CHAPTER 8

8.1 Appendix

Questionnaire
Please fill in the basic information. We do not ask names for anonymity, and assure you
that all the given information will be kept strictly confidential.

Age

(a) 20- 30 years (b) 31- 40 years (c) 41-50 years (d) 51 years & above

Gender

(a) Male (b) Female

Education

(a) Under Graduate (b) Graduate (c) Post Graduate (d) Others

Marital Status

(a) Single (b) Married

Annual Income

(a) Below 4 Lacs (b) Between 4 to 10 Lacs (c) 10 Lacs & Above

1- I have following items in my home :

Item Brand

Television LG/Samsung/Godrej/Panasonic/ Videocon/ Others

Refrigerator LG/Samsung/Godrej/Panasonic/ Videocon/ Others

Washing Machine LG/Samsung/Godrej/Panasonic/ Videocon/ Others

Microwave LG/Samsung/Godrej/Panasonic/ Videocon/ Others

Air Conditioner LG/Samsung/Godrej/Panasonic/ Videocon/ Others

2- I have purchased Air Conditioner or Home Appliances in :

a- Last 6 months
b- Last 7 to 12 months
c- Last 1 to 2 years
d- 2 years or more

3- My Preferred Brand is
a- LG
b- Samsung
c- Godrej
d- Panasonic
e- Videocon
f- Others
g- None of the above

4- I preferred this brand because ( rank them based upon priority)

a- Demonstration Effect
b- It is a leading brand
c- Perceived Quality
d- Brand Visibility

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 5- Rate the following attributes which you are looking in a company or product (1, 2,
3 and so on...)

Attributes LG Samsung Videocon Godrej Panasonic Others

After Sales Service

Brand Image

Prices

Value for money products

Competitive Edge

Visibility

Availability

Effectiveness of Promotion

Customer Relation

6- Which promotion makes you buy products?

a- Advertising
b- Sales Promotion

c- Personal Selling

d- Publicity by words of mouth

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 e- Combination of above

7- Which method of sales promotions is more effective to motivate you to buy?

a- Price off or Discount

b- Extra Quantity

c- Contests

d- Premium

e- Others

8- What is the best way adopted by the companies to serve the customer better?
a- Call Center -24x7
b- Proper & prompt complaint resolution
c- Free after -sales- service for certain period
d- In shop experience
e- Sales staff behaviour & approach

Strongly Slightly Undecided Slightly Strongly

S.N. Disagree Disagree Agree Agree
9. The company uses 1 2 3 4 5
customer satisfaction
surveys for understanding
customer needs and what
satisfies and dissatisfies
customers.

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10. Relationships with 1 2 3 4 5
customers are managed
effectively and involve
obtaining information from
them to improve products
and services.
11. Customer complaints are 1 2 3 4 5
welcomed and resolved
quickly and positively.
12. Company understand 1 2 3 4 5
customer need and provide
good quality product
13. Company cares about 1 2 3 4 5
human health and provides
eco -friendly products
14. Sales promotion makes me 1 2 3 4 5
more loyal towards
company
15. Sales promotion offers help 1 2 3 4 5
me to decide which
company’s product I
should buy
16. Sales promotion stimulates 1 2 3 4 5
interest, trial or purchase
17. Sales promotion makes the 1 2 3 4 5
complete product package
more attractive
18. I would like to suggest my 1 2 3 4 5
brand to my relatives or
known people

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19. If given a chance , I would 1 2 3 4 5
like to purchase the same
home appliances from
same company

20. If there is any new 1 2 3 4 5

requirement , I would like
to go for my current brand
only
21. I believe that I am loyal to 1 2 3 4 5
this brand.
22. I believe that my brand is 1 2 3 4 5
the best brand available for
me
23. I am overall satisfied with 1 2 3 4 5
the brand

I am grateful for your time and cooperation. THANK YOU

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 8.2 Resume

Name : Nirbhay Krishna Varshney

Educational Qualification : M.B.A. (Marketing)

Participation in Conferences

Participated in International Conference, “World Congress on Innovative

Management Practices in Business, Banking, Economics and Marketing (BEM-

2016)” at Jawaharlal Nehru University, New Delhi, on 7th February, 2016 and

presented a research paper titled “Does Service Quality Dimensions Affect

Interpersonal Relationships? An Empirical Investigation”

Participated in 3rd International Conference on Science, Technology and

Management at India International Centre, New Delhi on 17th January, 2016 and

presented research paper entitled, “Exploring Neuromarketing Dynamics”.

Publication in Journals

Research paper titled, “Exploring Service Quality, Switching Barriers and

Customer Loyalty: Mediating role of Switching Barriers”, in GE- International

Journal of Management Research, Vol.4, Issue 2, 2016, pp. 74-83.

Research paper titled, “Investigating Relationship among Customer Trust,

Relationship marketing Tactics and Customer Loyalty: with Relational Marketing

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 Tactics as Mediator”, in International Research Journal of Marketing and

Economics, Vol. 3, Issue 2, 2016, pp.7-15.

8.3 Research Paper 1

Investigating Relationship among Customer Trust, Relational

Marketing Tactics and Customer Loyalty: With Relational Marketing
Tactics as Mediator

International Research Journal of Marketing and Economics,

Vol. 3, Issue 2, 2016, pp.7-15.

Abstract

In recent times developing customer loyalty has been a major challenge for organizations.
This has also been aggravated by a cut-throat competitive scenario and the contingent
business environment. Traditional marketing policies have been gradually replaced by
relationship-oriented dynamics. The emergence of relational marketing tactics along with
customer trust has ushered in a paradigm shift in the study of customer loyalty. The aim
of this empirical paper has been to investigate the nature of association between customer
trust, relational marketing tactics and customer loyalty by using relational marketing
tactics as a mediating variable. The sample size was of 174 respondents. Results reveal
positive relationship among the variables and relational marketing tactics was found to
partially mediate the proposed relationship.

Keywords: behaviour; customer loyalty; customer trust; purchase; relationship marketing

tactics

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Introduction

The essential objective of many organizations is to identify, acquire and retain

advantageous customers. There is a consistent attempt to develop loyal customers as they
increase the profitability of the organization over a period of time. The process of making
customers loyal manifests into two distinct dimensions: to utilize successfully the
relational marketing tactics and the genuine efforts to create customer trust on the
organization. Trust, an intricate variable in this research, can be aptly described as
assurance from the customer in the products and services of a particular store or brand.

Customer loyalty

Loyalty implies the particular predisposition of consumers to buy a specific product or

service with a high degree of stability. Each loyal customer provides an indirect support
by word-of –mouth promotion. According to Buttle (2004) there are two key perspectives
of loyalty, namely, behavior and attitude. Arnould, Price & ZinKhan (2004) has
described customer loyalty as a deep rooted allegiance to re-buy or re-patronize a liked
product or service. So, loyalty, in a way consists of both the eagerness to act and ignore
alternatives. It has a positive impact in the firm’s business by an increase in profits, sales
and a good image. Additionally, Arnould et al (2004) had stated that the relational aspect
can make the consumers overlook other options offered by the competitors.

Recent research of Goodman (2009) points out that loyalty can be measured effectively
by constantly recurring buying behaviour. Thomas and Tobe (2013) stresses that loyal
customers bring in increased profits. Moreover, emotional loyalty refers that the customer
understands and feels fulfilled by the image, vision of the organization. On the other
hand, behaviour loyalty is demonstrated through repeat purchase behaviour (Wan Tong,
2015).

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Yao Dan (2011) carefully explains that irrespective of multidimensional or a total
analysis; customer loyalty should not be analysed in terms of the repeat purchasing
behavioural aspects. It should consider the positive emotional characteristics affecting the
loyalty attributes too. Du & Tang (2014) describes customer loyalty as the most valuable
intangible assets of the modern day organization. High loyalty leads to a long-term
stability of the organization. Sun and Lin (2010) further emphasizes that loyalty can be
developed and sustained by concentrating on trust and commitment aspects.

Customer trust

Trust is one of the most extensively researched topics across various disciplines (Zhang
& Feng, 2009). It is an important quality to forge deep and lasting associations between
consumers and organizations (Garbarino – Johnson, 1999). In a way it minimizes the
uncertainty and challenges in transaction—the customer in a trusting state is susceptible
with the positive expectations regarding the seller’s motives and behavior (Rousseau et
al, 1998). Hence, trust is associated with the positive expectations about the other party’s
intentions and related behavior. Also, as discussed before trust makes the customer have
faith on the firm with the realization of one’s own vulnerability (Singh & Sirdeshmukh,
2000; McKnight & Chervany, 2002). Once the customer perceives that price and the
associated services are fair then the trust factor increases. Trust also makes the consumer
recommend the products and services through word-of-mouth promotion. Trust is a
compelling and absolute indicator of loyalty as compared to satisfaction (Simay, 2013).
Past literature has also demonstrated the significance of customer commitment and trust
factors of customer relationship quality in a business model (Aurier & N’Goala, 2010;
Garbarino & Johnson, 1999; Wong & Sohal, 2002).
Relational Marketing tactics

For organizations, relationship marketing strategy is one of the most effective ways to
keep customers and build customer loyalty. There have been past research throwing light
on the influence of relationship marketing tactics on behavioral loyalty and in course

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customer retention (Peng and Wang, 2006). Relationship marketing is applied along with
other relationship marketing tactics. There are different tactics that have the capacity to
influence the relationship quotient and eventual customer retention (Zhang & Feng,
2009). Moreover, trust, commitment, relationship quality, relationship satisfaction and
customer loyalty are all relational outcomes that are affected from implementing
Relationship Marketing initiatives (Palmatier et al., 2006; Álvarez et al., 2011; Morgan &
Hunt, 1994). A close study of the relationship research shows that trust and commitment
are two frequently referred factors Palmatier et al., 2006; Morgan & Hunt, 1994),also
commitment and trust seems to be synonymous with credibility (Palmatier et al., 2006).
Commitment, trust and satisfaction, are seen as the overall global mediators of
relationship quality and loyalty (Palmatier et al., 2006).According to Buttle (2004) trust
ensures that the company does not only have the profit motive but trust is focused and at
the same time provides confidence and a sense of security. Relationship marketing tactics
are the perspectives whereby relationship marketing are practically applied (Tseng,
2007).
The functions of relationship marketing result from the continuous sponsorship of loyal
customers who are not price sensitive over a period of time (Bowen and Shoemaker,
2003). Bansal, Taylor and James (2005) expressed that relationship marketing tactics can
be applied through service quality, price perception, value offered and alternative
attractiveness.

Based on the above, following hypotheses have been proposed:

H1: Relational marketing tactics have significant positive relationship with customer
loyalty.
H2: Customer trust has significant positive relationship with customer loyalty.
H3: Relational marketing tactics have significant positive relationship with customer
trust.
H4: Relational marketing tactics mediate the relationship of customer trust and customer
loyalty.

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Proposed model is

Relational
Marketing

Customer
Customer
Loyalty
Trust

Figure 1: Proposed Research Model

Procedure & Measures

Customers of Consumer Durable products were chosen for this study. 280 questionnaires
were administered to the customers at shopping malls, exclusive retail stores and
multiproduct outlets. 189 questionnaires were returned that makes the response rate of
67%. 15 questionnaires were rejected due to incomplete information. The final number of
complete questionnaire was 174.
Respondents were divided in four age group. Most of the respondents were of age group
of 30 to 40 years with 42% followed by 29% of age group of below 30 years. 18%
respondents were of age group of 41 to 50 years and 11 % of the respondents were of 51
years and above age group. 64 % of the respondents were male and 68% of the
respondents were married. 38% of the respondents had made a purchase of consumer
durable products in last 6 months, 32% of the respondents purchased consumer durable
items in last 6-12 month time period. 21% of the respondents had purchased consumer
durable items in last 1-2 years whereas 9% of the respondents purchased consumer
durable products in last 2 years and above time period.
Relational Marketing Tactics
Relational Marketing Tactics are divided into three main categories; preferential
treatment, tangible rewards and interpersonal communication. Preferential treatment is
associated with the special treatment given to someone to give a feeling of an exclusive
customer. Tangible rewards are the discretionary benefits given to the individual that are
taken care by the showroom sales team. Interpersonal communication is based on the

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capability of the individual sales person to develop a strong bonding with the specific
customer. Relational marketing tactics were measured using 8 items from the scale of
Yen, Liu and Chao (2009). Likert 5 point scale was used. The overall reliability alpha
value was 0.709.

Customer Trust
Customer trust was measured by the scale of Morgan and Hunt (1994). There were two
factors of customer trust. Integrity and confidence in exchange partner's reliability. There
were 6 questions to measure the customer trust. It was measured on 5 point Likert scale
in which 1 stands for strongly disagree and 5 stands for strongly agree. The reliability
alpha value of the same was 0.701.

Customer Loyalty
Customer loyalty was measured using the concepts from Shoemaker and Lewis (1999). It
is constructed by two concepts of behavioural loyalty and attitudinal loyalty with 3 items.
Behavioural loyalty is related with the individual’s willingness to continue the shopping
from a particular outlet or for a particular brand and eagerness to spend more time to stay
there whereas attitudinal loyalty is associated with the individual’s willingness or efforts
to recommend the shop or brand to his/her friends, relatives or to the known people. 5
point Likert scale was used to measured customer loyalty and the reliability alpha value
was 0.775.
Results
Correlation analysis was conducted to measured demographic factors and related
variables. Gender had significant positive correlation with age (0.246**), purchase
behavior (0.260**), marital status (0.633**), relational marketing tactics (0.400**),
customer trust (0.278**) and customer loyalty (0.294**). Age has significant positive
correlation with purchase behavior (0.233**), marital status (0.400**), relational
marketing tactics (0.159*), customer trust (0.194*) and customer loyalty (0.260**).
Purchase behavior has significant positive correlation with marital status (0.406**)
whereas it has no relation with relational marketing tactics, customer trust and customer

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loyalty. Marital status has significant positive correlation with relational marketing tactics
(0.329**), customer trust (0.439**) and customer loyalty (0.306**). Relational marketing
tactics has positive significant relation with customer trust (0.303**) and customer
loyalty (0.206**) whereas customer trust has significant correlation with customer
loyalty (0.271**).
Table 1 : Mean , Standard Deviation & Spearman Correlations
Purchase Marital Customer Customer
Mean SD Gender Age RMT***
Behaviour Status Trust Loyalty
Gender 0.36 0.48 1.000
Age 1.12 0.96 .246** 1.000
Purchase
1.01 0.97 .260** .233** 1.000
Behavior
Marital
0.32 0.47 .633** .400** .406** 1.000
Status
RMT*** 2.49 0.73 .400** .159* .145 .329** 1.000
Customer
2.41 0.94 .278** .194* .136 .439** .303** 1.000
Trust
Customer
2.49 0.79 .294** .260** .104 .306** .206** .271** 1.000
Loyalty
*** RMT means Relational Marketing Tactics
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
To check the hypothesis, linear multiple regression was performed. Customer trust and
relational marketing tactics relationship was tested. Relational marketing tactics were
entered as dependent variables. The beta value was (0.307, p<0.05), the relationship was
found to be significant. Since beta value is less, it can be stated that the relational
marketing tactics and customer trust’s relationship is not strong. The hypothesis that there
is significant positive between relationship marketing tactics and customer trust was
accepted.
To check the relationship between relational marketing tactics and customer loyalty,
regression was performed. Customer loyalty was entered as a dependent variable. The
beta value was 0.243 and significant at p<0.05. Since the beta value is less, it can be

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stated that the relation between relational marketing tactics and customer loyalty is weak
in nature. Hypothesis that relational marketing tactics and customer loyalty has
significant positive relationship was accepted.
Customer loyalty and customer trust relationship was measured with regression analysis.
Customer loyalty was entered as dependent variable .The beta value was 0.321 and was
significant at p<0.05. Hypothesis that customer loyalty and customer trust has significant
positive relationship is accepted.
Table 2 : Regression Analysis
Unstandardized Standardized
Model Coefficients Coefficients T Significance
B Std. Error Beta
1.46
(Constant) .225 6.502 .000
1 0
Customer Trust .381 .086 .321 4.439 .000
1.09
(Constant) .282 3.865 .000
0
Customer Trust .322 .089 .272 3.615 .000
2
Relational
Marketing .207 .097 .160 2.129 .035
Tactics
a. Dependent Variable: Customer Loyalty

To check the mediating effect of relational marketing tactics on the relationship of

customer loyalty and customer trust, linear multiple regression was performed. Customer
loyalty was entered as dependent variable. In first step, customer trust was entered as
independent variable. The beta value was (0.321, p<0.05) and significant. In second step,
relational marketing tactics were entered. Based on the table 2, it can be stated that beta
value of the relationship of customer trust and customer loyalty (beta = 0.272, p<0.05) is
still significant, though the value of the beta has been reduced from 0.321 and 0.272

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which reflects the impact of relational marketing tactics on the relationship of customer
trust and customer loyalty.
Hypothesis that relational marketing tactics mediate the relationship of customer trust and
customer loyalty was accepted. In other words, it can be derived from the table 2 that
relational marketing tactics partially mediate the relationship of customer trust and
customer loyalty.
Conclusion

In the above study, the hypotheses proposed were found to have a positively significant
association among the variables and relationship marketing tactics successfully mediates
the relationship between the independent and the dependent variables. Future studies
should focus on studies from different industries and larger sample size. This study has
been cross-sectional in nature hence future studies should focus on longitudinal research
with moderated-mediation analyses methods.

Reference

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complaint management in the context of relationship marketing, Journal of Marketing
Management, 27 (1-2), 143-164.
Arnould, E., Price, L., & Zinkhan, G. (2004). Consumers. Boston: McGraw Hill/Irwin.

Aurier, P., & N’Goala, G. (2010). The differing and mediating roles of trust and
relationship commitment in service relationship maintenance and development. Journal
of the Academy of Marketing Science, 38(3), 303-325.

Bansal, H. S., Taylor, S.F., & St. James, Y. (2005). Migrating to New Service Providers:
Toward a Unifying Framework of Consumers Switching Behaviors.Journal of the
Academy of Marketing Science, 33(1), 96-115.
Bowen, J. T., & Shoemaker, S. (2003). Loyalty: A Strategic Commitment. Cornell Hotel
and Restaurant Administration Quarterly. 44(5/6), 31-46.
Buttle, F. (2004). Customer relationship management: concepts and tools. London:
Elsevier Butterworth Heinemann.
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Dan, Y. (2011). Empirical Research of Perceived Value as a Mediator between Group-
buying Service Quality and Customer loyalty in Catering Industry. Nanjing University.
Garbarino, E., & Johnson, M. S. (1999). The different roles of satisfaction, trust, and
commitment in customer relationships. Journal of Marketing, 63(2), 70-87.
Goodman, J. A. (2009). Strategy Customer Service: managing the customer experience to
increase positive word of mouth, build loyalty, and maximize profits. New York:
AMACOM.

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

Morgan, R, M., & Hunt, S, D. (1994). The Commitment- Trust Theory of Relationship
Marketing. Journal of Marketing, 58(3), 20-38.

Palmatier, R. W., Dant, R. P., Grewal, D., & Evans, K. R. (2006). Factors influencing
the effectiveness of relationship marketing: a meta-analysis. Journal of marketing,
7, 136-153.
Peng, L. Y., & Wang, Q. (2006). Impact of Relationship Marketing Tactics
(RMTs) on Switchers and Stayers in a Competitive Service Industry. Journal of
Marketing Management, 22, 25-59.
Rousseau, D., Sitkin, S., Burt, R., & Camerer, C. (1998). Not so different after all: a
cross-discipline view of trust. The Academy of Management Review, 23(4), 393-404.
Shoemaker, S., & Lewis R. C. (1999). Customer loyalty: The future of hospitality
marketing. International Journal of Hospitality Management, 18, 345–370.
Simay, A.E. (2013). Connexions of Consumer Satisfaction, Consumer Trust and
Consumer Loyalty in the Hungarian Mobile Telecommunication Services Market.
Department of Market Research and Consumer Behaviour, University of Budapest.
Singh, J., & Sirdeshmukh, D. (2000). Agency and Trust Mechanisms in Consumer
Satisfaction and Loyalty Judgements. Journal of the Academy of Marketing Science,
28(1), 150-167.

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Sun, P. C., & Lin, C. M. (2010). Building customer trust and loyalty: An empirical study
in a retailing context. The Service Industries Journal, 30(9), 1439-1455.
Thomas, B. & Tobe, J. (2013). Anticipate: Knowing what customers need. New Jersey:
John Wiley & Sons.

Tong, W. (2015). Analyzing the relationship between Customer Satisfaction and

Customer Loyalty Case: Ritz- Carlton Guangzhou. Thesis submitted for fulfillment of
degree programme in Business Management in Lapland University of Applied Sciences.

Tseng, Y.M. (2007). The Impacts of Relationship Marketing Tactics on Relationship

Quality in Service Industry. The Business Review, 7 (2), 310-314.
Wong, A., & Sohal, A. (2002). An examination of the relationship between trust,
commitment and relationship quality. International Journal of Retail & Distribution
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Zhang, X., & Feng, Y. (2009).The Impact of Customer Relationship Tactics on Customer
Loyalty - Within Swedish Mobile Telecommunication Industry. Master Thesis of
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Loyalty: An Empirical Study on the Sun Link Sea Forest and Recreational Park, Taiwan.
The International Journal of Organizational Innovation, 2(1), 179-194.

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 8.4 Research Paper 2

Exploring Service Quality, Switching Barriers and Customer

Loyalty: Mediating Role of Switching Barriers

GE- International Journal of Management Research,

Vol.4, Issue 2, 2016, pp. 74-83

Abstract

Customer loyalty is the outcome of a positive emotional experience which is due

to the satisfaction derived from physical features and the value perceived from an
experience. Service quality has been considered to be an integral factor affecting
customer loyalty. Recent research has focused on service quality dimensions. On the
other hand, switching barriers have a long term detrimental impact as they make it
difficult for the consumers to change the suppliers. The aim of this empirical paper has
been to investigate the relationship between service quality, switching barriers and
customer loyalty. Significant relationship was found among the variables and switching
barriers was found to mediate the relationship among service quality and customer
loyalty. Future research implications have been discussed.

Keywords: attractiveness of alternatives; cost; interpersonal relationship; service quality,

switching barriers

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Introduction

The study of customer loyalty has redefined in recent times and has been
observed as having far reaching strategic implications. Goodman (2009) has defined
loyalty as being evaluated by continued buying behavior. Thomas and Tobe (2013)
emphasized on the profitable nature of the loyal customers. Repeat purchasing does not
always imply loyalty and may have some underlying reasons which shall be termed
switching barriers in this research. On the other hand customer loyalty reflects a
disposition to buy along with the repeat purchases and simultaneously reflects deep faith
and belief on the product or service purchased. Furthermore, if the same or similar
product or service is required in future, the preferred product or service would be the first
choice. As per Deng, the head of the Concierge department, Ritz Carlton Hotel,
Guangzhou in Tong (2015), this in turn leads to repeat purchasing.

Companies have today realized the immense significance to identify, deliver and
forecast customer needs. Cheng et al. (2011) proposed that it is definitely cost effective to
retain existing customers than acquire new ones. Similar research ( Boshoff and du
Plessis, 2009) have also conveyed the advantages of keeping old customers as they are
economic to retain, indulge in positive word-of –mouth promotion, contribute with
valuable suggestions and engage in positive word-of –mouth promotion. Research also
demonstrates that loyal customers are a vital strategic tool and customer retention can be
forged through cooperative partnership between the customer and the marketer. Several
authors suggested that loyal customers are a competitive asset and a way of increasing
customer retention is through secure and collaborative relationship between customer and
service providers (Rajeswari and Pradha, 2011). Brand loyalty takes precedence in the
services sector, especially with regards to those providing services with little
differentiations and ones competing in aggressive conditions, for example, the
telecommunications sectors (Santouridis and Trivellas, 2010). Therefore, it is incumbent
on providers to accommodate customer’s expectations in this tough competitive
environment by developing strategies to strengthen brand loyalty. Thus, with regards to
the telecommunication sector, it is significant to ensure a good relationship between

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customers and mobile service providers. Rahman, et al., (2010) stated that in order to
create brand loyalty in customers, companies must help customers acquire new ways of
purchasing and reinforce those ways as new habits.

Service Quality

Service quality has been found to have deep influence on customer loyalty and is
one of the key elements which can influence customer’s behavior. In a way service
quality decides whether the customer is loyal or not (Tong, 2015). Hence, improved
service quality is a deciding factor that helps in increasing customer loyalty. Service
quality can be described as an occurrence encompassing customers’ expectations and
perceptions about the service offered (Yilmaz, 2009). Service quality varies according to
the customer’s perception (Kucukaltan, 2007). For instance, Su, the manager on duty, the
Ritz – Carlton Hotel Company in Tong, W. (2015) mentioned that service quality may
influence both customers’ satisfaction and loyalty.
So, perceived service quality is a result of the comparison of customer's
expectations prior to receiving the service and his/her actual service experience. It is
assessed by the direction and magnitude of the difference between customers'
expectations and perceived performance (Zeithaml & Bitner, 2000).
The proper measurement of service quality involves the primary phase of service
quality enhancement and improvement processes. As the current quality level related
information is extracted, significant measures can be taken to rectify shortcomings
successfully (Usta & Memis, 2009). For any business that seeks to make better the
service quality should initially identify it’s present situation and then set the measures to
make the quality of the service more sophisticated (Akbaba & Kilinc, 2001). As services
are consumed during the period they are produced, the customer is not only interested in
the quality of what is produced but also intrigued about the other components which is
also involved in the entire manufacturing process. This particular aspect of the service
has introduced the concept of service quality dimensions (Sevimli, 2006). Today’s
business has multiple challenges as it not only has to focus on the needs of the present
customers but also the future prospective customers. This customer-orientation is blended

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with the customers’ expectations, tastes and the degree of the quality of the services
(Kocbek, 2005). Ozturk & Seyhan (2005) had aptly explained that companies should
determine the differences between customers’ expectations and their perceptions about
the accomplished results simultaneously. This method will enable businesses to
understand the service quality variables that lead to satisfaction or dissatisfaction.

Switching barrier

There are different constraints which the organizations face along with the
customer satisfaction. There is some empirical research done which highlights how the
different types of switching barriers affect satisfaction with the suppliers, repurchase
intentions , attitudinal loyalty and also the relationship between these variables (Jones,
Mothersbaugh, & Beatty, 2000). Additionally, some researchers (Ping, 1993) have
focused that customers stay loyal to a supplier either because they want to or they have
to. High switching barriers implies that customers remain associated with the suppliers
and satisfaction is not the sole reason. This eventually creates lower satisfaction;
repurchase motives and attitudinal loyalty as compared to a free situation (Ringold,
1988). Moreover, too many switching barriers may result in negativity and low
satisfaction levels of the customers. A body of research examined switching costs and its
relationship to repurchase intentions or loyalty (Ping, 1993; Jones et. al., 2000, 2002).

Customer loyalty

Gremler and Brown (1999) had described that customer loyalty demonstrates a
customer’s positive attitude for the repeat purchasing behavior for some product and
services. Customer loyalty consists of the impact of quality, cost, service provided and
other related factors. Griffin (2002) believes that customer loyalty means the repeating
purchase behavior based on personal preference of certain product or service. The loyal
customers are a source of competitive advantage of the organization. Thomas and Tobe
(2013) stress that loyalty customers are more profitable for the firm. Additionally,
customer loyalty is expressed through both emotional and behavior loyalty. Emotional
loyalty refers to the fact that the customer is satisfied to a great extent for the various

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aspects and behavior loyalty manifests in the recurring purchase behavior. Researchers,
academicians and those in the field have been making use of both attitudinal and
behavioral dimensions to describe and examine customer loyalty (Zeithaml, 2000). Reza
and Rehman (2012) further define attitudinal loyalty as a particular wish to extend the
relationship with the supplier and provider. It also implies repeat sales to customers.
Moreover, due to excessive competition, the companies are facing tremendous
competition and the pressure of retaining customers has become imperative (Boshoff and
du Plessis, 2009). Even Cheng et al. (2011) has suggested that it is cost-effective to keep
existing ones rather than acquire new ones because the cost of developing a new
customer is between five and nine times the cost of retaining old customers.

Method

Procedure

Customers buying consumer durable products from malls, exclusive retail outlets
and multi brand outlets were surveyed in this study.250 questionnaires were circulated
out of which 173 were returned that made a 69% response rate. 15 questionnaires were
rejected due to incomplete information. 158 questionnaires received finally. The average
age of the customers was 32.11 years with standard deviation of 4.56 years. 42.6% were
graduates, 29% were post graduates and 28.4 % customers were undergraduates. The data
consists of 68.6% of male respondents and of 31.4% of female respondents.72% of the
customers were married whereas 28% of the customers were unmarried. 47% of the
customers had purchased consumer durable products within last six months , 22% of the
customers had purchased consumer durable products in the last one year , 25% of the
customer had made purchase in last 1-2 years and 6% of the customers had purchased
around 2 years and more.

Measures
Descriptive analysis was used to examine the demographic profile of the
customers. Further, Spearman correlation was performed to analyze the direction and
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relationship among demographic factors and other key variables. Linear regression was
done to check the strength of the relationship among variables and the mediating effect of
switching barriers on the relationship of service quality and customer loyalty.
According to Nunally (1978) the internal reliability of the selected scales
demonstrates that internal reliabilities are between the acceptable ranges.

Service Quality
The SERVQUAL model developed by Parasuraman et al., (1988), was
administered to examine service quality perception of the customers. It was measured
using a 22 question scale which covered the main features of service quality such as
tangibility, reliability, responsiveness, assurance and empathy. Tangibility is about
physical facilities, equipment, and appearance of personnel. Reliability explains the
ability to perform the promised service reliably and accurately whereas responsiveness is
about willingness to help customers and provide prompt service. Assurance explains the
knowledge and courtesy of employees and their ability to inspire trust and confidence and
empathy is about caring individualized attention the firm provides to its customers. The
responses were n=measured on 7 point Likert scale. Overall Cronbach reliability of
service quality scale was found to be 0.80.

Switching Barriers
Switching barriers was measured with the scales developed and proposed by
White and Yanamandram (2007) and Jones et al. (2000). There are three factors of
switching barriers; interpersonal relationship, switching cost and attractiveness of an
alternative. The interpersonal relationship is associated with the relationship between
customers and employers, switching cost is used to measure the factors such as
uncertainty feeling of the customers, efforts & time required to search and evaluate the
products of other brands or stores and unfamiliarity factor about new brand or product.
Attractiveness of an alternative explains the concerns related to the products, services and
brand association provided by the competitors. Responses were taken on 5 point Likert
scale. The overall Cronbach reliability of switching barriers was found to be 0.78.

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Customer Loyalty
Customer loyalty was measured by using the proposed model from Shoemaker
and Lewis (1999). Customer loyalty is formed by two concept of behavioral and
attitudinal loyalty with 5 questions and measured at 5 point Likert scale (1 for strongly
disagree and 5 for strongly agree). The questions were asked such as “would you like to
spend more time to stay in this particular store” and “would you recommend your friends
to shop”. The overall Cronbach reliability was found to be 0.77.

Results

The standard deviations, means and correlation values for key demographic
factors and selected variables are shown in Table 1.

Table 1 : Spearman Correlations among key variables and demographic factors

Switchin Customer Service
Mean SD Gender Age
g Barrier Loyalty Quality
0.37
Gender 0.17 1.000
7
Age 32.11 4.56 -.089 1.000
Switching
2.53 0.72 -.003 .161* (0.78)
Barrier
Customer 0.94
2.42 .010 .131 .753** (0.77)
Loyalty 4
0.89
Service Quality 3.22 .049 -.075 .203* .230** (0.80)
3
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Based on the table 1, it can be stated that Gender is not having any significant
relationship with any of the variables. Age has been found to possess a significant and

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positive relationship with switching barriers (0.161, p<0.05) whereas it has no impact on
customer loyalty and service quality. Switching barriers has significant and positive
relationship with customer loyalty (0.753, p<0.05) and with service quality (0.203,
p<0.05). It can be stated that with an increase in switching barriers, there will be
subsequently an increase in customer loyalty and service quality. Service quality has
significant positive relationship with customer loyalty (0.230, p<0.05).
To check the hypothesis, linear regression was performed. First, service quality
and customer loyalty relationship was analyzed .Customer loyalty was then entered as a
dependent variable. Result showed that there was a significant relationship between
customer loyalty and service quality (b= 0.19, p<0.05). Since the beta value was less, it
can be stated that the relationship is weak. The hypothesis that there is significant
relationship between customer loyalty and service quality is accepted. The relationship
between Service Quality and switching barriers was analyzed. Switching barriers was
entered as dependent variable. According to the result, there is a significant positive
relationship between service quality and switching barriers (b=0.17, p<0.05). The
hypothesis that there is significant positive relationship between service quality and
switching barrier is accepted.
Table 2 :Regression Analysis
Unstandardized Standardized
Coefficients Coefficients
Model t Significance
Std.
B Beta
Error
(Constant) 1.781 .278 6.412 .000
Step 1
Service Quality .201 .083 .190 2.415 .017
(Constant) -.345 .224 -1.536 .126
Service Quality .058 .053 .055 1.092 .277
Step 2
Switching
1.019 .067 .773 15.283 .000
Barrier
a. Dependent Variable: Customer Loyalty

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 Further, the relationship between customer loyalty and switching barriers was
analyzed. Customer loyalty was entered as a dependent variable. There was a significant
positive relationship between customer loyalty and switching barriers (b= 0.78, p<0.05).
Based on the beta value, it can be stated that relationship of customer loyalty and
switching barriers is very strong. The hypothesis that there is a significant positive
relationship between customer loyalty and switching barriers was accepted.
To check the mediating effect of switching barriers on the relationship of
customer loyalty and service quality, linear multiple regression was performed. In the
first step, customer loyalty and service quality was entered as dependent and independent
variables respectively. Service quality was significant (b=0.19, p<0.05). In the second
step, switching barriers was entered as independent variable which makes service quality
insignificant (b=0.277, p>0.05). The hypothesis that switching barriers mediates the
relationship of service quality and customer loyalty has been accepted. Based upon table
2, it can further be derived that switching barriers completely mediates the relationship
between service quality and customer loyalty.

Discussion, limitations & future research implications:

The hypotheses formulated above have been found to have significantly positive
relationship. Furthermore, switching barriers completely mediate the relationship
between service quality and customer loyalty. There are some limitations of the study;
firstly, the sample size is comparatively small and future studies should ensure survey on
a larger sample. Secondly, the data focused on the consumer industry solely. Future
studies should research on different industries. Thirdly, in this study service quality had
been taken as a whole but future studies can determine relationship between the various
variables of service quality and switching barriers and customer loyalty. Finally, the
study was cross-sectional in nature; future research would be effective if longitudinal
studies are carried out.

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