LOYALTY TRANSFER IN TWO-SIDE MARKETS: THE CASE OF ONLINE PAYMENT PLATFORMS

So-Young Lee 글로벌지식마케팅경영학회 2018 Global Marketing Conference Vol.2018 No.07

Introduction With the opening of the 4th revolution era, platform business started to come into the spotlight. It was in the early 2000s that academics started full-scale research on platform based on the two-sided market theory but in fact the two-sided market is a business model that has existed around us since before. Examples include credit card industry, real estate brokering, and auctions. These industries are creating value through the interaction of two markets of different needs through a company that provides a specific platform (Rochet and Tirole, 2003, 2006). Recently, with the widespread use of services and products based on high technology, platform business is pouring into our lives at an amazing speed. With a single ID, you can shop, pay for, and receive shipping from a variety of online stores, without having to go through a lot of memberships. You do not have to search every single hotel for the best price, best location. You can even find a room in the house and see the reviews of customers who have stayed there. Compared to traditional pipeline business, one of the key differentiating features of the platform business is a two-sided network effect where consumers and consumers, producers and producers, and consumers and producers interact with each other. This two-sided network effect, with a positive feedback loop, has become a major driver of platform company growth. In the two-sided market, the platform‟s value to any given user largely depends on the size of the users on the other side of the platform due to the indirect network effect (Evans, 2003; Parker & Van Alstyne, 2005). Therefore, increasing the size of one side market, including the issue of „chicken or egg‟, is an indispensable task for the platform managers to maximize platform performance. But more important than increasing the size of one side of the market is transforming the new customers to loyal customers and creating positive feedback loops. This study explores the process of online payment platform users signing up, forming user loyalty, and spreading the loyalty to the sellers and platform providers. More specifically, this study examines (1) what causes the consumers to join the online payment platform at the beginning (2) what are the drivers that lead new members to the active, loyal users (3) whether the loyalty to the payment platform has a positive effect on the attitude toward the sellers (the other side market) and the platform company (platform provider). Theoretical Background and Hypotheses Two- Sided Markets and the Platform The definition of the two-sided market is varied by scholars. Chakravoti and Roson (2006) defines the two-sided market as a market where two different groups of users interact through the platform and the value created at this time is influenced by the indirect externalities of the network. Here, the platform is a physical, virtual, or institutional environment that allows different groups of users to facilitate transactions or interactions. According to Evans (2003), three necessary conditions for two sided platform markets are: (1) there are two distinct groups of customers; (2) there are externalities associated with customer A and B becoming connected or coordinated in some fashion; (3) an intermediary can facilitate that coordination efficiently than bi-lateral relationships between the members of the group. For example, we can think of a credit card company. There is a group of card holders and merchants and the demands of these two groups are very different. There is also a network effect between the two groups. Customers will not use credit cards with fewer merchants. The greater the number of merchants, the greater the benefits the customers have. Likewise, the more cardholders there are, the more profitable the merchants can generate. The intermediary role of the two groups of users to interact is a credit card company. Perceived value and Loyalty to the Online Payment Platform The loyalty to the online payment system can be expressed as the level of participation and commitment the member has over other similar payment systems. O‟Brien and Jones (1995) argue the value perception as an important prerequisite factor in developing brand loyalty; that is, only after the customer has perceived the online payment system as valuable, then would the customer become loyal to the system. The expectations that the perceived value can affect the loyalty to the online payment platform may be explained in terms of “Social Exchange Theory” (Thibaut and Kelly 1959). Within this framework, the customer will remain in the platform only when he or she perceives the value, which is defined as a trade-off between costs and benefits (Woodruff and Gardial 1996) is sufficient. Overall, perceived value of the online payment platform would affect customer loyalty. More specifically, it is expected that non-economic values such as simplicity in account setting, convenience in use will have a more meaningful effect than the economic value including sign-up grant at the stage of attracting new customers. But in the process of new customers becoming active and loyal users, the economic value including mileage points, discount coupons and free trial coupons will play a more important role in addition to this convenience. For example, benefit of being able to use the accumulated mileage or discount coupon on any online store within the platform will make consumers to stay on this payment platform and become loyal customers. Based on such argument, we put forward the following hypothesis. H1: Non economic value has a positive effect on online payment platform loyalty H2: Economic value has a positive effect on online payment platform loyalty. Loyalty Transfer According to Eisenmann et al. (2006), the platforms exhibit two types of network effects: A same-side effect, in which increasing the number of users on one side of the network makes it either more or less valuable to users on the same side; and a cross-side effect, in which increasing number of users on one side makes it either more or less valuable to the users on the other side. In case of online payment platform, it is expected that there will be a positive cross-side network effect. As the number of consumers using a specific online payment platform increases, the number of partner shops participating in the platform will increase, allowing consumers to shop in more diverse online stores. Once customers experienced the value of a specific online payment system, they would insist on paying by this method when shopping online (Parker, Alstein and Choudary, 2016), that is, becoming a loyal customer. Oliver (1999) defines customer loyalty as a deeply held commitment to re-buy or re-patronize a preferred product or service consistently in the future, thereby causing repetitive same brand purchasing. The loyal customers will be among the many online stores selling the same products/services at a same price, shopping at stores that show their favorite online payment system logo, and encouraging friends and family to use the payment system. The frequent transactions will affect consumer‟s attitude towards a certain brand or store and diffuse their loyalty. The customers that are loyal to the payment platform will not only actively try to earn points but also be willing to go and shop at the stores participating in the platform. Some customers may prefer a store among many even though they have not used it before because it belongs to the platform. The loyalty to the platform also can be transferred to the loyalty on the platform provider. Customers will have a favorable attitude when the platform providers do other business (for example, online banking, debit card business, etc.). Given the above, we put forward the following 3 hypotheses. H3: Platform loyalty has a positive effect on the loyalty toward the sellers, the other side market. H4: Positive attitude toward the sellers within the platform has a positive effect on attitude toward the platform company H5: Platform loyalty has a positive effect on the attitude toward the platform company. Conceptual Framework Data Analysis and Results The data used in this study were obtained from a survey of 562 online payment platform users. Data analysis shows that non-economic values such as simplicity, convenience, and platform reliability have a more significant impact on platform loyalty than economic values such as sign-up bonus. However, it was found that economic factors such as mileage points, and discount coupons are more influential factors in the process of converting new members to active users. In addition, loyalty to the payment system has a positive effect on attitudes towards sellers where one can use the means of payment. Also, it can be seen that the customer loyalty to the platform and the favorable attitude toward the sellers make a favorable attitude toward the platform company providing and managing the two-sided market. Conclusion and Discussion This study may contribute to a better understanding of platform business in three particular ways. First, understanding the loyalty diffusion mechanisms within the platform can support platform companies to develop effective strategies to attract new consumers to the platform and to transform them into active users. Second, even though the study uses the data collected from individual consumer level, the findings may provide some inspiration for B2B relationships. For example, as the number of loyal buyers and sellers sharing the platform increases, the value of the platform increases and the platform company can use it as a powerful bargaining power when it comes to third business. Third, the study may help us to understand the role of Platform in two-sided market and how the customer loyalty becomes diffused. Although this study explored the loyalty formation and diffusion using the sample of the major payment systems in Korea, it may be premature to generalize the findings at this stage. It is important to note that there may be negative network effects. They need to be evaluated further through careful research.

유통업체 상표의 충성도 구조: 패널 및 설문 데이터를 활용한 점포 및 상품 충성도

김현아,이라경,채단비,박진용 한국유통학회 2020 流通硏究 Vol.25 No.4

It is no exaggeration to say that the current retailing environment is an infinite battle field where the retailers compete without boundaries among channel types due to advances in new technology, advent of new retail formats, and changes in consumption patterns. Under these circumstances, retailers are investing in the development and expansion of PB, believing that the PB is a strategic weapon that can simultaneously differentiate stores and enhance profitability, and is an effective way to ultimately lead to loyalty of customers to stores. However, is PB really helping to enhance store loyalty of customer? And if it helps, can it be generalized to all companies and customers? And what factors can further strengthen this relationship? This study began from these questions. In attempt to find the answer, this study systematically classified users based on three years of FMCG purchase data of the panels managed and accumulated by Nielsen Korea. The Various loyalty-related questions were asked through surveys and integrated with panel data to enhance the integrity of the data structure. The research model based on customer responses was proposed to identify the structural causal relationship of these variables. This was to determine the various mutual causal effects to loyalty to the PB itself, PB loyalty at a particular store, and PB loyalty at a particular product within a particular store. In addition, the respondent classification was reflected in the panel data to examine the moderating effect of the customer's price orientation and quality orientation and to explain the basic structural equation model in abundance. Specifically, the focus of this study is to hierarchically distinguish customers’ loyalty to PB and identify their relationships. In other words, the structural causal relationship of three types of loyalty: The structural causal relationship between loyalty to the PB itself (A) and PB loyalty at a particular store (B), PB loyalty within a particular store (B) and PB loyalty to a particular product (C), and loyalty to the PB itself (A) and PB loyalty to a particular product (C) was presented as a basic research model (Alpha, Beta and Gamma). Add to this the moderating effect of customer price orientation (D) and quality orientation (E) on the basic research model. The basic structural equation model and customer classification were reflected in the panel data to explain the moderating effect in abundance. In other words, four panel customers were distinguished by the distinction between heavy users vs. light users and steady users vs. erratic user (2×2) and the variance analysis of the above five components(A to E), differences in causal relationships (Alpha, Beta, and Gamma), and changes in the moderation effects (a1 to b3) were included in the model as shown in Figure 1. The different outcome prediction outcome for the four groups is presented in Figure 2 after the hypothesis was derived. The analysis was conducted with a structural equation model to verify hypotheses 1, 2, and 3 assumed in this study. Among the loyalty, general loyalty to PB itself was included as an exogenous variable, and the in-store PB loyalty and loyalty to specific PB products were included as endogenous variables. The coefficient of relationship between general PB loyalty and in-store PB loyalty is .794 (t=52.211), the coefficient of relationship between in-store PB loyalty and loyalty to a particular PB product is .660 (t=35.079), and the coefficient of the relationship between general PB loyalty and loyalty to a particular PB product is .612 (t=29.532) are identified as statistically significant results. In addition, this study analyzed how the relationships between different types of loyalty depend on price orientation and quality orientation to investigate the moderating effects of hypotheses 4 and 5. The relationship between general PB loyalty and in-store PB loyalty based on price orientation (.028) was statistical...

PROGRAM COMPETITION AND THE EFFECTS OF LOYALTY PROGRAMS: EVIDENCE FROM CHINA

Jun Kang,Thomas G. Brashear,Bo Zhang,Qiao Li 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.5

Customer loyalty programs have been widely adopted for customer relationship management all over the world. The proliferation of loyalty programs causes program competition which weakens the effectiveness of loyalty programs at the end of customers. In general, existed research suggests that the increasing competition among rival programs in a single industry may cancel out the expected roles of loyalty programs (Mägi, 2003). For example, program competition is a substantial threat to customer lifetime value and share of wallet (Leenheer, van Heerde, Bijmolt, & Smidts, 2007; Meyer-Waarden, 2007). Liu and Yang (2009) find the sales impact of a single loyalty program diminishes as program competition increases. Their study also shows this negative effect is weaker in a highly expandable product category. Although previous studies have examined the suppressive effect of program competition on financial outcomes of loyalty programs, little research has explored its role on attitudinal customer loyalty formation process. This study aims to explore the differential roles of program competition on two formation processes of customer loyalty. It intends to contribute to the loyalty programs literature in two aspects. First, this study examines two routines of customer loyalty formation in the context of loyalty programs. That is, a company can leverage program offerings to build customer loyalty through increased customer satisfaction or strengthened customer identification with the company. Second, this study examines the moderating roles of program competition on those two loyalty-generating routines. Specifically, it finds customer identification is more important for building customer loyalty at the presence of program loyalty.

충성할인에 대한 경쟁법적 규제의 검토

성승제 한국경제법학회 2012 경제법연구 Vol.11 No.1

Loyalty discount refers to when the corporate gives purchaser a discount in return for different forms of loyalty. Allowing certain unit price when minimum quantity of the purchase is met, is one distinctive form of loyalty discount, and it is classified as ‘non-linear pricing’ which means that unit price of the product is decided by the quantity of the product purchased. Article 3-2 ‘Prohibition of Abuse of Market Dominance Status’ of Monopoly Regulation and Fair Trade Act(referred as Fair Trade Act in the following) can be applied to loyalty discount. However the definition and the concept of loyalty discount is still vague. Thus it is unclear how loyalty discount works as an obstacle of prohibiting the ‘abuse of market dominance status’ and ‘excessive concentration of the economic power’,regulate ‘unfair common action and unfair trade’ and ‘promote free competition’. However loyalty discount does not necessarily carries illegality and it may act as a medium which promotes a clear competition. This paper overlooks on 2 cases which were judged by the Fair Trade Commission about loyalty discount, and suggests the regulations and competition law methods to restrict loyalty discount, which interferes sound competition, which can be controlled by the notification of Fair Trade Commission, at the minimum level. 충성할인(loyalty discount)은 기업이 매수자에게 다양한 형태의 충성도(loyalty)를 요구하고 그것을 조건으로 가격을 할인해주는 행위를 말한다. 충성할인의 구체적인 특징은, 매수자 별로 정해진 최소 구입량에 대한 일정조건이 충족될 때 단위가격을 인정해주는 것으로서, 단위가격이 구매량에 따라 달라지는 소위 비선형가격(non-linear pricing)이라 분류된다. 충성도는 다양한 형태를 띨수 있지만, 대체로 기업이 자신과 거래를 많이 할 것을 요구하는 것이며, 이런 의미에서 충성할인은 현실에서 흔히 볼 수 있는 행위인 바, 일정 기간 매수량이 어느 수준을 초과하면 가격할인을포함한 다양한 혜택을 제공하는 경우, 이는 모두 넓은 의미에서 충성할인으로 간주할 수 있다. 충성할인에 대하여 적용될 수 있는 법령은 우선 “독점규제 및 공정거래에 관한 법률”(이하 공정거래법이라 함)의 시장지배적 지위의 남용 금지(동법 제3조의2)에 대한 조항을 들 수 있다. 그런데 아직 충성할인에 대한 개념 정립이 불충분하다. 따라서 공정거래법 제1조에 선언되어 있는“시장지배적 지위의 남용”과 “과도한 경제력 집중”을 방지하거나 “부당한 공동행위 및 불공정거래행위를 규제” 하고 “자유로운 경쟁을 촉진”하는데 대하여 충성할인(loyalty discount)이 어떤 장애가 되고 위법성을 지닐 수 있는지 명료하지 않다. 충성할인은 결국 시장지배적지위 등 거래상의 우월적 지위에 기반하여 경쟁사업자를 배제하게 되는 등 부당한 경쟁자배제효과 또는 독점력발생효과가 있음을 인텔 및 퀄컴 사안에 대한 공정거래위원회 의결서를 검토하면서 파악할 수 있었다. 우리 현행 경쟁법 규범은 충성할인과 연관되는 유사개념들을 규율하고 있다. 그 밖에도 경쟁자 배제효과라든가 인접한 영역에서의 경쟁법규범에 의하여 충성할인이 초래할 수 있는 위법성을 처벌 또는 견제할 수 있는 수단이 있기도하다. 하지만 현행 법규범만으로는 그 적용이 모호하여 충성할인의 위법성을 명료히 표시할 필요성이 인정되는 것 같다. 적어도 공정거래위원회 고시에서 불공정거래행위의 한 유형으로서 경쟁사업자 배제 항목 중에 다목으로서 조건부할인이라는 표제 하에 ‘부당하게 상품 또는 용역을 조건부할인함으로써 경쟁사업자를 배제할 우려가 있는 행위’ 로 추가할 것을 제안하고자 한다.

패션업체 로열티 프로그램에 대한 대학생의 지각된 가치와 만족이 충성도에 미치는 영향

주성래 ( Seong Rae Ju ),정명선 ( Myung Sun Chung ) 복식문화학회 2012 服飾文化硏究 Vol.20 No.3

Loyalty programs are used by many fashion firms as marketing tools for reducing customer switching and increasing customer loyalty in keen market competition conditions. The purpose of this study is to explore and propose an effective implementation of a loyalty program for a targeted fashion firm`s customers by grasping their perceived value of and satisfaction with the loyalty program. Questionnaires were administered to 329 college students in Gwangju. For data analysis, factor analysis, Chronbach`s α, correlation analysis, and a Structural Equation Model using the LISREL 8.30 program were applied. The results were as follows. First, the degree of perceived value of the loyalty program was classified according to cash value, convenience of use, aspirational value, and suitability of use. The aspirational value and cash value significantly affected the students` satisfaction with the loyalty program, but the convenience of use and suitability of use were not significant. Second, higher satisfaction with the loyalty program was related to higher overall customer satisfaction but did not affect customer trust and loyalty. Finally, higher overall satisfaction was related to customer trust but did not affect customer loyalty, and higher trust affected customer loyalty.

ARE LOYALTY PROGRAMS EFFECTIVE IN HIGH-END FASHION RETAILERS? A COMPARISON OF PERCEIVED LOYALTY PROGRAM BENEFITS BETWEEN HIGH- AND LOW-END FASHION RETAILERS

Anastasia Stathopoulou,George Balabanis 글로벌지식마케팅경영학회 2015 Global Fashion Management Conference Vol.2015 No.06

In the last decade loyalty programs have gained popularity across various industries. They are one of the most popular marketing tools that companies use to increase retention, enhance loyalty and gather ‘big data’. The number of companies adopting loyalty programs is rapidly increasing with fashion department stores grown their loyalty program subscriptions by 70% between 2010 and 2012 (Colloquy, 2013). One of the main reasons for this growth can be attributed to the benefits fashion retailers offer to their customers. A new body of current research had directed its attention to a comprehensive set of benefits offered by loyalty programs as well as their potential to increase customer retention and profitability (Evanschitzky et al., 2012). Until recently, it was debatable if loyalty programs can be effective and appropriate in luxury retailing (Lowenstein, 2009), despite research evidence showing a positive effect of loyalty programs’ benefits on customer retention (e.g. Mimouni-Chaabane & Volle, 2010). Traditionally, luxury companies and retailers build loyalty through top-end and differentiated customer experiences. If loyalty schemes were to succeed in the luxury sector they had to deliver the kind of recognition and rewards that make luxury shoppers feel remarkable. Given the growing interest in loyalty programs and scarcity of research related to their effectiveness in the luxury fashion department stores, this study comes to examine the effectiveness of such programs. In particular, this research examines how the utilitarian, hedonic and symbolic perceived benefits from loyalty programs can influence the satisfaction and trust with the program and consequently store loyalty. These relationships are compared between high- and low-end fashion department stores and the differences in their effectiveness are reported. To test these relationships data were collected form a sample of 984 consumers from an online panel in US, using a structured questionnaire. A range of different department stores that offer loyalty programs were pre-selected through a rater procedure to represent the high- and low- fashion department stores. Using structural equation modelling and multi-group analysis, findings support that the effectiveness of loyalty programs is important to both high-and low-end fashion retailing settings but the strength of this effectiveness varies across the two settings. Specifically, hedonic and symbolic benefits derived from loyalty programs found to be more important in the high-end rather than the low-end fashion retailers. In contrast, utilitarian benefits found to be much more effective in influencing customers’ satisfaction with the program in the low-end fashion retailing. The results of this research address an important research gap and help to better understand customers' perceptions of loyalty program benefits obtained from high- and low-end fashion department stores. Finally, the findings provide clear guidelines for managers in both high- and low-end fashion retailing on how to design effectively their loyalty program rewards, by strategically allocating their resources to the benefits that are more important in their setting.

PROGRAM COMPETITION AND THE EFFECTS OF LOYALTY PROGRAMS: EVIDENCE FROM CHINA

Jun Kang,Thomas G. Brashear,Bo Zhang,Qiao Li 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.7

Customer loyalty programs have been widely adopted for customer relationship management all over the world. The proliferation of loyalty programs causes program competition which weakens the effectiveness of loyalty programs at the end of customers. In general, existed research suggests that the increasing competition among rival programs in a single industry may cancel out the expected roles of loyalty programs (M?gi, 2003). For example, program competition is a substantial threat to customer lifetime value and share of wallet (Leenheer, van Heerde, Bijmolt, & Smidts, 2007; Meyer-Waarden, 2007). Liu and Yang (2009) find the sales impact of a single loyalty program diminishes as program competition increases. Their study also shows this negative effect is weaker in a highly expandable product category. Although previous studies have examined the suppressive effect of program competition on financial outcomes of loyalty programs, little research has explored its role on attitudinal customer loyalty formation process. This study aims to explore the differential roles of program competition on two formation processes of customer loyalty. It intends to contribute to the loyalty programs literature in two aspects. First, this study examines two routines of customer loyalty formation in the context of loyalty programs. That is, a company can leverage program offerings to build customer loyalty through increased customer satisfaction or strengthened customer identification with the company. Second, this study examines the moderating roles of program competition on those two loyalty-generating routines. Specifically, it finds customer identification is more important for building customer loyalty at the presence of program loyalty.

컨벤션센터 카지노 고객 충성도 프로그램의 가치와 고객 충성도의 관계

전상미(Sang Mi Jeon),현성협(Sung Hyup Hyun) 한국호텔외식관광경영학회 2011 호텔경영학연구 Vol.20 No.6

The loyalty program is one of the strategies used by casino companies to develop relationships with their customers. However, studies that empirically test the influence of loyalty programs and customer loyalty are very limited and the results are inconsistent. Examining the effectiveness of casino loyalty programs is an essential step in developing true customer loyalty. This study examined the impact of the perceived economic value of loyalty program on customer satisfaction and loyalty, including both attitudinal and behavioral loyalty. In addition, this study examined the moderating effects of distance, child (ren), and gaming preference on casino patrons` behaviors. This study utilized the data collected from the casino company in Southeastern United States in May 2008. The results revealed that loyalty program do have an impact on loyalty in the casino industry. This study is one of only a few empirical studies of customer loyalty programs and is perhaps the most comprehensive study of customer loyalty programs in the casino industry. This study resulted in a number of findings that shed light on loyalty, designing loyalty programs, and even casino management.

The Influences of Customer Equity Drivers on Customer Equity and Loyalty in the Sports Shoe Industry

Hao Zhang,Eunju Ko,Kyung Hoon Kim 한국마케팅과학회 2010 Journal of Global Fashion Marketing Vol.1 No.2

The concept of customer equity brings together customer value management, brand management, and relationship/ retention management. However, the model put forth by Rust, Lemon, and Zeithaml (2000) does not include a consideration of the concept of loyalty, as in Vogel, Evanschitzky, and Ramaseshan (2008). In contrast to customer equity, customer loyalty involves an intention to engage in future purchase behavior with the same firm or brand. Its drivers are complex and dynamic, usually changing over time. Although plenty of researchers have studied those factors, the present study follows that of Johnson, Herrmann, and Huber (2006) and Vogel et al. (2008), which suggest that customer equity drivers can also drive customer loyalty. Thus, the present paper sets out to support this conclusion in the sports shoes industry, and to discover the differences in the influence customer equity drivers have on customer loyalty in Korea and China. This is because the product choices of consumers and their preferences for a particular product or brand are generally influenced by complex social factors (Yau, 1994).From 450 respondents in the countries’ capitals who answered the study questionnaire, the Korean sample included 125 university students and 75 fashion industry employees from Seoul, while the Chinese sample included 150 university students and 59 fashion industry employees from Beijing. To test the hypotheses, we first employed structural equation modeling with the maximum likelihood estimation method using the model without moderator. Then, for testing the differences between the two groups, a multi-group analysis with AMOS 7.0 was used to assess the moderating variable effects on the structural model (Byrne, 2001). Our research extends the literature on the outcomes of the three drivers of customer equity: value equity, relationship equity, and brand equity. The survey data of the study were used to examine their effects on customer loyalty, and the effect of customer loyalty on customer equity. The study’s focus on a specific industry, sports shoes, also extends the customer equity research into a different area. Our findings show that the customer equity model can be only partly supported. Relationship equity and brand equity can drive customer equity in the sports shoes industry. Results also show that value equity, relationship equity, and brand equity positively influence customers’ loyalty toward sports shoes brands, whereas customer loyalty has a positive effect on customer equity in that industry. Thus, value equity, relationship equity, and brand equity are not only the drivers of customer equity, but can drive customer loyalty as well. In the sports shoe industry, firms should keep investing in marketing activities targeted toward increasing the perceived equity of value, relationships, and brand. However, different nationalities can show different relationships among the customer equity drivers, customer loyalty and customer equity. Our study, though subject to several limitations, can provide several managerial implications for sports shoe firms. First, findings from testing customer equity in the sports shoe market show that value equity, relationship equity, and brand equity are the drivers of customer loyalty, suggesting that a sports shoes firm must meet customer expectations, create better relationships with customers, and increase the equity of the brands. Second, when managers make decisions about how to enter a new market, or how to improve customer loyalty, cultural and market differences should be considered.

An Examination of Brand Loyalty Development and the Effect of Customer Satisfaction

박상희 한국외식경영학회 2010 외식경영연구 Vol.13 No.4

This study aimed to identify four stages of brand loyalty development based on Oliver's theory (1997) in a family restaurant segment; (2) examine the effect of satisfaction on cognitive, affective, conative, and behavioral brand loyalty. For this study, three brands of family restaurant chain (Outback Steakhouse, TGI'F, and Bennigan's) were selected through the in-depth interview. A total of 267 survey sample were collected and analysed in SPSS and AMOS. The results of this study supported H1(Cognitive BL→Affective BL), H2(Affective BL→Conative BL), H3(Conative BL→Behavioral BL), which indicate the four stages of brand loyalty development. Among four hypotheses showing the relationship between customer satisfaction and each stage of brand loyalty development, H4(CS→Cognitive BL) and H5(CS→Affective BL) were supported except H6(CS→Conative BL) and H7(CS→Behavioral BL). These results imply that customer satisfaction has not only direct effect on early stages of brand loyalty development (cognitive and affective brand loyalty) but also indirect effect on conative and behavioral brand loyalty via cognitive and affective brand loyalty.