The Evolution of Loyalty Intentions

Abstract

The drivers of customer loyalty intentions are dynamic. What remains unclear is how these intentions evolve through the introduction and growth phases of a life cycle. Using a longitudinal study of cellular phone customers, the authors demonstrate that loyalty intentions are a function of perceived value early in the life cycle. Over time, more affective attitudes toward the brand and the relationship with the company come to mediate the effects of value on intentions. The results suggest that from the introduction to the growth stage of a life cycle, managers must adapt from improving value per se to measuring and managing relationships and brands directly.