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What drives Gen Y loyalty? Understanding the mediated moderating roles of switching costs and alternative attractiveness in the value-satisfaction-loyalty chain

Chuah, Stephanie Hui-Wen, Marimuthu, Malliga, Kandampully, Jay and Bilgihan, Anil (2017). What drives Gen Y loyalty? Understanding the mediated moderating roles of switching costs and alternative attractiveness in the value-satisfaction-loyalty chain. Journal of Retailing and Consumer Services,36:124-136.

Document type: Journal Article
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Title What drives Gen Y loyalty? Understanding the mediated moderating roles of switching costs and alternative attractiveness in the value-satisfaction-loyalty chain
Author Chuah, Stephanie Hui-Wen
Marimuthu, Malliga
Kandampully, Jay
Bilgihan, Anil
Journal Name Journal of Retailing and Consumer Services
Publication Date 2017
Volume Number 36
Start Page 124
End Page 136
Total Pages 13
Place of Publication United Kingdom
Publisher Pergamon Press
Field of Research COMMERCE, MANAGEMENT, TOURISM AND SERVICES
Abstract Generational theory presumes that generational cohorts develop similar attitudes and beliefs with regard to their market behaviors. This study examined the attitudes and beliefs of the Gen Y members towards mobile Internet service providers (MISPs). Gen Yers have the highest adoption of mobile Internet. They are also the most value-conscious, least satisfied and loyal customers compared with all other generations. This study therefore proposed a research model to elucidate the relationship between perceived value, satisfaction, switching costs (SC), alternative attractiveness (AA) and loyalty, and tested it using empirical data collected from 417 Gen Y mobile Internet subscribers. The results indicated that perceived value significantly influenced the satisfaction of Gen Y customers and, in turn, their loyalty towards MISPs. The results also confirmed the existence of mediators and moderators in the relationship between customer satisfaction and loyalty. Both SC and AA proved to be partial mediators, whereas AA was a moderator. Further, it was found that the moderating effect of AA on the association between customer satisfaction and loyalty was contingent upon the mediating effect of SC. Finally, the implications of these findings are delineated.
Keywords Perceived value
Customer satisfaction
Switching costs
Alternative attractiveness
Customer loyalty
Generation Y
Mobile technologies
DOI http://dx.doi.org/10.1016/j.jretconser.2017.01.010   (check subscription with CDU E-Gateway service for CDU Staff and Students  check subscription with CDU E-Gateway in new window)
 
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Created: Tue, 27 Jun 2017, 10:53:58 CST by Marion Farram