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The impact of positive and negative emotions on loyalty intentions and their interactions with customer equity drivers

Author

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  • Ou, Yi-Chun
  • Verhoef, Peter C.

Abstract

Customer equity drivers (CEDs) include value, brand, and relationship equity, which have a strong link with loyalty intentions. This study aims to examine the incremental effects of positive and negative emotions on loyalty intentions and to determine whether these emotions moderate the positive link between CEDs and loyalty intentions. We use customer data with 102 leading firms across eighteen services industries in the Netherlands. The results show that (1) positive and negative emotions have incremental effects on loyalty intentions, (2) positive emotions weaken the positive link (negative interaction), and (3) negative emotions strengthen the positive link, but only for brand and relationship equity (positive interaction). Thus, positive and negative emotions also explain loyalty intentions. However, managers should be cautious when combining CEDs with positive and negative emotions. We provide a strategic matrix to help managers arrive at effective combinations.

Suggested Citation

  • Ou, Yi-Chun & Verhoef, Peter C., 2017. "The impact of positive and negative emotions on loyalty intentions and their interactions with customer equity drivers," Journal of Business Research, Elsevier, vol. 80(C), pages 106-115.
    • Handle: RePEc:eee:jbrese:v:80:y:2017:i:c:p:106-115
    DOI: 10.1016/j.jbusres.2017.07.011
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