Abstract
This study examines the mediating role of customer relationship management (CRM) quality to better explain the effects of service evaluation variables (service quality, customer satisfaction and customer value) on customer loyalty. The study also investigates the moderating effect of brand image on these mediated relationships. The mediating role of CRM quality on the relationship between the service evaluation variables and customer loyalty is supported. Further, it is found that the indirect effect of customer satisfaction on customer loyalty via CRM quality is stronger when perceived brand image is high than when it is low. The results have implications for relationship managers, brand managers and scholars who use service evaluation and relational metrics to predict customer loyalty.
1. Introduction
Marketing scholars and practitioners recognize the importance of customer loyalty as a strategic objective in all service industries (Cooil et al., 2007; Gustafsson et al., 2005; Reichheld, 1996). In particular, loyal customers are critical assets in the automotive industry where customers are involved in comparatively deeper and long-term relationships with the firm. This is because the average product (car) costs over US$30,000 and unlike other products, buyers often do not return to the market for an average ownership cycle of five years or longer (Gorzelany, 2011). Accordingly, firms, especially car dealerships, need to build and develop sustainable and high quality customer relationships that can deliver beyond the core product (Zineldin, 2006).
5.3. Limitations and areas for future research
Like any research, this study has some limitations that should be taken into account when interpreting the results, but also point to opportunities for additional research. First, while the results may be generalizable to other countries, the economic, geographical and cultural make-up of South Africa should not be overlooked when interpreting the results. As an emerging nation, one would expect the general South African customers’ car consumption behavior to vary when compared to their counterparts in developed countries. This is due to the differences in macro market conditions and micro consumption behavior between the two markets. Future research could examine the network of interrelationships specified in this study in a developed market and compare the results. Also, it would be useful to investigate the antecedents of CRM and its impact on the increasingly polygamous loyalty (Uncles et al., 2003) that customers hold with brands,
