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Customer segmentation using unobserved heterogeneity in the perceived-value–loyalty–intentions link

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  • Floh, Arne
  • Zauner, Alexander
  • Koller, Monika
  • Rusch, Thomas

Abstract

Multiple facets of perceived value perceptions drive loyalty intentions. However, this value–loyalty link is not uniform for all customers. In fact, the present study identifies three different segments that are internally consistent and stable across different service industries, using two data sets: the wireless telecommunication industry (sample size 1122) and the financial services industry (sample size 982). Comparing the results of a single-class solution with finite mixture results confirms the existence of unobserved customer segments. The three established segments are “rationalists”, “functionalists” and “value maximizers”. These results point the way for value-based segmentation in loyalty initiatives and reflect the importance of a multidimensional conceptualization of perceived value, comprising cognitive and affective components. The present results substantiate the fact that assuming a homogeneous value–loyalty link provides a misleading view of the market. The paper derives implications for marketing research and practice in terms of segmentation, positioning, loyalty programs and strategic alliances.

Suggested Citation

  • Floh, Arne & Zauner, Alexander & Koller, Monika & Rusch, Thomas, 2014. "Customer segmentation using unobserved heterogeneity in the perceived-value–loyalty–intentions link," Journal of Business Research, Elsevier, vol. 67(5), pages 974-982.
    • Handle: RePEc:eee:jbrese:v:67:y:2014:i:5:p:974-982
    DOI: 10.1016/j.jbusres.2013.08.003
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    3. Chuah, Stephanie Hui-Wen & Marimuthu, Malliga & Kandampully, Jay & Bilgihan, Anil, 2017. "What drives Gen Y loyalty? Understanding the mediated moderating roles of switching costs and alternative attractiveness in the value-satisfaction-loyalty chain," Journal of Retailing and Consumer Services, Elsevier, vol. 36(C), pages 124-136.
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    8. Trang P. Tran & Christopher P. Furner & Ilia Gugenishvili, 2022. "The Effects of Task Service Fit on Brand Loyalty: A Study of Branded Apps," International Journal of E-Services and Mobile Applications (IJESMA), IGI Global, vol. 14(1), pages 1-19, January.
    9. Bao, Jingyuan & Durango-Cohen, Elizabeth J. & Levontin, Liat & Durango-Cohen, Pablo L., 2022. "Analysis of factors influencing recurring donations in a university setting: A compound poisson mixture regression model," Journal of Business Research, Elsevier, vol. 151(C), pages 489-503.
    10. Khan, Kamran & Hameed, Irfan, 2017. "The mediation of customer satisfaction and moderation of Price: Evidence from the generation Y users of cell phones," MPRA Paper 91773, University Library of Munich, Germany.
    11. Reza Mortazavi & Magdalena Lundberg, 2020. "Expenditure-based segmentation of tourists taking into account unobserved heterogeneity: The case of Venice," Tourism Economics, , vol. 26(3), pages 475-499, May.
    12. Beatriz Moliner-Velázquez & María Fuentes-Blasco & Irene Gil-Saura, 2019. "Effects of value and innovation on brand equity in retailing," Journal of Brand Management, Palgrave Macmillan, vol. 26(6), pages 658-674, November.
    13. Al-Qeisi, Kholoud & Dennis, Charles & Alamanos, Eleftherios & Jayawardhena, Chanaka, 2014. "Website design quality and usage behavior: Unified Theory of Acceptance and Use of Technology," Journal of Business Research, Elsevier, vol. 67(11), pages 2282-2290.
    14. Chen, Shu-Ching, 2015. "Customer value and customer loyalty: Is competition a missing link?," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 107-116.
    15. Yeh, Ching-Hsuan & Wang, Yi-Shun & Yieh, Kaili, 2016. "Predicting smartphone brand loyalty: Consumer value and consumer-brand identification perspectives," International Journal of Information Management, Elsevier, vol. 36(3), pages 245-257.
    16. Hiep-Hung Pham & Sue Ling Lai & Quan-Hoang Vuong, 2017. "The impacts of value, disconfirmation and satisfaction on loyalty: Evidence from international higher education setting," Working Papers CEB 17-035, ULB -- Universite Libre de Bruxelles.
    17. Sujoy Bhattacharya & Anuj Goel, 2020. "Customer Satisfaction A New Marketing Variable for Indian Petroleum Companies," Journal of Commerce and Trade, Society for Advanced Management Studies, vol. 15(1), pages 58-64, April.
    18. Roghayeh Teimourfamian Asl & Soheila Khoddami, 2023. "A Framework for Investigating Green Purchase Behavior with a Focus on Individually Perceived and Contextual Factors," Business Perspectives and Research, , vol. 11(1), pages 94-111, January.
    19. Picón-Berjoyo, Araceli & Ruiz-Moreno, Carolina & Castro, Ignacio, 2016. "A mediating and multigroup analysis of customer loyalty," European Management Journal, Elsevier, vol. 34(6), pages 701-713.

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