An empirical investigation of the factors affecting customer lifetime value

Jarrad

Joudeh

et al. 2021

TQM

Self Cite

PurposeThe purpose of this paper is to investigate the impact of multidimensional service quality on word of mouth (WOM) in university on-campus healthcare centers.Design/methodology/approachData were collected from self-administered questionnaires involving a sample of 407 currently enrolled student-patients visiting the on-campus university healthcare centers in the Jordanian capital, Amman. Non-probability convenience sampling was performed in this study. Factor analysis and multiple and hierarchical multiple regression methods were used to analyze the data and test the proposed relationships.FindingsThe results show that the primary dimensions (administration quality, interpersonal quality and technical quality) had a significant and positive impact on WOM, with administration quality appearing as the most influential factor leading to WOM. At the subdimensions level, the findings of this study revealed that interaction activity had the most significant predictive value on WOM compared to the other service quality subdimensions. An insignificant relationship between atmosphere, tangibles, relationship activity and WOM was found.Practical implicationsThis study suggests that university administrators and managers of other high-contact service sectors (e.g. hospitality and travel services, tourism education services, financial and insurance services and public services) ought to take into consideration both service quality subdimensions and satisfaction as significant strategic endpoints, as these inputs provide a roadmap for administrators to elicit positive WOM from customers with regard to their businesses.Originality/valueThis study provided its contribution by presenting a comprehensive model of WOM formation and offering specific insights for the on-campus healthcare centers in higher education institutions. This is also the first study conducted in the Middle East, particularly in Jordan.

Section: Discussionsupporting

confidence: 91%

The effect of multidimensional service quality on word of mouth in university on-campus healthcare centers

Jarrad

Joudeh

et al. 2021

TQM

Self Cite

“…These results support other empirical studies (Dandis et al 2022c;Fatikhaturrohmah et al, 2020;Fatima and Mascio, 2020;Wong et al, 2019;Chou and Chen, 2018;Yang et al, 2017;Dagger and Brien, 2010;Kim and Ok, 2009) that find significant connections between relationship marketing outcomes and the above variables.…”

Section: Conclusion and Discussionsupporting

confidence: 89%

“…Chou and Chen (2018) agreed that these gains had a positive impact on commitment. Dandis et al (2022c) also observed that special treatment benefits had a significant positive impact on customer commitment and satisfaction. Moreover, Fatikhaturrohmah et al (2020) indicated that these benefits had a significant influence on the trust and satisfaction of customers.…”

Section: Special Treatment Benefits Customer Satisfaction Commitment ...mentioning

confidence: 84%

“…Overall, to generate positive behaviours such satisfaction, loyalty or continuous purchase intention, organisations depend on a level of commitment and trust from their clients (Kumar and Pansari, 2016). Dandis et al, (2022c) found that commitment and satisfaction had a significant effect on customer life time value.…”

Section: Satisfaction Commitment Trust and Customer Lifetime Valuementioning

confidence: 99%

See 1 more Smart Citation

Customer lifetime value: the effect of relational benefits, brand experiences, quality, satisfaction, trust and commitment in the fast-food restaurants

Eid

Griffin³

et al. 2023

TQM

Self Cite

PurposeThis study examines factors that affect customer lifetime value (CLV) in fast-food restaurants (FFRs) in Jordan. These factors are relational benefits, brand experiences, service quality (SQ), satisfaction, trust and commitment.Design/methodology/approachAn online survey was collected from a sample of 503 respondents. The authors used SPSS to test the constructs' relationships and analyse the data. SmartPLS was used to test the hypotheses.FindingsIn contrast to previous studies, not all dimensions of brand experiences and relational benefits had a significant and positive influence on relationship marketing outcomes (satisfaction, trust and commitment). On the other hand, results demonstrated that SQ had a significant and positive influence on relationship marketing outcomes. Furthermore, research reveals that satisfaction, trust and commitment significantly and positively influenced CLV.Practical implicationsThose FFRs that seek to enhance CLV should build solid and sustainable bonds with their customers. This paper concludes by stating its implications, its limitations and the opportunities available for future research.Originality/valueThis study, which is unique in the Middle East, includes essential strategies for managing customer relationship that can be universally applied to improve customer benefits and maximise the performance of businesses.

“…This implies that studies on relationship benefits and brand experiences in the FFRs have been largely ignored, particularly in emerging markets. Therefore, this research contributes to these discussions by addressing the calls of researchers to examine relational benefits (Dandis et al, 2022a) brand experiences (Safeer et al, 2021;Ong et al, 2018) in a non-Western context. Moreover, not much is known about how each type of brand experience influence outcomes of CRM (Ong et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

The effect of brand experiences and relational benefits on loyalty in the fast-food restaurants

Wallace-Williams²,

Ni³

et al. 2022

TQM

Self Cite

PurposeThe aim of this study is to examine the role of relational benefits and brand experience measurements on willingness to pay more (WPM), effects of word of mouth (WOM) and repurchase intention (RI) in fast-food restaurants (FFR).Design/methodology/approachEmploying an online questionnaire survey with a sample size of 503 respondents, the quantitative methodology included multiple regression and factor analysis to facilitate the analyses of data.FindingsRelational benefits and their dimensions (confidence, special treatment and social benefits) found to positively impact WPM, WOM and RI. With reference to brand experiences, the current study found that behavioural and intellectual experiences have significant and positive effects on WPM, WOM and RI. Surprisingly, no positive significance was identified between sensory experiences and WPM, WOM and RI.Practical implicationsThe findings show that relational benefits and brand experience dimensions play an essential role in improving brand loyalty.Originality/valueThe current study subscribes to the concept of relationship marketing theory, suggesting that loyalty to FFRs can be enhanced by offering customers relational benefits and augmenting their brand experiences.