A Case Study of Customer Loyalty in Canteen Usage
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Published:
Sep 28, 2018
Keywords:
customer loyalty logistic function prospect theory
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Abstract
The objective of this paper is to present a case study of customer loyalty involving food services in a university canteen. The purpose is to provide a practical tool for modeling customer loyalty by using logistic function. Prior literature employed linear equation to model customer loyalty. This paper feels the gap in the literature by showing how logistic function could more accurately predict customer loyalty measurement. The data used in this paper came from 100 written surveys. The instrument employed non-Likert scale (0,1,2,3) to collect quantitative data. Nine variables were tested for their significant relationship to customer loyalty: service quality, customer satisfaction, trust, commitment, switching cost, corporate image, service recovery, emotion, and communication. Linear equation was used as the basis for the logistic function to construct a predictive model. The PDF and CDF of the logistic function were used to verify the validity and reliability of the new model. It was found that trust and emotional commitment are only two factors that significantly contributed to customer loyalty (ANOVA F = 40.33). The predicted model under logistic function showed a mean of 0.60 ± 0.47 with mean residual of 0.50 ± 0.10 or pValue between 0 – 0.10. This study extends Kahneman-Tversky’s prospect theory from risk analysis to customer loyalty study.
Article Details
How to Cite
Luanglath, I. (2018). A Case Study of Customer Loyalty in Canteen Usage. NIDA Case Research Journal, 10(1), 106–130. Retrieved from https://so04.tci-thaijo.org/index.php/NCRJ/article/view/148003
Section
Case Study
References
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https://doi.org/10.1146%2Fannurev.psych.52.1.27
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Belk, R.W. (1974), “An exploratory assessment of situational effects in buyer behavior”, Journal of Marketing Research, Vol. 11, May, pp. 156‐63.
Blackwell, S.A., Szeinbach, S.L., Barnes, J.H., Garner, D.W. and Bush, V. (1999), “The antecedents of customer loyalty: an empirical investigation of the role of personal and situational aspects on repurchase decisions”, Journal of Services Research, Vol. 1 No. 4.
Cabanac, Michel (2002). “What is emotion?” Behavioural Processes 60(2): 69-83.
Camerer, C., and Weigelt, K. (1988). “Experimental Tests of a Sequential Equilibrium Reputation Model.” Econometrica, 56(1), pp. 1-36.
Chen, J. Q.; Tang, T. L. P.; Tang, N. Y. (2013). “Temptation, monetary intelligence (love of money), and environmental context on unethical intentions and cheating.” Journal of Business Ethics, 123: 197–219. doi:10.1007/s10551-013-1783-2.
Cohen, Jacob; Cohen, Patricia; Leona S. Aiken; West, Stephen H. (2003). Applied multiple regression/correlation analysis for the behavioral sciences. Hillsdale, N.J: L. Erlbaum Associates. ISBN 0-8058-2223-2.
Clarke, Kevin A. (2005). “The Phantom Menace: Omitted Variable Bias in Econometric Research.” Conflict Management and Peace Science. 22: 341–352. doi:10.1080/07388940500339183.
Czepiel, Scott A.(2002). “Maximum Likelihood Estimation of Logistic Regression Models: Theory and Implementation.” Pp. 10.
https://czep.net/stat/mlelr.pdf
Dawson, J. F. (2013). Moderation in management research: What, why, when and how. Journal of Business and Psychology. DOI: 10.1007/s10869-013-9308-7.
Daniel L. (2011). Psychology Second Edition. 41 Madison Avenue, New York, NY 10010: Worth Publishers. p. 310. ISBN 978-1-4292-3719-2.
Day, G.S. (1969), “A two‐dimensional concept of brand loyalty”, Journal of Advertising Research, Vol. 9, pp. 29‐35.
Dick, A.S. and Basu, K. (1994), “Customer loyalty: toward an integrated conceptual framework”, Journal of the Academy of Marketing Science, Vol. 22 No. 2, pp. 99‐113.
Eagly, Alice H., and Shelly Chaiken. 1998. “Attitude, Structure and Function.” In Handbook of Social Psychology, ed. D.T. Gilbert, Susan T. Fisk, and G. Lindsey, 269–322. New York: McGowan-Hill.
East, R. (1997), Consumer Behaviour: Advances and Applications in Marketing, Prentice‐Hall, London.
Ekman, P. & Friesen, W. V (1969). “The repertoire of nonverbal behavior: Categories, origins, usage, and coding.” Semiotica, 1, 49–98.
Ekman, Paul (1972). Cole, J., ed. Universals and Cultural Differences in Facial Expression of Emotion. Nebraska Symposium on Motivation. Lincoln, Nebraska: University of Nebraska Press. pp. 207–283.
Ekman, Paul (1999). “Basic Emotions.” In Dalgleish, T; Power, M. Handbook of Cognition and Emotion (PDF). Sussex, UK: John Wiley & Sons. Archived from the original (PDF) on 2010-12-28.
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Ehrenberg, A.S.C., Barnard, N.R. and Scriven, J.A. (1997), “Differentiation or salience”, Journal of Advertising Research, Vol. 37 No. 6, pp. 7‐14.
Ehrenberg, A.S.C. (1988), Repeat‐Buying: Facts, Theory and Application, Oxford University Press, New York, NY, Griffin, London.
Fader, P.S. and Hardie, B. (1996), “Modeling consumer choice among SKUs”, Journal of Marketing Research, Vol. 33, November, pp. 442‐52.
Fazio, R.H. and Zanna, M.P. (1981), “Direct experience and attitude behavior consistency”, Advances in Experimental Social Psychology, Vol. 14, pp. 161‐202.
Fehr, E., Kirchsteiger, G., and Riedl, A. (1993). “Does Fairness Prevent Market Clearing? An Experimental Investigation.” Quarterly J. of Economics, 108, (May), pp. 437-60.
Gaulin, Steven J. C. and Donald H. McBurney. Evolutionary Psychology. Prentice Hall. 2003. ISBN 978-0-13-111529-3, Chapter 6, p 121-142.
Greene, W. H. (1993). Econometric Analysis (2nd ed.). Macmillan. pp. 245–246.
Gremler, D.D. and Brown, S.W. (1999), “The loyalty ripple effect: appreciating the full value of customers”, International Journal of Service Industry Management, Vol. 10 No. 3, pp. 271‐93.
Jacoby, J. and Chestnut, R. (1978), Brand Loyalty Measurement and Management, John Wiley & Sons, New York, NY.
Kahn, B.M., Kalwani, M.U. and Morrison, D.G. (1988), “Niching versus change‐of‐pace brands: using purchase frequencies and penetration rates to infer brand positionings”, Journal of Marketing Research, Vol. 25 No. 4, pp. 384‐90.
Kahneman, D. and Tversky, A. (1967). “Judgment under Uncertainty: Heuristics and Biases.” Science, New Series, Vol. 185, No. 4157. (Sep. 27, 1974), pp. 1124-1131.
http://psiexp.ss.uci.edu/research/teaching/Tversky_Kahneman_1974.pdf
Kahneman, Daniel; Tversky, Amos (1979). “Prospect Theory: An Analysis of Decision under Risk.” Econometrica, 47(2): 263. ISSN 0012-9682. doi:10.2307/1914185.
Kalakota, R. and Robinson, M. (1999), e‐Business, Addison‐Wesley, Reading, MA.
Krosnick, J. A., Judd, C. M., and Wittenbrink, B. (2005). Measurement of Attitudes.pdf The measurement of attitudes. In D. Albarracín, B. T. Johnson, & M. P. Zanna (Eds.), The handbook of attitudes (pp. 21–76). Mahwah, NJ: Lawrence Erlbaum Associates.
Mayer, R.C., Davis J.H., Schoorman F.D. (1995). “An integrative model of organizational trust.” Academy of Management Review, 20(3), 709-734.
Mellens, M., Dekimpe, M.G. and. Steenkamp, J.‐B.E.B. (1996), “A review of brand‐loyalty measures in marketing”, Tijdschrift voor Economie en Management, Vol. 41 No. 4, pp. 507‐33.
Minton, E.A. and Khale, Lynn R. (2014). Belief Systems, Religion, and Behavioral Economics. New York: Business Expert Press LLC. ISBN 978-1-60649-704-3.
Morgan, Robert; Hunt, S. (July 1994). “The Commitment-Trust Theory of Relationship Marketing.” The Journal of Marketing, 58(3): 20–38. doi:10.2307/1252308.
Nash, John (1951). “Non-Cooperative Games.” The Annals of Mathematics 54(2):286-295.
Oliver, R.L. (1997), Satisfaction: A Behavioral Perspective on the Consumer, Irwin/McGraw‐Hill, New York, NY; p. 392.
Oliver, R.L. (1999), “Whence customer loyalty”, Journal of Marketing, Vol. 63, pp. 33‐44.
Peppers, D. and Rogers, M. (1997), Enterprise One to One: Tools for Competing in the Interactive Age, Currency Doubleday, New York, NY.
Perloff, Richard M. (2016). The Dynamics of Persuasion: Communication and Attitudes in the Twenty-First Century, Routledge.
https://books.google.co.th/books?id=K4m_DQAAQBAJ&pg=PT176&redir_esc=y#v=onepage&q&f=false
Resnick, P. (2006). “The value of reputation on eBay: a controlled experiment.” Experimental Economics, 9(2), Jun 2006; pp. 79-101.
Scherer, K. R. (2005). “What are emotions? And how can they be measured?" Social Science Information, 44 (4): 693–727. doi:10.1177/0539018405058216.
Smith, Zachary R. and Wells , Craig S. (2006). “Central Limit Theorem and Sample Size.” Case study presented at the annual meeting of the Northeastern Educational Research Association, Kerhonkson, New York, October 18-20, 2006.
Tang, T. L. P.; Liu, H. (2012). “Love of money and unethical behavior intention: Does an authentic supervisor's personal integrity and character (ASPIRE) make a difference?" Journal of Business Ethics, 107(3): 295–312. doi:10.1007/s10551-011-1040-5.
Tang, T. L. P.; Sutarso, T. (2013). “Falling or not falling into temptation? Multiple faces of temptation, monetary intelligence, and unethical intentions across gender.” Journal of Business Ethics, 116(3): 529–552. doi:10.1007/s10551-012-1475-3.
Tao, Jianhua; Tieniu Tan (2005). “Affective Computing: A Review.” Affective Computing and Intelligent Interaction. LNCS 3784. Springer. pp. 981–995. doi:10.1007/11573548.
Uncles, M.D., Hammond, K., Ehrenberg, A.S.C. and Davis, R.E. (1994), “A replication study of two brand‐loyalty measures”, European Journal of Operational Research, Vol. 76 No. 2, pp. 375‐84.
Uncles, Mark D.; Dowling, Grahame R.; and Hammond, Kathy (2003). “Customer loyalty and customer loyalty programs.” Journal of Consumer Marketing, 20: 4, pp.294-316, https://doi.org/10.1108/07363760310483676
http://www.emeraldinsight.com/doi/full/10.1108/07363760310483676
Wood, W. (2000). “Attitude Change: Persuasion and Social Influence.” Annual Review of Psychology, 51: 539–570.
PMID 10751980. doi:10.1146/annurev.psych.51.1.539.
Zak, P. J., and Knack, S. (2001). “Trust and growth.” Economic Journal, 111: 295-321.
Zheng, J. Roehrich, J.K. and Lewis, M.A. (2008). “The dynamics of contractual and relational governance: Evidence from long-term public-private procurement arrangements.” Journal of Purchasing and Supply Management, 14(1): 43-54. http://www.scopus.com/record/display.url?eid=2-s2.0-41049112855&origin=inward&txGid=yXIvJQ7AsPq0YyDQfJmJLCa%3a2
http://www.stat.ufl.edu/~aa/articles/ci_proportion.pdf
Ajzen, Icek (2001). “Nature and Operation of Attitudes.” Annual Review of Psychology, 52: 27–58. doi:10.1146/annurev.psych.52.1.27.
https://doi.org/10.1146%2Fannurev.psych.52.1.27
Arnould, E.J., Price, L.L. and Zinkhan, G.M. (2002), Consumers, McGraw‐Hill, New York, NY.
Baron, R. M., and Kenny, D. A. (1986). “The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations.” Journal of Personality and Social Psychology, 5(6), 1173–1182 (page 1174).
Belk, R.W. (1974), “An exploratory assessment of situational effects in buyer behavior”, Journal of Marketing Research, Vol. 11, May, pp. 156‐63.
Blackwell, S.A., Szeinbach, S.L., Barnes, J.H., Garner, D.W. and Bush, V. (1999), “The antecedents of customer loyalty: an empirical investigation of the role of personal and situational aspects on repurchase decisions”, Journal of Services Research, Vol. 1 No. 4.
Cabanac, Michel (2002). “What is emotion?” Behavioural Processes 60(2): 69-83.
Camerer, C., and Weigelt, K. (1988). “Experimental Tests of a Sequential Equilibrium Reputation Model.” Econometrica, 56(1), pp. 1-36.
Chen, J. Q.; Tang, T. L. P.; Tang, N. Y. (2013). “Temptation, monetary intelligence (love of money), and environmental context on unethical intentions and cheating.” Journal of Business Ethics, 123: 197–219. doi:10.1007/s10551-013-1783-2.
Cohen, Jacob; Cohen, Patricia; Leona S. Aiken; West, Stephen H. (2003). Applied multiple regression/correlation analysis for the behavioral sciences. Hillsdale, N.J: L. Erlbaum Associates. ISBN 0-8058-2223-2.
Clarke, Kevin A. (2005). “The Phantom Menace: Omitted Variable Bias in Econometric Research.” Conflict Management and Peace Science. 22: 341–352. doi:10.1080/07388940500339183.
Czepiel, Scott A.(2002). “Maximum Likelihood Estimation of Logistic Regression Models: Theory and Implementation.” Pp. 10.
https://czep.net/stat/mlelr.pdf
Dawson, J. F. (2013). Moderation in management research: What, why, when and how. Journal of Business and Psychology. DOI: 10.1007/s10869-013-9308-7.
Daniel L. (2011). Psychology Second Edition. 41 Madison Avenue, New York, NY 10010: Worth Publishers. p. 310. ISBN 978-1-4292-3719-2.
Day, G.S. (1969), “A two‐dimensional concept of brand loyalty”, Journal of Advertising Research, Vol. 9, pp. 29‐35.
Dick, A.S. and Basu, K. (1994), “Customer loyalty: toward an integrated conceptual framework”, Journal of the Academy of Marketing Science, Vol. 22 No. 2, pp. 99‐113.
Eagly, Alice H., and Shelly Chaiken. 1998. “Attitude, Structure and Function.” In Handbook of Social Psychology, ed. D.T. Gilbert, Susan T. Fisk, and G. Lindsey, 269–322. New York: McGowan-Hill.
East, R. (1997), Consumer Behaviour: Advances and Applications in Marketing, Prentice‐Hall, London.
Ekman, P. & Friesen, W. V (1969). “The repertoire of nonverbal behavior: Categories, origins, usage, and coding.” Semiotica, 1, 49–98.
Ekman, Paul (1972). Cole, J., ed. Universals and Cultural Differences in Facial Expression of Emotion. Nebraska Symposium on Motivation. Lincoln, Nebraska: University of Nebraska Press. pp. 207–283.
Ekman, Paul (1999). “Basic Emotions.” In Dalgleish, T; Power, M. Handbook of Cognition and Emotion (PDF). Sussex, UK: John Wiley & Sons. Archived from the original (PDF) on 2010-12-28.
Ehrenberg, A.S.C. and Scriven, J.A. (1999), “Brand loyalty”, in Earl, P.E. and Kemp, S. (Eds), The Elgar Companion to Consumer Research and Economic Psychology, Edward Elgar, Cheltenham, pp. 53‐63.
Ehrenberg, A.S.C., Barnard, N.R. and Scriven, J.A. (1997), “Differentiation or salience”, Journal of Advertising Research, Vol. 37 No. 6, pp. 7‐14.
Ehrenberg, A.S.C. (1988), Repeat‐Buying: Facts, Theory and Application, Oxford University Press, New York, NY, Griffin, London.
Fader, P.S. and Hardie, B. (1996), “Modeling consumer choice among SKUs”, Journal of Marketing Research, Vol. 33, November, pp. 442‐52.
Fazio, R.H. and Zanna, M.P. (1981), “Direct experience and attitude behavior consistency”, Advances in Experimental Social Psychology, Vol. 14, pp. 161‐202.
Fehr, E., Kirchsteiger, G., and Riedl, A. (1993). “Does Fairness Prevent Market Clearing? An Experimental Investigation.” Quarterly J. of Economics, 108, (May), pp. 437-60.
Gaulin, Steven J. C. and Donald H. McBurney. Evolutionary Psychology. Prentice Hall. 2003. ISBN 978-0-13-111529-3, Chapter 6, p 121-142.
Greene, W. H. (1993). Econometric Analysis (2nd ed.). Macmillan. pp. 245–246.
Gremler, D.D. and Brown, S.W. (1999), “The loyalty ripple effect: appreciating the full value of customers”, International Journal of Service Industry Management, Vol. 10 No. 3, pp. 271‐93.
Jacoby, J. and Chestnut, R. (1978), Brand Loyalty Measurement and Management, John Wiley & Sons, New York, NY.
Kahn, B.M., Kalwani, M.U. and Morrison, D.G. (1988), “Niching versus change‐of‐pace brands: using purchase frequencies and penetration rates to infer brand positionings”, Journal of Marketing Research, Vol. 25 No. 4, pp. 384‐90.
Kahneman, D. and Tversky, A. (1967). “Judgment under Uncertainty: Heuristics and Biases.” Science, New Series, Vol. 185, No. 4157. (Sep. 27, 1974), pp. 1124-1131.
http://psiexp.ss.uci.edu/research/teaching/Tversky_Kahneman_1974.pdf
Kahneman, Daniel; Tversky, Amos (1979). “Prospect Theory: An Analysis of Decision under Risk.” Econometrica, 47(2): 263. ISSN 0012-9682. doi:10.2307/1914185.
Kalakota, R. and Robinson, M. (1999), e‐Business, Addison‐Wesley, Reading, MA.
Krosnick, J. A., Judd, C. M., and Wittenbrink, B. (2005). Measurement of Attitudes.pdf The measurement of attitudes. In D. Albarracín, B. T. Johnson, & M. P. Zanna (Eds.), The handbook of attitudes (pp. 21–76). Mahwah, NJ: Lawrence Erlbaum Associates.
Mayer, R.C., Davis J.H., Schoorman F.D. (1995). “An integrative model of organizational trust.” Academy of Management Review, 20(3), 709-734.
Mellens, M., Dekimpe, M.G. and. Steenkamp, J.‐B.E.B. (1996), “A review of brand‐loyalty measures in marketing”, Tijdschrift voor Economie en Management, Vol. 41 No. 4, pp. 507‐33.
Minton, E.A. and Khale, Lynn R. (2014). Belief Systems, Religion, and Behavioral Economics. New York: Business Expert Press LLC. ISBN 978-1-60649-704-3.
Morgan, Robert; Hunt, S. (July 1994). “The Commitment-Trust Theory of Relationship Marketing.” The Journal of Marketing, 58(3): 20–38. doi:10.2307/1252308.
Nash, John (1951). “Non-Cooperative Games.” The Annals of Mathematics 54(2):286-295.
Oliver, R.L. (1997), Satisfaction: A Behavioral Perspective on the Consumer, Irwin/McGraw‐Hill, New York, NY; p. 392.
Oliver, R.L. (1999), “Whence customer loyalty”, Journal of Marketing, Vol. 63, pp. 33‐44.
Peppers, D. and Rogers, M. (1997), Enterprise One to One: Tools for Competing in the Interactive Age, Currency Doubleday, New York, NY.
Perloff, Richard M. (2016). The Dynamics of Persuasion: Communication and Attitudes in the Twenty-First Century, Routledge.
https://books.google.co.th/books?id=K4m_DQAAQBAJ&pg=PT176&redir_esc=y#v=onepage&q&f=false
Resnick, P. (2006). “The value of reputation on eBay: a controlled experiment.” Experimental Economics, 9(2), Jun 2006; pp. 79-101.
Scherer, K. R. (2005). “What are emotions? And how can they be measured?" Social Science Information, 44 (4): 693–727. doi:10.1177/0539018405058216.
Smith, Zachary R. and Wells , Craig S. (2006). “Central Limit Theorem and Sample Size.” Case study presented at the annual meeting of the Northeastern Educational Research Association, Kerhonkson, New York, October 18-20, 2006.
Tang, T. L. P.; Liu, H. (2012). “Love of money and unethical behavior intention: Does an authentic supervisor's personal integrity and character (ASPIRE) make a difference?" Journal of Business Ethics, 107(3): 295–312. doi:10.1007/s10551-011-1040-5.
Tang, T. L. P.; Sutarso, T. (2013). “Falling or not falling into temptation? Multiple faces of temptation, monetary intelligence, and unethical intentions across gender.” Journal of Business Ethics, 116(3): 529–552. doi:10.1007/s10551-012-1475-3.
Tao, Jianhua; Tieniu Tan (2005). “Affective Computing: A Review.” Affective Computing and Intelligent Interaction. LNCS 3784. Springer. pp. 981–995. doi:10.1007/11573548.
Uncles, M.D., Hammond, K., Ehrenberg, A.S.C. and Davis, R.E. (1994), “A replication study of two brand‐loyalty measures”, European Journal of Operational Research, Vol. 76 No. 2, pp. 375‐84.
Uncles, Mark D.; Dowling, Grahame R.; and Hammond, Kathy (2003). “Customer loyalty and customer loyalty programs.” Journal of Consumer Marketing, 20: 4, pp.294-316, https://doi.org/10.1108/07363760310483676
http://www.emeraldinsight.com/doi/full/10.1108/07363760310483676
Wood, W. (2000). “Attitude Change: Persuasion and Social Influence.” Annual Review of Psychology, 51: 539–570.
PMID 10751980. doi:10.1146/annurev.psych.51.1.539.
Zak, P. J., and Knack, S. (2001). “Trust and growth.” Economic Journal, 111: 295-321.
Zheng, J. Roehrich, J.K. and Lewis, M.A. (2008). “The dynamics of contractual and relational governance: Evidence from long-term public-private procurement arrangements.” Journal of Purchasing and Supply Management, 14(1): 43-54. http://www.scopus.com/record/display.url?eid=2-s2.0-41049112855&origin=inward&txGid=yXIvJQ7AsPq0YyDQfJmJLCa%3a2