Investigating the Relationships between Customer Satisfaction, Behavioral Intentions, and Customer Loyalty of Electronic Household Products

Abstract

This study seeks to explore the representative dimensions of customer satisfaction along with the interrelationship among satisfaction, intentions, and loyalty in electronic household industry. A two-rounds survey was conducted in this study among undergraduate student sample, and then a more representative formal sample from the general public using a questionnaire survey method. Measurement scale developed in this study was first calibrated by an iterated factor analysis with principal component analysis (PCA) using data from the student sample and then cross-validated by confirmatory factor analysis (CFA) using the formal sample data. The empirical results demonstrate that customer satisfaction is a higher-order construct, can be measured by product quality, price, perceived value, and customer service, and customer satisfaction has a positive impact and/relationship on behavioral intentions and customer loyalty. The results did not find any positive relationship between behavioral intentions and customer loyalty. Managers are recommended to formulate operations and marketing strategies by emphasizing factors influencing customer satisfaction to ensure positive behavioral intentions and customer loyalty. This study shows interrelationship between customer satisfaction, intentions, and loyalty in a manufacturing industry (electronic household) which is useful for academicians and managers. Similar industries may reveal similar relationship features in respect to these relationships constructs, if they are under similar category.

Keywords: Customer satisfaction, Behavioral intentions, Customer loyalty, Principal component analysis, Confirmatory factor analysis