Journal of Economics and Business

ISSN 2615-3726 (Online)

ISSN 2621-5667 (Print)

Published: 27 April 2018

Indirect Effect on Trust on Customer Satisfaction and Customer Loyalty Relationship in Malaysian Airline Industry

Li Lin, Zahir Osman, Shiqian Wang

Limkokwing University of Creative Technology, Malaysia

Download Full-Text Pdf

10.31014/aior.1992.01.02.12

Abstract

This research aims to find out the main factors that affect customer loyalty in the airline industry in Malaysia because customer loyalty is regarded as the ultimate goal for the marketing behavior (Heskett, 2002; McMullan & Gilmore, 2008). Gaining customer loyalty and maintaining brand loyalty with customers is critical for the company to survive in a competitive environment (Heskett, 2002). It would contribute and assist airline industry in developing future strategies on how to enhance customer loyalty. In this study, researcher focus on two main factors (customer satisfaction and trust) influence on customer loyalty in direct or indirect pathways. Quantitative research design has been used, and convenience sampling has been chosen to collect data from airline passengers. The findings of this research recommended that customer satisfaction and trust are positively and significantly influence on customer loyalty in the airline industry in Malaysia. Besides, trust was found to have positive and significant mediating effect on the relationship between customer satisfaction and customer loyalty in Malaysian airline industry.

References

Agustin, C. and Singh, J. (2005) Curvilinear Effects of Consumer Loyalty Determinants in Relational Exchanges. Journal of Marketing Research, 42, 96-108.

Amin, T., Leila, R. N., & Zahra, F. (2014). Service quality, relationship quality and customer loyalty (Case study: Banking industry in Iran). Journal of Social Science, 2,         262 – 268.

Anderson, R.E., and Srinivasan, S.S. (2003) E-Satisfaction and E-Loyalty: A Contingency Framework. Psychology and Marketing, 20, 123-138.

Arokiasamy, A. A. (2013). The impact of customer satisfaction on customer loyalty and intentions to switch in the banking sector in Malaysia. Journal of Commerce (22206043), 5(1), 14-21.

Chegini, Mehrdad Goudarzvand (2010). "Customer loyalty and value key dimensions interaction in the organization," China-USA Business Review, Vol. 9, Iss. 8, pp. 8-14.

Chin, W.W. 1998a. Issues and opinion on structural equation modeling, MIS Quarterly, 22 (1),

VII-XVI.

Chin, W.W. 1998b. The partial least squares approach for structural equation modeling, in Marcoulides, G.A. (Ed.), Modern methods for business research, Lawrence Erlbaum Associates, Mahwah, NJ.

Clemes, M.D. et al. (2008). An Empirical Analysis of Customer Satisfaction in International Air Travel. Innovative Marketing, 4 (2), 50-62.

Coyles, S. and Gokey, T.C. (2002), "Customer retention is not enough," The McKinsey Quarterly, Vol. 2, pp. 81-9,

Crosby, L. A. and N. Stephens (1990). Effects of Relationship Marketing on Satisfaction, Retention, and Prices in the Life Insurance Industry. Journal of Marketing Research (JMR), 24(4), 404-411.

Garbarino, E. and Johnson, M. (1999). The different roles of satisfaction, trust, and commitment in customer relationships, Journal of Marketing, Vol. 63, No. 2, pp. 70-87

Gefen, D. And Straub, D. W. (2003), Managing User Trust in B2C E-Services. E-service Journal, Vol. 2 No. 2 pp. 7-24.

Gefen, D. And Straub, D. W. (2003), Managing User Trust in B2C E-Services. E-service Journal, Vol. 2 No. 2 pp. 7-24.

Gefen, D., Straub, D., and Boudreau, M.C. (2005), Structural equation modeling and regression: guidelines for research practice. Communications of the Association for Information Systems Vol. 4 No. 7, pp. 1-77.

Giovanis, (2011), “Factors Affecting Greek Internet Users’ Intentions to Adopt Online   Shopping: The Perspective of an Extended Technology Acceptance Model,” International Journal of Technology Marketing, Vol. 6 No. 4 pp. 290-304.

Gustafsson, A. and Johnson, M.D. 2004. Determining attribute importance in a service satisfaction model, Journal of Service Research, 7(2), 124-41.

Hair.Jr., J. F., Black., W. C., Babin., B. J., Anderson., R. E., & L.Tatham., R. 2014. Multivariance data analysis. New Jersey: Pearson International Edition.

Harris, L. And Dennis, C. (2008), "Marketing the e-business," 2nd ed. Abingdon and New York, NY: Routledge.

Haumann, T., Quaiser, B., Wieseke, J., & Rese, M. (2014). Footprints in the Sands of Time: A Comparative Analysis of the Effectiveness of Customer Satisfaction and CustomerCompany Identification over Time. Journal of Marketing, 78(6), 78-102.

Hayes, A. F. (2018). PROCESS: A versatile computational tool for observed variable mediation, moderation, and conditional process modeling.

Heskett (2002) Corporate Culture and Performance.  New York: The Free Press.

Kennedy BK, et al. (2001) Histone deacetylase-dependent transcriptional repression by PRB in yeast occurs independently of interaction through the LXCXE binding cleft. Proc Natl Acad Sci U S A 98(15):8720-5.

Kishada, Z. M. EM. & Wahad, N. AB. (2013, July). Factors affecting customer loyalty in Islamic Banking: Evidence from Malaysian Banks. International Journal of    Business and Social Science, 4(7), 264-273.

Kumar, V, Denish Shah, and Rajkumar Venkatesan (2006), “Managing retailer profitability—one customer at a time,” Journal of Retailing, Vol. 82 (4), Pages 277–294.

 Liang, D. (2008, August). The determining factors of customer loyalty for luxury hotels in US. The Journal of International Management Studies, 3(2), 173-175.

 Liu, C. T., Guo, Y. M., & Lee, C. H. (2011). The effect of relationship quality and switching barriers on customer loyalty. International Journal of Information Management, 31, 71-79.

Luarn, P., & Lin, H.H. (2003). A Customer Loyalty Model foe E-Service Context. Journal of Electronic Commerce Research, 4(4): 126-167.

Madjid, R. (2013, May 13). Customer trust as relationship mediation between customer satisfaction and loyalty at Bank Rakyat Indonesia (BRI) Southeast Sulawesi. The International Journal of Engineering and Science (IJES), 2(5), 48-60.

McKnight, D.H., Chervany, N.L., 2001–2002. What trust means in e-commerce customer relationships: an interdisciplinary conceptual typology. International Journal of Electronic Commerce 6 (2), 35–59.

Merrin, Hoffmann, & Pennings, (2013).  Customer satisfaction as a buffer against sentimental stock-price corrections. Marketing letter, 24(1), 13-27.

Mittal, V., & Frennea, C. (2010). Customer satisfaction: a strategic review and guidelines for managers. MSI Fast Forward 10-701. Cambridge, MA: Marketing Science Institute.

Moghadam, A., H., Tabriz, A., A., Khorshidi, G., H. & Menhaj, A., M. (2014). Investigating the influence of relationship quality on passengers’ loyalty in Airline Industry. Journal of international business and management, 8(2), 34– 40.

Naureen, A., & Sahiwal, P. (2013). Impact of Customer Satisfaction and Demographic    Factors on Customer’s Loyalty in Banking Sector of Pakistan. Middle-East       Journal of Scientific Research, 18(5), 721-727

Palmatier, Robert W., Rajiv P. Dant, Dhruv Grewal, and Kenneth R. Evans (2006), “Factors Influencing the Effectiveness of Relationship Marketing: A Meta-Analysis.” Journal of Marketing 70 (October), 136–53.

Pavlou, P. (2003), "Consumer Acceptance of Electronic Commerce: Integrating Trust and Risk with the Technology Acceptance Model," International Journal of Electronic Commerce, Vol. 7 pp. 101-134.

Pi, W. W., & Huang, H. H. (2011). Effects of promotion on relationship quality and customer loyalty in the airline industry: The relationship marketing approach.         African. Journal of Business Management, 5(11), 4403-4414.

Pratminingsih, S. A., Lipuringtyas, C., & Rimemta, T. (2013). Factors influencing customer loyalty toward online shopping. International Journal of Trade, Economics, and Finance, 4(3), 104-110.

Rasheed, F. a., & Abadi, M. F. (2014). Impact of Service Quality, Trust and Perceived Value on Customer Loyalty in Malaysia Services Industries. Procedia-Social and Behavioral Sciences, 164, 298-304.

Rosalind McMullan, Audrey Gilmore, (2008) "Customer loyalty: an empirical study," European Journal of Marketing, Vol. 42 Issue:

Sayani, H. (2015). Customer satisfaction and loyalty in the United Arab Emirates banking industry. International Journal of Bank Marketing, 33, 351-375.

Singh, J. and Sirdeshmukh, D. (2000) Agency and Trust Mechanisms in Consumer Satisfaction and Loyalty Judgments. Journal of the Academy of Marketing Science, 28, 150-167.

Stan, V. and Saporta, G., (2005), Conjoint use of variables clustering and PLS structural equations modelling. In PLS05, 2005. 4th International Symposium on PLS and related methods, Barcelone, 7-9 September 2005.

Teich (1997), “Holding on to Customers: The Bottom-Line Benefits of Relationship Building,” Bank Marketing, Vol. 29, No. 2, pp. 12-13.

Tiernan S., Rhoades D., and Waguespack B, (2008),"Airline alliance service quality performance-An analysis of US and EU member airlines," Journal of Air Transport Management, 14(2), 99-102

Wold, H. 1982. Soft modeling: the basic design and some extensions, in Jo¨reskog, K.G. and     Wold,   H.E. (Eds), Systems under Indirect Observation: Causality, Structure,             Prediction,North-Holland Publishing Company, Amsterdam.

Zeithaml, Valerie A. & Bitner, Mary J. (2000) Services Marketing: Integrating customer focus across the firm, 2nd ed., Irwin/ McGraw-Hill, Boston, M.A

About Us

The Asian Institute of Research is an online and open-access platform to publish recent research and articles of scholars worldwide. Founded in 2018 and based in Indonesia, the Institute serves as a platform for academics, educators, scholars, and students from Asia and around the world, to connect with one another. The Institute disseminates research that is proven or predicted to be of significant influence for the general public.

Stay Connected

  • Instagram - Black Circle
  • Facebook - Black Circle
  • LinkedIn - Black Circle

Contact Us

Please send all inquiries to the email:

editorial@asianinstituteofresearch.org

Business Address:

5th Floor, Kavling 507, Fajar Graha Pena Tower, Jl. Urip Sumohardjo No.20, Makassar, Indonesia 90234

Copyright © 2018 The Asian Institute of Research. All rights reserved