The Internet allows firms to serve customers more effectively than ever before. In a B2C (business-to-consumer) context, the authors examine the interrelationships among hotel website factors, e-satisfaction, e-trust, e-loyalty and switching costs. They extend prior research by incorporating these constructs into a more comprehensive conceptual framework. This study answers three research questions. First, will the three components of website factors (communication, transaction and customization) have a significant effect on e-loyalty through e-satisfaction and e-trust? Second, do e-satisfaction and e-trust mediate e-loyalty? Third, do switching costs have a moderating effect between e-satisfaction, e-trust and e-loyalty? The authors examine data compiled from customers who have booked hotel accommodation online. The results support their hypotheses and confirm both the mediation role of e-satisfaction and e-trust and the moderation role of switching costs. Conceptually, this study provides an empirical validation of website factors, e-satisfaction, e-trust and loyalty linkage. At the managerial level, the research provides insights into the critical drivers of loyalty in the emerging online marketplace.
Ab HamidN.R. (2005), ‘E-CRM: Are we there yet?’, Journal of American Academy of Business, Vol 6, No 1, pp 51–57.
2.
AlbaJ.LynchJ.WeitzB.JaniszewskiC.LutzR.SawyerA.WoodS. (1997), ‘Interactive home shopping: Consumer, retailer, and manufacturer incentives to participate in electronic marketplaces’, Journal of Marketing, Vol 61, No 3, pp 38–53.
3.
AndersonJ.C.GerbingD.W. (1992), ‘Assumptions and comparative strengths of the two-step approach: Comment on Fornell and Yi’, Sociological Methods and Research, Vol 20, No 3, pp 321–333.
4.
ArbuckleJ.L. (2003), Amos 5.0 Update to the Amos User's Guide, SPSS Inc, Chicago.
5.
AvlonitisG.J.KarayanniD.A. (2000), ‘The impact of internet use on business-to-business marketing: Examples from American and European companies’, Industrial Marketing Management, Vol 29, No 5, pp 441–459.
6.
AydinS.ÖzerG.ArasilÖ. (2005), ‘Customer loyalty and the effect of switching costs as a moderator variable: A case in the Turkish mobile phone market’, Marketing Intelligence and Planning, Vol 23, No 1, pp 89–103.
7.
BansalH.S.McDougallG.H.G.DikolliS.S.SedatoleK.L. (2004), ‘Relating E-satisfaction to behavioral outcomes: An empirical study’, The Journal of Services Marketing, Vol 18, No 4/5, pp 290–302.
8.
BartY.ShankarV.SultanF.UrbanG.L. (2005), ‘Are the drivers and role of online trust the same for all web sites and consumers? A large-scale exploratory empirical study’, Journal of Marketing, Vol 69, No 4, pp 133–152.
9.
BejouD.EnnewC.T.PalmerA. (1998), ‘Trust, ethics and relationship satisfaction’, International Journal of Bank Marketing, Vol 16, No 4, pp 170–175.
10.
BellJ.S.AuhS.SmalleyK. (2005), ‘Customer relationship dynamics: Service quality and customer loyalty in the context of varying levels of customer expertise and switching costs’, Journal of the Academy of Marketing Science, Vol 33, No 2, pp 169–183.
11.
BigleyG.A.PearceJ.L. (1998), ‘Straining for shared meaning in organization science: Problems of trust and distrust’, Academy of Management Review, Vol 23, No 3, pp 405–421.
12.
BitnerM.J.BoomsB.H.TetreaultM.S. (1990), ‘The service encounter: Diagnosing favorable and unfavorable’, Journal of Marketing, Vol 54, No 1, pp 71–84.
13.
BitnerM.J.BrownS.W.MeuterM.L. (2000), ‘Technology infusion in service encounters’, Academy of Marketing Science, Vol 28, No 1, pp 138–149.
14.
BrowneM.W.CudeckR. (1989), ‘Single sample cross-validation indices for covariance structures’, Multivariate Behavioral Research, Vol 24, No 4, pp 445–455.
15.
BurnhamT.A.FrelsJ.K.MahajanV. (2003), ‘Consumer switching costs: A typology, antecedents, and consequences’, Journal of the Academy of Marketing Science, Vol 31, No 2, pp 109–126.
16.
CaruanaA. (2002), ‘Service loyalty: The effects of service quality and the mediating role of customer satisfaction’, European Journal of Marketing, Vol 36, No 7/8, pp 811–829.
17.
ChenC.F.ChangY.Y. (2008), ‘Airline brand equity, brand preference, and purchase intentions: The moderating effects of switching costs’, Journal of Air Transport Management, Vol 14, pp 40–42.
18.
ChinW. W. (1998), ‘Issues and opinion on structural equation modeling’, MIS Quarterly, Vol 22, No 1, pp 7–16.
19.
ConnollyD.J.OlsenM.D.MooreR.G. (1998), ‘The internet as a distribution channel’, Cornell Hotel and Restaurant Administration Quarterly, Vol 39, No 4, pp 42–54.
20.
CroninJ.J.JrTaylorS.A. (1994), ‘SERVPERF versus SERVQUAL: Reconciling performance-based and perceptions-minus expectations of service quality’, Journal of Marketing, Vol 58, No 1, pp 125–131.
21.
CroninJ.J.JrBradyM.K.HultG.T. (2000), ‘Assessing the effects of quality, value and customer satisfaction on consumer behavioral intentions in service environments’, Journal of Retailing, Vol 76, No 2, pp 193–218.
22.
DevarajS.FanM.KohliR. (2006), ‘Examination of online channel preference: Using the structure–conduct–outcome framework’, Decision Support Systems, Vol 42, No 2, pp 1089–1103.
23.
DickA.S.BasuK. (1994), ‘Customer loyalty: Toward an integrated framework’, Journal of the Academy of Marketing Science, Vol 22, No 2, pp 99–113.
24.
DuttaS.SegevA. (1999), ‘Business transformation on the internet’, European Management Journal, Vol 17, No 5, pp 466–476.
25.
DwyerF.R.OhS. (1987), ‘Output sector munificence effects on the internal political economy of marketing channels’, Journal of Marketing Research, Vol 24, No 4, pp 347–358.
26.
EberN. (1999), ‘Switching costs and implicit contracts’, Journal of Economics, Vol 69, No 2, pp 159–171.
27.
ElliottM.T.SpeckP.S. (2005), ‘Factors that affect attitude toward a retail website’, Journal of Marketing Theory and Practice, Vol 13, No 1, pp 40–51.
28.
FlohA.TreiblmaierH. (2006), ‘What keeps the e-banking customer loyal? A multigroup analysis of the moderating role of consumer characteristics on e-loyalty in the financial service industry’, Journal of Electronic Commerce Research, Vol 7, No 2, pp 97–110.
29.
FornellC. (1992), ‘National customer satisfaction barometer: The Swedish experience’, Journal of Marketing, Vol 56, No 1, pp 6–21.
30.
FornellC.LarckerD.F. (1981), ‘Evaluating structural equation models with unobservable variables and measurement error’, Journal of Marketing Research, Vol 18, No 1, pp 39–40.
31.
GefenD. (2000), ‘E-commerce: The role of familiarity and trust’, The International Journal of Management Science, Vol 28, No 5, pp 725–737.
32.
GeyskensI.SteenkampJ.KumarN. (1999), ‘A meta-analysis of satisfaction in marketing channel relationships’, Journal of Marketing Research, Vol 36, No 2, pp 223–238.
33.
Grabner-KräuterS.KaluschaE.A. (2003), ‘Empirical research in online trust: A review and critical assessment’, International Journal of Human-Computer Studies, Vol 58, No 6, pp 783–812.
HeideJ.B.WeissA.M. (1995), ‘Vendor consideration and switching behavior for buyers in high-technology markets’, Journal of Marketing, Vol 59, No 3, pp 30–43.
38.
HomburgC.GieringA. (2001), ‘Personal characteristics as moderators of the relationship between customer satisfaction and loyalty–an empirical analysis’, Psychology and Marketing, Vol 18, No 1, pp 43–66.
39.
HsuH.-C.LaiC.-S.ChenC.-H. (2007), ‘Extrinsic cue of warranty by selling through a reputable website’, Journal of Advertising Research, Vol 47, No 2, pp 158–164.
JonesM.A.MothersbaughD.L.BeattyS.E. (2000), ‘Switching barriers and repurchase intentions in services’, Journal of Retailing, Vol 76, No 2, pp 259–274.
KahnemanD.TverskyA. (1979), ‘Prospect theory: An analysis of decision under risk’, Econometrica, Vol 47, No 2, pp 263–291.
45.
KaradostasB.KardarasD.PapathanassiouE. (2005), ‘The state of CRM adoption by the financial services in the UK: An empirical investigation’, Information and Management, Vol 42, No 6, pp 853–863.
46.
KernerS.M. (2005), ‘Online is destination for travel booking’, The ClickZ Network (http://www.clickz.com/3528131, accessed 17 August 2005).
47.
KiangM.Y.RaghuT.S.ShangK.H.-M. (2000), ‘Marketing on the internet – who can benefit from an online marketing approach?’, Decision Support Systems, Vol 27, No 4, pp 383–393.
48.
KimW.G.HanJ.S.LeeE. (2001), ‘Effects of relationship marketing on repeat purchase and word of mouth’, Journal of Hospitality and Tourism Research, Vol 25, No 3, pp 272–288.
49.
KlempererP. (1987), ‘Markets with consumer switching costs’, Quarterly Journal of Economics, Vol 102, No 2, pp 375–394.
50.
LamS.Y.ShankarV.ErramilliM.K.MurthyB. (2004), ‘Customer value, satisfaction, loyalty, and switching costs: An illustration from a business-to-business service context’, Journal of the Academy of Marketing Science, Vol 32, No 3, pp 293–311.
51.
LeeJ.LeeJ.FeickL. (2001), ‘The impact of switching costs on the customer satisfaction–loyalty link: Mobile phone service in France’, Journal of Services Marketing, Vol 15, No 1, pp 35–48.
52.
Lee-KelleyL.GilbertD.MannicomR. (2003), ‘How E-CRM can enhance customer loyalty’, Marketing Intelligence and Planning, Vol 21, No 4/5, pp 239–248.
53.
LiuC.ArnettK.P. (2000), ‘Exploring the factors associated with website success in the context of electronic commerce’, Information and Management, Vol 38, No 1, pp 23–33.
54.
McKimR. (1997), ‘Dollars and sense on the web’, Target Marketing, Vol 20, No 7, pp 30–31.
55.
MarshH.W.HauK.-T. (1996), ‘Assessing goodness of fit: Is patrimony always desirable?’, Journal of Experimental Education, Vol 64, pp 364–390 (Summer).
56.
MilesS. (2002), ‘Visa ads push web security to spur card use loyalty’, The Wall Street Journal Europe, 5 April 2002.
57.
MoormanC.ZaltmanG.DeshpandeR. (1992), ‘Relationships between providers and users of market’, Journal of Marketing Research, Vol 29, No 3, pp 314–328.
58.
MorganR.M.HuntS.D. (1994), ‘The commitment-trust theory of relationship marketing’, Journal of Marketing, Vol 58, No 3, pp 20–38.
59.
NegashS.RyanT.IgbariaM. (2002), ‘Quality and effectiveness in web-based customer support systems’, Information and Management, Vol 40, No 8, pp 757–768.
60.
NewcombM.D. (1994), ‘Drug use and intimate relationships among women and men: Separating specific from general effects in prospective data using structural equation models’, Journal of Consulting and Clinical Psychology, Vol 62, No 3, pp 463–476.
61.
NunnallyJ.C. (1978), Psychometric Theory, 2nd edn, McGraw-Hill, New York.
62.
OliverR.L. (1997), Satisfaction: A Behavioral Perspective on the Consumer, McGraw-Hill, New York.
63.
OliverR.L. (1999), ‘Whence customer loyalty?’, Journal of Marketing, Vol 63, No 4, pp 33–44.
64.
PalmerJ.W. (2002), ‘Web site usability, design, and performance metrics’, Information Systems Research, Vol 13, No 2, pp 151–167.
65.
PanX.RatchfordB.T.ShankarV. (2002), ‘Can price dispersion in online markets be explained by differences in e-tailer service quality?’, Journal of the Academy of Marketing Science, Vol 30, No 4, pp 433–445.
66.
PeppersD.RogersM.DorfB. (1999), ‘Is your company ready for one-to-one marketing?’, Harvard Business Review, Vol 77, No 1, pp 151–160.
67.
PernsteinerC.RauseoN. (2000), ‘Transforming the hospitality industry into e-business’, FIU Hospitality Review, Vol 18, No 2, pp 10–21.
68.
PervinL.A.JohnO.P. (1997), Personality: Theory and Research, 7th edn, John Wiley and Sons, New York.
69.
PetersonR.A.BalasubramanianS.BronnenbergB.J. (1997), ‘Exploring the implications of the internet for consumer marketing’, Journal of the Academy of Marketing Science, Vol 25, No 4, pp 329–346.
70.
PingR.A. (1993), ‘The effects of satisfaction and structural constraints on retailer exiting, voice, loyalty, opportunism, and neglect’, Journal of Retailing, Vol 69, No 3, pp 320–353.
71.
RauyruenP.MillerK.E. (2007), ‘Relationship quality as a predictor of b2b customer loyalty’, Journal of Business Research, Vol 60, No 1, pp 21–31.
72.
ReichheldF.F.SasserW.E.Jr (1990), ‘Zero defections: Quality comes to services’, Harvard Business Review, Vol 68, No 5, pp 105–111.
73.
ReichheldF.SchefterP. (2000), ‘E-loyalty: Your secret weapon on the web’, Harvard Business Review, Vol 78, No 4, pp 105–113.
74.
ReichheldF.F.MarkeyR.G.JrHoptonC. (2000), ‘E-customer loyalty – applying the traditional rules of business for online success’, European Business Journal, Vol 12, No 4, pp 173–179.
75.
RibbinkD.van RielA.C.R.LiljanderV.StreukensS. (2004), ‘Comfort your online customer: Quality, trust, and loyalty on the internet’, Managing Service Quality, Vol 14, No 6, pp 446–456.
76.
RigdonE.E.SchumackerR.E.WothkeW. (1998), ‘A comparative review of interaction and nonlinear modeling’, in SchumackerR.E.MarcoulidesG.A., eds, Interaction and Nonlinear Effects in Structural Equation Modeling, Lawrence Erlbaum Associates, Mahwah, NJ.
77.
RustR.T.ZeithamlV.A.LemonK.N. (2000), Driving Customer Equity, Free Press, New York.
78.
SchmackerR.E.LomaxR.G. (1996), A Beginner's Guide to Structural Equation Modeling, 1st edn, Lawrence Erlbaum Associates, Mahwah, NJ.
79.
ScoviakM. (2003), ‘Maximize the Internet’, Hotels, Vol 37, No 5, pp 36–41.
80.
ShankarV.SmithA.RangaswamyA. (2003), ‘Customer satisfaction and loyalty in online and offline environments’, International Journal of Marketing Research, Vol 20, No 2, pp 153–175.
81.
SharmaN.PattersonP.G. (2000), ‘Switching costs, alternative attractiveness and experience as moderators of relationship commitment in professional, consumer services’, International Journal of Service Industry Management, Vol 11, No 5, pp 470–490.
82.
ShemwellD.J.YavasU.BilginZ. (1998), ‘Customer-service provider relationships: An empirical test of a model of service quality, satisfaction and relationship-oriented outcomes’, International Journal of Service Industry Management, Vol 9, No 2, pp 155–168.
83.
ShermanC. (2006), ‘Online travel bookings will surpass offline bookings for the first time in 2007’, HospitalityNet (http://www.hospitalitynet.org/news/4029705.html, accessed 15 December 2006).
84.
ShostakG.L. (1987), ‘Breaking free from product marketing’, Journal of Marketing, Vol 41, No 2, pp 73–80.
85.
SinghJ.SirdeshmukhD. (2000), ‘Agency and trust mechanisms in customer satisfaction and loyalty judgments’, Journal of the Academy of Marketing Science, Vol 28, No 1, pp 150–167.
86.
SrinivasanS.S.AndersonR. (2003), ‘E-satisfaction and e-loyalty: A contingency framework’, Psychology and Marketing, Vol 20, No 2, pp 122–138.
87.
SrinivasanS.S.AndersonR.PonnavoluK. (2002), ‘Customer loyalty in e-commerce: An exploration of its antecedents and consequences’, Journal of Retailing, Vol 78, No 1, pp 41–50.
88.
StoneM.WoodcockN. (2001), Defining CRM and Assessing its Quality, Kogan Page, London.
89.
StumpR.L.SriramV. (1997), ‘Employing information technology in purchasing, buyer–seller relationships and size of the supplier base’, Industrial Marketing Management, Vol 26, No 2, pp 127–136.
90.
SzymanskiD.M.HiseR.T. (2000), ‘E-satisfaction: An initial examination’, Journal of Retailing, Vol 76, No 3, pp 309–322.
91.
WallaceD.W.GieseJ.L.JohnsonJ.L. (2004), ‘Customer retailer loyalty in the context of multiple channel strategies’, Journal of Retailing, Vol 80, No 4, pp 249–263.
92.
WeberN.MurphyH.SchenggR.MurphyJ. (2005), ‘An investigation of satisfaction and loyalty in the virtual hospitality environment’, in FrewA., ed, Information and Communication Technologies in Tourism, Springer Verlag, Vienna, pp 452–461.
93.
WoodruffR.B. (1997), ‘Customer value: The next source of competitive advantage’, Journal of the Academy of Marketing Science, Vol 25, pp 139–153.
94.
YanamandramV.WhiteL. (2006), ‘Switching barriers in business-to-business services: A qualitative study’, International Journal of Service Industry Management, Vol 17, No 2, pp 158–192.
95.
YangZ.PetersonR.T. (2004), ‘Customer perceived value, satisfaction, and loyalty: The role of switching costs’, Psychology and Marketing, Vol 21, No 10, pp 799–822.
96.
YoonS.-J. (2002), ‘The antecedents and consequences of trust in online-purchase decisions’, Journal of Interactive Marketing, Vol 16, No 2, pp 47–63.
97.
ZeithamlV.A.ParasuramanA.MalhotraA. (2002), ‘Service quality delivery through web sites: A critical review of extant knowledge’, Journal of the Academy of Marketing Science, Vol 30, No 4, pp 362–376.
98.
ZhangP.Von DranG. (2000), ‘Satisfiers and dissatisfiers: A two-factor model for website design and evaluation’, Journal of the American Society for Information Society, Vol 51, No 14, pp 1253–1268.
