Customer satisfaction and loyalty in a digital environment: an empirical test

Abstract

Purpose: The purpose of this paper is to explore the links between customer loyalty attitude, customer loyalty behaviours (measured by customer purchase behaviours) and profitability. The aim is to define a conceptual framework within which to analyse the relationships between attitudes, behaviour, and profitability of the customers. Design/methodology/approach: Reference was made to earlier studies which argued that loyal customers constitute competitive asset of business organizations. Several authors noted that customers generally vary in terms of loyalty behaviours and attitudes and highlighted that differences about customers' loyalty levels affect a firm's profitability results. Customer loyalty, its antecedents and outcomes, and the links between customer satisfaction, customer loyalty and profitability have been analyzed at a customer level. Findings: The results showed support for all but one of the five hypotheses, the exception being H2. Originality/value: The results of the study provide evidence that a Loyalty Index can give managers an adequate support for market segmentation. This means that actual market segment strategies, based on geographical, demographical and/or psychographic variables, should take into account also loyalty measurement models.