IDEAS home Printed from https://ideas.repec.org/p/sek/ibmpro/2303924.html
   My bibliography  Save this paper

Examining the Relationship between Risk Aversion and Behavioral Loyalty in the presence of Brand Affects and Attitudinal Loyalty as mediator: Evidence from Emerging Market

Author

Listed:
  • Muhammad Irfan Tariq

    (COMSATS Institute of Information Technology, Vehari Campus)

Abstract

The Purpose of this study was to determine the effect of risk aversion on behavioral loyalty in telecom sector of Pakistan. A self-administered questionnaire was used to collect data from respondents using different mobile phone brands on five-point likert scale. Overall 300 filled useable questionnaires were used for data analysis. Data was analyzed through SPSS 21 and AMOS 18. The outcome of various path analyses such as confirmatory factor analysis and Structural Equation Modeling suggest that Risk aversion has direct and positive effect Attitudinal Loyalty; while it has no direct effect on behavioral loyalty Although Risk Aversion has indirect effect on behavioral loyalty through brand affects and attitudinal loyalty as mediator. Different factors are investigated and studies in this study which connects risk aversion with behavioral loyalty. As a result research endeavors to fill the gap about the lack of academic literature on risk aversion and behavioral loyalty relationship in Pakistani context. The results suggest that practitioners may need to be responsive of Loyalty programs as a key indicator in strengthening customer relationship management. The study proposed theoretical implications for Risk aversion and customer loyalty construct. The study will further help practitioners as well as academicians to formulize novel theories to understand consumers? behavior.

Suggested Citation

  • Muhammad Irfan Tariq, 2015. "Examining the Relationship between Risk Aversion and Behavioral Loyalty in the presence of Brand Affects and Attitudinal Loyalty as mediator: Evidence from Emerging Market," Proceedings of Business and Management Conferences 2303924, International Institute of Social and Economic Sciences.
  • Handle: RePEc:sek:ibmpro:2303924
    as

    Download full text from publisher

    File URL: https://iises.net/proceedings/business-management-conference-vienna/table-of-content/detail?cid=23&iid=021&rid=3924
    File Function: First version, 2015
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Byung-Do Kim & Mengze Shi & Kannan Srinivasan, 2001. "Reward Programs and Tacit Collusion," Marketing Science, INFORMS, vol. 20(2), pages 99-120, June.
    2. Odin, Yorick & Odin, Nathalie & Valette-Florence, Pierre, 2001. "Conceptual and operational aspects of brand loyalty: an empirical investigation," Journal of Business Research, Elsevier, vol. 53(2), pages 75-84, August.
    3. Paul Klemperer, 1987. "The Competitiveness of Markets with Switching Costs," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 138-150, Spring.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Leenheer, J. & van Heerde, H.J. & Bijmolt, T.H.A. & Smidts, A., 2006. "Do Loyalty Programs Really Enhance Behavioral Loyalty? An Empirical Analysis Accounting for Self-Selecting Members," ERIM Report Series Research in Management ERS-2006-076-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    2. Kutsal Dogan & Ernan Haruvy & Ram Rao, 2010. "Who should practice price discrimination using rebates in an asymmetric duopoly?," Quantitative Marketing and Economics (QME), Springer, vol. 8(1), pages 61-90, March.
    3. Jiwoong Shin & K. Sudhir, 2010. "A Customer Management Dilemma: When Is It Profitable to Reward One's Own Customers?," Marketing Science, INFORMS, vol. 29(4), pages 671-689, 07-08.
    4. Bazargan, Amirhossein & Karray, Salma & Zolfaghari, Saeed, 2017. "Modeling reward expiry for loyalty programs in a competitive market," International Journal of Production Economics, Elsevier, vol. 193(C), pages 352-364.
    5. Andrés Musalem & Yogesh V. Joshi, 2009. "—How Much Should You Invest in Each Customer Relationship? A Competitive Strategic Approach," Marketing Science, INFORMS, vol. 28(3), pages 555-565, 05-06.
    6. Mengze Shi, 2013. "A theoretical analysis of endogenous and exogenous switching costs," Quantitative Marketing and Economics (QME), Springer, vol. 11(2), pages 205-230, June.
    7. Byung-Do Kim & Mengze Shi & Kannan Srinivasan, 2004. "Managing Capacity Through Reward Programs," Management Science, INFORMS, vol. 50(4), pages 503-520, April.
    8. Miguel Villas-Boas, J., 2015. "A short survey on switching costs and dynamic competition," International Journal of Research in Marketing, Elsevier, vol. 32(2), pages 219-222.
    9. Caminal, Ramon & Claici, Adina, 2007. "Are loyalty-rewarding pricing schemes anti-competitive?," International Journal of Industrial Organization, Elsevier, vol. 25(4), pages 657-674, August.
    10. Harutyunyan, Mushegh & Jiang, Baojun, 2017. "Strategic Implications of Keeping Product Value Secret from Competitor’s Customers," Journal of Retailing, Elsevier, vol. 93(3), pages 382-399.
    11. Tang, Fei & Dai, Ying & Ma, Zu-Jun & Choi, Tsan-Ming, 2023. "Trade-in operations under retail competition: Effects of brand loyalty," European Journal of Operational Research, Elsevier, vol. 310(1), pages 397-414.
    12. Mengze Shi, 2013. "A theoretical analysis of endogenous and exogenous switching costs," Quantitative Marketing and Economics (QME), Springer, vol. 11(2), pages 205-230, June.
    13. S. Sajeesh & Jagmohan S. Raju, 2010. "Positioning and Pricing in a Variety Seeking Market," Management Science, INFORMS, vol. 56(6), pages 949-961, June.
    14. Gandomi, A. & Zolfaghari, S., 2013. "Profitability of loyalty reward programs: An analytical investigation," Omega, Elsevier, vol. 41(4), pages 797-807.
    15. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09hc03jc5h8 is not listed on IDEAS
    16. Beomjin Choi & T. S. Raghu & Ajay Vinzé & Kevin J. Dooley, 2019. "Effectiveness of standards consortia: Social network perspectives," Information Systems Frontiers, Springer, vol. 21(2), pages 405-416, April.
    17. Dorotic, Matilda & Verhoef, Peter C. & Fok, Dennis & Bijmolt, Tammo H.A., 2014. "Reward redemption effects in a loyalty program when customers choose how much and when to redeem," International Journal of Research in Marketing, Elsevier, vol. 31(4), pages 339-355.
    18. Langus, Gregor & Lipatov, Vilen, 2008. "On Quantity Competition With Switching Costs," MPRA Paper 15457, University Library of Munich, Germany.
    19. E. Avenel, 2008. "Strategic Vertical Integration Without Foreclosure," Journal of Industrial Economics, Wiley Blackwell, vol. 56(2), pages 247-262, June.
    20. Christiaan Behrens & Nathalie McCaughey, 2015. "Loyalty Programs and Consumer Behaviour: The Impact of FFPs on Consumer Surplus," Tinbergen Institute Discussion Papers 15-048/VIII, Tinbergen Institute.
    21. Mateusz Zawisza & Bogumił Kamiński, 2013. "Price patterns in an oligopoly with switching cost and uncertain demand," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 23(3), pages 71-89.

    More about this item

    Keywords

    Risk aversion; behavioral loyalty; attitudinal loyalty; brand affects; customer relationship management;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sek:ibmpro:2303924. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klara Cermakova (email available below). General contact details of provider: https://iises.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.