IDEAS home Printed from
   My bibliography  Save this article

Drivers of customer satisfaction and loyalty in service industries


  • Hana Šuster Erjavec
  • Tanja Dmitrović
  • Petra Povalej Bržan


The relationship between customer satisfaction, customer loyalty and their antecedents, service output quality, quality of staff, corporate image, and price perception, is examined in the context of three service industries: use of the highway infrastructure, mobile telephone services, and hairdressing services. The research model was empirically evaluated for a large sample of respondents from a Central European country, using structural equation modelling. The results indicate that the four antecedents affect customer loyalty, and customer satisfaction acts as a mediator in all three service industries. However, the strength of the relationship between the constructs varies markedly across the industries, implying that competitive environment importantly determines the elements of service offering that lead to satisfaction and loyalty in a particular industry. The research findings contribute to a better understanding of which behavioural mechanisms and factors are a viable basis for increasing customer retention in a specific market structure. Managerial implications are discussed, and policy recommendations are offered.

Suggested Citation

  • Hana Šuster Erjavec & Tanja Dmitrović & Petra Povalej Bržan, 2016. "Drivers of customer satisfaction and loyalty in service industries," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(5), pages 810-823, September.
  • Handle: RePEc:taf:jbemgt:v:17:y:2016:i:5:p:810-823
    DOI: 10.3846/16111699.2013.860614

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jbemgt:v:17:y:2016:i:5:p:810-823. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.