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Name: David Oluwadare
Id: 150995043
To What Extent Does Trust, Commitment and Satisfaction
Affect Consumer Brand Loyalty, in the Situation of a Service
Failure
Name of my supervisor: Paolo Antonetti
Name of the program: MSc Marketing, School of Business and Management, Queen Mary,
University of London: BUSM096 - Relationship and Network Marketing
February 2016
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1. Introduction ............................................................................................................................... 3
1.1. Background .......................................................................................................................... 3
1.2. Rationale for Research ......................................................................................................... 4
1.3. Research Aim ………………………………………………………………………………5
1.4. Research Questions .............................................................................................................. 5
1.5. Hypothesis ………………………………………………………………………………….5
2. Literature Review..................................................................................................................... 6
2.1. What is Brand Loyalty ......................................................................................................... 6
2.3. Variables of Brand Loyalty....................................................................................................6
2.3.1. Satisfaction……….................................................................................................. 6
2.3.2. Trust …………………............................................................................................7
2.3.3. Commitment ………...............................................................................................8
3. Methodology ............................................................................................................................ 9
3.1. Research Method ................................................................................................................ 9
3.2. Survey Design & Justification............................................................................................. 9
3.3. Timetable ……………………….........................................................................................9
4. References …............................................................................................................................10
5. Appendix …..............................................................................................................................12
5.1. Appendix A- Questionnaire ………....................................................................................9
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1. Introduction
1.1 Background
Brand loyalty has become increasingly important in recent years because of the benefits that can be
derived from it. According to Lau and Lee (1999), two of the main benefits of brand loyalty are: its
ability to motivate repeat purchase in customers and its ability to drive word of mouth (WOM),
through recommendations. Reichheld, Frederick & Schefter (2000) also agreed with this, stating that
BL can lead to economic advantage through repeat purchases and that loyal customers also take over
the function of advertising through WOM. Other benefits of BL include, its ability to drive brand
equity and increase the overall profitability of the organisation (Chaudhuri and Holbrook, 2001).
Brand loyalty is a very important characteristic in many businesses, as it can be used as an important
tool to drive the success of a business (Reichheld, Frederick & Schefter (2000). Various researches as
well as marketers have voiced this perception. Chaudhuri and Holbrook (2001) stated that, there is a
correlation between the level of brand loyalty an organisation has and its profitability. Various other
researchers have emphasised the importance of brand loyalty and the impact on a business. With
brand loyalty consumers are willing to pay more for the brand because they perceive that it holds
some unique value, which no other alternative brand can provide (Chaudhuri and Holbrook, 2001).
Additionally, brand loyalty also leads to greater market share,due to the constant repurchasing
behaviour of brand loyal customers (Assael, 1998). Loyalty is an economic necessity and in order for
an organisation to succeed,it is vital that they possess it (Reichheld, Frederick and Schefter,2000).
Because of its vast importance, especially it ability to retain customers, executives within various
organisations have started to place growing importance on the brand loyalty (Reichheld, Frederick &
Schefter (2000). Exploiting the notion of loyalty means that organisations can retain customers,who
will continue to make repeated purchases over the years, thereby increasing profits (Reichheld,
Frederick and Schefter, 2000). This is more favourable than the costlier and unprofitable alternative of
trying to acquire new consumers, through various forms of marketing (Reichheld, Frederick and
Schefter,2000). A study published by Brain and Company, showed that an organisation could
increase it profits by 25%-95% as a result of increasing its customer retention by just 5% (Reichheld,
Frederick and Schefter,2000). This shows the incredible importance, to an organisation, of being able
to retain their customers; the major way to do this successfully is through the notion of brand loyalty.
However,instances do occur where the brand loyalty of customer is threatened; which is dangerous
because of the effect that it may have on customer retention and ultimately the profitability of the
organisation. One of the major threats to brand loyalty is in relation to service quality. Bolton and
Drew (1991) also supported this, stating that service quality has a significant effect on customer
loyalty. Zeithamal (1988) defined service quality as the judgment of a consumer about the overall
superiority of a product or service. In addition, Parasuraman,Zeithaml and Berry (1985) stated that
service quality involves a comparison between expectation and performance; which looks at how well
the service delivered actually matches customer expectation. This implies that a good service quality
is one where the performance either matches or exceeds customer expectations. In contrast bad
service, or ‘service failure’ as will be referred to it in this article, is when service performance falls
below customer expectations (Hess,Ganesan and Klein, 2003). As stated by Hui, Ho, and Wan (2011)
in the delivery of services, at some point in every business there will be a service failure, due to
human involvement.
In a study carried out by Keaveney (1995), it was shown that service failure was one of the main
issues that lead to dissatisfied customers and customers ultimately switching to a different provider.
The study within the article showed that, 78% of respondents claimed that some form of service
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failure was the reason for which they switched service providers (Keaveney,1995). This shows that
when it comes to the issue of loyalty and retention, the quality of service is extremely important and
service failure can have a detrimental impact upon the profitability of a firm. The concept of brand
loyalty will be explored in more depth in the literature review.
1.2. Rational for Research
While past research has focused on the importance of brand loyalty and its effect on the profitability
of a firm, not much research has been done to look at it in the context of a service failure.
Additionally, the notion of brand loyalty - in previous research - tends to focus on a vast array of
variables, which are claimed to influence brand loyalty in one form or another (see fig 2). However,
this research aims to propose a conceptual framework, identifying three key variables of brand
loyalty. In addition, it looks to explore the relationship between each of these variables and the impact
that service failure has upon them.
Fig.2. Brand Loyalty Variables (Punniyamoorthy and Prasanna,2007)
Figure 2
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1.3. Research Aim
The aim of this article is look at the impact of service failure on brand loyalty. This is done through
looking at three variables influencing brand loyalty, which are satisfaction, trust and commitment
(Punniyamoorthy and Prasanna,2007). The article aims to show that when a service failure occurs,it
has a significant impact on each of these variables in one way or another; which then goes on to
influence brand loyalty in a negative way. The relationship between these three variables will be
explored under the context of service failure, in order to identify the way in which each of these
variables influence brand loyalty after the failure. This relationship is illustrated in figure 1.
1.4. Research Question
The key variables, which this study will focus on, are: Trust, commitment and satisfaction. On this
basis the primary research question would be:
 ‘What is the relationship between Trust, commitment, satisfaction and brand loyalty’ and
 ‘What impact do they have on brand loyalty, in the situation of a service failure’?
1.5. Hypothesis
This study proposes eight hypotheses as a starting point for further investigation. This has been
illustrated in figure 1:
Figure 1
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2. Literature Review
2.1. What is Brand Loyalty (BL)?
There has been incredible emphasis placed on the concept of brand loyalty, yet the concept has not
been completely defined (Lau and Lee,1999). Some researchers have stated that brand loyalty is the
constant repeat purchasing behaviour of consumers (Brown, 1952; Cunningham, 1956a). Other
researchers have stated that,brand loyalty is the measure of attachment that a consumer has towards a
brand (Aeker,1991). From both definitions, what has been identified is that some researcherssee the
concept of brand loyalty as either behavioural or attitudinal. Current researchers have acknowledged
that these two dimensions of brand loyalty exist; therefore, they have created a multidimensional
definition on the construct of brand loyalty. Engel & Blackwell (1982) defined brand loyalty as, “the
preferential, attitudinal and behavioural response toward one or more brands in a product category
expressed over a period of time by a consumer.” Additionally, Assael(1992, p. 87), also saw brand
loyalty in this multidimensional way, defining it as “a favourable attitude toward a brand resulting in
consistent purchase of the brand over time.”
2.2. - Variables and antecedents that connect to ‘brand Loyalty’ concept
The benefits and importance of BL has not only been realised by businesses in the real world, but also
by researches in the marketing field. This has resulted in vast research on the topic of brand loyalty,
with researchers asking questions like: what does it entail, how do we attain it and how do we sustain
it? (Harris and Goode, 2004). In striving to answer these various questions, numerous models and
frameworks have been developed proposing variables and antecedents that lead to Brand Loyalty (see
fig. 2). Through rigorous research this study has identified three main variables that are believed to
have an impact on BL, whether directly or indirectly. These three variables are trust, commitment,
and customer satisfaction (Punniyamoorthy and Prasanna,2007). This study aims to demonstrate that
these three mediating variables determine to what extent brand loyalty is negatively impacted by the
occurrence of a service failure.
2.2.1. Satisfaction
Customer satisfaction has been regarded as a fundamental determinant of consumer behaviour (Oliver
1980). It is for this reason that research and time has been invested in the concept of consumer
satisfaction. Customer satisfaction can be divided into two constructs: cumulative satisfaction and
transaction-specific satisfaction (Garbarino and Johnson, 1999). Transaction specific satisfaction
relates to a customer’s post purchase evaluation, judgment or reaction to the most recent transaction
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that they have had with a firm (Lee and Lee,2013). Cumulative satisfaction is an overall evaluation,
based on the total purchase and consumption experience with a good/service over time (Anderson,
Fornell and Lehmann, 1994, p.54). This study will be focusing on the cumulative satisfaction
construct, as total consumption experience has a stronger connection to brand loyalty than transaction
specific satisfaction (Garbarino and Johnson, 1999).
Customer satisfaction can also be divided into two groups: satisfaction level and satisfaction strength
(Chandrashekaran et al., 2007). Satisfaction strength relates to the conviction in which a judgment is
held, whereas satisfaction level only looks at the magnitude of the judgement (Chandrashekaran et al.,
2007). In other words, satisfaction strength looks at how strongly satisfaction is held in the customer
and if there is any risk of defect; whereas satisfaction level identifies that satisfaction exists within
customers (Chandrashekaran et al., 2007). Where satisfaction is strongly held there is 60% less risk of
customers defecting (Chandrashekaran et al., 2007).
Various researchers have stated that there is a relationship between customer satisfaction and brand
loyalty (Anderson and Sullivan, 1993; Fornell, 1992; Oliver and Swan, 1989). Oliver (1999) stated
that loyalty was a consequence of customer satisfaction. Lee & Lee (2013) stated that when there is an
increase in customer satisfaction, there would also be a significant increase in loyalty and ultimately
profitability. previous research has emphasised that there is a relationship between customer
satisfaction and brand loyalty. However, this study differs from previous research as it aims to
demonstrate that the impact of customer satisfaction on BL when a service failure has occurred. It also
aims to show that the customer satisfaction brand loyalty relationship is only minimal and is not as
strong as the relationship brand loyalty has with other variables (trust and commitment). This view is
also supported by Chandrashekaran et al. (2007) who showed that, there are various situations in
which consumers have stated that they are satisfied with the service provided to them and still they
decide to defect. Additionally, Reichheld (1996) stated that in a group of customers who filled out a
defect report, before defection 65%-85% of them stated that they were satisfied or very satisfied.
Therefore,this implies that satisfaction may have some initial connection to brand loyalty, but it is not
a strong enough connection to sustain a relationship long-term. There must be other variables out
there that produce a durable brand loyal relationship.
2.2.2. Trust
Many researchers have stated that trust is an extremely essential attribute and must be present in
relationship initiation, formation and maintenance within a variety of exchange contexts (e.g.,
Sirdeshmukh et al., 2002; Verhoef,Francis and Hoekstra,2002). Some have gone as far as to say that
trust is the single most important relationship marketing tool that a company has at their disposal
(Berry, 1996, p. 42). It can therefore be deduced that trust is an extremely important variable, that
influences how companies and their customers interact with one another. There have been various
definitions of the concept of trust. Lee & Lee (1992) stated that trust is the willingness to rely on
another party even in the face of risk; this willingness comes from an understanding based on past
experiences. Morgan and Hunt (1994, p.23) defined trust as, the perception of confidence in an
exchange partner’s reliability and integrity. As stated by Garbarino and Johnson (1999), the recurring
notions that continuously present themselves when defining trust are confidence and reliability. This
study looks more at trust in a customer context rather than an individual. Therefore,the definition of
trust being used within this article is, a customer’s confidence in the quality and reliability of the
service offered (Garbarino and Johnson, 1999).
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This study concurs with the various research shown above, highlighting the importance of trust within
a brand consumer relationship and believes that this attribute of trust is directly linked to the attribute
of loyalty. This view point has been confirmed by various researchers within the marketing field, as
well as business in the real world. Chaudhuri and Holbrook (2001), within their study, found that
there was strong evidence to support a significant relationship between brand trust and both purchase
and attitudinal loyalty. Sirdeshmukh et al. (2002) also positioned that trust was directly linked to
loyalty. Furthermore, Reichheld and Schefter (2000, p. 107) stated that, “to gain the loyalty of
customers, you must first gain their trust. This trust-loyalty relationship is supported/explained by the
reciprocity arguments (Sirdeshmukh et al., 2002). The argument states that when a provider acts in a
way that builds customer trust, perceived risk is reduced; enabling the consumer to make confident
prediction about the provider’s future behaviours, leading to loyalty (Mayer,Davis and Schoorman,
1995; Morgan and Hunt, 1994)
However,although there has been much research on the concept of trust and its relation to brand
loyalty. There has not been as much research on the effect of service failure, in relation to these
variables. This study also differs from other research in that it aims to show the relative importance of
trust in its relationship to brand loyalty and the negative impact of service failure on this relationship.
As stated above, trust is about a customer’s confidence in the quality and reliability of the service
offered; which reduces the perceived risk of interacting with that provider (Morgan and Hunt, 1994;
Garbarino and Johnson, 1999). A service failure is when customer expectations are not met (Hess,
Ganesan and Klein, 2003). Therefore,it can be assumed that when a service failure occurs,this is a
breach of the confidence and reliability that a customer held towards a firm; in other words, they have
failed their customer’s trust. The statement by Reichheld and Schefter (2000, p. 107) - “to gain the
loyalty of customers, you must first gain their trust” - can also then mean that if you lose the trust of
the customer, you can eventually also lose their loyalty. This study aims to explore this idea in further
depth and has therefore proposed these hypotheses.
2.2.3. Commitment
Similar to the concept of trust, various researchers have regarded commitment as a necessary
ingredient for a successfullong-term relationship (Dwyer,Schurr and Oh, 1987; Morgan and Hunt,
1994). Commitment has been defined as an enduring desire to maintain a valued relationship
(Moorman, Zaltman and Deshpande,1992, p.316). Within their article, Gundlach, Achrol and
Mentzer (1995) argued that commitment has three components: an instrumental component, an
attitudinal component and temporal dimension. The instrumental component looked at commitment as
having some form of investment. The attitudinal component looked at commitment as having some
form of psychological attachment and the temporal dimension indicated that a committed relationship
existed over time (Gundlach, Achrol and Mentzer, 1995)). Garbarino and Johnson (1999) defined
commitment as the psychological attachment, loyalty, concern for future welfare,identification and
pride in being associated with an organisation. Garbarino and Johnson (1999), also stated that
commitments lead to long-term consistent customers.
like the variables of satisfaction and trust, commitment is also believed to have a relationship with
brand loyalty. Various researchers have highlighted this relationship, stating that to some extent the
commitment variable is the closest variable to brand loyalty. This is because as the definition has
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implied commitment presents itself in repeat purchasing behaviour of a brand and long-term
attachment to that brand (Punniyamoorthy and Prasanna,2007). These characteristics are also present
in brand loyal customers.
This study agrees that there exists a connection between commitment and brand loyalty but differs
from previous research in that it aims to explore the commitment and brand loyalty relationship in the
context of a service failure.
3. Methodology
3.1. Research Method
The method which was utilised within this study to collect data was a quantitative survey of
customers, as shown in the appendix. There are various reasons quantitative techniques were used.
First, the research did not seek to discover new variables that influenced brand loyalty but intended to
assess brand loyalty in relation the variables that already existed. In such a situation Hine and Carson
(2007) state that applying quantitative research is more appropriate as qualitative research methods
may not allow for conclusive statements to be made. Additionally, the research also proposed specific
hypothesis and rejection or acceptance of a hypothesis needs statistical analysis
The customers used within this study had to be loyal in some form to an organisation. The way in
which the study identified the customer as loyal was in their obtainment of a loyalty card and regular
use of that card within their relative store. This sample had to meet a certain threshold of points before
they were identified as loyal customers. Various surveys were mailed out to these potential brand
loyal customers, based on the data that was obtained on their loyalty card. This data was willingly
given by the organisation, as they aimed to benefit from the results of this study as well. The
respondents were informed that the survey was for both educational and managerial purposes and
their response would be kept completely anonymous.
3.2. Survey Design and Justification
The study develops a survey model which highlights the relationship between satisfaction, trust,
commitment and brand loyalty. The model also aimed to capture the overall relationship between all
three variables in the context of a service failure. The type of questions which were used were strong
agree/disagree which was measure on a likert scale. Various other form of questions was used as well
in the study.
3.3. Timetable
Below is a Gantt chart illustrating the development of this study from inception to conclusion. It
shows the process and time in which the research question was developed and also how the
methodology, data collection and data analysis were distributed.
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Topic Finding
Reserch possible topics
Brainstrom research question
Discuss with module supervisor
Finalise research question
Proposal
Agree the RQ and Scope
Proposal Lit Review
Ethical Approval
Detailed planning of stage
Finalise Proposal
Literature Review
Define main theories
Search out journal sources
Critique the Sources
Finalise Lit Review
Methodology
Select Methods
Critique Methodology
Create Ethical Statement
Create Survey
Collect Data
Analyse Data
Write up remaining sections
January February March
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4. References
1) Anderson, E. W. and Sullivan, M. W. (1993) ‘The antecedents and consequences of customer
satisfaction for firms’, Marketing Science,12(spring), pp. 125-143.
2) Anderson, E.W., Fornell, C. and Lehmann, D.R. (1994) ‘Customer satisfaction, market share,
and profitability: Findings from Sweden’, The Journal of Marketing,pp.53-66.
3) Assael,H. (1992) Consumer behaviorand marketing action.Boston,MA: PWS-KENT
Publishing Company.
4) Assael,H. (1998) Consumer Behavior and Marketing Action. Cincinnati, OH: South-Western.
5) Berry, L. (1996) ‘Retailers with a Future’, Marketing Management,5 (Spring), pp. 39-46.
6) Bolton, R.N. and Drew,J.H. (1991) ‘A multistage model of customers' assessments of service
quality and value’, Journal of consumer research,pp.375-384.
7) Brown, G.H. (1953) ‘Brand Loyalty-fact or fiction’, Trademark Rep, 43,p.251.
8) Chandrashekaran,M., Rotte, K., Tax, S.S. and Grewal, R. (2007) ‘Satisfaction strength and
customer loyalty’, Journal of Marketing Research,44(1),pp.153-163.
9) Chaudhuri, A. and Holbrook, M.B. (2001) ‘The chain of effects from brand trust and brand
affect to brand performance: the role of brand loyalty’, Journal of marketing,65(2), pp.81-93.
10) Cunningham, R. M. (1956) ‘Brand Loyalty – What, Where, How Much?’, Harvard business
review,34 (January-February),pp. 116-28.
11) Dwyer,F.R., Schurr, P.H. and Oh, S. (1987) ‘Developing buyer-seller relationships’, The
Journal of marketing, pp.11-27.
12) Engel, J.F. and Blackwell, R.D. (1982) Consumer behaviour. New York:The Dryden Press.
13) Fornell, C. (1992) ‘A national customer satisfaction barometer: the swedish experience’,Journal
of Marketing,56, pp. 6- 21.
14) Garbarino, E. and Johnson, M.S. (1999) ‘The different roles of satisfaction, trust, and
commitment in customer relationships’, The Journal of Marketing,pp.70-87.
15) Gundlach, G.T., Achrol, R.S. and Mentzer, J.T. (1995) ‘The structure of commitment in
exchange’, The Journal of Marketing, pp.78-92.
16) Harris, L.C. and Goode, M.M.H. (2004) ‘The four levels of loyalty and the pivotal role of trust:
a study of online service dynamics’, Journal of Retailing, 80(2),pp. 139-158.
17) Hess,R.L.,Ganesan, S. and Klein, N.M. (2003) ‘Service failure and recovery: the impact of
relationship factors on customer satisfaction’, Journal of the Academy of Marketing
Science,31(2),pp.127-145.
18) Hine, D. and Carson, D. (2007) Innovative Methodologies in Enterprise Research. Cheltenham:
Edward Elgar Publishing.
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19) Hui, M.K., Ho, C.K.Y. and Wan,L.C. (20110 ‘Prior Relationships and Consumer Responses to
Service Failures: A Cross-Cultural Study’, Journal of International Marketing, 19 (1),pp. 59-
81.
20) Keaveney,S.M. (1995) ‘Customer switching behavior in service industries: An exploratory
study’, Journal of Marketing, 59(2),p. 71.
21) Lau, G.T. and Lee,S.H.,1999. Consumers' trust in a brand and the link to brand loyalty. Journal
of Market-Focused Management, 4(4),pp.341-370.
22) Lee,J. and Lee, H. (2013) ‘Does satisfaction affect brand loyalty?’, Academy of Marketing
Studies Journal,17(2),p. 133.
23) Mayer, R.C., Davis, J.H. and Schoorman, F.D. (1995) ‘An integrative model of organizational
trust’, Academy of management review,20(3),pp. 709-734.
24) Moorman, C., Zaltman, G. and Deshpande, R. (1992) ‘Relationships between providers and
users of market research:the dynamics of trust within and between organizations’, Journal of
marketing research, 29(3),p.314.
25) Morgan, R.M. and Hunt, S.D. (1994) ‘The commitment-trust theory of relationship
marketing’, The journal of marketing, pp.20-38.
26) Oliver, R. L. and John E. S. (1989) ‘Equity and Disconfirmation Perceptions as Influences on
Merchant and Product Satisfaction’, Journal of Consumer Research,16 (December), pp. 372-
83.
27) Oliver, R. L. (1999) ‘Whence customer loyalty?’, Journal of Marketing,63(July), pp. 33-44.
28) Parasuraman,A., Zeithaml, V.A. and Berry, L.L. (1985) ‘A conceptual model of service quality
and its implications for future research’,The Journal of Marketing, pp.41-50.
29) Punniyamoorthy, M. and Prasanna Mohan Raj, M. (2007) ‘An empirical model for brand loyalty
measurement’,Journal of Targeting,Measurement and Analysis for Marketing, 15(4), pp. 222-
233.
30) Reichheld, F.F. (1996) The Loyalty Effect. Boston:Harvard Business School Press.
31) Reichheld, F. F. and Schefter, P. (2000) ‘E-loyalty your secret weapon on the Web’, Harvard
Business Review,(July/August), pp.105–113.
32) Sirdeshmukh, D.,Singh, J., and Sabol, B. (2002) ‘Consumer trust, value, and loyalty in
relational exchanges’,Journal of Marketing,66, pp. 15–37.
33) Verhoef,P. C., Francis, P. H. and Hoekstra,J.C. (2002) ‘The effect of relational constructs on
customer referrals and number of services purchased from multiservice provider: Does age of
relationship matter?’, Academy of Marketing Science,30, 3.
34) Zeithaml, V.A. (1988) ‘Consumer perceptions of price, quality, and value: a means-end model
and synthesis of evidence’, The Journal of marketing,pp. 2-22.
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5. Appendix
5.1. Appendix A – Questionnaire
NOTE:The following survey information is intended for research purpose. If you agree to this intended purposeof the
information you providebelow, please continue to fill the survey below. Please be noted that by continuing to fill theform
you will provideimplicit approvalof thebelow information being used for aforementioned purpose.
Section 1 – PersonalDetails
Age:
Nationality:
Gender (Please Select One) Male Female
Section 2 Satisfaction
Please rate the following statements on how much you agree or disagree with them:
Strongly Strongly
Disagree Agree
I am very satisfied with the service at this store 1 2 3 4 5
The service at this store is of high quality 1 2 3 4 5
I rate this stores service quality highly in comparison to other stores 1 2 3 4 5
The service quality at this store is not always high 1 2 3 4 5
Section 3 Trust
Please rate the following statements on how much you agree or disagree with them:
Strongly Strongly
Disagree Agree
The service at this store always meet my expectations 1 2 3 4 5
The store can be counted on to produce a good service 1 2 3 4 5
I cannot always trust that the service at this store will be good 1 2 3 4 5
This store is reliable 1 2 3 4 5
The quality of this store is consistently high 1 2 3 4 5
I worry that going to this store will be a waste of time 1 2 3 4 5
I am concerned that the service will not be worth the money 1 2 3 4 5
Section 4 Commitment
Please rate the following statements on how much you agree or disagree with them:
Strongly Strongly
Disagree Agree
I am proud to belong to this store 1 2 3 4 5
I feela sense of belonging to this store 1 2 3 4 5
I care about the long-term success of this store 1 2 3 4 5
I am a loyal patron of this store 1 2 3 4 5
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Section 5 Loyalty
Strongly Strongly
Disagree Agree
I plan to visit this store in the future 1 2 3 4 5
I plan to purchase from this store in the future 1 2 3 4 5
I have no issue with giving my time and money to this store 1 2 3 4 5
I am a loyal patron of this store 1 2 3 4 5
Service Failure
Have you ever experienced a service failure in your store Yes No
What do you consider a service failure? :
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
……………………………………………….
Very Very
Satisfied Unsatisfied
How satisfied where you after this service failure occurred 1 2 3 4 5
No Maybe Yes
Did this make you feellike:
Leaving the store completely
Filing a complaint
Taking a break from the store
Going to another store
Very Very
Trustful Distrustful
How Trusting where you after this service failure
occurred
1 2 3 4 5
No Maybe Yes
Did this make you feellike:
Leaving the store completely
Filing a complaint
Taking a break from the store
Going to another store
Very Very
Committed Uncommitted
How Committed where you after this service failure
occurred
1 2 3 4 5
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No Maybe Yes
Did this make you feellike:
Leaving the store completely
Filing a complaint
Taking a break from the store
Going to another store

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sitedata_temp_turnitintool_995007652._6243_1457133938_83827

  • 1. 1 | P a g e Name: David Oluwadare Id: 150995043 To What Extent Does Trust, Commitment and Satisfaction Affect Consumer Brand Loyalty, in the Situation of a Service Failure Name of my supervisor: Paolo Antonetti Name of the program: MSc Marketing, School of Business and Management, Queen Mary, University of London: BUSM096 - Relationship and Network Marketing February 2016
  • 2. 2 | P a g e 1. Introduction ............................................................................................................................... 3 1.1. Background .......................................................................................................................... 3 1.2. Rationale for Research ......................................................................................................... 4 1.3. Research Aim ………………………………………………………………………………5 1.4. Research Questions .............................................................................................................. 5 1.5. Hypothesis ………………………………………………………………………………….5 2. Literature Review..................................................................................................................... 6 2.1. What is Brand Loyalty ......................................................................................................... 6 2.3. Variables of Brand Loyalty....................................................................................................6 2.3.1. Satisfaction……….................................................................................................. 6 2.3.2. Trust …………………............................................................................................7 2.3.3. Commitment ………...............................................................................................8 3. Methodology ............................................................................................................................ 9 3.1. Research Method ................................................................................................................ 9 3.2. Survey Design & Justification............................................................................................. 9 3.3. Timetable ……………………….........................................................................................9 4. References …............................................................................................................................10 5. Appendix …..............................................................................................................................12 5.1. Appendix A- Questionnaire ………....................................................................................9
  • 3. 3 | P a g e 1. Introduction 1.1 Background Brand loyalty has become increasingly important in recent years because of the benefits that can be derived from it. According to Lau and Lee (1999), two of the main benefits of brand loyalty are: its ability to motivate repeat purchase in customers and its ability to drive word of mouth (WOM), through recommendations. Reichheld, Frederick & Schefter (2000) also agreed with this, stating that BL can lead to economic advantage through repeat purchases and that loyal customers also take over the function of advertising through WOM. Other benefits of BL include, its ability to drive brand equity and increase the overall profitability of the organisation (Chaudhuri and Holbrook, 2001). Brand loyalty is a very important characteristic in many businesses, as it can be used as an important tool to drive the success of a business (Reichheld, Frederick & Schefter (2000). Various researches as well as marketers have voiced this perception. Chaudhuri and Holbrook (2001) stated that, there is a correlation between the level of brand loyalty an organisation has and its profitability. Various other researchers have emphasised the importance of brand loyalty and the impact on a business. With brand loyalty consumers are willing to pay more for the brand because they perceive that it holds some unique value, which no other alternative brand can provide (Chaudhuri and Holbrook, 2001). Additionally, brand loyalty also leads to greater market share,due to the constant repurchasing behaviour of brand loyal customers (Assael, 1998). Loyalty is an economic necessity and in order for an organisation to succeed,it is vital that they possess it (Reichheld, Frederick and Schefter,2000). Because of its vast importance, especially it ability to retain customers, executives within various organisations have started to place growing importance on the brand loyalty (Reichheld, Frederick & Schefter (2000). Exploiting the notion of loyalty means that organisations can retain customers,who will continue to make repeated purchases over the years, thereby increasing profits (Reichheld, Frederick and Schefter, 2000). This is more favourable than the costlier and unprofitable alternative of trying to acquire new consumers, through various forms of marketing (Reichheld, Frederick and Schefter,2000). A study published by Brain and Company, showed that an organisation could increase it profits by 25%-95% as a result of increasing its customer retention by just 5% (Reichheld, Frederick and Schefter,2000). This shows the incredible importance, to an organisation, of being able to retain their customers; the major way to do this successfully is through the notion of brand loyalty. However,instances do occur where the brand loyalty of customer is threatened; which is dangerous because of the effect that it may have on customer retention and ultimately the profitability of the organisation. One of the major threats to brand loyalty is in relation to service quality. Bolton and Drew (1991) also supported this, stating that service quality has a significant effect on customer loyalty. Zeithamal (1988) defined service quality as the judgment of a consumer about the overall superiority of a product or service. In addition, Parasuraman,Zeithaml and Berry (1985) stated that service quality involves a comparison between expectation and performance; which looks at how well the service delivered actually matches customer expectation. This implies that a good service quality is one where the performance either matches or exceeds customer expectations. In contrast bad service, or ‘service failure’ as will be referred to it in this article, is when service performance falls below customer expectations (Hess,Ganesan and Klein, 2003). As stated by Hui, Ho, and Wan (2011) in the delivery of services, at some point in every business there will be a service failure, due to human involvement. In a study carried out by Keaveney (1995), it was shown that service failure was one of the main issues that lead to dissatisfied customers and customers ultimately switching to a different provider. The study within the article showed that, 78% of respondents claimed that some form of service
  • 4. 4 | P a g e failure was the reason for which they switched service providers (Keaveney,1995). This shows that when it comes to the issue of loyalty and retention, the quality of service is extremely important and service failure can have a detrimental impact upon the profitability of a firm. The concept of brand loyalty will be explored in more depth in the literature review. 1.2. Rational for Research While past research has focused on the importance of brand loyalty and its effect on the profitability of a firm, not much research has been done to look at it in the context of a service failure. Additionally, the notion of brand loyalty - in previous research - tends to focus on a vast array of variables, which are claimed to influence brand loyalty in one form or another (see fig 2). However, this research aims to propose a conceptual framework, identifying three key variables of brand loyalty. In addition, it looks to explore the relationship between each of these variables and the impact that service failure has upon them. Fig.2. Brand Loyalty Variables (Punniyamoorthy and Prasanna,2007) Figure 2
  • 5. 5 | P a g e 1.3. Research Aim The aim of this article is look at the impact of service failure on brand loyalty. This is done through looking at three variables influencing brand loyalty, which are satisfaction, trust and commitment (Punniyamoorthy and Prasanna,2007). The article aims to show that when a service failure occurs,it has a significant impact on each of these variables in one way or another; which then goes on to influence brand loyalty in a negative way. The relationship between these three variables will be explored under the context of service failure, in order to identify the way in which each of these variables influence brand loyalty after the failure. This relationship is illustrated in figure 1. 1.4. Research Question The key variables, which this study will focus on, are: Trust, commitment and satisfaction. On this basis the primary research question would be:  ‘What is the relationship between Trust, commitment, satisfaction and brand loyalty’ and  ‘What impact do they have on brand loyalty, in the situation of a service failure’? 1.5. Hypothesis This study proposes eight hypotheses as a starting point for further investigation. This has been illustrated in figure 1: Figure 1
  • 6. 6 | P a g e 2. Literature Review 2.1. What is Brand Loyalty (BL)? There has been incredible emphasis placed on the concept of brand loyalty, yet the concept has not been completely defined (Lau and Lee,1999). Some researchers have stated that brand loyalty is the constant repeat purchasing behaviour of consumers (Brown, 1952; Cunningham, 1956a). Other researchers have stated that,brand loyalty is the measure of attachment that a consumer has towards a brand (Aeker,1991). From both definitions, what has been identified is that some researcherssee the concept of brand loyalty as either behavioural or attitudinal. Current researchers have acknowledged that these two dimensions of brand loyalty exist; therefore, they have created a multidimensional definition on the construct of brand loyalty. Engel & Blackwell (1982) defined brand loyalty as, “the preferential, attitudinal and behavioural response toward one or more brands in a product category expressed over a period of time by a consumer.” Additionally, Assael(1992, p. 87), also saw brand loyalty in this multidimensional way, defining it as “a favourable attitude toward a brand resulting in consistent purchase of the brand over time.” 2.2. - Variables and antecedents that connect to ‘brand Loyalty’ concept The benefits and importance of BL has not only been realised by businesses in the real world, but also by researches in the marketing field. This has resulted in vast research on the topic of brand loyalty, with researchers asking questions like: what does it entail, how do we attain it and how do we sustain it? (Harris and Goode, 2004). In striving to answer these various questions, numerous models and frameworks have been developed proposing variables and antecedents that lead to Brand Loyalty (see fig. 2). Through rigorous research this study has identified three main variables that are believed to have an impact on BL, whether directly or indirectly. These three variables are trust, commitment, and customer satisfaction (Punniyamoorthy and Prasanna,2007). This study aims to demonstrate that these three mediating variables determine to what extent brand loyalty is negatively impacted by the occurrence of a service failure. 2.2.1. Satisfaction Customer satisfaction has been regarded as a fundamental determinant of consumer behaviour (Oliver 1980). It is for this reason that research and time has been invested in the concept of consumer satisfaction. Customer satisfaction can be divided into two constructs: cumulative satisfaction and transaction-specific satisfaction (Garbarino and Johnson, 1999). Transaction specific satisfaction relates to a customer’s post purchase evaluation, judgment or reaction to the most recent transaction
  • 7. 7 | P a g e that they have had with a firm (Lee and Lee,2013). Cumulative satisfaction is an overall evaluation, based on the total purchase and consumption experience with a good/service over time (Anderson, Fornell and Lehmann, 1994, p.54). This study will be focusing on the cumulative satisfaction construct, as total consumption experience has a stronger connection to brand loyalty than transaction specific satisfaction (Garbarino and Johnson, 1999). Customer satisfaction can also be divided into two groups: satisfaction level and satisfaction strength (Chandrashekaran et al., 2007). Satisfaction strength relates to the conviction in which a judgment is held, whereas satisfaction level only looks at the magnitude of the judgement (Chandrashekaran et al., 2007). In other words, satisfaction strength looks at how strongly satisfaction is held in the customer and if there is any risk of defect; whereas satisfaction level identifies that satisfaction exists within customers (Chandrashekaran et al., 2007). Where satisfaction is strongly held there is 60% less risk of customers defecting (Chandrashekaran et al., 2007). Various researchers have stated that there is a relationship between customer satisfaction and brand loyalty (Anderson and Sullivan, 1993; Fornell, 1992; Oliver and Swan, 1989). Oliver (1999) stated that loyalty was a consequence of customer satisfaction. Lee & Lee (2013) stated that when there is an increase in customer satisfaction, there would also be a significant increase in loyalty and ultimately profitability. previous research has emphasised that there is a relationship between customer satisfaction and brand loyalty. However, this study differs from previous research as it aims to demonstrate that the impact of customer satisfaction on BL when a service failure has occurred. It also aims to show that the customer satisfaction brand loyalty relationship is only minimal and is not as strong as the relationship brand loyalty has with other variables (trust and commitment). This view is also supported by Chandrashekaran et al. (2007) who showed that, there are various situations in which consumers have stated that they are satisfied with the service provided to them and still they decide to defect. Additionally, Reichheld (1996) stated that in a group of customers who filled out a defect report, before defection 65%-85% of them stated that they were satisfied or very satisfied. Therefore,this implies that satisfaction may have some initial connection to brand loyalty, but it is not a strong enough connection to sustain a relationship long-term. There must be other variables out there that produce a durable brand loyal relationship. 2.2.2. Trust Many researchers have stated that trust is an extremely essential attribute and must be present in relationship initiation, formation and maintenance within a variety of exchange contexts (e.g., Sirdeshmukh et al., 2002; Verhoef,Francis and Hoekstra,2002). Some have gone as far as to say that trust is the single most important relationship marketing tool that a company has at their disposal (Berry, 1996, p. 42). It can therefore be deduced that trust is an extremely important variable, that influences how companies and their customers interact with one another. There have been various definitions of the concept of trust. Lee & Lee (1992) stated that trust is the willingness to rely on another party even in the face of risk; this willingness comes from an understanding based on past experiences. Morgan and Hunt (1994, p.23) defined trust as, the perception of confidence in an exchange partner’s reliability and integrity. As stated by Garbarino and Johnson (1999), the recurring notions that continuously present themselves when defining trust are confidence and reliability. This study looks more at trust in a customer context rather than an individual. Therefore,the definition of trust being used within this article is, a customer’s confidence in the quality and reliability of the service offered (Garbarino and Johnson, 1999).
  • 8. 8 | P a g e This study concurs with the various research shown above, highlighting the importance of trust within a brand consumer relationship and believes that this attribute of trust is directly linked to the attribute of loyalty. This view point has been confirmed by various researchers within the marketing field, as well as business in the real world. Chaudhuri and Holbrook (2001), within their study, found that there was strong evidence to support a significant relationship between brand trust and both purchase and attitudinal loyalty. Sirdeshmukh et al. (2002) also positioned that trust was directly linked to loyalty. Furthermore, Reichheld and Schefter (2000, p. 107) stated that, “to gain the loyalty of customers, you must first gain their trust. This trust-loyalty relationship is supported/explained by the reciprocity arguments (Sirdeshmukh et al., 2002). The argument states that when a provider acts in a way that builds customer trust, perceived risk is reduced; enabling the consumer to make confident prediction about the provider’s future behaviours, leading to loyalty (Mayer,Davis and Schoorman, 1995; Morgan and Hunt, 1994) However,although there has been much research on the concept of trust and its relation to brand loyalty. There has not been as much research on the effect of service failure, in relation to these variables. This study also differs from other research in that it aims to show the relative importance of trust in its relationship to brand loyalty and the negative impact of service failure on this relationship. As stated above, trust is about a customer’s confidence in the quality and reliability of the service offered; which reduces the perceived risk of interacting with that provider (Morgan and Hunt, 1994; Garbarino and Johnson, 1999). A service failure is when customer expectations are not met (Hess, Ganesan and Klein, 2003). Therefore,it can be assumed that when a service failure occurs,this is a breach of the confidence and reliability that a customer held towards a firm; in other words, they have failed their customer’s trust. The statement by Reichheld and Schefter (2000, p. 107) - “to gain the loyalty of customers, you must first gain their trust” - can also then mean that if you lose the trust of the customer, you can eventually also lose their loyalty. This study aims to explore this idea in further depth and has therefore proposed these hypotheses. 2.2.3. Commitment Similar to the concept of trust, various researchers have regarded commitment as a necessary ingredient for a successfullong-term relationship (Dwyer,Schurr and Oh, 1987; Morgan and Hunt, 1994). Commitment has been defined as an enduring desire to maintain a valued relationship (Moorman, Zaltman and Deshpande,1992, p.316). Within their article, Gundlach, Achrol and Mentzer (1995) argued that commitment has three components: an instrumental component, an attitudinal component and temporal dimension. The instrumental component looked at commitment as having some form of investment. The attitudinal component looked at commitment as having some form of psychological attachment and the temporal dimension indicated that a committed relationship existed over time (Gundlach, Achrol and Mentzer, 1995)). Garbarino and Johnson (1999) defined commitment as the psychological attachment, loyalty, concern for future welfare,identification and pride in being associated with an organisation. Garbarino and Johnson (1999), also stated that commitments lead to long-term consistent customers. like the variables of satisfaction and trust, commitment is also believed to have a relationship with brand loyalty. Various researchers have highlighted this relationship, stating that to some extent the commitment variable is the closest variable to brand loyalty. This is because as the definition has
  • 9. 9 | P a g e implied commitment presents itself in repeat purchasing behaviour of a brand and long-term attachment to that brand (Punniyamoorthy and Prasanna,2007). These characteristics are also present in brand loyal customers. This study agrees that there exists a connection between commitment and brand loyalty but differs from previous research in that it aims to explore the commitment and brand loyalty relationship in the context of a service failure. 3. Methodology 3.1. Research Method The method which was utilised within this study to collect data was a quantitative survey of customers, as shown in the appendix. There are various reasons quantitative techniques were used. First, the research did not seek to discover new variables that influenced brand loyalty but intended to assess brand loyalty in relation the variables that already existed. In such a situation Hine and Carson (2007) state that applying quantitative research is more appropriate as qualitative research methods may not allow for conclusive statements to be made. Additionally, the research also proposed specific hypothesis and rejection or acceptance of a hypothesis needs statistical analysis The customers used within this study had to be loyal in some form to an organisation. The way in which the study identified the customer as loyal was in their obtainment of a loyalty card and regular use of that card within their relative store. This sample had to meet a certain threshold of points before they were identified as loyal customers. Various surveys were mailed out to these potential brand loyal customers, based on the data that was obtained on their loyalty card. This data was willingly given by the organisation, as they aimed to benefit from the results of this study as well. The respondents were informed that the survey was for both educational and managerial purposes and their response would be kept completely anonymous. 3.2. Survey Design and Justification The study develops a survey model which highlights the relationship between satisfaction, trust, commitment and brand loyalty. The model also aimed to capture the overall relationship between all three variables in the context of a service failure. The type of questions which were used were strong agree/disagree which was measure on a likert scale. Various other form of questions was used as well in the study. 3.3. Timetable Below is a Gantt chart illustrating the development of this study from inception to conclusion. It shows the process and time in which the research question was developed and also how the methodology, data collection and data analysis were distributed.
  • 10. 10 | P a g e Topic Finding Reserch possible topics Brainstrom research question Discuss with module supervisor Finalise research question Proposal Agree the RQ and Scope Proposal Lit Review Ethical Approval Detailed planning of stage Finalise Proposal Literature Review Define main theories Search out journal sources Critique the Sources Finalise Lit Review Methodology Select Methods Critique Methodology Create Ethical Statement Create Survey Collect Data Analyse Data Write up remaining sections January February March
  • 11. 11 | P a g e 4. References 1) Anderson, E. W. and Sullivan, M. W. (1993) ‘The antecedents and consequences of customer satisfaction for firms’, Marketing Science,12(spring), pp. 125-143. 2) Anderson, E.W., Fornell, C. and Lehmann, D.R. (1994) ‘Customer satisfaction, market share, and profitability: Findings from Sweden’, The Journal of Marketing,pp.53-66. 3) Assael,H. (1992) Consumer behaviorand marketing action.Boston,MA: PWS-KENT Publishing Company. 4) Assael,H. (1998) Consumer Behavior and Marketing Action. Cincinnati, OH: South-Western. 5) Berry, L. (1996) ‘Retailers with a Future’, Marketing Management,5 (Spring), pp. 39-46. 6) Bolton, R.N. and Drew,J.H. (1991) ‘A multistage model of customers' assessments of service quality and value’, Journal of consumer research,pp.375-384. 7) Brown, G.H. (1953) ‘Brand Loyalty-fact or fiction’, Trademark Rep, 43,p.251. 8) Chandrashekaran,M., Rotte, K., Tax, S.S. and Grewal, R. (2007) ‘Satisfaction strength and customer loyalty’, Journal of Marketing Research,44(1),pp.153-163. 9) Chaudhuri, A. and Holbrook, M.B. (2001) ‘The chain of effects from brand trust and brand affect to brand performance: the role of brand loyalty’, Journal of marketing,65(2), pp.81-93. 10) Cunningham, R. M. (1956) ‘Brand Loyalty – What, Where, How Much?’, Harvard business review,34 (January-February),pp. 116-28. 11) Dwyer,F.R., Schurr, P.H. and Oh, S. (1987) ‘Developing buyer-seller relationships’, The Journal of marketing, pp.11-27. 12) Engel, J.F. and Blackwell, R.D. (1982) Consumer behaviour. New York:The Dryden Press. 13) Fornell, C. (1992) ‘A national customer satisfaction barometer: the swedish experience’,Journal of Marketing,56, pp. 6- 21. 14) Garbarino, E. and Johnson, M.S. (1999) ‘The different roles of satisfaction, trust, and commitment in customer relationships’, The Journal of Marketing,pp.70-87. 15) Gundlach, G.T., Achrol, R.S. and Mentzer, J.T. (1995) ‘The structure of commitment in exchange’, The Journal of Marketing, pp.78-92. 16) Harris, L.C. and Goode, M.M.H. (2004) ‘The four levels of loyalty and the pivotal role of trust: a study of online service dynamics’, Journal of Retailing, 80(2),pp. 139-158. 17) Hess,R.L.,Ganesan, S. and Klein, N.M. (2003) ‘Service failure and recovery: the impact of relationship factors on customer satisfaction’, Journal of the Academy of Marketing Science,31(2),pp.127-145. 18) Hine, D. and Carson, D. (2007) Innovative Methodologies in Enterprise Research. Cheltenham: Edward Elgar Publishing.
  • 12. 12 | P a g e 19) Hui, M.K., Ho, C.K.Y. and Wan,L.C. (20110 ‘Prior Relationships and Consumer Responses to Service Failures: A Cross-Cultural Study’, Journal of International Marketing, 19 (1),pp. 59- 81. 20) Keaveney,S.M. (1995) ‘Customer switching behavior in service industries: An exploratory study’, Journal of Marketing, 59(2),p. 71. 21) Lau, G.T. and Lee,S.H.,1999. Consumers' trust in a brand and the link to brand loyalty. Journal of Market-Focused Management, 4(4),pp.341-370. 22) Lee,J. and Lee, H. (2013) ‘Does satisfaction affect brand loyalty?’, Academy of Marketing Studies Journal,17(2),p. 133. 23) Mayer, R.C., Davis, J.H. and Schoorman, F.D. (1995) ‘An integrative model of organizational trust’, Academy of management review,20(3),pp. 709-734. 24) Moorman, C., Zaltman, G. and Deshpande, R. (1992) ‘Relationships between providers and users of market research:the dynamics of trust within and between organizations’, Journal of marketing research, 29(3),p.314. 25) Morgan, R.M. and Hunt, S.D. (1994) ‘The commitment-trust theory of relationship marketing’, The journal of marketing, pp.20-38. 26) Oliver, R. L. and John E. S. (1989) ‘Equity and Disconfirmation Perceptions as Influences on Merchant and Product Satisfaction’, Journal of Consumer Research,16 (December), pp. 372- 83. 27) Oliver, R. L. (1999) ‘Whence customer loyalty?’, Journal of Marketing,63(July), pp. 33-44. 28) Parasuraman,A., Zeithaml, V.A. and Berry, L.L. (1985) ‘A conceptual model of service quality and its implications for future research’,The Journal of Marketing, pp.41-50. 29) Punniyamoorthy, M. and Prasanna Mohan Raj, M. (2007) ‘An empirical model for brand loyalty measurement’,Journal of Targeting,Measurement and Analysis for Marketing, 15(4), pp. 222- 233. 30) Reichheld, F.F. (1996) The Loyalty Effect. Boston:Harvard Business School Press. 31) Reichheld, F. F. and Schefter, P. (2000) ‘E-loyalty your secret weapon on the Web’, Harvard Business Review,(July/August), pp.105–113. 32) Sirdeshmukh, D.,Singh, J., and Sabol, B. (2002) ‘Consumer trust, value, and loyalty in relational exchanges’,Journal of Marketing,66, pp. 15–37. 33) Verhoef,P. C., Francis, P. H. and Hoekstra,J.C. (2002) ‘The effect of relational constructs on customer referrals and number of services purchased from multiservice provider: Does age of relationship matter?’, Academy of Marketing Science,30, 3. 34) Zeithaml, V.A. (1988) ‘Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence’, The Journal of marketing,pp. 2-22.
  • 13. 13 | P a g e 5. Appendix 5.1. Appendix A – Questionnaire NOTE:The following survey information is intended for research purpose. If you agree to this intended purposeof the information you providebelow, please continue to fill the survey below. Please be noted that by continuing to fill theform you will provideimplicit approvalof thebelow information being used for aforementioned purpose. Section 1 – PersonalDetails Age: Nationality: Gender (Please Select One) Male Female Section 2 Satisfaction Please rate the following statements on how much you agree or disagree with them: Strongly Strongly Disagree Agree I am very satisfied with the service at this store 1 2 3 4 5 The service at this store is of high quality 1 2 3 4 5 I rate this stores service quality highly in comparison to other stores 1 2 3 4 5 The service quality at this store is not always high 1 2 3 4 5 Section 3 Trust Please rate the following statements on how much you agree or disagree with them: Strongly Strongly Disagree Agree The service at this store always meet my expectations 1 2 3 4 5 The store can be counted on to produce a good service 1 2 3 4 5 I cannot always trust that the service at this store will be good 1 2 3 4 5 This store is reliable 1 2 3 4 5 The quality of this store is consistently high 1 2 3 4 5 I worry that going to this store will be a waste of time 1 2 3 4 5 I am concerned that the service will not be worth the money 1 2 3 4 5 Section 4 Commitment Please rate the following statements on how much you agree or disagree with them: Strongly Strongly Disagree Agree I am proud to belong to this store 1 2 3 4 5 I feela sense of belonging to this store 1 2 3 4 5 I care about the long-term success of this store 1 2 3 4 5 I am a loyal patron of this store 1 2 3 4 5
  • 14. 14 | P a g e Section 5 Loyalty Strongly Strongly Disagree Agree I plan to visit this store in the future 1 2 3 4 5 I plan to purchase from this store in the future 1 2 3 4 5 I have no issue with giving my time and money to this store 1 2 3 4 5 I am a loyal patron of this store 1 2 3 4 5 Service Failure Have you ever experienced a service failure in your store Yes No What do you consider a service failure? : …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ………………………………………………. Very Very Satisfied Unsatisfied How satisfied where you after this service failure occurred 1 2 3 4 5 No Maybe Yes Did this make you feellike: Leaving the store completely Filing a complaint Taking a break from the store Going to another store Very Very Trustful Distrustful How Trusting where you after this service failure occurred 1 2 3 4 5 No Maybe Yes Did this make you feellike: Leaving the store completely Filing a complaint Taking a break from the store Going to another store Very Very Committed Uncommitted How Committed where you after this service failure occurred 1 2 3 4 5
  • 15. 15 | P a g e No Maybe Yes Did this make you feellike: Leaving the store completely Filing a complaint Taking a break from the store Going to another store