The Causal Relationship between Customer Equity and Behavioral Loyalty of Investors in Thailand

Authors

  • Puncharat Borirakcharoenkit Faculty of Management Sciences, Prince of Songkla University, Hatyai Campus
  • Sasiwemon Sukkabot Faculty of Management Sciences, Prince of Songkla University, Hatyai Campus
  • Idsaratt Rinthaisong Faculty of Management Sciences, Prince of Songkla University, Hatyai Campus

Keywords:

Causal Relationship, Customer Equity, Behavioral Loyalty

Abstract

This research aims to verify the causal relationship between customer equity and behavioral loyalty of investors in the Stock Exchange of Thailand. The sample is 1,208 investors. The model used in the study consists of the customer equity variables: value equity, brand equity and relationship equity and behavioral loyalty variables: word of mouth, retention, advocate and partners. This relationship model is confirmed the hypothesis established. That is customer equity has a direct effect on behavioral loyalty at 0.817 at a statistical level of .001

References

Abu Elsamen, A. A. (2015). Online service quality and brand equity: The mediational roles of perceived value and customer satisfaction. Journal of Internet Commerce, 14(4), 509-530.

Adelstein, J., & Clegg, S. (2016). Code of ethics: A stratified vehicle for compliance. Journal of Business Ethics, 138(1), 53-66.

Ali, R., Jin, Z., Wu, K., & Melewar, T. C. (2017). How does reputation win trust? A customer-based mediation analysis. International Studies of Management & Organization, 47 (3), 220-239.

Aminu, A. A., & Oladipo, O. A. (2015). Appliation of financial ethics in annual financial reporting of banks, Varazdin.

Amir, N., Narges, A., & Mohammad, S. (2015). Customer's expectations in Iranian exclusive indstry. 4), 127-153.

Bédiová, M., & Ryglová, K. (2015). Satisfaction and loyalty factors of ski resorts - The case study of Slovakia and Austria. Economic Science for Rural Development Conference Proceedings(40), 37-45.

Berry, L. L. (2017). How service companies can earn customer trust and keep it. Harvard Business Review Digital Articles, 2-4.

Bourdeau. (2005). A new examination of service loyalty: Identification of the antecedents and outcomes of an attitudinal loyalty framework.

Chahal, H., & Dutta, K. (2015). Measurement and impact of customer experience in banking sector. Decision, 42(1), 57-70.

Chiou, J.-S., & Shen, C.-C. (2012). The antecedents of online financial service adoption: the impact of physical banking services on Internet banking acceptance. Behaviour & Information Technology, 31(9), 859-871.

Chouyboonchoo, N. Sirichote, O & Noknoi C. (2019). Effects of technology acceptance and service quality on customer loyalty for electronic banking. Economics and

Business Administration Journal Thaksin University, 11(1), 31-52.

Datta, H., Ailawadi, K. L., & van Heerde, H. J. (2017). How well does consumer-based brand equity align with sales-based brand equity and marketing-mix response? Journal of Marketing, 81(3), 1-20.

Dölarslan, E. S. (2014). Assessing the effects of satisfaction and value on customer loyalty behaviors in service environmentsHigh-speed railway in Turkey as a case study. Management Research Review, 37(8), 706-727.

Eamlaorpakdee, P. (2016). The important components of corporate brand management. University of the Thai Chamber of Commerce Journal, 36 (1), 209-214.

Fazal-e-Hasan, S. M., Lings, I. N., Mortimer, G., & Neale, L. (2017). How gratitue influences customer word of mouth intentions and involment: The mediating role of affective commitment. Journal of Marketing Theory & Practice, 25(2), 200-211.

Giovanis, A., Athanasopoulou, P., & Tsoukatos, E. (2015). The role of service fairness in the service quality - relationship quality - customer loyalty chain. Journal of Service Theory and Practice, 25(6), 744-776.

Gounaris, S., & Tzempelikos, N. (2013). Key account management orientation and its implications: A conceptual and empirical examination.Journal of Business-to-Business Marketing, 20(1), 33-50.

Guo, L., Gruen, T., & Tang, C. (2017). Seeing relationships through the lens of psychological contracts: The structure of consumer service relationships. Journal of the Academy of Marketing Science, 45(3), 357-376.

Haerudin, & Santoso, B. (2016). The role of Islamic work ethic, spiritual leadership and organizational culture toward attitude on change with organizational commitment and job involvement as mediator on Bank Pembiayaan Rakyat Syari'ah(BPRS) Indonesia. International Review of Management and Business Research, 5(3), 827-843.

Hannan, S., Suharjo, B., Kirbrandoko, K., & Nurmalina, R. (2017). The influence of customer satisfaction, trust and information sharing on customer loyalty of professional services company: An empirical study on independent surveyor services industry in Indonesia. International Journal of Economic Perspectives, 11(1), 344-353.

Hsieh, J.-K. (2017). The role of customers in co-creating m-services in the O2O model. Journal of Service Management, 28(5), 866-883.

Hur, W. M. (2011). Building brand loyalty through managing brand community commitment. Management Decision, 49 (7), 1194-1213.

Iancu, I. A. (2016). Online promotion of financial investment services compamies. Practical Application of Science, 4(1), 59-64.

Jones, T. (2007). The conceptual domain of service loyalty: how many dimensions? Journal of Services Marketing, 21(1), 36-51.

Kananurak, N. (2011). Marketing strategy. Bangkok : CVL.

Kandampully, J. (1998). Service quality to service loyalty: A relationship which goes beyond customer services. Total Quality Management, 9(6), 431-443.

Khadim, R. A., Hanan, M. A., Arshad, A., Saleem, N., & Khadim, N. A. (2018). Revesting antecdents of brand loyalty: Impact of percievd social media commucation with brand trust and brand equity as mediators. Academy of Strategic Management Journal, 17(1), 1-13.

Kumar, N., & Kanchan, U. (2017). Impact of service parameters and customers' demographic characteristics on satisfaction with e-tailers with special reference to bareilly city. Journal of Marketing Management, 16(4), 33-53.

Lee, S., Chua, B.-L., & Han, H. (2017). Role of service encounter and physical environment performances, novelty, satisfaction, and affective commitment in generating cruise passenger loyalty. Asia Pacific Journal of Tourism Research, 22(2), 131-146.

Lin, S.-P., Yang, C.-L., Pi, H.-C., & Ho, T.-M. (2016). Tourism guide cloud service quality: What actually delights customers? SpringerPlus, 5(1), 1-9.

Mahmood, A. (2014). How do customer characteristics impact behavior-based price discrimination? An experimental investigation. Journal of Strategic Marketing, 22 (6), 530-547.

Moliner-Velázquez, B., Ruiz-Molina, M.-E., & Fayos-Gardó, T. (2015). Satisfaction with service recovery: Moderating effect of age in word-of-mouth. The Journal of Consumer Marketing, 32(6), 470-484.

Norman, A. T. (2017). Validating the effects of brand quality on attitude and purchase intention in service–product alliances. Services Marketing Quarterly, 38(1), 23-30.

Oliver, B., Pérez-Gladish, B., & Méndez-Rodríguez, P. (2015). Corporate social responsibility, stock salience, and the asymmetric market impact of consumer sentiment news on Spanish firms. Review of Behavioral Finance, 7(2), 98-115.

Ou, Y.-C., Verhoef, P., & Wiesel, T. (2017). The effects of customer equity drivers on loyalty across services industries and firms. Journal of the Academy of Marketing Science, 45(3), 336-356.

Padin, C., Ferro, C., & Svensson, G. (2017). Validity and reliability of satisfaction as a mediator between quality constructs in manufacturer–supplier relationships through time and across contexts. Journal of Business-to-Business Marketing, 24 (1), 1-17.

Parasuraman, Zeithaml, & Berry. (1985). A conceptual model of service quility and its implications for future reseach. Journal of Marketing, 49(4), 41-50.

Quader, M. S., & Sohel, S. M. (2018). Strategig brand experience to differentiate B2B service offering :A case study analysis. European Journal of Management Studies, 23(1), 49-82.

Rakoto, P. (2015). Financial reporting quality, executive stock options and business ethics. GSTF Business Review (GBR), 4(2), 99-105.

Rinthaisong, I. (2015). Structural equation modeling : Concepts, interprets and programming for behavioral and social sciences resarchers. Songkla : Prince of Songkla University.

Roy, S. K., Lassar, W. M., & Shekhar, V. (2016). Convenience and satisfaction: Mediation of fairness and quality. Service Industries Journal, 36(5/6), 239-260.

Rust, Zeithaml, & Lemon. (2001a). Driving customer equity: How customer lifetime value is reshaping corporate strategy. Journal of Marketing, 65(1), 107-109.

Sezgin, E., & Özgür Göde, M. (2017). Local survivor vs. global brand: Behavioural intention and brand loyalty tales of fast food restaurants. Tourism, 65(4), 406-421.

Shaila, S., & Shweta, D. (2017). Brand switching - A case of mobile telecom industry in India. Annals of the University Dunarea de Jos of Galati: Fascicle: XVII, Medicine(1), 48-53.

Shoemaker, S., & Lewis, R. C. (1999). Customer loyalty: The future of hospitality marketing. International Journal of Hospitality Management, 18(4), 345-370.

Shopova, D. (2014). Opportunities to improve marketing activities in cooperatives trade in order to improvement it of future development. Management & Education/ Upravlenie Obrazovanie, 10(2), 90-99.

Skard, S., & Nysveen, H. (2016). Trusting beliefs and loyalty in B-to-B Self-Services. Journal of Business-to-Business Marketing, 23(4), 257-276.

Skare, V., & Gospic, D. (2015). Dynamic pricing and customers' perceptions of price fairness in the airline industry. Tourism, 63(4), 515-528.

Soltani, B., & Maupetit, C. (2015). Importance of core values of ethics, integrity and accountability in the European corporate governance codes. Journal of Manage- ment & Governance, 19(2), 259-284.

Sung, Y., Kim, Y., Kwon, O., & Moon, J. (2010). An explorative study of Korean consumer participation in virtual brand communities in social network sites. Journal of Global Marketing, 23(5), 430-445.

Tasseven, O., & Ardahanlioglu, E. (2017). Cultural destination brand equity: Case study of Istanbul. International Journal of Economic Perspectives, 11(2), 136-159.

Terpstra, M., & Verbeeten, F. (2014). Customer satisfaction: Cost driver or value driver? Empirical evidence from the financial services industry. European Management Journal, 32(3), 499-508.

Thaichon, P., & Quach, T. N. (2015). From marketing communications to brand management: Factors influencing relationship quality and customer retention.Journal of Relationship Marketing, 14(3), 197-219.

The Stock Exchange of Thailand. (2019). Securities Company Statistics. Retrieved from http://www.set.or.th/th/market/securities_company_statistics19.html

Tournois, L. (2015). Does the value manufacturers (brands) create translate into enhanced reputation? A multi-sector examination of the value–satisfaction–loyalty–reputation chain. Journal of Retailing & Consumer Services, 26(5), 83-96.

Treekanan, S. (2012). Research methodology. Bangkok: Chulalongkorn University Press.

Tripathi, G. (2017). Customer satisfaction and word of mouth intentions. the mediating effect of customer loyalty. Journal of Services Research, 17(2), 1-16.

Valentine, S., & Godkin, L. (2017). Banking employees' perceptions of corporate social responsibility, value-fit commitment, and turnover intentions: Ethics as social glue and attachment. Employee Responsibilities & Rights Journal, 29(2), 51-71.

Wu, J., Chen, J., & Dou,W.(2017). The internet of things and interaction style:The effect of smart interaction on brand attachment. Journal of Marketing Management, 33 (1/2),61-75.

Yousaf, A., Amin, I., & Gupta, A. (2017). Conceptualising tourist based brand equity pyramid: An application of Keller brand pyramid model to destinations. Tourism & Hospitality Management, 23(1), 119-137.

Zhang, R., Li, G., Wang, Z., & Wang, H. (2016). Relationship value based on customer equity influences on online group-buying customer loyalty. Journal of Business Research, 69(9), 3820-3826.

Downloads

Published

2020-06-27

How to Cite

Borirakcharoenkit, P., Sukkabot, S., & Rinthaisong, I. (2020). The Causal Relationship between Customer Equity and Behavioral Loyalty of Investors in Thailand. Economics and Business Administration Journal Thaksin University, 12(1), 29–44. Retrieved from https://so01.tci-thaijo.org/index.php/ecbatsu/article/view/236441

Issue

Section

Research Article