The current research is undertaken to gain a better understanding of the formation of customer loyalty and the effects that loyalty has on customer outcome behaviors. As a result of a review of the literature and two empirical studies, a loyalty measurement model is identified that identifies four types of service loyalty (i.e. cognitive, affective, conative, and action). The loyalty measurement model and subsequent structural research model are tested on a sample of 2,187 consumers from such wide-ranging service industries as movie theatres, dry cleaners, sporting events, hair salons/barber shops, auto repair, and physicians.
The development and validation of the loyalty scale is the first contribution of the current research. In addition, the antecedent effects of service quality, satisfaction, value, trust, justice, and risk on loyalty are considered. The results of the current research suggest that overall perceptions of service quality, satisfaction, value, and trust all significantly drive customers’ attitudinal loyalty. Furthermore, the results indicate that identification, exclusive consideration, advocacy (WOM), strength of preference, and share of wallet behaviors are direct outcomes of service loyalty.
The findings also suggest that gender, age, and income are demographic variables that moderate the relationships between loyalty and its antecedents. Likewise, the level of complexity, justice, and risk inherent in the service delivery also moderate the strength of the relationships between the antecedents to loyalty and loyalty. Finally, the research identifies the differential effects of service type and type of consumption on the relationships identified in the research model.