THE ROLE OF CUSTOMER ENGAGEMENT ON CUSTOMER LOYALTY: A STUDY AT A PRIVATE HIGHER EDUCATION INSTITUTION
Abstract
Today, consumers are no longer merely passive recipients of services provided by companies. Consumer's pervasiveness in their service consumption is the embodiment of Goods-Dominant Logic into Service-Dominant Logic paradigm shift. With this shift, consumers are now have the potential to be an effective corporate marketing agent. Private university, as the provider of education services whose survival depends on student participation and funding, is expected to be able to implement the right strategy in the face of the paradigm shift. This study aims to examine the effect of student engagement on student satisfaction. The effect of student satisfaction was then examined on student loyalty. The respondents of 140 students and former students of STIA Al Fithrah in Surabaya became the sample of this study. The results showed that student engagement has an important role to the development of student loyalty.
Keywords
Full Text:
PDFReferences
Annamdevula, S., & Bellamkonda, R. S. 2016. The Effects of Service Quality on Student Loyalty: The Mediating Role of Student Satisfaction. Journal of Modelling in Management. 11(2): 446-462.
Aydogdu, M., & Wellman, J. W. 2011. The Effects of Advertising on Mutual Fund Flows: Results from a New Database. Financial Management. 40(3): 785-809.
Back, K. J., & Lee, J. S. 2009. Country Club Member’s Perceptions of Value, Image Congruence, and Switching Costs: An Exploratory Study of Country Club Member’s Loyalty. Journal of Hospitality & Tourism Research. 33(4): 528-546.
Bowen, J. T., & Chen, S. L. 2001. The Relationship between Customer Loyalty and Customer Satisfaction. International Journal of Contemporary Hospitality Management. 13(5): 213-217.
Brodie, R. J., Ilic, A., Juric, B., & Hollebeek, L. 2013. Consumer Engagement in a Virtual Brand Community: An Exploratory Analysis. Journal of Business Research. 66(1): 105-114.
Butcher, K., Sparks, B., & O’Callaghan, F. 2001. Evaluative and Relational Influences on Service Loyalty. International Journal of Service Industry Management. 12(4): 310-327.
Chaudhuri, A., & Holbrook, M. B. 2001. The Chain of Effects from Brand Trust and Brand Affect to Brand Performance: The Role of Brand Loyalty. Journal of Marketing. 65(2): 81-93.
Choi, T. Y., & Chu, R. 2001. Determinants of Hotel Guest’s Satisfaction and Repeat Patronage in the Hong Kong Hotel Industry. International Journal of Hospitality Management. 20(3): 277-297.
Deshpande, R. 1983. "Paradigms Lost": On Theory and Method in Research in Marketing. The Journal of Marketing. 101-110.
Duff, B. R., & Faber, R. J. 2011. Missing the Mark. Journal of Advertising. 40(2): 51-62.
Flint, D. J., Woodruff, R. B., & Gardial, S. F. 2002. Exploring the Phenomenon of Customer’s Desired Value Change in a Business-to-business Context. Journal of Marketing. 66(4): 102-117.
Giner, G. R., & Rillo, A. P. 2016. Structural Equation Modeling of Co-creation and Its Influence on the Student’s Satisfaction and Loyalty towards University. Journal of Computational and Applied Mathematics. 291: 257-263.
Goncalves, H. M., & Sampaio, P. 2012. The Customer Satisfaction †Customer loyalty Relationship: Reassessing Customer and Relational Characteristics Moderating Effects. Management Decision. 50(9): 1509-1526.
Han, H., & Jeong, C. 2013. Multi-dimensions of Patron’s Emotional Experiences in Upscale Restaurants and Their Role in Loyalty Formation: Emotion Scale Improvement. International Journal of Hospitality Management. 32: 59-70.
Han, H., & Ryu, K. 2009. The Roles of the Physical Environment, Price Perception, and Customer Satisfaction in Determining Customer Loyalty in the Restaurant Industry. Journal of Hospitality & Tourism Research. 33(4): 487-510.
Hemsley-Brown, J., & Alnawas, I. 2016. Service Quality and Brand Loyalty: The Mediation Effect of Brand Passion, Brand Affection and Self-brand Connection. International Journal of Contemporary Hospitality Management. 28(12): 2771-2794.
Heskett, J.L., Sasser, W.E., Schlesinger, L.A. 1997. The Service Profit Chain. New York: The Free Press.
Hollebeek, L. D. 2011. Demystifying Customer Brand Engagement: Exploring the Loyalty Nexus. Journal of Marketing Management. 27(8): 785-807.
Hsu, C. L., Chang, K. C., & Chen, M. C. (2012). The Impact of Website Quality on Customer Satisfaction and Purchase Intention: Perceived Playfulness and Perceived Flow as Mediators. Information Systems and e-Business Management. 10(4): 549-570.
Hui, T. K., Wan, D., & Ho, A. 2007. Tourist’s Satisfaction, Recommendation and Revisiting Singapore. Tourism Management. 28(4): 965-975.
Johnson, M. D. 1998. Customer Orientation and Market Action. Upper Saddle River, NJ: Prentice Hall.
Kumar, V., Aksoy, L., Donkers, B., Venkatesan, R., Wiesel, T., & Tillmanns, S. 2010. Undervalued or Overvalued Customers: Capturing Total Customer Engagement Value. Journal of Service Research. 13(3): 297-310.
Kumar, V., Dalla Pozza, I., & Ganesh, J. 2013. Revisiting the Satisfaction–loyalty Relationship: Empirical Generalizations and Directions for Future Research. Journal of Retailing. 89(3): 246-262.
Lee, C. K., Yoon, Y. S., & Lee, S. K. 2007. Investigating the Relationships among Perceived Value, Satisfaction, and Recommendations: The Case of the Korean DMZ. Tourism Management. 28(1): 204-214.
Li, X., & Petrick, J. F. 2008. Examining the Antecedents of Brand Loyalty from an Investment Model Perspective. Journal of Travel Research. 47(1): 25-34.
Lusch, R. F., & Vargo, S. L. 2006. Service-dominant Logic: Reactions, Reflections and Refinements. Marketing Theory. 6(3): 281-288.
Lusch, R. F., Vargo, S. L., & Tanniru, M. 2010. Service, Value Networks and Learning. Journal of the Academy of Marketing Science. 38(1): 19-31.
Lutz, R. J., MacKenzie, S. B., & Belch, G. E. 1983. Attitude toward the Ad as a Mediator of Advertising Effectiveness: Determinants and Consequences. ACR North American Advances. 523-539.
MacKenzie, S. B., Lutz, R. J., & Belch, G. E. 1986. The Role of Attitude toward the Ad as a Mediator of Advertising Effectiveness: A Test of Competing Explanations. Journal of Marketing Research. 130-143.
Maslowska, E., Malthouse, E. C., & Collinger, T. 2016. The Customer Engagement Ecosystem. Journal of Marketing Management. 32(6): 469-501.
Menidjel, C., Benhabib, A., & Bilgihan, A. 2017. Examining the Moderating Role of Personality Traits in the Relationship between Brand Trust and Brand Loyalty. Journal of Product & Brand Management. 26(6): 631-649.
Mitchell, A. A., & Olson, J. C. 1981. Are Product a Beliefs the Only Mediator of Advertising Effects on Brand Attitude, Journal of Marketing Research, 18(8): 318-332.
Moran, G., Muzellec, L., & Nolan, E. 2014. Consumer Moments of Truth in the Digital Context: How “search†and “e-word of mouth†can Fuel Consumer Decision Making. Journal of Advertising Research. 54(2): 200-204.
Oliver, R. L. 1981. Measurement and Evaluation of Satisfaction Processes in Retail Settings. Journal of Retailing. 57: 25-48.
Oliver, R. A. 1997. A Behavioural Perspective on the Consumer. New York: McGraw-Hill.
Oliver, R. L. 1999. Whence Consumer Loyalty? The Journal of Marketing. 33-44.
Oliver, R. L., & DeSarbo, W. S. 1989. Processing of the Satisfaction Response in Consumption: A Suggested Framework and Research Propositions. Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior. 2(1): 1-16.
Oxford English Dictionary, 2008, Third edition, s.vv. “engagementâ€.
Oyner, O., & Korelina, A. 2016. The Influence of Customer Engagement in Value Co-creation on Customer Satisfaction. Worldwide Hospitality and Tourism Themes. 8(3): 327-345.
Pansari, A., & Kumar, V. 2017. Customer Engagement: The Construct, Antecedents, and Consequences. Journal of the Academy of Marketing Science. 45(3): 294-311.
Petrick, J. F. 2002. Experience Use History as a Segmentation Tool to Examine Golf Traveller's Satisfaction, Perceived Value and Repurchase Intentions. Journal of Vacation Marketing. 8(4): 332-342.
Rahi, S., Ghani, M. A., & Alnaser, F. M. 2017. The Influence of E-customer Services and Perceived Value on Brand Loyalty of Banks and Internet Banking Adoption: A Structural Equation Model (SEM). The Journal of Internet Banking and Commerce. 22(1): 1-18.
Rosenbaum, M. S., & Martin, D. 2012. Wearing Community: Why Customers Purchase a Service Firm's Logo Products. Journal of Services Marketing. 26(5): 310-321.
Rosenbaum, M. S., & Massiah, C. A. 2007. When Customers Receive Support from Other Customers: Exploring the Influence of Intercustomer Social Support on Customer Voluntary Performance. Journal of Service Research. 9(3): 257-270.
Ryu, K., Han, H., & Kim, T. H. 2008. The Relationships among Overall Quick-casual Restaurant Image, Perceived Value, Customer Satisfaction, and Behavioral Intentions. International Journal of Hospitality Management. 27(3): 459-469.
Sheth, J. N., Sisodia, R. S., & Sharma, A. 2000. The Antecedents and Consequences of Customer-centric Marketing. Journal of the Academy of Marketing Science. 28(1): 55-66.
Shimp, T. A. 1981. Attitude toward the Ad as a Mediator of Consumer Brand Choice. Journal of Advertising. 10(2): 9-48.
So, K. K. F., King, C., Sparks, B. A., & Wang, Y. 2016. The Role of Customer Engagement in Building Consumer Loyalty to Tourism Brands. Journal of Travel Research. 55(1): 64-78.
Sureshchandar, G.S., Rajendran, C. & Anantharaman, R.N. 2002. The Relationship between Service Quality and Customer Satisfaction – A Factor Approach. Journal of Services Marketing, 14(4): 363-379.
Tepeci, M. 1999. Increasing Brand Loyalty in the Hospitality Industry. International Journal of Contemporary Hospitality Management. 11(5): 223-230.
Thomke, S., & Von Hippel, E. 2002. Customers as Innovators: A New Way to Create Value. Harvard Business Review. 80 (4): 74-81.
Treacy, M., & Wiersema, F. 1993. Customer Intimacy and Other Value Disciplines. Harvard Business Review. 71(1): 84-93.
Ueda, Y., & Nojima, M. 2012. Effect of Student Attitudes on University Loyalty and University Cooperation: An Empirical Study in Japan. International Journal of Management. 29(1): 133-142.
Van Doorn, J., Lemon, K. N., Mittal, V., Nass, S., Pick, D., Pirner, P., & Verhoef, P. C. 2010. Customer Engagement Behavior: Theoretical Foundations and Research Directions. Journal of Service Research. 13(3): 253-266.
Van Dun, Z., Bloemer, J., & Henseler, J. 2011. Perceived Customer Contact Centre Quality: Conceptual Foundation and Scale Development. The Service Industries Journal. 31(8): 1347-1363.
Vargo, S. L., & Lusch, R. F. 2004. Evolving to a New Dominant Logic for Marketing. Journal of Marketing. 68(1): 1-17.
Vargo, S. L., & Lusch, R. F. 2006. Service-dominant Logic. The Service-dominant Logic of Marketing: Dialog, Debate, and Directions. Armonk, NY: ME Sharpe.
Verhoef, P. C. 2003. Understanding the Effect of Customer Relationship Management Efforts on Customer Retention and Customer Share Development. Journal of Marketing. 67(4): 30-45.
Vivek, S. D., Beatty, S. E., & Morgan, R. M. 2012. Customer Engagement: Exploring Customer Relationships beyond Purchase. Journal of Marketing Theory and Practice. 20(2): 122-146.
Welch, A. R. 2007. Blurred Vision?: Public and Private Higher Education in Indonesia. Higher Education. 54(5): 665-687.
Wu, C. H. J., & Liang, R. D. 2009. Effect of Experiential Value on Customer Satisfaction with Service Encounters in Luxury-hotel Restaurants. International Journal of Hospitality Management. 28(4): 586-593.
Xie, C., Bagozzi, R. P., & Troye, S. V. 2008. Trying to Prosume: Toward a Theory of Consumers as Co-creators of Value. Journal of the Academic Marketing Science. 36: 109-122.
Zhang, J. Q., Dixit, A., & Friedmann, R. 2010. Customer Loyalty and Lifetime Investigation of Consumer Packaged Goods. Journal of Marketing Theory and Practice. 18(2): 127-139.
Website:
Gooch, L. 2010. Mixed Reviews for Indonesia’s Private Universities. Downloaded from https://www.nytimes.com/2010/11/22/world/asia/22iht-educLede22.html on April 5, 2018
Seftiawan, D. 2018. Pendaftar SNMPTN 2018 Meningkat. Downloaded from http://www.pikiran-rakyat.com/pendidikan/2018/03/07/pendaftar-snmptn-2018-meningkat-420806 on March 18, 2018
Nasir, M. 2018. Government Opens Opportunities for Foreign Universities in Indonesia. Downloaded from https://www.indonesia-investments.com/id/news/todays-headlines/government-opens-opportunities-for-foreign-universities-in-indonesia/item8548 on March 18, 2018
Tanuwidjaja, Y. 2018. Indonesia – Education and Training. Downloaded from https://www.export.gov/article?id=Indonesia-Education-and-Training on April 10, 2018
Parung, J. 2017. Indonesia’s Education Sector: Promising Investment Despite Need for Reforms. Downloaded from http://www.gbgindonesia.com/en/education/article/2017/indonesia_s_education_sector_promising_investment_despite_need_for_reforms_11735.php on March 18, 2018
DOI: http://dx.doi.org/10.26487/hebr.v2i1.1483
Refbacks
- There are currently no refbacks.
Copyright (c) 2019 Hasanuddin Economics and Business Review
This work is licensed under a Creative Commons Attribution 4.0 International License.
______________________________________________________________________
Indexing and Abstracting: