Consumer Loyalty: Singular,Additive or Interactive?

Abstract

Consumer loyalty may be defined as a singular concept, usually as an attitude toward the loyalty object or as repeatpatronage behaviour; alternatively, the definition may combine attitude and behaviour in either an additive or an interactive expression.

We argue that definitions of loyalty are useful if they predict phenomena such as recommendation, search and retention (loyalty outcomes). In three consumer fields, we find that combination measures of customer loyalty often perform poorly as predictors of loyalty outcomes compared with singular measures since recommendation is predicted by attitude but not by repeat patronage, whereas retention and search behaviour are predicted better by repeat patronage than by attitude. We also find that the prediction of loyalty outcomes is not improved by the inclusion of an interaction term in the model.

On this evidence, we argue that combination concepts of loyalty are of limited value. Further, we find that there is no form of loyalty that consistently predicts all the different loyalty outcomes and, therefore, we should abandon the idea of a general concept of loyalty.