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252 DEVELOPING A MODEL OF CUSTOMER SATISFACTION CLAUDIABOBLC,OANACIOBANU UNIVERSITYALEXANDRUIOAN CUZAOF IAI,22nd Carol1 STR.,IAI, ROMANIA, [email protected] Abstract: The goal of this research is to develop and test a customer satisfaction-loyalty model fordirectsellingcompaniesofcosmeticproducts.Themaindeterminantsof satisfaction are identified and measurement scales for each construct are provided.The fundamental hypothesis is that there is a direct relationship between satisfaction andloyalty.Weconductedaqualitativeandaquantitativeresearch.The satisfaction-loyalty model (which describes the relations between the satisfaction determinantsandthedimensionsofloyalty) istestedwithStructuralEquation Modeling (SEM), using Amos 16.0. The sample is represented by 676 young buyers of cosmetic products from direct selling companies. Key words: loyalty, satisfaction, SEM, direct selling J EL classification: M31 INTRODUCTION Inmarketingliteraturethereisaunanimousopinionregardingthemajor importanceoftheunderstandingandthemaintainingofcustomersatisfactionand loyalty.Satisfactionisdefinedaspleasurablefulfillment(Oliver,1997).Indirect selling,satisfactionisanalyzedasacombinationbetweensatisfactiongeneratedbythe salesman,theproduct,thecompanyandtheperceivedvalue(Musa,2005).Alturas, SantosandPereira(2005)investigatethefactorsaffectingsatisfactionindirectselling andtheresultsindicatealargelistofsuchfactorsas:trust,theavailabilityofthe product,thecompanysimage,thevarietyoftheproducts,flexibility,convenience, financialvalue,thespecificoftheproduct,professionalism,buyingpressure, demographiccharacteristics,customersexperiencewiththecompany,theproductsand thesalesmanandtheperceivedrisk.Musa(2005)testsamodelofsatisfactionand loyaltyindirectsellingandshowsthatgeneralsatisfactionisgeneratedbythe satisfactionwiththesalesmanandtheproducts.Also,generalsatisfactionhasapositive impactonattitudinalandactionloyalty.Satisfactionisanecessarystepinconstructing loyalty(Oliver,1999,p.160)andisoftenusedasapredictoroffuturebuyingora majordeterminateof loyalty(De Wulf,1999; Ranaweera,Prabhu,2003). OneofthemostciteddefinitionsofloyaltyistheoneofJacobyandChestnut (1978),whoseethisprocessasabehaviorresultofconsumerspreferencesfora specificbrandfromasetofsimilarbrands.DickandBasu(1994,p.99)defineloyalty asthecustomerloyaltyisviewedasthestrengthoftherelationshipbetweenan individualsrelativeattitudeandtheirrepeatpatronage.Inmarketingresearch literature,loyaltyisinvestigatedasacomponentofone(generalloyalty),two (attitudinalandbehavioral)orfourdimensions(cognitive,affective,conative,action). EvanschitzkyandWunderlich(2006)definecognitiveloyaltyastheevaluationofthe companyoraproductattributesperformance.Theyalsodefineaffectiveloyaltyasan emotionalgeneralevaluationandconativeloyaltyasthebehavioralintentionofthe customertocontinuetobuyonecompanysproducts.Actionloyaltyincludes:saying positivethingsaboutthecompanytoothers,recommendingthecompanyorserviceto 253 others,payingapricepremiumtothecompany,expressingapreferenceforacompany over others,continuingto purchasefromit(Zeithamlet al.,1996, p.34). Althoughsatisfactionisconsideredthemostimportantpredictorofloyalty (Oliver,1999;DeWulf,1999),mostcommoninloyaltyresearch,mostofthemodels dontinvestigatethefactorsaffectingsatisfaction,especiallyindirectselling.Themost commonfactorsincludedinsatisfaction-loyaltymodelsareperceivedqualityand perceivedvalue(Rowley,2005). Inthiscontext,in2010,weconductedaresearchtoidentifythefactors affectingcustomersatisfactionfordirectsellingcosmeticsproducts,ontheRomanian market.Inordertocreatetheresearchinstrument,weorganized31depthinterviews withdirectcosmeticssellersand29depthinterviewswithcustomerswhobuycosmetic productsfromthosecompanies.Thesurveyconsistedincollectingdatafrom813young buyers,studentsofAlexandruIoanCuzaUniversityofIasi.The49itemsevaluatingthe customersexperiencewiththedirectsellingcompanyareallformativeitemsandthey measuredifferentdimensionsofcustomersatisfaction.Weusedratedona7-point Likertscales,with1fortotaldisagreementand7fortotalagreement.Inorderto identifythefactorsgeneratingsatisfactionasaconstructofloyalty,weusedexploratory factoranalysiswithSPSS17.0withcommonfactorsanalysisandtheextractionmethod wasPrincipalAxisFactoring(PAF).Thefinalscalereliabilityismeasuredbyinternal consistency.TheCronbachalphavalueis0.93,indicatingagoodinternalconsistency (Malhotra,1998).WechooseKaisercriteriontoselectthenumberofcommonfactors (eigenvaluesgraterthan1) (Malhotra,1998). Thefinaldimensionsofsatisfaction,thepercentageofthetotalvariance explainedbyeachfactorandtheinternalconsistencyoftheirscalesarepresentedinthe table1. Table 1: Dimensions of satisfaction Thenextstepistoinvestigatetherelationbetweenthesefactorsandconsumer loyalty.Loyaltyismeasuredbyitsfourdimensions:cognitive,affective,conativeand action.A satisfaction-loyaltymodelisproposed and tested. RESEARCHHYPOTHESES Thepurposeofthisstudyistobuildandtotestacustomersatisfactionloyalty modelfordirectsellingcosmeticcompanies. Hypotheses AlthoughDickandBasu(1994)anticipatedtheexistenceofmorethanonestepin attitudinalloyaltyprocess,thefirstmultidimensionalmodelisadvancedbyOliver (1997).Thisisacomplexclose-upviewandthemodelstestingthefourdimensionsof loyaltyareveryfewinresearchliterature(Harris,Goode,2004;Evanschitzky, Wunderlich,2006) and noneindirectsellingarea.DimensionPercentage of variance explained Internal consistency 1. Personalization of the relation33,76%0,883 2. The experience withthe products6,78%0,739 3. Easiness of buying5,54%0,680 4. The reflectionof the brandon self image4,18%0,860 5. The professionalismof the salesman3,19%0,830 254 Therefore, H1:Customerloyaltyisaprocessmadebyfourdistinctphases:cognitive, affective, conative and action Thereisageneralopinionwhichsustainsthatsatisfactionisanecessarystepin constructingloyalty(Oliver,1999,p.160;Torres-Moraga,et.al,2008;DeWulf,1999; Musa,2005;Ranaweera,Prabhu,2003).Wedidnotidentifymodelswithfactors affectingsatisfactionanddifferentstagesofloyaltyindirectsellingmarketingliterature. Weknowhoweverthatgeneralsatisfactionisdeterminedbythesatisfactionregarding thesalesmanandtheproductsandalsothatgeneralsatisfactionhasapositiveeffecton attitudinalandactionloyalty(Alturas,Santos,Pereira,2005).Inthiscontext,weposit thateach dimensionof satisfactionhasa positiveeffecton loyalty.Therefore, H2:Personalizationoftherelationhasapositiveeffectonloyalty(cognitive, affective, conative, action) H3:Experiencewiththeproductshasapositiveeffectonloyalty(cognitive, affective, conative, action) H4:Easinessofbuyinghasapositiveeffectonloyalty(cognitive,affective, conative, action) H5: Reflection of the brand on self imagehas a positive effect on loyalty (cognitive, affective, conative, action) H6:Theprofessionalismofthesalesmanhas a positive effect on loyalty (cognitive, affective, conative, action) Basedontheliteraturereviewandourpreviousstudydescribedinthefirstpartofthis article,we presenta researchmodelforthisstudy(figure1). RESEARCH METHOD Sampledata Weusedbothqualitativeandquantitativeresearch.First,weconducted29depth interviews.Depthinterviewisconsideredoneofthemostpowerfulmethodsusedto investigateapersonexperience.Thismethodisusedinotherstudiesforcosmetics products(Alturasetal.,2005).Thepurposeofthequalitativestudywastoanswerthe question:whicharethemainelementwhichinfluencethebuyertorepeatthe acquisitionofthecosmeticsproductsfromthesamecompany?Theinformationwas usedtochoosethemostadequatescalesformeasuringloyalty.Thesecondstepwasa surveybasedonaquestionnaire.Thesampleisformedby676youngstudentsof AlexandruIoanCuzaUniversityofIasiwhooftenbuycosmeticproductsfordirect sellingcompaniesandwhoboughtleastoneproductinthelastthreemonths(Suh,Yi, 2006).Allresponseswereassessedonseven-pointLikertscalesrangingfrom1 (stronglydisagree)to7(stronglyagree).Wechooseseven-pointLikertscalebecauseis moredetailedand reducesthe probabilityto obtainextremeanswers(Yuksel,2001). Variablemeasures Thelatentvariablesrepresentingthedimensionsofsatisfactionaremeasured withthescalesidentifiedbyusingexploratoryfactoranalysisinourfirststudy presentedintheintroduction.Inordertomeasurethefourdimensionsofloyalty,weuse andadaptscalesfromthemarketingresearchliterature.Noneofthestudies investigatingthefourdimensionsofloyalty(Sivadas,Backer-Prewitt,2000;Harris, Goode,2004;Evanschitzky,Wunderlich,2006)isfocusedondirectsellingandthatis 255 whyweusedfourscalesfromdifferentstudieswhichweconsideredthemost appropriatedwiththeresultsof qualitativeresearch. Figure1.The research model ThescaleforcognitiveloyaltyisbasedontheworkofHarrisand Goode (2004) whotestaloyaltymodelforon-linebuyingbehavior.Inordertomeasureaffective loyaltyweconsiderthatthemostadequatescaleistheonevalidatedbyQuesterand Lim,(2003).ForconativeloyaltyweusedthescaleofEvanschitzkyandWunderlich (2006,p.336),adaptedfromZeithaml,BerryandParasuraman(1996).Thescalefor actionloyaltyisadjustedfromZeithaml,BerryandParasuraman(1996).Allthescales arepresentedintheAppendixA.Thequestionnaireistestedon40personsfromthe sample. RESULTS Dataanalysisproceedswiththespecificationofthemeasurementmodel followedbythespecificationofthestructuralmodel.Modelidentificationisachieved accordingtotherecursiverule.ThereliabilityofthescalesismeasuredwithCronbach alpha().Thevaluesarehigherthan0.7forallconstructs.Inordertovalidatethe measurementmodelweusedconfirmatoryfactoranalysesonallconstructs.We eliminatedtheitemsthatloadedwithavaluebelow0.6(Schumacker,Lomax,2004)till weobtainedthebestmeasurementmodel.Theindicatorsforeachscalearepresentedin Personalization of the relation The experience with the products Easiness of buying Theprofessionalism of the salesman The reflection of the brand on self image Affectiveloyalty Conative loyalty Action loyalty Cognitive loyalty 256 theAppendixA.Therecommendedvaluesusedforestimatingthemodelarethe followinggoodness-of-fitstatistics:RMSEA0.08foranacceptablemodel (Schumacker,Lomax,2004);RMSEA0.06foragoodmodel(Hu,Bentler,1999), GFI0.9(Hooper,et.al,2008),RMRcloserto0(Arbuckle, 2007), CFI 0.9 (Brown 2006), TLI 0.9 (Bentler,Bonnet,1980), PNFI 0.5 (Hooper, et. al,2008).Thescaleusedtomeasurecognitiveloyaltyhasaverylowvalidityandwe eliminateditfromthemodel.Inordertoestimatethevalidityofthestructuralmodel,a jointconfirmatoryfactoranalysis(withalllatentvariablesincludedsimultaneously,less thantheoneforcognitiveloyalty)wasperformed.Thegoodness-of-fitindicesare: RMSEA=0.05;GFI=0.95;RMR=0.09;CFI=0.96;TLI=0.95;PNFI=0.7.The structuralmodelisavalidone.Thehypothesesaretestedwithstructuralequation modeling.UsingAMOS16.0,astructuralmodelisanalyzedandthepathcoefficients are estimated. Wesearchthebeststructuralmodelandthesimplifiedresultis representedinfigure2.Thisstructuralmodelrepresentsthedatastructurewell: RMSEA=0.05,GFI= 0.92, RMR =0.1, CFI =0.96, TLI = 0.95, PNFI = 0.76. In figure 2 we representedonlythe significantrelationsbetweenthevariables(p=0.05). Figure2. The satisfaction - loyalty model Theaffectiveloyaltyispositiveinfluencedbythereflection of the brand on self image (= 0.67; p< 0.05) and by the experience with the products (= 0.1; p< 0.05). The twofactorsexplain58%oftheaffectiveloyaltyvariance.Theconativeloyaltyis positiveinfluencedbytheprofessionalismofthesalesman(=0.24;p