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The trajectory of customer loyalty: an empirical test of Dick and Basu’s loyalty framework

Author

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  • Paul Valentin Ngobo

    (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

Abstract

The classic model of loyalty proposed by Dick and Basu (1994) assumes that customers can be naturally classified in four loyalty conditions. This model has been tested with cross-sectional data and measures of recalled or retrospective consumer loyalty. Therefore, these studies could not examine whether and why customers move across different loyalty conditions over time, and offer guidance to managers on how to shift customers to the more desirable loyalty conditions. In this paper, we conduct an empirical test of this model and examine the key drivers of shifts in consumers' loyalty conditions over six annual time periods. Based on data from 6,109 households and 23 stores, we find customers can be classified in three loyalty conditions only: (1) the no loyalty, (2) the latent loyalty, and (3) the true loyalty conditions. The spurious loyalty condition is not supported, probably because switching costs are negligible in the grocery retailing industry. However, we find that marketing actions, i.e., private label policy, feature advertising, end-of-aisle product display, and store pricing policy, influence customer transition across loyalty conditions.

Suggested Citation

  • Paul Valentin Ngobo, 2017. "The trajectory of customer loyalty: an empirical test of Dick and Basu’s loyalty framework," Post-Print hal-01619884, HAL.
    • Handle: RePEc:hal:journl:hal-01619884
    DOI: 10.1007/s11747-016-0493-6
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    Citations

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    Cited by:

    1. Mirza Mohammad Didarul Alam & Nor Azila Mohd Noor, 2020. "The Relationship Between Service Quality, Corporate Image, and Customer Loyalty of Generation Y: An Application of S-O-R Paradigm in the Context of Superstores in Bangladesh," SAGE Open, , vol. 10(2), pages 21582440209, May.
    2. Neringa Vilkaite-Vaitone & Ilona Skackauskiene, 2020. "Service Customer Loyalty: An Evaluation Based on Loyalty Factors," Sustainability, MDPI, vol. 12(6), pages 1-20, March.
    3. Wolter, Jeremy S. & Bock, Dora & Smith, Jeffery S. & Cronin, J. Joseph, 2017. "Creating Ultimate Customer Loyalty Through Loyalty Conviction and Customer-Company Identification," Journal of Retailing, Elsevier, vol. 93(4), pages 458-476.
    4. Nicole Koschate-Fischer & Wayne D. Hoyer & Nicola E. Stokburger-Sauer & Jan Engling, 2018. "Do life events always lead to change in purchase? The mediating role of change in consumer innovativeness, the variety seeking tendency, and price consciousness," Journal of the Academy of Marketing Science, Springer, vol. 46(3), pages 516-536, May.
    5. Sven Baehre & Michele O’Dwyer & Lisa O’Malley & Nick Lee, 2022. "The use of Net Promoter Score (NPS) to predict sales growth: insights from an empirical investigation," Journal of the Academy of Marketing Science, Springer, vol. 50(1), pages 67-84, January.
    6. Tsai, Ming-Chih & Merkert, Rico & Tsai, Mei-Ting & Lin, Shiau-Chi, 2021. "Towards a taxonomy-based preferred-customer model for suppliers in air cargo express service markets," Journal of Air Transport Management, Elsevier, vol. 90(C).
    7. Philippe Aurier & Victor D. Mejía, 2021. "The differing impacts of brand-line breadth and depth on customers’ repurchasing behavior of frequently purchased packaged goods," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1244-1266, November.
    8. De Silva Kanakaratne, Maheshan & Bray, Jeffery & Robson, Julie, 2020. "The influence of national culture and industry structure on grocery retail customer loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    9. Ammar Ahmad & Muhammad Azeem & Sanober Salman Shaikh, 2019. "Csr Or Iso Certifi Cation: What Does Really Matter For Consumer In Developing Countries," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(1), pages 95-111.
    10. Negoiță Olivia Doina & Purcărea Anca Alexandra & Popescu Mirona Ana-Maria, 2018. "A Model for Relational Marketing," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 353-357, July.
    11. Zeeshan Ullah, 2023. "The determinants and performance outcome of the firm's capacity to maintain customer loyalty," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 265-279, February.
    12. Ammar Ahmad & Muhammad Azeem & Sanober Salman Shaikh, 2019. "Csr Or Iso Certifi Cation: What Does Really Matter For Consumer In Developing Countries," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(1), pages 15-18.
    13. Chuang Wang & Rongxin Zhou & Matthew K. O. Lee, 2021. "Can loyalty be pursued and achieved? An extended RFD model to understand and predict user loyalty to mobile apps," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 72(7), pages 824-838, July.
    14. Bozkurt, Sıddık & Gligor, David, 2021. "Distinguishing between the impact of social media public and private compliments on customers’ future service recovery expectations," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    15. Arsenovic, Jasenko & De Keyser, Arne & Edvardsson, Bo & Tronvoll, Bård & Gruber, Thorsten, 2021. "Justice (is not the same) for all: The role of relationship activity for post-recovery outcomes," Journal of Business Research, Elsevier, vol. 134(C), pages 342-351.

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