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Abstract
This research aims to develop and test a model to reveal the influence of customer loyalty on negative word-of-mouth communication and repurchase intentions. Data were gathered through survey from bank customers who have co-branded credit cards and use it at least one year. The results show that the customer loyalty decreases the bad impact of the negative word-of-mouth intention and has positive effects on repurchase intention.
Key Words: Customer Loyalty, Negative Word-of-Mouth Communication Intention, Repurchase Intention, Co-branded Credit Cards
Introduction
Companies try hard to survive in the cost-cutting and intensive competitive pressure. Thus, in today's ever-changing business world, the race for a higher market share has become linked to the concept of customer loyalty. As customers become harder to reach and engage in a technologically advanced and information rich world, the need for businesses to create loyal customers and sustainable business and plan strategies aimed at retention, has never been more important. In this regard, loyalty marketing is one of the most important vehicle not only to increase customer centric initiatives but also for increasing direct and indirect revenues and business continuity especially for many retail companies including banks, airlines, hotels etc. (Donavan & Samler, 1994). Hence, it is very important to estimate the customers' future decision since the company can take corresponding actions proactively.
Creating a good customer loyalty helps companies to be different from their competitors and be one step in front of them. Therefore, the customer loyalty is important matter of concern of the companies. So, establishing a loyalty program strategy should be a company's highest priority. Because, loyalty marketing is a system that was designed to create stronger bonds between customers and businesses has turned into a massive revenue stream. The program revenue generated via alliances with credit card issuers and consumer businesses that profit off loyalty programs are making businesses rich (De Boer & Gudmundsson, 2012).
Especially, in recent years, almost all banks have significantly increased their variety of services in individual banking and focused on the customer loyalty. Co-branded credit cards are examples of this case. In addition, co-branded credit card is an outcome of bank's and airlines/hotels' collaborative loyalty initiatives and today there are many examples of this case. Through these credit cards banks aim...