Understanding online customers’ ties to merchants: the moderating influence of trust on the relationship between switching costs and e-loyalty

Fostering customer loyalty is a key objective for online businesses. Initial transactions with new customers are less profitable than transactions with existing customers, making loyalty an important strategy. Drawing on research examining online customer loyalty (termed e-loyalty), switching costs, and trust, this study provides an empirical test of the relative influence of trust vs switching costs on e-loyalty for e-service providers. We further examine whether trust moderates the relationship between switching costs and e-loyalty. We propose that in the presence of high customer trust, e-service providers should have less need to rely on switching costs as a driver of e-loyalty. We test the hypothesized relationships using data collected from 299 repeat users of online travel services. Our results confirm that trust is a more important predictor of e-loyalty than switching costs. In addition, we find that the impact of switching costs on e-loyalty depends on the level of trust felt by customers. This study extends our understanding of customer loyalty, switching costs, and trust in e-commerce environments and provides practical, theory-driven guidelines to e-businesses seeking to develop customer loyalty programmes.     

How virtual community participation influences consumer loyalty intentions in online shopping contexts: an investigation of mediating factors

Extant studies generally recognise that virtual community building is an effective marketing programme for forging deep and enduring affective bonds with consumers. This study extends previous research by proposing and testing a model that investigates key mediating processes (via trust, satisfaction and identification) that underlie the relationship between virtual community participation and consumer loyalty intentions. The authors test the hypotheses using data obtained from three large online retailing stores. Virtual community participation significantly enhances loyalty intentions, through both social mechanisms (via community identification) and psychological mechanisms (via trust and satisfaction). Moreover, the findings provide insights into the complex relationship between the two mechanisms in online shopping settings. Community identification is a pivotal factor for enhancing customer loyalty intentions. The results advance understanding of the process by which virtual community building facilitates the development of business-to-consumer relationships in the computer-mediated environment. The authors discuss the managerial implications of the findings, as well as avenues for further research.     

Team participation and online gamer loyalty

Online games have emerged as popular computer applications and gamer loyalty is vital to game providers, since online gamers frequently switch between games. Online gamers often participate in teams also. This study investigates whether and how team participation improves loyalty. We utilized a cross-sectional design and an online survey, with 546 valid responses from online game subjects. Confirmatory factor analysis was applied to assess measurement reliability and validity directly, and structural equation modeling was utilized to test our hypotheses. The results indicate that participation in teams motivates online gamers to adhere to team norms and satisfies their social needs, also enhancing their loyalty. The contribution of this research is the introduction of social norms to explain online gamer loyalty.     

Consumer behavior in online game communities: A motivational factor perspective

The concept of online communities has been used to improve customers’ loyalty in recent years. While studies on transaction community such as online auction have received more attention in the literature, entertainment community such as online game has seldom been addressed. This study applies the theory of reasoned action (TRA) and modifies the technology acceptance model (TAM) to propose a research model. An empirical study involving 356 subjects was conducted to test this model. The results indicate that customer loyalty is influenced by perceived enjoyment, social norms and preference. Perceived cohesion has an indirect impact on loyalty. In addition, the finding’s practical implication suggests that community managers must overcome the problems users encounter, including suffering from an unstable system, malicious players and grief players.     

Learning Virtual Community Loyalty Behavior From a Perspective of Social Cognitive Theory

Drawing upon social cognitive theory (SCT), this research postulates several personal and environmental factors as key drivers of virtual community loyalty behavior in online settings. An empirical testing of this model, by investigating undergraduate students' participation in communities of online games, reveals the applicability of SCT in virtual communities. The study's test results show that the influences of both affective commitment and social norms on community loyalty behavior are significant, whereas the influences of both exchange ideology and social support on community loyalty behavior are insignificant. This research contributes to the online community literature by assessing critical antecedent factors to the unexplored area of community loyalty behavior, by validating idiosyncratic drivers of community loyalty behavior and by performing an operationalization of affective commitment and social norms in a virtual world. Last, managerial implications and limitations of this research are provided.     

Can consumers be persuaded on brand microblogs? An empirical study

Building upon the persuasion theory in the social psychology literature, this study investigates how companies can use microblogging services to influence consumers’ participation and brand loyalty. We develop and empirically test our research model using an online survey in China. Our findings show that persuasion factors, including information quality, perceived similarity, and source credibility, increase community commitment. Perceived similarity and source credibility exhibit bias effects on information quality. Community commitment affects participation and brand loyalty, which is also influenced by participation. We expect that this research can contribute to the existing literature and provide marketers with important practical suggestions.     

Managing peer relationships online – Investigating the use of Facebook by juvenile delinquents and youths-at-risk

While extensive research has been conducted on young people’s peer interaction via online communication, the focus has been on mainstream youths, with marginalized youth communities being understudied. To help address this inadequacy, the current study conducted interviews with Singaporean male juvenile delinquents (n = 36) to understand the role of online communication in their peer interactions and the salient characteristics of such interactions. Our findings show that Facebook was the principal tool of online peer interaction. However, given the particular circumstances of juvenile delinquents, online social networking presents issues that may compromise efforts to rehabilitate them. These include extending the time and opportunities for unstructured and unsupervised peer socialization, peer endorsement of delinquent acts and the pressure of having to display group loyalty in the online space. Even after rehabilitation, youths who attempt to distance themselves from their delinquent peers are challenged by the persistence of their online social networks.     

How do bidders’ organism reactions mediate auction stimuli and bidder loyalty in online auctions? The case of Taobao in China

Currently, it is critical to nurture bidder loyalty in the highly competitive online auction business. This study investigated the mediating effect of consumer perceptions between technological/brand stimuli and bidder loyalty to an online auction website by applying the traditional and evolutionary stimulus–organism–response models. We tested these models using 449 bidders from Taobao, an online auction service provider in China. Based on the results of covariance-based structural equation modelling, we showed that consumer perceptions fully mediate technological stimuli, but only partially mediate brand stimuli, and bidder loyalty. These results can be used to further improve the related research and practice.     

An epidemiological assessment of online groups and a test of a typology: What are the (dis)similarities of the online group types?

A vast multitude of online groups exist, and authors have been rapidly investigating their dynamics. Extant studies have provided great information on the effects of online group membership, but limitations are often noted in these studies. Amongst the most concerning limitations are issues of generalizability. Authors are often unsure whether their results are able to generalize to other online groups, including those that are seemingly similar. For this reason, some researchers have created typologies of online groups, in hopes that online groups that fall within the same category will be generalizable; however, no study has analyzed the merit of an online group typology, and conclusions are based upon speculation. For this reason, the current study analyzed the dynamics of three different online groups, which fall within separate categories of an online group typology: a cancer support forum, a LGBT forum, and a Harry Potter fan forum. The results demonstrate that these groups vary in their properties, including group members’ group identity, well-being, and social support. These results provide support for an online group typology, and precisely demonstrate in what manner these groups differ. Additionally, the results offer valuable information about the individual groups, as some variables were previously unstudied in some group types. The discovery of these previously unknown dynamics leads to the potential of new studies, which is discussed. Therefore, the current study provides important implications for future studies, as well as the interpretation of future research results.     

Re-examining the influence of trust on online repeat purchase intention: The moderating role of habit and its antecedents

Customer loyalty or repeat purchasing is critical for the survival and success of any store. By focusing on online stores, this study investigates the moderating role of habit on the relationship between trust and repeat purchase intention. Prior research on online behavior continuance models perceives usefulness, trust, satisfaction, and perceived value as the major determinants of continued usage or loyalty, overlooking the important role of habit. We define habit in the context of online shopping as the extent to which buyers tend to shop online automatically without thinking. Building on recent research on the continued usage of IS and repeat purchasing, we develop a model suggesting that habit acts as a moderator between trust and repeat purchase intention, while familiarity, value and satisfaction are the three antecedents of habit. Data collected from 454 customers of the Yahoo!Kimo shopping mall provide strong support for the research model. The results indicate that a higher level of habit reduces the effect of trust on repeat purchase intention. The data also show that value, satisfaction, and familiarity are important to habit formation and thus relevant within the context of online repeat purchasing. The implications for theory and practice and suggestions for future research are also discussed.     

Understanding mobile hotel booking loyalty: an integration of privacy calculus theory and trust-risk framework

With the increased popularity of mobile devices, hotels and online travel agencies have started focusing on mobile hotel booking (MHB) in recent years. However, there has been limited research on users” loyalty intentions toward MHB technology. This research attempted to provide an integrated theoretical model that examines the determinants of MHB loyalty. The proposed model, which incorporates personalization, privacy concern, trust, perceived risk, and loyalty, was tested via structural equation modeling (SEM) by using data collected from 396 MHB users. The study results demonstrated that personalization is a strong predictor of MHB users” privacy concerns, trust, and risk perceptions. In addition, privacy concern had a significant impact on trust, and trust significantly influenced perceived risk. Finally, the results revealed that trust and perceived risk were associated with loyalty. This study provides valuable theoretical contributions for researchers and practical implications for online travel agencies, hotel operators and hospitality technology vendors.     

Improving Customer Retention in E-Commerce through a Secure and Privacy-Enhanced Loyalty System

Loyalty systems provide an interesting possibility for vendors in customer relationship management. This holds for both real world and online vendors. Many vendors apply loyalty systems to collect customer-specific data that may be exploited for many reasons, e.g., price discrimination and direct marketing. As a consequence, beside some potential benefits of a loyalty system, customers may also fear an invasion of privacy, and thus often refuse to participate in such programs. Thus, a vendor may have problems to turn privacy sensitive people into loyal customers using a typical loyalty system. In this paper, we present two variants of a privacy-friendly loyalty system to be used by online vendors for issuing loyalty points. The systems prevent vendors from exploiting data for the creation of customer profiles by providing unconditional unlinkability of loyalty points with regard to purchases. We propose a simple token-based approach and a counter-based approach which is much more efficient while preserving the privacy and security properties. Furthermore, the counter-based loyalty system prevents pooling of loyalty points which were issued to distinct customers. Matthias Enzmann received his diploma in computer science from the Technical University of Darmstadt, Germany, in 1999. In 1996, he started working with the TKT institute of GMD - German National Research Centre for Information Technology GmbH which in 2001 became Fraunhofer Institute for Secure Telecooperation due to the merger of GMD and Fraunhofer Gesellschaft. Since 1999 he holds the position of a regular researcher at Fraunhofer SIT. Currently, his research interests focus on privacy protection in electronic business processes, agent based mediation, and pseudonym systems. Markus Schneider received his diploma in electrical engineering with specialization on communications engineering. Afterwards, he started to work in the area of information and communication security and received his Doctor degree in electrical engineering. Currently, he is with the Fraunhofer Institute for Secure Telecooperation (SIT) in Darmstadt, Germany. His research interests include the development and application of security technologies in communications, and security and privacy issues in electronic business processes.     

Adding clicks to bricks: A study of the consequences on customer loyalty in a service context

With the explosion of the Internet many firms are incorporating technology into their marketing and operations and are adopting a multichannel strategy. The impact of this strategy has been especially high in the services area, which has traditionally relied on close, personal contact between customers and employees. This study explores how overall customer loyalty is built as a consequence of the value provided by each channel (offline and online). It also analyzes the moderating role of complexity of services used and customers’ Internet access in the service value–loyalty link. The model is tested with a sample of 302 multichannel financial services customers who use both the offline (traditional) and the online channel. Results show that offline perceived service value increases online perceived value; offline value has a stronger effect on overall loyalty than online value; and online service complexity and Internet adoption moderate the influence of service value on overall loyalty. Implications for management and theory are discussed.     

Understanding customers' loyalty intentions towards online shopping: an integration of technology acceptance model and fairness theory

As with any other information system (IS), the success of online shopping depends largely on customer satisfaction and other factors that will eventually increase customers' loyalty intentions. This article integrates two major variables of technology acceptance model (TAM), trust, and fairness to construct a model for investigating the motivations behind customers' loyalty intentions towards online shopping. The hypothesised model is validated empirically using data collected from 311 customers of an online shopping store. The results indicated that distributive, procedural and interactional fairness were strong predictors of trust, which in turn influenced satisfaction. Distributive fairness and interactional fairness exhibited significant positive effects on satisfaction. Perceived usefulness and satisfaction influenced loyalty intention towards online shopping. Perceived ease of use acts indirectly on loyalty intention through the mediating effect of perceived usefulness. Implications for theory and practice and future research directions are discussed.     

Understanding consumers’ continuance intention towards mobile advertising: a theoretical framework and empirical study

While issues regarding mobile advertising have captured the interest and attention of both practitioners and academics, in practice success stories are rare. An understanding of the continuance intention to use such services can provide insights into failed mobile marketing campaigns, and help to improve the implementation of future ones. Therefore, it is important to examine the underlying drivers of loyalty with regard to mobile advertising. This study uses the expectation–confirmation model in conjunction with the perspectives of value and trust to derive an integrated model to better understand the motivations behind consumers’ continued use of mobile advertising. We conducted an empirical study consisting of an online survey of 508 consumers who had experience with mobile advertising. The results show that perceived value, perceived usefulness, and satisfaction all directly influence continuance intention. Furthermore, consumer satisfaction has a crucial intervening role in the relationships that perceived value, perceived usefulness, and confirmation have with continuance intention. The theoretical and practical implications of the findings are discussed. One key limitation of this research is that the majority of respondents were students, although this group is the chief user of mobile advertising. Future research could be extended to consider other drivers of loyalty in this context, such as cultural differences and personal behavioural characteristics.     

Loyalty Due to Others: The Relationships Among Challenge,Interdependence, and Online Gamer Loyalty

Previous studies have established that online gamers favor online social activities, implying that gamer loyalty to a game may be associated with that of other gamers. However, exactly how gamer loyalty to a game depends on the presence of other gamers remains unknown. This study investigates relationships among gaming challenge, interdependence, and gamer loyalty. The study sample comprises 994 online gamers. Analytical results indicate that (1) gaming challenge is positively related to interdependence; (2) interdependence is positively related to gamer loyalty; and (3) gaming challenge is positively related to gamer loyalty. Results of this study provide game designers with further insight into how to strengthen gamer loyalty directly and indirectly by enhancing gamer‐gamer interdependence.     

Connection between customer emotions and relationship quality in online music services

Previous research focuses primarily on studying the influence of emotions on satisfaction in online music services, whereas few studies analyse their effects on trust and commitment. This study specifically examines the interaction role of emotions in relationship quality (i.e. a higher-order construct composed of commitment, satisfaction and trust). We hypothesise that emotions will exert a direct effect on relationship quality, but will also moderate the relationship between its components. An empirical survey is used to test the hypotheses. Data are collected from a total of 408 users of online music services from the UK, Germany and Denmark. The results provide strong support for the proposals that, on the one hand, satisfaction and trust lead customers towards developing high commitment to online music services; and, on the other hand, emotions are important quasi-moderators to engage in online service relationships. The results of this study could help online music service providers (a) to create a successful business model; and (b) to determine the main drivers of online loyalty.     

Information systems satisfaction,loyalty and attachment: conceptual and empirical differentiation

This study aims to address an important but largely unexplored question of whether loyalty and attachment, which are increasingly relevant to the changing software market, add value as a construct to information systems (IS) use researchers compared with satisfaction. Building on prior work on the three constructs (i.e. satisfaction, loyalty and attachment) in both marketing and IS use research, this study makes two key contributions. First, this study conceptually differentiates the three constructs by articulating their distinct properties. Second, based on the conceptual differences identified, this study finds that the three constructs have a differential impact on contributory behaviours with varying levels of behavioural difficulty. The results of the study also offer other important managerial and further research implications.     

The equivalence of Internet versus paper-based surveys in IT/IS adoption research in collectivistic cultures: the impact of satisficing

An increasing proportion of information technology (IT)/information system adoption research collects data using online surveys. However, a paucity of research assesses the equivalence of paper-based versus Internet-based surveys in collectivistic cultures. Furthermore, no theoretical or empirical research investigates how cultural differences between collectivistic and individualistic cultures influence the measurement equivalence (ME) of these survey modes. To explore these issues, online and paper-based surveys with comparable samples were carried out in both an individualistic (the USA) and a collectivistic culture (China). Confirmatory factor analysis was conducted to examine the ME across both survey modes in these different cultures. Results indicate that the relatively larger satisficing discrepancy between paper and online surveys causes respondents in collectivistic cultures to have an increased likelihood of providing responses that vary as compared to respondents in individualistic cultures. The disparate responses, in turn, result in increased measurement variance between the two survey modes. The findings of this study bridge a gap in the literature and address the question of how culture influences online satisficing behaviour and how that behaviour causes measurement invariance across survey modes. This study also explains the possible underlying mechanisms by which different national cultures exert their influence on survey results. The findings provide important implications for IT researchers, especially those in collectivistic cultures or those who need to collect data in collectivistic cultures using online surveys or mixed-mode surveys that include an online survey mode.     

Technology-Based Service Encounters Using Self-Service Technologies in the Healthcare Industry

Although there have been studies discussing the influence of technology-based services on the overall service efficiency and quality of organizations in various industries, very little effort has been devoted to investigating this issue in the healthcare industry. Hospital image is considered to be a crucial factor influencing patients' choice of hospitals, but few studies specifically examine its association with technology-based services. By consulting the model of the European Customer Satisfaction Index, a research model for evaluating the impact of the use of technology-based services on hospital image, patient satisfaction, and patient loyalty in the healthcare industry is developed and examined in this study using survey data collected from 738 patients at two medical centers with an online appointment system. The research results confirm the importance of providing quality, technology-based services in enhancing hospital image, patient satisfaction, and patient loyalty. The implications of this research and suggestions for future work are also discussed.