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Quality improvement in East Africa
Edited by David Muturi and Jackline Sagwe
1. Introduction
Studies on customer behavior have undergone tremendous developments in the pas few decades. For instance, during the 1970s and 1980s, scholars have emphasized the role of customer satisfaction in determining consumer behavior ([58] Oliver, 1999). However, more recently, researchers have expanded this conceptualization beyond satisfaction into the realms of customer commitment ([28] Garbarino and Johnson, 1999) and customer loyalty ([8] Berry, 1995). This new interest is underscored by the long held view that mere acquisition of new customers and getting them satisfied cannot guarantee sustained business and that a loyal customer base is the only assurance firms have against possible losses ([8] Berry, 1995).
Because of the changing trends in competition, companies are investing more in seeking to create a loyal base of customers. According to [58] Oliver (1999), calls for a paradigm shift to the pursuit of customer loyalty as a strategic business goal is becoming prominent. In support of this view, [8] Berry (1995) argues that attraction of new customers should be viewed only as an intermediate step in the marketing process and that business managers should strive for long-term relationships with customers.
Researchers have tested several constructs believed to be determinants of customer loyalty such as service quality ([71] Zeithaml et al. , 1996), perceived service value ([68] Yang and Peterson, 2004), customer satisfaction ([14] Chandrashekaran et al. , 2007; [44] Lai et al. , 2009), customer trust and commitment ([28] Garbarino and Johnson, 1999). Some studies have also considered perception of corporate image as a predictor of customer loyalty ([29] Gummesson and Gronroos, 1988; [31] Hart and Rosenberger, 2004). These constructs influence customer purchase decisions to varying degrees depending on the industry and context ([35] Jones and Sasser, 1995; [24] Eskildsen et al. , 2004). For instance, [21] De Rutyer et al. (1998) studied determinants of service loyalty in five different service sectors and found the determinants to vary per industry. In other words, the determinants of one industry cannot be generalized in other industries.
Generally, most studies have focussed on hotel industry ([37] Kandampully and Suhartanto, 2000; [38] Kandampully and Suhartanto, 2003), airline industry ([59] Ostrowski et al. , 1993; [72] Zins, 2001; [2] An...