Inertia and Customer Loyalty in the Varying Levels of the Zone of Tolerance and Alternative Attractiveness

Khajouei, Fatemeh; Nayebzadeh, Shahnaz

doi:10.6007/ijarbss/v3-i7/77

Cited by 5 publications

(6 citation statements)

References 35 publications

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Section: Ijbmmentioning

confidence: 99%

“…ease of navigation, personalized features, design for targeted customers segments, language options, effective search functions). Four categories of e-loyalty have been identified based on product attachment, services offered and customer purchase patterns (Khajouei and Nayebzadeh, 2013; Wu, 2011; Griffin, 1995): No loyalty – a group of customers that never becomes loyal, chasing the best deal. To attract such customers, the company needs to employ an effective marketing strategy and always offer the best deal. Inertia loyalty – a group of customers are loyal just because they have to as there are no other competitors or options in the market.…”

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

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Factors affecting Palestinian customers’ use of online banking services

Salem

Baidoun

Walsh

2019

IJBM

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Purpose The purpose of this paper is to examine factors that affect Palestinian customers’ use of online banking services. Design/methodology/approach An empirical study was conducted using a questionnaire in order to test the hypotheses. The questionnaire was distributed to 500 respondents selected by the participating banks. A total of 369 complete questionnaires were returned. The study’s independent variables include technology adoption propensity, customers’ value for online personalization, customers’ privacy concern, e-trust, technological leadership and loyalty. Palestinian customers’ usage of online banking services is the dependent variable. Findings The results of the model tested clearly suggest that the use of online banking services is influenced, respectively, by the technological leadership, e-trust, e-loyalty, customers’ value for online personalization, customers’ concern for privacy and propensity of technology adoption. Finally, this paper suggests that policy makers should develop a prioritized hierarchy of actions in developing the effective use of bank’s online services, based on the t- and p-values of the latter mentioned factors. Research limitations/implications One limitation of the study is relying on self-reported cross-sectional data collection, rather than longitudinal surveying. Despite such limitation, the study provides the Palestinian banking sector with recommendations to promote online banking services based on the empirically identified factors affecting such service adoption. Practical implications Palestinian banks should promote the adoption of online banking services by supporting personalization of services, privacy and trust. Customers should always be informed that their bank is among the first banks to introduce the latest state-of-the-art online services. Technology innovative and diverse online services should be offered by banks to attract customers. Originality/value Although numerous research studies have studied the factors affecting customers in using electronic and online banking services, few studies have considered such usage in the developing countries, such as Arab countries in general and Palestine in particular. This is the first study to examine the factors affecting the adoption of online banking services in Palestine. This study provides empirical evidence to fill in the gap by providing a deeper understanding of the factors affecting the usage of online banking services in the country. The findings of this study can help decision makers in the Palestinian banks to develop practical plans that might accelerate and expand the adoption of online banking emphasizing personalized and trusted services offered with high level of security and privacy.

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Section: Ijbmmentioning

confidence: 99%

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

Factors affecting Palestinian customers’ use of online banking services

Salem

Baidoun

Walsh

2019

IJBM

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“…Works have identified relational antecedents such as trust [7,55,80] and commitment [4,42,47] to create and maintain consumers' brand loyalty [56]. However, this research stream may overlook the consumers' psychological determinants that strengthen their brand loyalty, particularly with regard to ICT brand products [12,43,52]. Specifically, few studies have investigated the role of individual status quo bias in relation with consumer brand loyalty [38,46,63,75,77].…”

Section: Introductionmentioning

confidence: 99%

Consumer loyalty toward smartphone brands: The determining roles of deliberate inertia and cognitive lock-in

Shi

Lin

Liu

et al. 2018

Information & Management

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The full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that: • a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.

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“…Due to this positive feeling, customers prefer to stay. Reason two involves the laziness, inactivity, or passivity of the consumer (Bozzo, 2002; Khajouei & Nayebzadeh, 2013). It includes and explains customers who prefer the status quo (Ye, 2005), those with little involvement (Huang & Yu, 1999; Voss, Godfrey, & Seiders, 2010), those who seek convenience (Gounaris & Stathakopoulos, 2004), and those who avoid learning about alternatives, making comparisons (Leventhal, Pitta, Franzak, & Fowler, 2006), or making new choices (Cheng, Chiu, Hu, & Yuan, 2011; White & Yanamandram, 2004).…”

Section: Historical Analysis Of the Conception Of Inertiamentioning

confidence: 99%

“…With inertia, consumers do not need to take the risk of trying another product or service provider (Bozzo, 2002). Khajouei and Nayebzadeh (2013) note that as long as perceptions of the product or service performance fall within the customer's zone of tolerance (ZOT), it will lead to inertia. This means that customers with a wide ZOT tend to be inertial with their present provider.…”

Section: Historical Analysis Of the Conception Of Inertiamentioning

confidence: 99%

Interrogating and redefining the concept of consumer inertia

Cui

Xin

2020

J of Consumer Behaviour

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Through a historical analysis of the concept of inertia about its origination, definitions, and interpretations in the marketing context, this article presents the disagreements and debates on consumer inertia. In response, the authors redefine it by proposing clear definitions for two types of consumer inertia (CI1 and CI2). The reconceptualization clarifies the scope of consumer inertia and the role it plays in repeat purchase behavior. The conceptual models indicate the determinant and moderating factors of CI1 and CI2. The sequential development conceptual model of CI2 based on four dimensions (Cognitive Inertia, Affective Inertia, Conative Inertia, Action Inertia) deconstructs its mechanism. As for its relationship with loyalty, while type one inertia (CI1) leads to Spurious Loyalty, type two consumer inertia (CI2) can lead to either Loyalty, Latent Loyalty, Spurious Loyalty or No Loyalty. This study contributes to a better understanding of how consumer inertia works in repeat purchase behavior and provides some implications for future research and marketing practice.

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Inertia and Customer Loyalty in the Varying Levels of the Zone of Tolerance and Alternative Attractiveness

Cited by 5 publications

References 35 publications

Factors affecting Palestinian customers’ use of online banking services

Factors affecting Palestinian customers’ use of online banking services

Consumer loyalty toward smartphone brands: The determining roles of deliberate inertia and cognitive lock-in

Interrogating and redefining the concept of consumer inertia

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