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Fenghueih Huarng and Yun-Chi Hsieh

THE ROLE OF SERVICE INVOLVEMENT BETWEEN SATISFACTION AND LOYALTY USING CONVENIENCE-STORE, TRANSPORTATION SERVICE, EDUCATION, FILM, BANK, AND INSURANCE AS EXAMPLES. Fenghueih Huarng and Yun-Chi Hsieh. contents. Research motivation and purpose Research Methods Results of empirical analysis

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Fenghueih Huarng and Yun-Chi Hsieh

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  1. THE ROLE OF SERVICE INVOLVEMENT BETWEEN SATISFACTION AND LOYALTY USING CONVENIENCE-STORE, TRANSPORTATION SERVICE, EDUCATION, FILM, BANK, AND INSURANCE AS EXAMPLES Fenghueih Huarng and Yun-Chi Hsieh

  2. contents • Research motivation and purpose • Research Methods • Results of empirical analysis • Conclusions

  3. Research motivation and purpose

  4. Research motivation (1/2) • The service industries different from the general manufacturing industry characteristics Intangibility Indivisibility Heterogeneity No need to inventory Service features

  5. Research motivation (2/2)What are determinants of Service loyalty? • Satisfaction: • Is direct determinant of loyalty in many previous studies • But it’s effect is various among industries and not sufficient to explain loyalty • Involvement • Directly affect loyalty(Kim, Scott & Crompton, 1997; Bloemer & Kasper, 1995; Knox & Walker, 2003) • Is moderator or mediator (Chen & Tsai 2007; Suh & Yi, 2006; Olsen, 2007; Homburg and Giering, 2001) Service Loyalty The distinctive characteristics of services: intangibility, customization, simultaneity, and perish ability may cause the different roles of these factors in forming loyalty

  6. Research Purpose (1/2) Service Receiver people things tangible • Passenger transport • Convenience store Invi s i ble • Education • Theater • Bank • Insurance Service Management for Competitive Advantage, by J.A. Fritzsimmons, M.J. Fritzsimmons (1997)

  7. Research purposes (2/2) • How does the role of involvement play in the customer satisfaction – loyalty relationship? • Will the direct service recipient affect the relationship among involvement, customer satisfaction, and loyalty? • Will the tangibility affect the relationship among involvement, customer satisfaction, and loyalty?

  8. Research Methods

  9. Four different models Olsen（2007） Partial Mediation Direct Effect Satisfation Loyalty Satisfation Loyalty Involvement Involvement Moderation Full Mediation Involvement Satisfation Loyalty Satisfation Loyalty Involvement

  10. Research Methods(1/5) Satisfaction Item Content of Item Sat1 I am satisfied with my decision to ___here Sat2 I am very unsatisfied with this service. SAT Sat3 I think this company is _____: very bad – very good Sat4 Overall, I rate my level of satisfaction with ___ as: Very low – very high Sat5 I am ___% satisfied with the ___

  11. Research Methods(2/5) Involvement Factors Item Content of item Inv1 Boring - Interesting affective Appealing – unappealing Inv3 Mundane - Fascinating Inv5 Inv7 Unexciting - Exciting Inv2 Important – unimportant cognitive Inv4 Valuable – worthless Inv6 Means a lot to me Not needed – Needed Inv8 Irrelevant - Relevant Inv9

  12. Research Methods(3/5) Content of item Involvement factor Item Inv10 Choosing it is simple risk probability Inv11 I never know if I am making the right purchase Inv13 In purchase it, I am certain of my choice I feel a bit at loss in choosing it Inv15 It’s not a big deal if I make a mistake in choosing it Inv12 risk importance Inv14 It’s really annoying to make unsuitable purchase A poor choice wouldn’t be upsetting Inv16

  13. Research Methods(4/5) Loyalty factor Item Content of item I will transact with this _____again for future needs Loy1 I will try new services that are provided by this____ behavioral Loy2 I will recommend other people to patronize to this__ Loy3 I will say positive things to other people about the services provided at this Loy4 c I will continue to patronize this ___ even if the service charges are increased moderately Loy5 attitudinal Loy7 I have strong preference to this ___ I will keep patronizing this ____ regardless of everything being changed somewhat Loy8 I am likely to pay a little bit more for using the services of this ____ Loy10 Loy6 This is like a friend to me trust The people here respond caringly when I share my problems Loy9 Loy11 Personnel will consider my personal needs. Personnel are filled with professionalism and dedication Loy12

  14. Research Methods(5/5) 1-level CFA Mediation / Moderation 2-level CFA SEM Reliability & Validity

  15. Results of empirical analysis

  16. ※1.Insurance 2.Bank3.Convenience Store4.Transportaion5. Film6. Education Demographic information (1/7)

  17. Demographic information (2/7) ※1.Insurance 2.Bank3.Convenience Store4.Transportaion5. Film6.Education

  18. Demographic information (3/7)※1.Insurance 2.Bank3.Convenience Store4.Transportaion5. Film6.Education

  19. Demographic information (4/7)※1.Insurance 2.Bank3.Convenience Store4.Transportaion5. Film6.Education

  20. Demographic information (5/7)※1.Insurance 2.Bank3.Convenience Store4.Transportaion5. Film6.Education

  21. Demographic information (6/7)※1.Insurance 2.Bank3.Convenience Store4.Transportaion5. Film6.Education

  22. Demographic information (7/7)※1.Insurance 2.Bank3.Convenience Store4.Transportaion5. Film6.Education

  23. One-level CFA Insurance &Bank • FL ≧ 0.71 • CR ≧ 0.7 • AVE≧ 0.5 • Cronbach a≧0.6 • Correlation coefficient ≦ 0.85

  24. One-level CFA Convenience Store&Transportation • FL ≧ 0.71 • CR ≧ 0.7 • AVE≧ 0.5 • Cronbach α≧0.6 • Correlation coefficient ≦ 0.85

  25. One-level CFA Education & Film • FL ≧ 0.71 • CR ≧ 0.7 • AVE≧ 0.5 • Cronbach a≧0.6 • Correlation coefficient ≦ 0.85

  26. Two-level CFA Insurance&Bank、Convenience store & Transportation • FL (factor loading) ≧ 0.71 • CR (construct reliability) ≧ 0.7 • AVE (average variance extracted) ≧ 0.5

  27. Two-level CFA 教育&電影 • FL (factor loading) ≧ 0.71 • CR (construct reliability) ≧ 0.7 • AVE (average variance extracted) ≧ 0.5

  28. Insurance &Bank：SEM Model Fit

  29. Convenience store & Transportation： SEM Model Fit

  30. Education & Film：SEM Model Fit

  31. ※Best Fit Model & Explanatory power for different service recipient and tangibility

  32. Conclusions

  33. Involvement play as partial mediator or moderator. • Direct service recipient has no effect on relationship for invisible service. • Tangibility affects the relationship for customers themselves.

  34. Thank you

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