caine presentation 2
TRANSCRIPT
Customer value and customer loyalty: Is competition a missing link?
Presenter: CaineChenInstructor: Dr. Pi-Ying Teresa HsuDate: Jan.5, 2015
research writing and publishing
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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Content
1. Introduction2. Theoretical Background 3. Method4. Result5. Suggestion6. Limitation7. Reflection
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Introduction
1. Background2. Purpose of the study
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IntroductionBackground
❖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
IntroductionPurpose 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)
Theoretical backgroundcustomer 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)
Theoretical backgroundcustomer 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)
Theoretical backgroundservice encounter
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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)
Theoretical backgroundcompetition
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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)
Hypotheses(1)
❖H1-8: Customer loyalty is positively influenced by the service employee ’s efforts to implement customer value.

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

customer value
service encounter
customeremployee
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
MethodSample
❖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 …
Instrument usedQuestionnaire
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MethodProcedures
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employeesfemale(90.1%
)7 years in the current company
12 years in the hairdressing sector
consumersfemale (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
MethodAnalysis(1/3)
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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).
MethodAnalysis(2/3)
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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)
MethodAnalysis(3/3)
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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)
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
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
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
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
Thank you
research writing and publishing
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