Loyalty and innovation: Evidence from Algerian mobile service providers

Abstract

Theoretical considerations imply a positive association between innovation and customer loyalty. However, two major gaps remain in the literature. First, there is little empirical support for the relationship between innovation and customer loyalty. The few existing studies have so far found mixed results. Second, apart from a recent study, differential studies on innovation are non-existent. This article aims to fill these gaps by discussing the relationship between innovation and customer loyalty in the mobile industry using survey data collected from Algerian mobile customers. The results show that discriminating innovation is consequential. Only effective innovations are positively associated with customer loyalty. Ineffective innovations are neutral for behavioral loyalty, but harmful for attitudinal loyalty. Implications for managers and researchers are provided.

Improving Satisfaction and Loyalty of Online Shop Customer Based on E-Commerce Innovation and E-Service Quality

“…Furthermore, one of the goals of e-commerce innovation is to make it easier for the customers to use online shopping websites/applications, such as the ease of finding products, ease of purchase, and ease of transactions. In theory, the results of this study reinforce the idea that innovation is an antecedent factor of customers' satisfaction and loyalty, both in the e-commerce and conventional industries (Bersali and Guermat, 2014;Victorinoet al, 2005;Diaw and Asare, 2018).…”

“…Among the few studies that can be found, there is one by Lee (2011) who found that innovation has a positive effect on customers' loyalty in the mobile communications providers and smartphones service industry. However, the opposite results were obtained by Bersali and Guermat (2014), Dachyar and Hananto (2014), who found that innovation does not have a direct effect on customers' loyalty, but indirectly affects it if it is mediated by other customer variables, one of them being customer satisfaction. In other words, innovation creates greater satisfaction, and it also leads to increased customer loyalty.…”

“…Lee (2011) found that innovation positively affected customers' loyalty. However, Dachyar & Hananto (2014) and Bersali & Guermat (2014) found the opposite results, in which innovation did not have a direct effect on customers' loyalty; these studies still used innovation measurement items in their traditional context (offline). So, in this study, we use innovation measurement dimensions that are tailored to the e-commerce context.…”

The Analyses of Purchasing Decisions and Brand Loyalty for Smartphone Consumers

“…They proposed a model called brand relationship quality that describes the relationship among service quality, brand trust, satisfaction, commitment, and exploring the effects of brand experience (repurchase intention). Mohamed and Cherif (2014) described that customer intention to repurchase a brand was influenced by brand relationship quality (brand satisfaction, trust, and commitment), service quality and brand experiences [17].…”

Service Delivery and Branding Management in Digital Platforms: Innovation through Brand Extension

“…In the digital world, the effects of e-service innovations on customer satisfaction and loyalty are empirically investigated in telecommunication services [15,16], portal sites [17,18], and internet-based games [19]. In the platform context, researchers have already investigated the adoption of line extensions in services, such as the car-sharing service of DiDi from the trust [20,21] and risk [22] perspectives and Uber from reputation, risk, and electronic word of mouth (E-WOM) viewpoints [23].…”