Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments

Structural equation modeling (SEM) is a multivariate statistical framework that is used to model complex relationships between directly observed and indirectly observed (latent) variables. SEM is a general framework that involves simultaneously solving systems of linear equations and encompasses other techniques such as regression, factor analysis, path analysis, and latent growth curve modeling. Recently, SEM has gained popularity in the analysis of complex genetic traits because it can be used to better analyze the relationships between correlated variables (traits), to model genes as latent variables as a function of multiple observed genetic variants, and to assess the association between multiple genetic variants and multiple correlated phenotypes of interest. Though the general SEM framework only allows for the analysis of independent observations, recent work has extended SEM for the analysis of data on general pedigrees. Here, we review the theory of SEM for both unrelated and family data, describe the available software for SEM, and provide examples of SEM analysis.

Structural Equation Modeling

The importance of developing and maintaining enduring relationships with customers of service businesses is generally accepted in the marketing literature. A key challenge for researchers is to identify and understand how managerially controlled antecedent variables influence important relationship marketing outcomes (e.g., customer loyalty and word-of-mouth communication). Relational benefits, which have a focus on the benefits consumers receive apart from the core service, and relationship quality, which focuses on the overall nature of the relationship, represent two approaches to understanding customer loyalty and word of mouth. This article integrates these two concepts by positioning customer satisfaction and commitment as relationship quality dimensions that partially mediate the relationship between three relational benefits (confidence benefits, social benefits, and special treatment benefits) and the two outcome variables. The results provide support for the model and indicate that the concepts ...

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Understanding Relationship Marketing Outcomes An Integration of Relational Benefits and Relationship Quality

This study examined the mediating role of service climate in the prediction of employee performance and customer loyalty. Contact employees (N=342) from 114 service units (58 hotel front desks and 56 restaurants) provided information about organizational resources, engagement, and service climate. Furthermore, customers (N=1,140) from these units provided information on employee performance and customer loyalty. Structural equation modeling analyses were consistent with a full mediation model in which organizational resources and work engagement predict service climate, which in turn predicts employee performance and then customer loyalty. Further analyses revealed a potential reciprocal effect between service climate and customer loyalty. Implications of the study are discussed, together with limitations and suggestions for future research.

Linking Organizational Resources and Work Engagement to Employee Performance and Customer Loyalty: The Mediation of Service Climate.

http://personal.psu.edu/faculty/a/a/aag6/Brotheridge&GrandeyJVB.pdf

Emotional labor and burnout: Comparing two perspectives of "people work"

Presents the findings of a study performed on data from a large bank’s retail‐banking operations. Illustrates the relationship of customer satisfaction to customer loyalty, and customer loyalty to profitability, using multiple measures of satisfaction, loyalty, and profitability. An estimate of the effects of increased customer satisfaction on profitability (assuming hypothesized causality) suggests that attainable increases in satisfaction could dramatically improve profitability.

The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study

https://www.ida.liu.se/~steho87/und/htdd01/sdarticle5.pdf

E-services: operating strategy—a case study and a method for analyzing operational benefits

Internal Service Quality, Customer and Job Satisfaction: Linkages and Implications for Managers

This article analyzes the sources of Southwest Airlines' competitive advantage using an integrative approach, employing economic analysis tools to illustrate the roles of commitment and organizational capabilities in delivering competitive advantage at Southwest. A framework is presented illustrating that much of the value Southwest generates is (1) created through employee needs satisfaction, (2) converted to customer and shareholder value via organizational capabilities, and (3) captured by the firm as a result of its cost advantage and superior service. This three-part framework may be applicable to other labor-dependent service organizations. © 1996 by John Wiley & Sons, Inc.

Southwest airlines: A case study linking employee needs satisfaction and organizational capabilities to competitive advantage

This paper develops a framework exploring the question, “How does service affect the economics of e‐commerce?” Development of the framework requires an understanding of the different forms service takes in e‐commerce. These are described as “virtual” (either pure information or automated) and “physical” (requiring some degree of human intervention). The framework suggests that because the nature and quantity of physical service necessary to deliver value to customers influences the quantity of human intervention required, it also influences a firm’s ratio of variable to fixed costs, which alters its “scalability”. The paradox comes in that while reduced scalability is viewed negatively by many venture capitalists and proponents of e‐commerce, the cause of that reduction in scalability, human intervention, may help a firm to differentiate its offering to customers, thus providing a source of competitive advantage.

Roger H. Hallowell

Papers

The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study

E-services: operating strategy—a case study and a method for analyzing operational benefits

Internal Service Quality, Customer and Job Satisfaction: Linkages and Implications for Managers

Southwest airlines: A case study linking employee needs satisfaction and organizational capabilities to competitive advantage

“Scalability”: the paradox of human resources in e‐commerce