Service customer loyalty: An evaluation based on loyalty factors

Abstract

This study sheds light on customer loyalty based on three groups of factors (customer, service provider, and environment). Noting the diversity of the effects of customer loyalty factors, this research investigates the impact of every factor upon customer loyalty. This paper provides an innovative insight into how a variety of customer loyalty factors might be combined into a single measure of customer loyalty. Finally, this study examines phases of customer loyalty and identifies the factors that prevent a peak of customer loyalty. The factors determining customer loyalty explain why customers move across different loyalty phases over time. The results of the empirical testing confirmed the practical applicability of the suggested approach for evaluating customer loyalty based on these factors. An innovative approach to the evaluation of customer loyalty is essential for marketers because it will help them to evaluate loyalty in cases where data about customer behavior are not collected. The findings of the research contribute to a better understanding of which factors are a viable basis for increasing customer loyalty, specifically in the catering and beauty markets, and offer guidance to marketing managers on how to shift customers to more desirable loyalty phases.