The impact of customer service and product value on customer loyalty and purchase behavior

Abstract

Based on research and theories on justice, it was predicted that customer service would be as important as, or even more important than perceived product value in determining customer loyalty and purchase behavior. This general hypothesis was tested by surveying 324 respondents who had just patronized several retail outlets. Results indicated that customer service was indeed more important than perceived product value in predicting customer loyalty, the amount of money spent in the visit, and the range of products purchased. In addition, customer service was a significant predictor of all 3 variables, whereas perceived product value was able to predict customer loyalty only. It was also found that for females and respondents with a higher income, customer loyalty was more influenced by customer service.