Caine second presentation

1. Customer value and customer
loyalty: Is competition a missing
link?
Presenter: CaineChen
Instructor: Dr. Pi-Ying Teresa Hsu
Date: Jan.5, 2015
research writing and publishing

2. Citation
❖ Chen, S.-C. (2015). Customer value and
customer loyalty: Is competition a missing
link? Journal of Retailing and Consumer
Services, 22, 107–116.
doi:10.1016/j.jretconser.2014.10.007
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3. Content
1. Introduction
2. Theoretical Background
3. Method
4. Result
5. Suggestion
6. Limitation
7. Reflection
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4. Introduction
1. Background
2. Purpose of the study
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5. Introduction
Background
❖A loyal customer is regarded as a
type of competitive asset for an
organization.
(Dekimpe et al., 1997)
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❖Keeping a long-term customer
relation is a challenge for business
practitioners and remains to yet be
researched by scholars. (Grönroos, 2009)
customer value
service encounter

6. Introduction
Purpose of the study
❖This study is aimed at providing an
insight into the effects of competition
on customer value delivery for
customer loyalty.
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customer value
service encounter
(Chen, S.-C. 2015)

7. Theoretical background
customer loyalty
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❖is defined as a consumer’s loyal attitude
and behavior toward a specific service
firm, despite competitors providingcustomer value
service encounter
(Chen, S.-C. 2015)

8. Theoretical background
customer value
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❖ is defined as an object's overall evaluation
of value … on a comparison of
perceived benefits with perceived costs
from both the rational and experiential
perspective
customer value
service encounter
(Chen, S.-C. 2015)

9. Theoretical background
service encounter
9
service encounter
customer value
❖ human interactions
(Solomon et al., 1985)
❖The interactions between service
employees and consumers provide a
basis for developing customer loyalty.
(Frow & Payne, 2007)

10. Theoretical background
competition
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❖…the rivalry among sellers trying to
achieve such goals as increasing profits,
market share, and sales volume by
varying the elements of the marketing mix:
price, product, distribution, and promotion
service encounter
customer value
(Chen, S.-C. 2015)

11. Hypotheses(1)
❖H1-8: Customer loyalty is positively
influenced by the service employee ’s
efforts to implement customer value.
customer value
service encounter
customeremployee

12. Hypotheses(2)
❖Hm1-7: The higher degree the
competition, the stronger the
relationship between customer loyalty
and customer value.customer value
service encounter
customeremployee

13. Hypotheses(3)
1. quality (H1);(Hm1)
2. servicescape(H2);(Hm2)
3. service episodes (H3); (Hm3)
4. customized service (H4);(Hm4)
5. service equity (H5); (Hm5)
6. service risk avoidance (H6);(Hm6)
7. social‐psychological interactions
(H7);(Hm7)
8. consideration of service alternatives(H8)
customer value
service encounter
customeremployee

14. Method
Sample
❖The total number of valid responses
was 96 from qualified service
employees and 340 from qualified
customers.
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❖…hairdressing sector of personal
…have relatively high interaction
between …

15. Instrument used
Questionnaire
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16. Method
Procedures
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employees female(90.1%)
7 years in the
current company
12 years in the
hairdressing sector
consumers female (93.7%)
in the range of 2–3
years (30.6%)
used the service
once a week
(28.7%)
❖96 valid matched sets of data formed
by employees and consumers

17. Method
Analysis(1/3)
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18. Findings(1/3)
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❖Hypothesis Hm1, which
posits a significant
interaction between service
quality and competition, is
supported (β＝0.12, t＝2.19,
po<0.05).

19. Method
Analysis(2/3)
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20. Findings(2/3)
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❖These results mirror those
for service quality, and
indicate that the relationship
between servicescape and
customer loyalty is strongest
when competition is
high.(Hm2)

21. Method
Analysis(3/3)
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22. Findings(3/3)
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❖…the interaction term between
service equity and competition is
negative..indicates that the effect
of competition on customer
loyalty becomes similar at a high
level of service equity…(Hm5)

23. Discussion and Suggestion(1/2)
❖This finding suggests that the
factors driving customer loyalty are
better captured from the consumer
perspective.
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customer value
service encounter
customeremployee

24. Discussion and Suggestion(2/2)
❖These findings provide service
employees with suggestions
regarding the approach to ensure
the maintenance of a service
advantage to reach higher levels of
service performance.
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customer value
service encounter
customeremployee

25. Limitations
❖ …a larger sample size could have
made the findings more robust..the
results may also apply to other
service settings sharing some
characteristics…
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customer value
service encounter

26. Reflections
❖ focus group interviews with both
parties in order to examine the
reasons behind their responses could
produce further insights into the
formation of customer loyalty..
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customer value
service encounter

27. Thank you
research writing and publishing
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