The Determination of Customer Loyalty Factors on Electrical Home Appliances Brands Choices in Sarawak
Customer loyalty is about appealing to the right people, getting them to buy often and in larger quantities. Although many studies on loyalty have been done (Bambang et al., 2023; Huang, 2009), however, studies on determining the factors affecting the customer loyalty still needs further attention. 1971 respondents were selected for the purpose of this study. The respondents were selected from several major cities in Sarawak. This study identified that there are eight important elements generally affecting customer loyalty on electrical home appliances brands choices. Using factor analysis, the components are grouped into factors given; country of origin (COO), brand equity (BE), satisfaction (SAT), affect, resistance to change (RTC), value, trust, and corporate reputation (CR). The findings also suggested that Malaysian have low ethnocentric tendencies and does not stress on cultural differences. In rank order, it was found that the most important factor contributing to customers’ loyalty are SAT followed by CR, COO, BE, trust, RTC, value and affect factors respectively.
Aaker, D.A, (1996). Measuring brand equity across products and markets. California Management Review, 383,102–120.
Aarts, H., Verplanken, B. and Knippenberg, A.N. (1998). Predicting behaviour from actions in the past: repeat decision making as a matter of habit. Journal of Applied Social Psychology, 25 (15), 1355-74.
Abdul-Muhmin, A.G. (2002). Effects of suppliers’ marketing program variables on industrial buyers’ relationship satisfaction and commitment. Journal of Business & Industrial Marketing, 17(7), 637-51.
Bagozzi, R.P., Gopinath, M. and Nyer, P.U. (1999). The role of emotions in marketing. Journal of the Academy of Marketing Science, 27(2), 184-206.
Balabanis, G., and Diamantopoulos, A. (2004). Domestic country bias, country-oforigin effects, and consumer ethnocentrism: A multidimensional unfolding approach. Journal of the Academy of Marketing Science, 32(1), 80–95.
Ball, D., Coelho, P. S., and Vilares, M. J. (2 0 0 6). Service personalization and loyalty. The Journal of Services Marketing, 2 0, 3 9 1 -403.
Bambang, S., Anjas, P. and Muhammad, A. (2023). Customer-Based Brand Equity, Company Reputation and Product Quality Effect On Customer Loyalty: Air Conditioner Retail Market In Medan. International Journal of Science, Technology & Management, 44 – 53.
Caceres, R.C. and Paparoidamis, N.G. (2007). Service quality, relationship satisfaction, trust, commitment and business-to-business loyalty. European Journal of Marketing, 41(7/8), 836-67.
Calik, N. and Balta, N. (2006). Consumer satisfaction and loyalty derived from the perceived quality of individual banking services: a field study in Eskisehir from Turkey. Journal of Financial Services Marketing, 10, 135-49.
Carmon, Z. and Ariely, D. (2000). Focusing on the forgone: how value can appear so different to buyers and sellers. Journal of Consumer Research, 27(3), 360-70.
Dalton, P. (2003). Customer loyalty: value, trust and going the extra mile. ABA Bankers News, 11(9), 1-4.
Delgado-Ballester, Elena and Munuera-Aleman, Jose Luis (2005). Does brand trust matter to brand equity. Journal of Product and brand Management, 14(3), 187-196.
Dwayne Ball, Pedro Simo˜es Coelho and Alexandra Macha´s (2004). The role of communication and trust in explaining customer loyalty: An extension to the ECSI model. European Journal of Marketing, 38(9/10), 1272-1293
Eachus, Peter (2006). Research Methods for Health Sciences. Research Methods Team, School of Community, Health Sciences and Social Care, University of Salford.
Faullant, R., Matzler, K. and Fuller, J. (2008). The impact of satisfaction and image on loyalty: the case of Alpine ski resorts. Managing Service Quality, 18(2), 163-78.
Feldman H.K and Kornwitz, J. (2010). Happy or unhappy, customer is always right. News@Northeastern, paper 490.
Ferguson, J.L., Dadzie, K.Q. and Johnston, W.J. (2008). Country-of-origin effects in service evaluation in emerging markets: some insights from five West African countries. Journal of Business & Industrial Marketing, 23(6), 429-437.
Gilliland, D.I. and Bello, D.C. (2002). Two sides to attitudinal commitment: the effect of calculative and loyalty commitment on enforcement mechanisms in distributions channels. Journal of the Academy of Marketing Science, 30(1), 24-43.
Gomez, B.G, Arranz, A.G and Cillian J.G (2006). The role of loyalty programs in behavioral and affective loyalty. Journal of Consumer Marketing, 23, 7.
Gounaris, Spiros, and Vlasis, Stathakopoulos (2004). Antecedents and consequences of brand loyalty: An empirical study. Journal of Brand Management, 11(4), 283-206.
Hallsworth, A., de Kervenoael, R., Elms, J. and Canning, C. (2010). The food superstore revolution: changing times, changing research agendas in the UK. The International Review of Retail Distribution and Consumer Research, 20(1), 135-46.
Hamin, Elliot, G. (2006). A less-developed country perspective of consumer ethnocentrism and "country of origin" effects: Indonesian evidence. Asia Pacific Journal of Marketing and Logistics, 18(2), 79–92.
Hansen, H., Samuelsen, B.M. and Silseth, P.R. (2008). Customer perceived value in B-t-B service relationships: investigating the importance of corporate reputation. Industrial Marketing Management, 37(2), 206-17.
Iacobucci, D., Saldanha, N. and Deng, X. (2007). A meditation on mediation: Evidence that structural equations models perform better than regressions. Journal of Consumer Psychology, 17(2), 139-53.
Jan M.J (2011). Consumer loyalty on the grocery product market: an empirical application of Dick and Basu’s framework. Journal of Consumer Marketing, 28(5), 333–343.
Keller, K.L. (2003a). Brand equity dilution. MIT Sloan Management Review, 45(1), 12-14.
Keller, K.L. (2003b). Strategic Brand Management: Building, Measuring and Managing Brand Equity. 2nd ed., Prentice Hall, Upper Saddle River, NJ, 575-609.
Khan, N. (2010). Functional and relational value influence commitment and future intention: the case of banking industry. Journal of International Social Research, 3(10), 376-91.
Kotabe, Masaaki and Helsen, Kristiaan (2007). Global Management Marketing. 3rdedition, John Willey and Sons Inc.
Kotler P., Brown L., Adam S. and Armstrong G., (2004). Marketing. 6th edition, Pearson Education, 162-196.
Krejcie, R.V and Morgan, D.W (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30, 607-61.
Lai, F., Griffin, M. and Babin, B.J. (2009). How quality, value, image, and satisfaction create loyalty at a Chinese telecom. Journal of Business Research, 62(10), 980-986.
Lee, H., Lee, Y. and Yoo, D. (2000). The determinants of perceived service quality and its relationship with satisfaction. Journal of Services Marketing, 14(3), 217-31.
McMullan, R. and Gilmore, A. (2008). Customer loyalty: an empirical study. European Journal of Marketing, 42, 1084-94.
Mohd Rafi Yaacob, Nik Rozhan Nik Ismail and Nur Safia Ismail (2007). An Investigation of the determinants of customers’ loyalty of the Maxis Communications Berhad. Faculty of Business and Management, Universiti Teknologi MARA, Kelantan.
Nandan, S. (2005). An exploration of the brand identity-brand image linkage: Acommunications perspective. Brand Management, 12(4), 264–278.
Narissara Parkvithee and Mario J. Miranda (2012). The interaction effect of country of-origin, brand equity and purchase involvement on consumer purchase intentions of clothing labels. Asia Pacific Journal of Marketing and Logistics, 24(1), 7-22.
Nazlida MH, Razli RC (2004). Consumer ethnocentrism: the relationship with domestic products evaluation and buying preference, International Journal Management Studies, 11,29-44.
O’Malley, L. and Tynan, C. (1997). A reappraisal of the relationship marketing constructs commitment and trust. Proceedings of New and Evolving Paradigms: The Emerging Future of Marketing. pp. 486-503.
Oh, H. (2003). Price fairness and its asymmetric effects on overall price, quality, and value judgments: the case of an upscale hotel. Tourism Management, Vol. 24, pp. 241-9.
Oshikoya, T.W. and Hussain, M.N. (2007). Information technology and the challenge of economic development in Africa.
Othman MN, Ong FS, Wong HW (2008). Demographic and lifestyle profiles ethnocentric and non-ethnocentric urban Malaysian consumers. Asian Journal Business Account, 1, 5-26.
Pappu, R., Quester, G.P. and Cooksey, W.R. (2007). Country image and consumer-based brand equity: relationships and implications for international marketing. Journal of International Business Studies, 38, 726-45.
Parvez, M. (2005). A relational study on service quality, switching cost, trust, customer satisfaction and customer loyalty in the context of Grameen phone, Independent University, Bangladesh.
Pavlos A.V et. al., 2010. Consumer-retailer emotional attachment: Some antecedents and the moderating role of attachment anxiety. European Journal of Marketing, 44(9/10), 1478-1499.
Petterson, Gene (2010). Understanding the Meaning of Brand Loyalty. Helium, Inc. 200 Brickstone Square Andover.
Reichheld, F.F. and Schefter, P. (2000). E-loyalty: your secret weapon on the Web. Harvard Business Review, 78(4), 105-14.
Reichheld, F.F., Markey, R.G. Jr., Hopton, C. (2006). The loyalty effect – the relationship between loyalty and profits. European Business Journal, 12(3), 134-9.
Renee. T, Art Weinstein and Russell Abratt (2009). Value, satisfaction, loyalty and retention in professional services. Marketing Intelligence & Planning, 27(5), 615-632.
Ronan et. al. (2011). Challenging market conventions: Supermarket diversification and consumer resistance in children’s apparel purchases. Journal of Fashion Marketing and Management. 15(4), 464-485
Rozita Naina Mohamed and Norzaidi Mohd Daud (2012). The impact of religious sensitivity on brand trust, equity and values of fast-food industry in Malaysia. Business Strategy Series. 13(1), 21-30.
Rundle-Thiele, Sharyn (2005). Exploring loyal qualities: assessing survey-based loyalty measures. Journal of Services Marketing, 19(7), 492–500.
Russell-Bennett, R., Mccoll-Kennedy, J.R. and Coote, L.V. (2007). Involvement, satisfaction, and brand loyalty in a small business services setting. Journal of Business Research, 60(12), 1253-60.
Ryu, K. and Han, H. (2011). The influence of physical environments on disconfirmation, customer satisfaction, and customer loyalty for first-time and repeat customers in upscale restaurants. International Journal of Hospitality Management, 30(3), 599-611.
Sa´nchez, J., Sa´nchez, M., Antonio, J. and Gutie´rrez, T. (2010). The impact of relational variables on value creation in buyer-seller business relationships, Journal of Business-Business Marketing, 17(1), 62-94.
Shankarmahesh MN (2006). Consumer ethnocentrism: an integrative review of its antecedents and consequences. International Marketing Review, 23(2): 146-172.
Sharma P (2010). Country of origin effects in developed and emerging markets: exploring the contrasting roles of materialism and value consciousness. Journal of International Business Studies, 1-12.
Shukla, Paurav (2009). Impact of contextual factors, brand loyalty and brand switching on purchase decisions. Journal of Consumer Marketing, 26(5), 348–357.
Tai, Y.M. and Ho, C.F. (2010). Effects of information sharing on customer relationship intention. Industrial Management & Data Systems, 110(9), 1385-401.
Taylor, Steven A., Celuch, Kevin and Goodwin, Stephen (2004). The importance of brand equity to customer loyalty. Journal of Product & Brand Management,13, 217-227.
Tracey S. Dagger and Meredith E. David (2010). Uncovering the Real Effect of Switching Costs on the Satisfaction-Loyalty Association: The Critical Role of Involvement and Relationship Benefits. Emerald Group Publishing Limited.
Tsoukatos, E. and Rand, G. (2006). Path analysis of perceived service quality, satisfaction and loyalty in Greek insurance. Managing Service Quality, 5, 501-19.
Ulaga, W. and Eggert, A. (2006a). Value-based differentiation in business relationships: gaining and sustaining key supplier status. Journal of Marketing, 70(1), 119-36
Uncles, M.D. and Dowling, G. (2003). Customer loyalty and customer loyalty programs. Journal of Consumer Marketing, 20(4), 294-316.
Veal, Saunders, Lewis and Thornhill, Ch.6, Cavana, Delahaye and Sekaran (2009). Sampling and sample design, 70(1), 119-36.
Verlegh, P.W.J. (2007), “Home country bias in product evaluation: the complementary roles of economic and socio-psychological motives”, Journal of International Business Studies, 38(3), 361-73.
Vlachos et. al (2011). Consumer-retailer emotionalattachmentSome antecedents and the moderating role ofattachment anxiety. European Journal of Marketing, 44(9/10), 1478-1499.
Wang, C.Y. (2010). Service quality, perceived value, corporate image, and customer loyalty in the context of varying levels of switching costs. Psychology &Marketing, 27(3), 252-62.
Whittaker, A. (2008). Pleasure and pain: medical travel in Asia. Global Public Health, 3(3), 271-90.
Wong, Foong Yee and Sidek, Yahya (2008). Influence of Brand Loyalty on Consumer Sportswear. International Journal of Economics and Management 2(2), 221-236.
Woo, K.-S. and Ennew, C.T. (2004). Business-to-business relationship quality: an IMP interaction-based conceptualization and measurement. European Journal of Marketing, 38(9/10), 1252-71.
Wu, GuoHua (2011). Country image, informational influence, collectivism/individualism, and brand loyalty: exploring the automobile purchase patterns of Chinese Americans. Journal of Consumer Marketing, 28(3), 169–177.
Xuemei Bian and Luiz Moutinho (2011). Counterfeits and branded products: Effects of counterfeit ownership. Journal of Product & Brand Management, 20(5), 379–393.
Yang, Z., and Peterson, R. T. (2004). Customer perceived value, satisfaction, and loyalty: The role of switching costs. Psychology and Marketing, 21, 799 -822.
Yeong N.C, Mohamad O, Ramayah T, Omar A (2007). Purchase preference of selected Malaysian motorcycle buyers: the discriminating role of perception of country of origin of brand and ethnocentrism. Asian Academic. Management Journal, 11-22.
Yi-Min Chen and Yi-Fan Su (2011). Do country-of-manufacture and country-of design matter to industrial brand equity?.Department of Asia-Pacific Industrial and Business Management. National University of Kaohsiung,Taiwan.
Yoo, B. and Donthu, N. (2001). Developing and validating a multidimensional consumer-based brand equity scale. Journal of Business Research, 52(1), 1-14
Zeithaml, V., Berry, L. and Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31-46.
Zwick, W.R. and Velicer, W.F. (1986). Factors influencing four rules for determining the number of components to retain. Multivariate Behavioral Research, 17(2), 253-69.