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Service quality, trust, specific asset investment, and expertise: Direct and indirect effects in a satisfaction-loyalty framework

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Abstract

This study proposes an integrated framework explaining loyalty responses in high-involvement, high-service luxury product markets. The model is rooted in the traditional (attribute satisfaction)-(overall satisfaction)-(loyalty) chain but explicitly incorporates facility versus interactive service quality, trust, specific asset investment (SAI), and product-market expertise. The authors focus on disentangling the direct versus indirect effects of model constructs on attitudinal versus behavioral loyalty responses. The results support the traditional chain but also show loyalty can be increased by building a trustworthy image and creating exchange-specific assets. The authors found that overall satisfaction is the precursor both to loyalty and to building SAI. Finally, consumers have different costs in reducing adverse selection problems with information, and thus the negative effect of product-market expertise on behavioral loyalty needs to be controlled if the direct versus indirect effects of model constructs on loyalty are to be disentangled.

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Authors and Affiliations

  1. National Chengchi University, Taiwan

    Jyh-Shen Chiou

  2. Michigan State University, Michigan, USA

    Cornelia Droge

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  1. Jyh-Shen Chiou
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Jyh-Shen Chiou (jschiou@nccu.edu.tw) (PhD in marketing, Michigan State University) is a professor of marketing in the Department of International Business at National Chengchi University, Taipei. His research interests include satisfaction and loyalty, strategic marketing, and international marketing. His work has been published in theJournal of Service Research, Psychology & Marketing, theEuropean Journal of Marketing, theJournal of Interactive Marketing, Information & Management, theJournal of Social Psychology, theJournal of Business Logistics, Advances in Consumer Research, and other scholarly journals. He has taught courses in marketing research, strategic marketing, and global marketing.

Cornelia Droge (droge@msu.edu) is a professor of marketing in the Department of Marketing and Supply Chain Management, the Eli Broad Graduate School of Management, at Michigan State University. Her research interests focus on satisfaction/ loyalty and strategic marketing (especially areas related to the interface of marketing with logistics, supply chain, and operations). Her work has appeared inManagement Science, theStrategic Management Journal, theJournal of Marketing Research, theJournal of Business Logistics, theJournal of Operations Management, theJournal of Product Innovation Management, and other scholarly journals. She is also coauthor of three books.

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Chiou, JS., Droge, C. Service quality, trust, specific asset investment, and expertise: Direct and indirect effects in a satisfaction-loyalty framework. JAMS 34, 613–627 (2006). https://doi.org/10.1177/0092070306286934

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