathy 0.73*** 0.77*** 0.83*** 1.00
5. Tangibles 0.59*** 0.59*** 0.61*** 0.64*** 1.00
6. Word-of-mouth 0.57*** 0.55*** 0.57*** 0.61*** 0.56*** 1.00
1091
7. Purchase 0.54*** 0.54*** 0.55*** 0.56*** 0.52*** 0.71*** 1.00
intention
8. Price sensitivity 0.42*** 0.43*** 0.47*** 0.50*** 0.39*** 0.50*** 0.49*** 1.00
9. Complaining ±0.03 ±0.05 ±0.03 ±0.05 ±0.03 0.01 ±0.02 ±0.06 1.00
behaviour
Mean 7.03 7.14 7.21 6.99 7.24 6.90 6.43 4.96 5.31
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Standard 1.48 1.47 1.59 1.54 1.38 1.89 2.10 2.14 1.80
deviation
Table III.
Notes: * p < 0.05 Matrix of zero-order
** p < 0.01 correlations
*** p < 0.001 (two-tailed test)
of all, we tested whether or not the factor structure (i.e. model form) proposed
by the SERVQUAL-instrument is comparable across industries. We carried out
a multi-sample analysis for the four industries included in our study (Bollen,
1989; JoÈreskog and SoÈrbom, 1989). As the (2 -value is not independent of
sample size (Marsh and Hocevar, 1985; Bollen, 1989; JoÈreskog and SoÈrbom,
1989), a wide variety of fit indexes have been developed that are supposedly
independent of sample size (Marsh et al., 1988; Hu and Bentler, 1995; Marsh et
al., 1996). Among these the Tucker-Lewis Index (TLI) (Tucker and Lewis, 1973;
Bentler and Bonett, 1980) and the Comparative Fit Index seem to be relatively
unaffected by sample size (Marsh et al., 1988, 1996).
As suggested by Marsh and Hocevar (1985), we will not rely solely on the
2 -value to test for a similar model form across industries. In fact, we find that
2 -value (2 (796) = 1,482.62, p < 0.001) is significant which indicates that the
model form may not be similar across industries. However, given its sensitivity
to sample size TLI and CFI are our criteria of choice. On the basis of both TLI
and CFI we find an adequate fit (TLI = 0.92; CFI = 0.93). Our findings are
supported by the limited number of Modification Indices exceeding the
recommended cut-off value of 5 (Marsh and Hocevar, 1985). In addition, we
assess the fit of the factor structure proposed by the SERVQUAL-instrument
for each of the industries. Our results show an adequate fit for all four
industries with TLI ranging from 0.90 to 0.94 and CFI ranging from 0.91 to
0.95.
A similar procedure was carried out for the service loyalty items. Similarly,
we found the 2 -value (2 (236) = 398.85, p < 0.001) to be significant. However,
both TLI and CFI showed to be indicative of an adequate fit to the data (TLI =
0.95 and CFI = 0.96). Furthermore, only a small proportion of the Modification
European Indices proved to exceed the value of 5. We also carried out four separate
Journal of analyses for the four industries. Our results show an adequate fit in terms of
Marketing TLI (TLI ranges from 0.90 to 0.92) and CFI (CFI ranges from 0.91 to 0.93). Thus,
we conclude that the four factor model is similar across the four service
33,11/12 industries that were incorporated in our study.
Subsequently, confirmatory factor analysis was carried out for both service
1092 quality and service loyalty on the basis of the entire sample. The results of the
confirmatory factor analysis for the SERVQUAL items are shown in Table IV.
As was already discussed above, due to the large sample size the 2 statistic
is not an appropriate measure of goodness-of-fit. As both the TLI and CFI are
relatively unaffected by sample size we will mainly rely on these measures to
evaluate model fit. Additionally, we will present some alternative measures,
such as the Goodness-of-Fit Index (GFI), the Adjusted Goodness-of-Fit Index
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(AGFI), the Root Mean Square Residual (RMSR) (JoÈreskog and SoÈrbom, 1989),
and the Normed Fit Index (NFI) (Bagozzi, 1981; Bentler and Bonnett, 1980). On
the basis of these measures it can be concluded that the data adequately fit the
hypothesised five-factor conceptualisation for the items of the SERVQUAL
instrument, as proposed by Parasuraman et al. (1990). The GFI, the AGFI, the
TLI, the CFI and the NFI are all close to or even exceed the recommended level
of 0.9. Furthermore, the RMSR is within the range deemed acceptable. Given
the large sample size the Root Mean Square Error of Approximation (RMSEA)
might provide even a better indication of goodness-of-fit (Steiger, 1990). The
value of the RMSEA equals 0.075 and is below the recommend cut-off value of
0.08. Examination of the Q-plot indicates that the distribution of the residuals is
approximately normal. As can be observed, all standardised factor loadings are
greater than 0.4 and significant at = 0.05. The reliabilities of the individual
dimensions ranged from 0.77 to 0.89, which exceeds the recommended level of
0.7. The variance extracted for the measures exceeds the recommended level of
0.5 except for tangibles (v.e. = 0.46).
Next, confirmatory factor analysis was carried out for the service loyalty
items. The results of this factor analysis are presented in Table V. Inspecting
Table V we find an adequate fit to the data on the basis of the GFI, the AGFI,
the TLI, CFI and the NFI. All measures exceed the recommended level of 0.9.
The RMSR is within the range deemed acceptable. The RMSEA slightly
exceeds the recommended cut-off value of 0.08 (RMSEA = 0.083). Examination
of the Q-plot indicates that the distribution of the residuals is approximately
normal. As can be shown in Table V, all standardised factor loadings are
greater than 0.35 and significant at = 0.05. The reliabilities of the individual
dimensions ranged from 0.60 to 0.91. The variance extracted for the measures
exceeds the recommended level of 0.5, except for dissatisfaction response (v.e.
= 0.36). Thus, in response to research question 1, we can conclude that service
loyalty is a multi-dimensional construct consisting of the following four
dimensions: ``word-of-mouth'', ``purchase intention'', ``price sensitivity'' and
``complaining behaviour''. This factor structure is similar to the a priori
proposed four dimensional structure of service loyalty as reported by Zeithaml
Item Reliability Responsiveness Assurance Empathy Tangibles Service quality
and service
1
2
0.82
0.75
(27.33)
(23.86)
loyalty
3 0.81 (26.64)
4 0.68 (20.85)
5 0.65 (19.84)
6 0.67 (20.52) 1093
7 0.70 (21.96)
8 0.76 (24.29)
9 0.76 (24.35)
10 0.86 (29.68)
11 0.87 (30.07)
12 0.79 (25.86)
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13 0.77 (25.21)
14 0.77 (25.45)
15 0.92 (33.34)
16 0.90 (32.40)
17 0.85 (29.42)
18 0.42 (12.02)
19 0.60 (17.21)
20 0.65 (18.98)
21 0.76 (23.35)
22 0.69 (20.43)
Reliability 0.86 0.81 0.89 0.89 0.77
V.E. 0.55 0.52 0.67 0.63 0.46
2 1,043.38 (p < 0.001)
df 199
GFI 0.89
AGFI 0.86
RMSR 0.04
CFIa 0.93
TLIa 0.92
NFIa 0.91 Table IV.
Results of confirmatory
Notes: Standardised loadings in cells and corresponding t-values in parentheses factor analysis for
a
Null model assumes no underlying factors service quality items
12 0.56 (11.28)
13 0.44 ( 9.12)
Reliability 0.91 0.81 0.76 0.60
V.E. 0.77 0.59 0.55 0.36
2 350.10 (p < 0.001)
df 59
GFI 0.93
AGFI 0.90
RMSR 0.07
CFIa 0.96
TLIa 0.91
Table V. NFIa 0.92
Results of confirmatory
factor analysis for Notes: Standardised loadings in cells and corresponding t-values in parentheses
a
service loyalty items Null model assumes no underlying factors
same form if the model for each industry has the same parameter matrices
and the same location of free, fixed and constrained parameters. We first
estimated the parameters in the entertainment sample and imposed this model
form on the other industries This analysis showed that the model form was not
similar for all four service industries (2 (84) = 639.76, p < 0.001; TLI = 0.34;
CFI = 0.44). Consequently, separate model forms were assumed for further
analyses.
Four separate analyses were carried out for each service industry. Four
variance-covariance matrices were calculated using LISREL's companion
program PRELIS and used as input for the path analyses. As the nature of our
research is exploratory given the lack of theoretical foundation we employed
structural equation modelling in an exploratory mode. We estimated both a
``saturated'' model (M01) and a ``trimmed'' model (M02) for each service industry.
In the ``saturated'' model (M01) we assumed that all quality dimensions affect all
behavioural intentions and consequently all paths were set free. We arrived at
the ``trimmed'' model (M02) by omitting the non-significant paths and using the
univariate Lagrangian Multiplier (LM) test (in LISREL terminology this test is
referred to as modification index) as an exploratory tool to find paths that might
improve the model fit when set free (Bollen, 1989; JoÈreskog and SoÈrbom, 1989). Service quality
However, using univariate LM tests in this fashion has several limitations and service
(MacCallum 1986; Bollen, 1989). Although we acknowledge the restrictions of loyalty
the univariate LM test, in our study we used the test in an exploratory fashion.
Therefore, the results of our study need to be cross-validated using additional
data (Cliff, 1983; Bollen, 1989;). The results of these analyses are summarised in
Table VI. 1095
The ``saturated'' model (M01), which incorporates all possible relations, did not
fit the data very well for all service industries. As can be observed from Table VI,
the ML 2 -statistics (Entertainment 2 (6) = 94.43; p < 0.001; Fast food 2 (6) =
70.90; p < 0.001; Supermarkets 2 (6) = 32.36; p < 0.001; Health care 2 (6) = 38.86;
p < 0.001) are indicative of models not fitting the data very well. Furthermore,
the values of the GFI, the AGFI, the RMSR, the NFI, the CFI and the TLI further
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support our findings that the data might not fit the proposed models.
The trimmed model (M02) yields a better fit to the data in terms of ML
2 -statistic (Entertainment 2 (18) = 21.28; p = 0.27; Fast food 2 (18) = 17.50; p
= 0.49; Retailing 2 (22) = 16.16; p = 0.81; Health care 2 (17) = 10.31; p = 0.89).
Furthermore, the other fit indices (GFI, AGFI, RMSR, NFI, CFI, TLI) also affirm
a good fit of the model to the data. The model yields standardised path
coefficients as presented in Table VII and Figure 1.
Additionally, we tested whether the service providers within the three
industries with more than one provider shared the same model form. Our
findings support the notion that model form is equivalent within these three
industries (Entertainment: 2 (42) = 87.52 (p < 0.001), TLI = 0.91, CFI = 0.89;
Fast food: 2 (42) = 63.50 (p = 0.018), TLI = 0.92, CFI = 0.90; Health care: 2 (46)
= 69.89 (p = 0.013), TLI = 0.92, CFI = 0.90).
Discussion
As can be observed from Table VII, word-of-mouth is positively affected by
responsiveness (
12 = 0.44), and tangibles (
15 = 0.36) for entertainment
Entertainment
M01 6 94.43 <0.001 0.27 0.91 0.28 0.74 0.78 0.01
M02 18 21.28 0.27 0.14 0.98 0.94 0.94 0.99 0.99
Fast food
M01 6 70.90 <0.001 0.22 0.92 0.42 0.78 0.82 0.06
M02 18 17.50 0.49 0.13 0.98 0.95 0.95 0.98 0.97
Supermarkets
M01 6 32.36 <0.001 0.20 0.94 0.54 0.76 0.82 0.01
M02 22 16.16 0.81 0.19 0.97 0.94 0.88 0.99 0.98
Table VI.
Health care Results of path
M01 6 38.86 <0.001 0.21 0.95 0.65 0.79 0.83 0.12 analysis by service
M02 17 10.31 0.89 0.14 0.99 0.97 0.95 0.99 0.99 industry
European Quality dimension
Journal of Loyalty dimension Reliability Responsiveness Assurance Empathy Tangibles
Marketing
Entertainment
33,11/12 Word-of-mouth ± 0.44a (6.19)b ± ± 0.36 (5.05)
Purchase intention 0.44 (6.28) 0.39 (5.33) ± ± 0.32 (4.55)
Price sensitivity ± ± ± ± ±
1096 Complaining behaviour ± ± ± ± ±
Fast food
Word-of-mouth ± ± 0.22 (2.04) 0.45 (4.12) ±
Purchase intention ± ± 0.39 (3.54) 0.29 (2.57) ±
Price sensitivity ± ± ± 0.54 (7.83) ±
Complaining behaviour ± ± ± ± ±
Supermarket
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0.36
Intention
0.39
Intention
1097
Assurance Assurance 0.45
0.32 0.29
0.54
Empathy Empathy
Complaining Complaining
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Behavior Behavior
Tangibles Tangibles
(a) (b)
Reliability Reliability
0.62
Word-of-Mouth Word-of-Mouth
0.61
Responsiveness Responsiveness
0.29
Price Sensitivity Price Sensitivity
0.21
Empathy Empathy
Figure 1.
Complaining Complaining
Behavior
Path diagram for
Behavior
(a) entertainment,
Tangibles Tangibles (b) fast food,
(c) supermarket and
(d) health care
(c) (d)
Conclusion
Our study examined the relationship between service quality and service
loyalty from a multidimensional perspective and from the perspective of
different types of service industries. In response to research question 1, our
analysis points to the existence of four distinct dimensions of service loyalty:
word-of-mouth, purchase intention, price sensitivity and complaining
behaviour. The factor structure was consistent across the four different types of
service industries. Interestingly, this corresponds with the a priori
categorisation of customer loyalty items reported by Zeithaml et al. (1996) which
is, as we argued earlier, both conceptually and empirically most appealing. If
anything, the results of our study underline the importance of replication studies
in the field of (services) marketing (Hubbard and Armstrong, 1994).
The second research question we attempted to answer concerned the
relationship between the dimensions of perceived service quality and service
loyalty. Although Zeithaml et al. (1996) report a strong association between
overall service quality and service loyalty across multiple companies, our
findings clearly shade the quality-loyalty relationship. Our analysis of four
different service type industries yielded an intricate pattern of quality-loyalty
relationships at the level of the individual dimensions. A cross industry
perspective yields a different picture per industry. For instance, while word-of-
mouth is predominantly determined by responsiveness and tangibles in the
entertainment industry, word-of-mouth in the fast food industry is mainly
influenced by assurance and empathy. This underlines the importance of both
a multidimensional and a cross-industry approach to service loyalty. Our
findings have a number of research and managerial implications.
Research implications
Our research should be seen as a preliminary attempt at addressing an issue
that has important implications for services marketing theory and practice.
European Any preliminary attempt will involve a number of limitations. However,
Journal of acknowledgement of these limitations also suggests new directions for future
Marketing studies. In the first place, conceptual models as well as scales for measuring
service quality and loyalty need further development and refinement.
33,11/12 Differences in the nature of service setting might require additional dimensions
of service quality (Dabholkar et al., 1996). With regards to the complaining
1100 behaviour part of the loyalty scale, the incidental nature of service problems
may require incident-based measurement (such as the Critical Incident
Technique) rather than service attitude-based measurement instruments.
Further research should also incorporate multiple measures of the relevant
constructs in order to increase the number of items that are used for the
individual service loyalty dimensions. For instance, word-of-mouth should also
be formulated in negative terms. Moreover, our study focused on service
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loyalty intentions only and these intentions are an incomplete proxy for actual
behaviour (Keaveney, 1995). They should be supplemented by behavioural
measures in order to develop a composite index of service loyalty (Dick and
Basu, 1994). Therefore, further research should also take actual (re)actions of
consumers to perceived service quality into account. An area that definitely
also merits further investigation is the impact of loyalty on other organisational
performance measures, such as profitability (Storbacka et al., 1994). Next, the
empirical relationships between service quality and loyalty reported in this
paper are tentative in the sense that they are based on cross-sectional data
collected at one moment in time. Longitudinal research that focuses on the
dynamics of the two constructs over time is needed to define the exact causal
nature of the link between the two constructs. Furthermore, the use of multiple
time frames allows for an investigation of the reinforcement effect of
behavioural intentions on future service quality perceptions as well as other
outcome variables that determine the strength of customer-organisation
relationships such as commitment, trust and customer value. Finally, for the
purpose of cross-validation, additional exploration of the service quality-
loyalty relationship needs to be extended beyond the settings reported here to
markets in which switching barriers are perceived to be high such as state
monopolies like railroad and postal services. Further conceptual and empirical
research addressing aforementioned topics may yield a more in-depth insight
into the nature of service loyalty through a deductive approach.
Managerial implications
Our findings have several managerial implications as well. The results enable
managers of service firms to nuance the intuitive relationship between service
quality and service loyalty and have a richer diagnostic value because both
service quality and loyalty are measured at a detailed and specific level. In
addition, information on the service quality-customer loyalty link may
provide actionable benchmarks that individual firms may use to guide their
service policies aimed at securing customer loyalty. Furthermore, our results
have specific indications for the different types of service industries' research
and budget allocations and personnel management decisions relating to the Service quality
improvement of service loyalty on the basis of service quality. In the and service
entertainment industry customer patronage behaviour is predominantly loyalty
influenced by reliability, responsiveness and tangible service attributes,
while word-of-mouth is determined to a large extent by responsiveness and
tangibles. This means hiring and training personnel who contribute to the
conveyance of a fun experience, using useful strategies to manage demand 1101
and supply and acknowledge the psychology of waiting lines and investing in
new attractions. In the fast food business, patronage and recommendation are
dependent on the personalised service through empathy and assurance.
Moreover, price sensitivity is strongly related to empathy as well. The
managerial challenge here is to train employees to give individualised
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attention to each customer and not treat them by the dozen, despite the fact
that the service is subject to high degrees of standardisation. With regards to
supermarkets, word-of-mouth as well as purchase intentions are strongly
determined by reliability. In addition, price sensitivity is influenced positively
by empathy. Supermarket managers may attempt to increase the perceived
reliability of their store by explicitly establishing a link between the store and
preferred brands and services (i.e. extended opening hours), appealing store
policies that guarantee service quality through return policies and/or
warranties and transparent pricing policies. Furthermore, evoking a
favourable attitude through personalised services may contribute to
customer price tolerance. Finally, both recommendation and repatronage in
the health care setting are determined by empathy and price tolerance is
determined by assurance.
Finally, company- and industry-level assessment of the service quality-
customer loyalty link provides useful information to shareholders on the
viability of performance in the future. Indices based on service loyalty may
supplement measures of financial performance and market share with crucial
information on the future health of a firm or industry. Especially, when tracked
over time, changes in service loyalty signal changes in the value of customer
assets. The identification of service loyalty as a multi-dimensional construct
may help corporate decision makers in an accurate assessment of service
loyalty.
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Journal of
Marketing Construct Sample item (fast food restaurants)
33,11/12 Service quality . . . provides services at the promised time
At . . . employees provide prompt service to customers
1106 Employees at . . . are always courteous to customers
At . . . employees give customers individual attention
At . . . employees are well dressed and appear neat
Service loyalty I say positive things about this restaurant to other people
I consider . . . my first choice among fast food restaurants
I would continue to visit this restaurant even if its prices increased
somewhat
Table AI. I would complain to other customers if I experienced a problem with
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