Loyalty

ABSTRACT

This paper examines the shifting role of perceived value and satisfaction in the formation of loyalty over the duration of a relationship life cycle. Drawing on a sample of online shoppers in Taiwan, the results show that the association between loyalty intention and shopping experiences conforms to an S-shaped growth curve. Customers’ intentions to stay with a website appear to be influenced by the perceived value and satisfaction formed during the most recent transaction; however, the strength of action inertia gradually declines after the maturity stage. The sample was classified into three segments (i.e., relationship driven and variety seeker; relationship neutral and value seeker; relationship averse and satisfaction seeker), which show distinct behaviors in terms of preferences, relationship status, sex, switching, and e-WOM inclination. Satisfaction is the most powerful driver of loyalty for the first shopping experience. Above and beyond satisfaction, perceived value has a strong impact on motivating new ...