Understanding the nature of the value-satisfaction-loyalty chain concerning asymmetry and nonlinearity

Abstract

Value still resides at the heart of the marketing place. Companies creating superior value will achieve higher satisfaction among their customers leading to higher loyalty and profits. The different relationships in the customer value-satisfaction-loyalty chain are therefore of utmost importance. Most companies, assume that the relationships between customer value, customer satisfaction and customer loyalty are simple symmetric, linear ones. The question remains, if this assumption is always correct. Assuming symmetrical, linear relationships when they aren't can lead to misallocation of funds and in worst cases to wastage of money. This study aims to develop an understanding of the nature of the relationships in the customer value-satisfaction-loyalty chain regarding asymmetry and nonlinearity using a furniture chain (IKEA) as setting. Customer value was modeled according to the Holbrook typology, customer satisfaction was treated as overall satisfaction and customer loyalty was treated as one construct. An online, self-administered questionnaire was developed. The results show, that both the customer value customer satisfaction and the customer satisfaction customer loyalty relationship exhibit asymmetry. More specifically, looking at the six Holbrook items of customer value and their relationships with customer satisfaction, three of them (excellence, play, aesthetics) showed negative asymmetry, two (efficiency, social) showed positive asymmetry while for one of them (altruism) the nature of asymmetry could not be pre