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Marketing

2006

Customer equity

Department of Marketing: Faculty Publications

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Service Personalization And Loyalty, A. Dwayne Ball, Pedro S. Coelho, Manuel J. Vilares Jan 2006

Service Personalization And Loyalty, A. Dwayne Ball, Pedro S. Coelho, Manuel J. Vilares

Department of Marketing: Faculty Publications

Purpose:

To investigate the effect of service personalization on loyalty, and to measure some of the psychological dynamics of the process.

Methodology:

structural equation modeling.

Findings:

We show that the effect of service personalization on loyalty exists, but that the effect is not all direct. Personalization works through improving service satisfaction and trust. Personalization and improved communication act together in such a way that they account for the variance in loyalty that would be otherwise explained by corporate image.

Research limitations:

Data, though comprising a very large probability sample, are from one economic sector in one European country.

Practical implications: …