Customer Satisfaction and Loyalty as Influenced by Service Quality, Trust, and Perceived Value in Chinese Language Training Centers in Bangkok, Thailand

Main Article Content

Li Xing
Phanasan Kohsuwan

Abstract

Learning the Chinese language as a third language (after English as a second language) is trending among younger generations in Thailand, indicating the need for Chinese language training centers. In this study, five dimensions of service quality were investigated (tangibles, reliability, responsiveness, assurance, and empathy), together with trust and perceived value, to observe their contribution to customer satisfaction at Chinese language training centers in Bangkok. Additionally, the influence of customer satisfaction on customer loyalty and five dimensions of loyalty outcomes were examined—identification, exclusive consideration, advocacy, strength of preference, and share of wallet. Survey data was collected (N = 482) and analyzed using the structural equation modeling technique. The findings showed that the assurance dimension of service quality had a positive influence on customer satisfaction, and reliability and empathy of service quality had a positive influence on trust. Management could enhance trust through arranging appropriate Chinese classes, giving strong service support, and providing flexible class schedules. Customer satisfaction could be increased through hiring more experienced teachers and offering scholarship possibilities.

Article Details

Section
Research Articles

References

Anderson, E. W. (1996). Customer satisfaction and price tolerance. Marketing Letters, 7, 265–274.

Azam, A. (2018). Service quality dimensions and students’ satisfaction: A study of Saudi Arabian Private Higher Education Institutions. European Online Journal of Natural and Social Sciences, 7(2), 275–284.

Azman, I., Muhammad, M. B. A., & Francis, S. K. (2009). Exploring the relationships among service quality features, perceived value and customer satisfaction. Journal of Industrial Engineering and Management, 2(1), 230–250. https://www.jiem.org/index.php/jiem/

Bagozzi, R. P. (1980). Performance and satisfaction in an industrial sales force: An examination of their antecedents and simultaneity. Journal of Marketing, 44(2), 65–77.

Bourdeau, B. L. (2005). A new examination of service loyalty: Identification of the antecedents and outcomes of an attitudinal loyalty framework. Florida State University Libraries.

Butcher, K., Sparkes, B., & O’Callaghan F. (2001). Evaluative and relational influences on service loyalty. International Journal of service Industry Management, 12(4), 310–327. https://doi.org/10.1108/ 09564230110405253

Chaudhuri, A., & Holbrook, M. B. (2001). The chain of effects from brand trust and brand affect to brand performance: The role of brand loyalty. Journal of Marketing, 65(2), 81–93. https://doi.org/10.1509/ jmkg.65.2.81.18255

Cigdem, A, G., & Berkehan, K. (2016). The effect of service quality, perceived value and price fairness on hotel customer’s satisfaction and loyalty. Journal of Economics, Business and Management,4(9), 523–527. http://www.joebm.com/vol4/446-MM0015.pd

Cronin, J. J., & Taylor, S. (1992). Measuring service quality - A reexamination and extension. Journal of Marketing, 56(3), 55–68. https://doi.org/10.2307/1252296

Day, G. S. (1976). A two-dimensional concept of brand loyalty. Journal of Advertising Research, 9(3), 29–36.

Dick, A. S., & Basu, K. (1994). Customer loyalty: Toward an integrated conceptual framework. Journal of the Academy of Marketing Science, 22(2), 99–113.

Edward, M.M. (2015). Relationship between customer satisfaction and customer loyalty on mobile network users. Journal of Marketing and Consumer Research, 14(1), 126-131.

Ekinci, Y., Prokopaki, P., & Cobanoglu, C. (2003). Service quality in Cretan accommodations: Marketing strategies for the UK holiday market. International Journal of Hospitality Management, 22(1), 47–66. https://doi.org/10.1016/S0278-4319(02)00072-5

Ennew, C. T., & Binks, M. R. (1999). Impact of participative service relationships on quality, satisfaction, and retention: An exploratory study. Journal of Business Research, 46(2), 121–132. https://doi.org/10.1016/ S0148-2963(98)00016-2

Fornell, C., Johnson, M., Anderson, E., Cha, J., & Bryant, B. (1996). The American customer satisfaction index: Nature, purpose, and findings. Journal of Marketing, 60(4), 7–18. https://doi.org/10.2307/1251898

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.2307/3151312

Ganesh, J., Arnold, M. J., & Reynolds, K. (2000). Understanding the customer base of service providers: An examination of the differences between switchers and stayers. Journal of Marketing, 64(3), 65–87. https://doi.org/10.1509/jmkg.64.3.65.18028

Gefen, D., Karahanna, E., & Straub, D. W., (2003). Trust and TAM in online shopping: An integrated model. MIS Quarterly, 27(1), 51–90. https://doi.org/10.2307/30036519

Glaveli, N., Petridou, E., Liassides, C., & Spathis, C. (2006). Bank service quality: Evidence from five Balkan countries. Managing Service Quality: An International Journal, 16(4), 380–394. https://doi.org/10.1108/ 09604520610675711

Gul, R. (2014). The relationship between reputation, customer satisfaction, trust, and loyalty., Journal of Public Administration and Governance, 4(3),368–387.

Hauser, J. R., & Wernerfelt, B. (1990). An evaluation cost model of consideration sets. Journal of Consumer Research, 16(4), 393–408.

Hicks, J. M., Page, T. J., Behe, B., Dennis, J., & Fernandez, R. (2005). Delighted consumers buy again. Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, 18, 94–104.

Homburg, C., Koschate, N., & Hoyer, W. D. (2005). Do satisfied customers really pay more? A study of the relationship between customer satisfaction and willingness to pay. Journal of Marketing, 69(2), 84–96.

Hossain, M. J. (2012). Impact of service quality on customer satisfaction: A case of tourism industry in Bangladesh. International Journal of Research in Finance & Marketing, 2(2), 1–25.

Hu, L.-T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling, 6(1), 1–55. https://doi.org/10.1080/ 10705519909540118

Iacobucci, D. (1992). An empirical examination of some basic tenets in services: Good-service continua. JAI Press.

Iacobucci, D., Ostrom, A., & Grayson, K. (1995). Distinguishing service quality and customer satisfaction: The voice of the consumer. Journal of Consumer Psychology, 4(3), 277–303. https://doi.org/10.1207/ s15327663jcp0403_04

Johns, N., Avci, T., & Karatepe, O. M. (2004). Measuring service quality of travel agents: Evidence from Northern Cyprus. The Service Industries Journal, 24(3), 82–100. https://doi.org/10.1080/ 0264206042000247777

Jones, T. O., & Sasswe, W. E. (1995). Why satisfied customers defect. Harvard Business Review, 73(6), 88–89. https://hbr.org/1995/11/why-satisfied-customers-defect

Kardes, F. R., Kalyanaram, G., Chandrashekaran, M., & Dornoff, R. J. (1993). Brand retrieval, consideration set composition, consumer choice, and the pioneering advantage. Journal of Consumer Research, 20(1), 62–75.

Kolter, P. (2000). Marketing Management (10th ed.). Prentice-Hall.

Kuo, Y.-F., Wu, C.-M., & Deng, W.-J. (2009). The relationships among service quality, perceived value, customer satisfaction, and post-purchase intention in mobile value-added services. Computers in Human Behavior, 25(4), 887–896. https://doi.org/10.1016/j.chb.2009.03.003

Keaveney, S. M. (1995). Customer switching behavior in service industries: An exploratory study. Journal of Marketing, 59(2), 71–82. https://doi.org/10.2307/1252074

Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing. 58(3), 20–38. https://doi.org/10.2307/1252308

Oliver, R.L. (1997). Satisfaction: A behavioral perspective on the consumer. McGraw Hill.

Oliver, R. L. (1999). Whence consumer loyalty? Journal of Marketing, 63, 33–44. https://doi.org/10.2307/ 1252099

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and Its Implications for future Research. Journal of Marketing, 49 (4),41–50. https://doi.org/10.2307/1251430

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12–40.

Parasuraman, A. (1997). Reflections on gaining competitive advantage through customer value. Journal of the Academy of Marketing Science, 25(2), 154–161. https://doi.org/10.1007/BF02894351

Reynolds, K. E., & Beatty, S. E. (1999). Customer benefits and company consequences of customer–salesperson relationships in retailing. Journal of Retailing, 75(1), 11–32. https://doi.org/10.1016/S0022-4359(99)80002-5

Rust, R., & Oliver, R. (1994). Service quality: Insights and managerial implications from the frontier. In Rust, R. T. & Oliver, R. L. (Eds), Service quality: New directions in theory and practice (pp. 241–68). Sage Publications.

Seiders, K., Voss, G. B., Grewal, D., & Godfrey, A. L. (2005). Do satisfied customers buy more? Examining moderating influences in retailing context. Journal of Marketing, 69(4), 26–43. https://doi.org/10.1509/ jmkg.2005.69.4.26

Sheth, J. N., & Parvatlyar, A. (1995). Relationship marketing in consumer markets: Antecedents and consequences. Journal of the Academy of Marketing Science, 23(4), 255–271.

Singh, J., & Sirdeshmukh, D. (2000). Agency and trust mechanisms in customer satisfaction and loyalty judgments. Journal of the Academy of Marketing Science, 28(1), 150–67.

Siripetch, T. (2020). Chinese Cultural Diplomacy towards ASEAN Countries: Case Study of Confucius Institutes in Thailand. Manutsayasat Wichakan, 27(2),416-450.

Sivadas, E., & Baker-Prewitt, J. L. (2000). An examination of the relationship between service quality, customer satisfaction, and store loyalty. International Journal of Retail & Distribution Management, 28(2), 73–82. https://doi.org/10.1108/09590550010315223

Thomas, B., & Tobe, J. (2013). Anticipate: Knowing what customers need before they do. John Wiley & Sons.

Tung, L. L. (2004). Service quality and perceived value’s impact on satisfaction, intention and usage of short message service (SMS). Information Systems Frontiers, 6(4), 353–368. https://doi.org/10.1023/ B:ISFI.0000046377.32617.3d

Tooba, A., Rubab, Z., & Umar, D. (2016). Impact of customer satisfaction on image, trust, loyalty and the customer switching behavior in conventional and Islamic banking: Evidence from Pakistan. American Journal of Business and Society, 1(3), 154-165.

Wakefield, K. L., & Barnes, J. (1996). Retailing hedonic consumption: A model of sales promotion of a leisure service. Journal of Retailing, 72(4), 409–427.

White, S. S., & Schneider, B. (2000). Climbing the commitment ladder: The role of expectations disconfirmation on customers’ behavioral intentions. Journal of service research, 2(3), 240–253. https://doi.org/10.1177/ 109467050023002

Wang, Y., Lo, H.-P., & Yang, Y. (2004). An integrated framework for service quality, customer value, satisfaction: Evidence from China’s telecommunication industry. Information System Frontiers, 6(4), 325–340.

Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2–22.

Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. The Journal of Marketing, 60(2), 31–46. https://doi.org/10.2307/1251929