The Effect of Customer Satisfaction on Behavioral Intentions
A Study on Consumer Behavior of Car Insurance Consumers in Melbourne, Australia
DOI:
https://doi.org/10.21632/Keywords:
customer satisfaction, behavioral intentions, repurchase intentions, word of mouth communicationAbstract
It has often been argued that customer satisfaction can contribute significantly to a company’s success in a variety of ways. This research aims to investigate the effect of customer satisfaction on behavioural intentions. Two determinants of behavioral intentions examined in this study namely repurchase intentions and positive word-of-mouth communication. The model has been tested using surveyed data from 546 car insurance consumers in Melbourne, Australia. The empirical results of this study show that the higher the level of satisfaction, the higher the consumer’s intentions to repurchase and inform positive information about the purchased product and company to other people. This means that the more satisfied the consumers the more likely they are to repurchase car insurance from the same company and more likely to do positive word-of-mouth communication. Thus, behavioral intentions expressed by consumers depend on their levels of satisfaction. Hence, the company might maintain their existing customers and attract new consumers to achieve better financial performance. Discussion and managerial implications are provided based on research results.
References
Anderson, Eugene W., and Fornell, C. (1994). A Framework for Comparing Customer Satisfaction Across Individual and Product Categories. Journal of Economic Psychology, 12, 267-286.
Anderson, Rolph E. (1973). Consumer Dissatisfaction: The Effect of Disconfirmed Expectancy on Perceived Product Performance. Journal of Marketing Research, 10 (February), 38-44.
Athanassopoulos, Antreas D., Spiros Gounaris, and Vlassis Stathakopoulos. (2001). Behavioral Responses to Customer Satisfaction: An Empirical Study. European Journal of Marketing, 35 (5/6), 687-707.
Bansal, Harvis S. and Peter A. Voyer. (2000). Wordof-Mouth Processes Within A Services Purchase Decision Context. Journal of Service Research, 3 (2), 166-177.
Bendall-Lyon, Dawn and Thomas L. Powers. (2004). The Impact of Structure and Process Attributes on Satisfaction and Behavioral Intentions. Journal of Services Marketing, 18 (2), 114-121.
Bloemer, J.M and H.D.P Kasper. (1995). The Complex Relationship between Consumer Satsifaction and Brand Loyalty. Journal of Economic Psychology, 16 (2), 311-319.
Bodet, Guillaume. (2008). Customer Satisfaction and Loyalty in Service: Two Concepts, Four Constructs, Several Relationship. Journal of Retailing and Consumer Services, (15), 156-162
Bolton, Ruth N., P.K. Kannan, and Matthew D. Bramlett. (2000). Implications of Loyalty Program Membership and Service Experiences for Customer Retention and Value. Journal of the Academy of Marketing Science, 28 (1), 95-108.
Bone, Paula F. (1992). Determinants of Word-ofMouth Communication During Product Consumption. Advances in Consumer Research, 19 (1), 579-583.
Boulding, William, Ajay Kalra, Richard Staelin, and Valarie Zeithaml. (1993). A Dynamic Process Model of Service Quality: From Expectations to Behavioral Intentions. Journal of Marketing Research, 30 (February), 7-27.
Cardozo, Richard N. (1965). An Experimental Study of Customer Effort, Expectation, and Satisfaction. Journal of Marketing Research, 2 (August), 244-249.
Churchill, Gilbert A., and Carol Surprenant . (1982). An Investigation Into the Determinants of Customer Satisfaction. Journal of Marketing Research, 19 (November), 491- 504.
Choi, Kui-Son, Woo-Hyun Cho, Sunhee Lee, Hanjoon Lee, and Chankon Kim. (2004). The Relationships among Quality, Value, Satisfaction and Behavioral Intention in Health Care Provider Choice: A South Korean Study. Journal of Business Research, 57, 913-921.
Cronin, Joseph., Michael Brady, and Thomas M. Hult. (2000). Assessing the Effects of Quality, Value, and Customer Satisfaction on Consumer Behavioral Intentions in Service Environments. Journal of Retailing, 76 (2), 193-218.
Crosby, Lawrence A. and Nancy Stephens. (1987). Effects of Relationship Marketing on Satisfaction, Retention, and Prices in the Life Insurance Industry. Journal of Marketing Research, 24 (November), 404- 411.
Danaher, Peter J. and Rodger W. Gallagher. (1997).Modelling Customer Satisfaction in Telecom New Zealand. European Journal of Marketing, 31 (2), 122-133.
Day, Ralph L. (1984). Modelling Choices Among Alternative Responses to Dissatisfaction. Advances in Consumer Research, 11 (Ed. William D. Perreault. Atlanta, GA: Association for Consumer Research), 496-499.
Diaz, Ana B. Casado and Fransisco Ruiz, J. Mas. (2002). The Consumer’s Reaction to Delays in Service. International Journal of Service Industry Management, 13 (2), 118-140.
Ennew, Christine , Ashish Banerjee, and Derek Li. (2000). Managing Word of Mouth Communication: Empirical Evidence From India. International Journal of Bank Marketing, 18 (2), 75-83.
Feigenbaum, A.V. (1991). Total Quality Control. New York, The USA: McGraw-Hill, Inc.
Fisk, Raymond P. and Clifford E. Young. (1985). Disconfirmation of Equity Expectations:
Effects on Consumer Satisfaction with Services. Advances in Consumer Research,
12 (1), 340-345.
Fornell, Claes. (1992). A National Customer Satisfaction Barometer: The Swedish
Experience. Journal of Marketing, 56 (1),6-21.
Gabler, Joanna and Marilyn Y. Jones. (2000). Behavior and Behavioral Intentions in a Retail Setting. ANZMAC 2000 Visionary Marketing for the 21st Century: Facing the Challenge, 377-382.
Giese, Joan L. and Joseph A. Cote. (2002). Defining Consumer Satisfaction. Academy
of Marketing Science Review, 2000 (1),1-24.
Gremler, Dwayne D., Gwinner, Kevin P., and Brown, Stephen W. (2001). Generating Positive Word-of-Mouth Communication Through Customer-Employee Relationships. International Journal of Service Industry Management, 12 (1), 44-59.
Gross, I. (1997). Evolution in Customer Value: the Gross Perspective, in Customer Value: Moving Forward - Back to Basics, B. Donath, Ed.: ISBM Report No.13.
Hansenmark, Ove C. and Marie Albinsson. (2004). Customer Satisfaction and Retention: The Experiences of Individual Employees. Managing Service Quality, 14 (1), 40-57.
Harrison-Walker, L.Jean. (2001). The Measurement of Word-of-Mouth Communication and an Investigation of Service Quality and Customer Commitment as Potential Antecedents. Journal of Service Research, 4 (1), 60-77
Hauser, John R. and Birger Wernerfelt. (1990). An Evaluation Cost Model of Consideration Sets. Journal of Consumer Research, 16 (March), 393-408
Hellier, Phillip K., Gus Geursen, Rodney A. Carr, and John A. Rickard. (2003). Customer Repurchase Intention: A General Structural Equation Model. European Journal of Marketing, 37 (11/12), 1762- 1800.
Host, Viggo and Michael Knie-Andersen. (2004). Modeling Customer Satisfaction in Mortgage Credit Companies. The International Journal of Bank Marketing, 22 (1), 26-42.
Jones, Michael A. and Jaebeom Suh. (2000). Transaction-Specific Satisfaction And Overall Satisfaction: An Empirical Analysis. Journal of Service Marketing, 14 (2), 147-159.
Jones, T.O. and W.E. Sasser. (1995). Why Satisfied Customers Defect. Harvard Business Review, 73 (6), 88-99.
Johnson, M.P., Eugene W. Anderson, and Claes Fornell. (1995). Rational and Adaptive Performance Expectations in a Customer Satisfaction Framework. Journal of Consumer Research, 21 (March), 695-707.
Keaveney, Susan M. (1995). Customer Switching Behavior in Service Industries: An Exploratory Study. Journal of Service Marketing, 15 (4), 300-321.
Law, Agnes K.Y., Y.V. Hui, and Xiande Zhao. (2004). Modeling Repurchase Frequency and Customer Satisfaction for Fast Food Outlets. International Journal of Quality & Reliability Management, 21 (5), 545-563.
Luo, Xueming and Homburg, Christian. (2007). Neglecting Outcomes of Customer Satisfaction. Journal of Marketing, vol 71 (April), 133-149
Mangold, W. Glynn, Fred Miller, and Gary R. Brockway. (1999). Word-of-Mouth Communication in the Service
Marketplace. Journal of Services Marketing, 13 (1), 73-89.
McQuitty, Shaun, Adam Finn, and James B. Wiley. (2000). Systematically Varying Consumer Satisfaction and its Implication for Product Choice. Academy of Marketing Science Review, http://www.amsreview.org/theory/mcquitty10-00.html.
Morwitz, Vicki G. and David Schmittlein. (1992). Using Segmentation to Improve Sales Forecast Based on Purchase Intention. Journal of Marketing Research, 29 (November), 391-406.
Murray, K.B. (1991). A Test of Services Marketing Theory: Consumer Information Acquition Activities. Journal of Marketing, 55 (1), 10-25.
Nicholls, J.A.F., Ronald G. Gilbert, and Sydney Roslow .(1998). Parsimonious Measurement of Customer Satisfaction with Personal Service and the Service Setting. Journal of Consumer Marketing, 15 (3), 239-53.
Oliver, R.L. (1980). A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions,» Journal of Marketing Research, 17 (September), 46-49.
Oliver, R.L. and Wayne S. DeSarbo. (1988). Response Determinants in Satisfaction Judgments. Journal of Consumer Research, 14 (March), 1988.
Olshavsky, Richard W. and John A. Miller. (1972). Consumer Expectations, Product Performance, and Perceived Product Quality. Journal of Marketing Research, 9 (February), 19-21.
Olson, Jerry C. and Philip Dover. (1979). Disconfirmation of Consumer Expectations Through Product Trial. Journal of Applied Psychology, 64 (April), 179-189.
Omar, Maznah Wan. (2009). The Mediating Effect of Cognitive and Emotional Satosfaction on Customer Loyalty. International Journal of Management Innovation Systems, vol. 2 (2), 1-13
Parasuraman, A., Zeithaml, V., & Berry, L. (1988). SERVQUAL: A multiple-item scale for measuring customer perceptions of service quality. Journal of Retailing, 64(Spring), 12-40.
Petrick, J. F., Morais, D. D., & Norman, W. (2001). An examination of the determinants of entertainment vacationers’ intentions to revisit. Journal of Travel Research, 40(August), 41-48.
Reichheld, F. (1996). The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value. Boston: Harvard Business School Press.
Reichheld, F., & Aspinall, K. (1993). Building high loyalty business systems. Journal of Retail Banking, 15(4), 21-29.
Shankar, V., Smith, A. K., & Rangaswamy, A. (2003). Customer satisfaction and loyalty in online and offline environments. International Journal of Research in Marketing, 20(2), 153-175.
Soderlund, M. (2003). The retrospective and the prospective mind and the temporal framing of customer satisfaction. European Journal of Marketing, 37(10), 1375-1389.
Spreng, R. A., Harrell, G., & Mackoy, R. D. (1995). Service recovery: Impact on satisfaction and intentions. Journal of Services Marketing, 9(1), 15-23.
Teo, T. S. H., & Lim, V. K. G. (2001). The effects of perceived justice on satisfaction and behavioral intentions: The case of computer purchase. International Journal of Retail & Distribution Management, 29(2), 109-124.
Turk, Z., & Avcilar, M. Y. (2009). The effect of perceived service quality of audit firms on satisfaction and behavioral intentions: A research on the Istanbul Stock Exchange listed companies. Research Journal of Business Management, 2(1), 36-46.
Ueltschy, L. C., Laroche, M., Tamilia, R. D., & Yannopoulos, P. (2004). Cross-cultural invariance of measures of satisfaction and service quality. Journal of Business Research, 57(8), 901-912.
Van Looy, B., Gemmel, P., Desmet, S., Van Dierdonck, R., & Serneels, S. (1998). Dealing with productivity and quality in a service environment: Some field experiences. International Journal of Service Industry Management, 9(4), 359-376.
Westbrook, R. A. (1987). Product/consumption-based affective responses and postpurchase processes. Journal of Marketing Research, 24(3), 258-270.
Wilson, A. (2002). Attitudes towards customer satisfaction measurement in the retail sector. The Market Research Society, 44(2), 213-221.
Winsted, K. F. (2000). Service behaviors that lead to satisfied customers. European Journal of Marketing, 34(3/4), 399-417.
Wirtz, J., & Bateson, J. E. G. (1999). Introducing uncertain performance expectations in satisfaction models for services. International Journal of Service Industry Management, 10(1), 82-99.
Wirtz, J., & Chew, P. (2002). The effects of incentives, deal proneness, satisfaction, and tie strength on word-of-mouth behavior. International Journal of Service Industry Management, 13(2), 141-162.
Woodruff, R. B., & Gardial, S. F. (1996). Know Your Customer: New Approaches to Understanding Customer Value and Satisfaction. Cambridge, MA: Blackwell Publishers.
Woodruff, R. B., Cadotte, E. R., & Jenkins, R. L. (1983). Modeling consumer satisfaction processes using experience-based norms. Journal of Marketing Research, 20(August), 296-304.
Yi, Joujae. (1990). A Critical Review of Consumer Satisfaction, in Review of Marketing, Valarie.A. Zeithaml, Ed. Chicago: American Marketing Association.
Zeithaml, Valarie A. , Leonard Berry, and A. Parasuraman. (1996). The Behavioral Consequences of Service Quality,» Journal of Marketing, 60 (April), 31-46.
Downloads
Submitted
Published
How to Cite
Issue
Section
License
Copyright (c) 2010 Wahyuningsih, Djayani Nurdin
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Journal Author(s) Rights
For IRJBS to publish and disseminate research articles, we need publishing rights (transferred from the author(s) to the publisher). This is determined by a publishing agreement between the Author(s) and IRJBS. This agreement deals with the transfer or license of the copyright of publishing to IRJBS, while Authors still retain significant rights to use and share their own published articles. IRJBS supports the need for authors to share, disseminate and maximize the impact of their research and these rights, in any databases.
As a journal Author, you have rights to many uses of your article, including use by your employing institute or company. These Author rights can be exercised without the need to obtain specific permission. Authors publishing in IRJBS journals have comprehensive rights to use their works for teaching and scholarly purposes without needing to seek permission, including:
- use for classroom teaching by Author or Author's institution and presentation at a meeting or conference and distributing copies to attendees;
- use for internal training by the author's company;
- distribution to colleagues for their research use;
- use in a subsequent compilation of the author's works;
- inclusion in a thesis or dissertation;
- reuse of portions or extracts from the article in other works (with full acknowledgment of the final article);
- preparation of derivative works (other than commercial purposes) (with full acknowledgment of the final article);
- voluntary posting on open websites operated by the author or the author’s institution for scholarly purposes,
(But it should follow the open access license of Creative Common CC-by-SA License).
Authors/Readers/Third Parties can copy and redistribute the material in any medium or format, as well as remix, transform, and build upon the material for any purpose, even commercially. Still, they must give appropriate credit (the name of the creator and attribution parties (authors' detail information), a copyright notice, an open access license notice, a disclaimer notice, and a link to the material), provide a link to the license, and indicate if changes were made (Publisher indicates the modification of the material (if any) and retain an indication of previous modifications.
Authors/Readers/Third Parties can read, print and download, redistribute or republish the article (e.g. display in a repository), translate the article, download for text and data mining purposes, reuse portions or extracts from the article in other works, sell or re-use for commercial purposes, remix, transform, or build upon the material, they must distribute their contributions under the same license as the original Creative Commons Attribution-ShareAlike (CC BY-SA).
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
