Customer loyalty in extended service settings

Abstract

In research on customer loyalty in services, satisfaction has often been mentioned as an important determinant. However, empirical evidence concerning the relationship between loyalty and satisfaction has remained equivocal. This may be even more so for services that are delivered over an extended period of time in which consumers actively take part. We propose that for the extended service experience consumers are motivated by the realisation of values and that attainment of these values affects patronage decisions. Moreover, as the service delivery process is extensive we argue that consumer mood during the service delivery is another important factor that may have an impact on loyalty deliberations. Therefore, in this paper we examine the simultaneous effect of satisfaction, value attainment and positive mood in an extended service setting. The results reveal that the relationship between satisfaction and loyalty with respect to extended services is moderated by value attainment and positive mood. More specifically, the satisfaction‐loyalty association is strongest when consumers perceive that the service does not help them in the attainment of instrumental values and when low positive moods are experienced. In contrast, the relationship between satisfaction and loyalty is weakest when the service helps consumers in attaining their values and when they experience a positive mood. This signifies that value attainment and positive mood do indeed play an additional role in explaining customer loyalty. An important implication is that value attainment and positive mood may function as a buffer for diminishing loyalty as a result of lower levels of service satisfaction.