Perceived usefulness, service quality and loyalty incentives: Effects on electronic service continuance

Abstract

This paper examines the interrelationships between perceived usefulness, service quality and loyalty incentives on e-service continuance. The Technology Acceptance Model (TAM) was adapted from the information systems (IS) literature and integrated with theoretical and empirical findings from prior marketing research to theorise a model of e-service continuance. Results from a survey of a financial healthcare’s e-service users indicate a positive relationship between perceived usefulness, service quality and loyalty incentives on continuance. Further analysis strongly suggest that continuance is determined solely by the higher perceived usefulness of the e-service while service quality is more effective at lower levels of perceived usefulness. Loyalty incentives did not moderate the relationship between perceived usefulness and continuance. Implications of these findings for firms contemplating e-service initiatives are discussed.

How corporate reputation, quality, and value influence online loyalty

“…Using an online service quality measure, Gefen (2002) found a significant relationship with the tangible SERVQUAL dimension, but not with empathy or the amalgamated dimension of responsiveness, reliability and assurance. More recently, Naidoo and Leonard (2007) report links between service quality and e-service continuance. Although generally there has been a failure to use measures specific to online settings, this aspect is beginning to receive more attention.…”

The Influence of Trust and Usefulness on Customer Perceptions of E-Service Quality

“…Perceived usefulness refers to perceptions of service quality, consumer satisfaction, and a high level of perceived usefulness leads to increased intention by the consumer to purchase (Cao, Zhang, & Seydel, 2005;Hampton-Sosa, 2004;Kim & Lee, 2008;Koufaris, 2002). Perceived usefulness moderates the relationship between service quality beliefs and continuance intention (Naidoo & Leonard, 2007). Perceived usefulness is strongly associated with customers' cognitive function in terms of enhancing job effectiveness (Davis, 1989) and refers to customers' perception of how well they understand information on websites in terms of the degree of perceived service quality and satisfaction.…”

Understanding the Influence of Wireless Communications and Wi‐Fi Access on Customer Loyalty: A Behavioral Model System

“…In this body of work, atmospherics and loyalty were key elements to consider [25,28]. Other essential factors involved in customer loyalty are the quality of products [27], willingness to pay, waiting time (Frank et al, 2008; Sompie & Pangemanan, 2014), and quality of service [26]. However, new technologies incorporated in the offered services, such as wireless communications and Wi-Fi networks, have rarely been studied.…”