A study on the impact of e service quality perceived customer value and customer satisfaction on customer loyalty in online travel agencies

Abstract

As the markets have become more competitive in every business sector especially in online, many companies have recognized the importance of developing a strong loyal customer base. The benefits associated with newlinecustomer loyalty include lower costs of retaining existing customers as compare to acquiring new customers, repeat business, word of mouth marketing, cross selling opportunities and so on. However, in case of newlineonline business, customers could effortlessly cover the globe at the click of a mouse in search of the lowest price and that results in break in customer loyalty. Hence, it is necessary to conduct research on newlineidentifying the drivers of customer loyalty and their influence on customer loyalty. newlineThis research explored the impact of e-service quality, perceived customer value, customer satisfaction on customer loyalty in online travel agencies. A conceptual model is proposed based on previous studies and newlinetested using structural equation modeling technique, bootstrapping estimates and multi group SEM (MSEM) analysis. The study employed newlinepurposeful sampling technique and was conducted on a sample size of 405 respondents working in information and communication technology organizations set up in Bengaluru. The study also tested the mediating effect of perceived customer value and customer satisfaction on the relationship between e-service quality and customer loyalty. The study also made an attempt to test the moderating effect of switching cost on newlinerelationship between e-service quality and customer loyalty, perceived customer value and customer loyalty as well as customer satisfaction and customer loyalty. Results indicated that e-service quality, perceived newlinecustomer value and customer satisfaction has a significant and positive impact on customer loyalty.Results of the study also indicated that perceived customer value and customer satisfaction partially mediate the newlinerelationship between the antecedent and outcome variables. newline