THE ROLE OF SERVICE INVOLVEMENT THE ROLE OF SERVICE INVOLVEMENT BETWEEN SATISFACTION AND LOYALTY BETWEEN SATISFACTION AND LOYALTY

USING CONVENIENCE-STORE, USING CONVENIENCE-STORE, TRANSPORTATION SERVICE, TRANSPORTATION SERVICE,

EDUCATION, FILM, BANK, AND EDUCATION, FILM, BANK, AND INSURANCE AS EXAMPLESINSURANCE AS EXAMPLES

Fenghueih Huarng and Yun-Chi Hsieh

contentscontentsResearch motivation and purpose

Research MethodsResults of empirical analysisConclusions

Research motivation and Research motivation and purposepurpose

Research motivation Research motivation (1/2)(1/2)The service industries different from the

general manufacturing industry characteristics

Intangibility

Indivisibility

Heterogeneity

No need

to invento

ry

Service features

Research motivation Research motivation (2/2)(2/2) What are determinants of Service loyalty?

Involvement• Directly affect loyalty (Kim, Scott & Crompton, 1997; Bloemer & Kasper, 1995; Knox & Walker, 2003) • Is moderator or mediator (Chen & Tsai 2007; Suh & Yi, 2006; Olsen, 2007; Homburg and Giering, 2001)

Satisfaction:• Is direct determinant of loyalty in many previous studies

• But it’s effect is various among industries and not sufficient to explain loyalty

Service Loyalty

The distinctive characteristics of services:

intangibility, customization,

simultaneity, and perish ability may cause the

different roles of these factors in forming loyalty

Research Purpose (1/2)Research Purpose (1/2)

•Passenger transport•Convenience store

•Education•Theater

•Bank•Insurance

peoplepeople thingsthingstangible

tangibleInvisi ble

Invisi ble

Service Receiver

Service Management for Competitive Advantage, by J.A. Fritzsimmons, M.J. Fritzsimmons (1997)

Research purposes Research purposes (2/2)(2/2) How does the role of involvement

play in the customer satisfaction – loyalty relationship?

Will the direct service recipient affect the relationship among involvement, customer satisfaction, and loyalty?

Will the tangibility affect the relationship among involvement, customer satisfaction, and loyalty?

Research MethodsResearch Methods

FFour different modelsour different modelsOlsen （ 2007 ）

Satisfation

Loyalty

Involvement

Satisfation

Loyalty

Involvemen

t

Satisfation

Loyalty

Involvement

Satisfation

Loyalty

Involvement

Partial Mediation

Partial Mediation

Full MediationFull Mediation

Direct EffectDirect Effect

ModerationModeration

Research MethodsResearch Methods (1/5)(1/5)

Satisfaction Item Content of Item

SATSAT

Sat1

Sat2

Sat3

Sat4

Sat5

I am satisfied with my decision to ___here

I am very unsatisfied with this service.

I think this company is _____: very bad – very good

Overall, I rate my level of satisfaction with ___ as:Very low – very high

I am ___% satisfied with the ___

Research MethodsResearch Methods (2/5)(2/5)

Involvement Factors Item Content of item

Inv1

Inv3

Inv5

Inv7

Inv2

Inv4

Inv6

Inv8

Inv9

Boring - Interesting

Appealing – unappealing

Mundane - Fascinating

Unexciting - Exciting

Important – unimportant

Valuable – worthless

Means a lot to me

Not needed – Needed

Irrelevant - Relevant

Research MethodsResearch Methods (3/5)(3/5)

Involvement factor Item Content of item

Inv10

Inv11

Inv13

Inv15

Inv12

Inv14

Inv16

Choosing it is simple

I never know if I am making the right purchase

In purchase it, I am certain of my choice

I feel a bit at loss in choosing it

It’s not a big deal if I make a mistake in choosing it

It’s really annoying to make unsuitable purchase

A poor choice wouldn’t be upsetting

Research MethodsResearch Methods (4/5)(4/5)

Loyalty factor Item Content of item

behavioral

behavioral

attitudinal

attitudinal

trust

Loy1

Loy2

Loy3

Loy4

Loy5

Loy7

Loy8

Loy10

Loy6

Loy9

Loy11

Loy12

I will transact with this _____again for future needsI will try new services that are provided by this____ I will recommend other people to patronize to this__I will say positive things to other people about the services provided at this

I will continue to patronize this ___ even if the service charges are increased moderately

I have strong preference to this ___

I will keep patronizing this ____ regardless of everything being changed somewhatI am likely to pay a little bit more for using the services of this ____This is like a friend to me

The people here respond caringly when I share my problems

Personnel are filled with professionalism and dedication

c

Personnel will consider my personal needs.

Research MethodsResearch Methods (5/5)(5/5)

SEMSEM

MediatiMediation / on /

ModeraModerationtion

1-1-leveleve

llCFACFA 2-2-

levelevell

CFACFAReliabiReliability & lity & ValiditValidit

yy

Results of empirical Results of empirical analysisanalysis

※※1.1.IInsurance 2.Banknsurance 2.Bank 3.Convenience Store3.Convenience Store 4.Transportaion4.Transportaion 5. Film5. Film 6. Education6. Education

Frequency (Ratio)

1 ※※ 2 3 4 5 6

M

124

(48.4%

)*

130

(49.2

%)

186

(74.7

%)

128

(52.7

%)

135

(55.6

%)

152

(59.4

%)

F

132

(51.6%

)

134

(50.8

%)

63

(25.3

%)

115

(47.3

%)

108

(44.4

%)

104

(40.6

%)

Cumulated

256

(100%)

264

(100

%)

249

(100

%)

243

(100

%)

243

(100

%)

256

(100

%)

Demographic information (1/7)

Monthly income

Frequency (Ratio)

1 2 3 4 5 6

20000 and under

46

(18.0

%)

38

(14.4

%)

55

(22.1

%)

67

(27.6

%)

74

(30.5

%)

65

(25.4

%)

20001~30000

58

(22.7

%)

64

(24.2

%)

59

(23.7

%)

61

(25.1

%)

58

(23.9

%)

60

(23.4

%)

30001~40000

68

(26.6

%)

64

(24.2

%)

69

(27.7

%)

44

(18.1

%)

48

(19.8

%)

71

(27.7

%)

40001~50000

38

(14.8

%)

34

(12.9

%)

21

(8.4%

)

21

(8.6%

)

26

(10.7

%)

34

(13.3

%)

50001~60000

31

(12.1

%)

41

(15.5

%)

27

(10.8

%)

36

(14.8

%)

26

(10.7

%)

15

(5.9%

)

60001 and above

15

(5.9%

)

23

(8.7%

)

18

(7.2%

)

14

(5.8%

)

11

(4.5%

)

11

(4.%)

Demographic information (2/7) ※※ 1.1.IInsurance nsurance

2.Bank2.Bank 3.Convenience Store3.Convenience Store 4.Transportaion4.Transportaion 5. Film5. Film 6.Education6.Education

Demographic information (3/7) ※※

1.1.IInsurance nsurance 2.Bank2.Bank 3.Convenience Store3.Convenience Store 4.Transportaion4.Transportaion 5. Film5. Film 6.Education6.Education

AgeFrequency (Ratio)

1 2 3 4 5 6

17 and under

7

(2.7%)

3

(1.1%

)

11

(4.4%

)

6

(2.5%

)

3

(1.2%

)

12

(4.7%

)

18~2580

(31.3%)

71

(26.9

%)

79

(31.7

%)

76

(31.3

%)

89

(36.6

%)

68

(26.6

%)

26~3381

(31.6%)

89

(33.7

%)

76

(30.5

%)

74

(30.5

%)

88

(36.2

%)

65

(25.4

%)

34~4135

(13.7%)

48

(18.2

%)

35

(14.1

%)

36

(14.8

%)

33

(13.6

%)

40

(15.6

%)

42 and above

53

(20.7%)

53

(20.1

%)

48

(19.3

%)

51

(21.0

%)

30

(12.3

%)

71

(27.7

%)

Cumulated256

(100%)

264

(100%

)

249

(100%

)

243

(100%

)

243

(100%

)

256

(100%

)

Highest Education

Frequency (Ratio)

1 2 3 4 5 6

Junior High

12

(4.7%

)

3

(1.1%

)

15

(6.0%

)

5

(2.1%

)

6

(2.5%

)

27

(10.5

%)

High School

59

(23.0

%)

64

(24.2

%)

70

(28.1

%)

61

(25.1

%)

62

(25.5

%)

90

(35.2

%)

College

166

(64.8

%)

169

(64.0

%)

149

(59.8

%)

151

(62.1

%)

154

(63.4

%)

119

(46.5

%)

Master and Ph.D.

19

(7.4%

)

28

(10.6

%)

15

(6.0%

)

26

(10.7

%)

21

(8.6%

)

20

(7.8%

)

Cumulated256

(100%

)

264

(100%

)

249

(100%

)

243

(100%

)

243

(100%

)

256

(100%

)

Demographic information (4/7) ※※ 1.1.IInsurance nsurance 2.Bank2.Bank 3.Convenience Store3.Convenience Store 4.Transportaion4.Transportaion 5. Film5. Film 6.Education6.Education

OccupationFrquency (Ratio)

1 2 3 4 5 6

Teaching, Military,

Public service

118

(46.1

%)

120

(45.5

%)

159

(63.9

%)

100

(41.2

%)

90

(37.0

%)

75

(29.3

%)

Agriculture, Forest, Fishing

4

(1.6%

)

7

(2.7%

)

5

(2.0%

)

7

(2.9%

)

3

(1.2%

)

22

(8.6%

)

Manufacturing

16

(6.3%

)

26

(9.8%

)

22

(8.8%

)

21

(8.6%

)

18

(7.4%

)

20

(7.8%

)

Commerce

15

(5.9%

)

29

(11.0

%)

13

(5.2%

)

20

(8.2%

)

20

(8.2%

)

22

(8.6%

)

Service

33

(12.9

%)

37

(14.0

%)

8

(3.2%

)

36

(14.8

%)

30

(12.3

%)

37

(14.5

%)

Demographic information (5/7) ※※ 1.1.IInsurance nsurance

2.Bank2.Bank 3.Convenience Store3.Convenience Store 4.Transportaion4.Transportaion 5. Film5. Film 6.Education6.Education

Occupation

Frequency (Ratio)

1 2 3 4 5 6

Self-employed

23

(9.0%

)

18

(6.8%

)

7

(2.8%

)

14

(5.8%

)

16

(6.6%

)

20

(7.8%

)

Student

29

(11.3

%)

21

(8.0%

)

19

(7.6%

)

35

(14.4

%)

49

(20.2

%)

43

(16.8

%)

Housewife/Househusban

d

13

(5.1%

)

2

(0.8%

)

12

(4.8%

)

6

(2.5%

)

15

(6.2%

)

14

(5.5%

)

Others

5

(2.0%

)

4

(1.5%

)

4

(1.6%

)

4

(1.6%

)

2

(0.8%

)

3

(1.2%

)

Cumulated256

(100

%)

264

(100

%)

249

(100

%)

243

(100

%)

243

(100

%)

256

(100

%)

Demographic information (6/7) ※※ 1.1.IInsurance nsurance

2.Bank2.Bank 3.Convenience Store3.Convenience Store 4.Transportaion4.Transportaion 5. Film5. Film 6.Education6.Education

Marital Status

Frequency (Ratio)

1 2 3 4 5 6

Single

142

(55.5

%)

123

(46.6

%)

147

(59.0

%)

137

(56.4

%)

144

(59.3

%)

128

(50.0

%)

Married

without Kids

24

(9.4%

)

30

(11.4

%)

19

(7.6%

)

17

(7.0%

)

25

(10.3

%)

20

(7.8%

)

Married with

Kids

90

(35.2

%)

111

(42.0

%)

82

(32.9

%)

89

(36.6

%)

74

(30.5

%)

108

(42.2

%)

Others0

(0)

0

(0)

1

(0.4)

0

(0%)

0

(0%)

0

(0%)

Cumulated

256

(100

%)

264

(100

%)

249

(100

%)

243

(100

%)

243

(100

%)

256

(100

%)

Demographic information (7/7) ※※ 1.1.IInsurance nsurance

2.Bank2.Bank 3.Convenience Store3.Convenience Store 4.Transportaion4.Transportaion 5. Film5. Film 6.Education6.Education

Insurance &Bank

Var Factpr Item FL CR AVE

Cronbach’s

α

Sat

Sat1 0.76

0.897 0.745 0.884Sat3 0.93Sat4 0.89

Inv

Affec-tive

(Inv3) 0.74

0.855 0.66 0.853Inv5 0.85Inv7 0.85

Congni-tive

Inv2 0.86

0.896 0.68 0.893(Inv4) 0.91Inv6 0.78

(Inv9) 0.75

Loy

Beha-vioral

(Loy2) 0.74

0.858 0.67 0.857Loy3 0.84Loy4 0.87

Attitu-dinal

(Loy5) 0.78

0.858 0.6 0.858(Loy7

) 0.72

Loy8 0.83Loy1

0 0.77

Trust

(Loy9) 0.71

0.853 0.66 0.849Loy11 0.83

Loy12 0.89

Dicriminant Validity

Involvement ：Affective -congnitive

0.83

Loyalty ：Behavioral-AttitudinalBehavioral-TrustAttitudinal-Trust

0.880.750.75

FL ≧ 0.71CR ≧ 0.7AVE≧ 0.5Cronbach ≧ 0.6Correlation

coefficient ≦ 0.85

One-level CFAOne-level CFA

Convenience Store&TransportationOne-level CFAOne-level CFA

Var Factpr Item FL CR AVE

Cron-bach

α

Sat

Sat1 0.7

0.87 0.628 0.859Sat3 0.92Sat4 0.82Sat5 0.71

Inv

Affec-tive

Inv1 0.730.76 0.519 0.76Inv3 0.74

Inv7 0.69

Congni-tive

(Inv2) 0.71

0.86 0.615 0.866(Inv4) 0.69Inv8 0.86Inv9 0.86

Loy

Beha-vioral

(Loy2) 0.60.76 0.521 0.758Loy3 0.77

Loy4 0.78

Attitu-dinal

Loy7 0.70.75 0.507 0.742Loy8 0.79

Loy10 0.64

Trust

(Loy6) 0.69

0.81 0.516 0.809Loy9 0.68(Loy1

1) 0.72

Loy12 0.78

Dicriminant Validity

Involvement ：Affective -congnitive

0.65

Loyalty ：Behavioral-AttitudinalBehavioral-TrustAttitudinal-Trust

0.680.700.83

FL ≧ 0.71CR ≧ 0.7AVE≧ 0.5Cronbach α ≧

0.6 Correlation

coefficient ≦ 0.85

Education & FilmOne-level CFAOne-level CFA

Var Factpr Item FL CR AVE Cronba

ch α

Sat

Sat2 0.75

0.886 0.663 0.877Sat3 0.91Sat4 0.87Sat5 0.71

Inv

Affec-tive

(Inv1) 0.84

0.908 0.711 0.904(Inv3) 0.79Inv5 0.85Inv7 0.89

Congni-tive

(Inv2) 0.89

0.912 0.723 0.908Inv4 0.93Inv6 0.74Inv9 0.83

Loy

Beha-vioral

Loy1 0.86

0.907 0.71 0.906Loy2 0.84

(Loy3) 0.84(Loy4) 0.83

Attitu-dinal

Loy7 0.690.816 0.598 0.808Loy8 0.86

Loy10 0.76

Trust

Loy9 0.81

0.861 0.673 0.859(Loy11

)0.80

Loy12 0.85

Dicriminant Validity

Involvement ：Affective -congnitiv

0.93

Loyalty ：Behavioral-attitudinalBehavioral-TrustAttitudinal-Trust

0.870.850.9

FL ≧ 0.71CR ≧ 0.7AVE≧ 0.5Cronbach ≧

0.6Correlation

coefficient ≦ 0.85

Insurance&Bank 、 Convenience store & Transportation

Two-level CFATwo-level CFA

Variable Factor FL CR AVE Item

Insurance&

Bank

Sat 0.8836 0.719 3,4,5

InvAffective 0.91

0.906 0.82815,7

Congnitive

0.91 2,6,9

Loy

Behavioral

0.92

0.9133 0.7795

3,4

Attitudinal

0.94 8,10

Trust 0.78 11,12

Convenience

Store&Transpor-tation

Sat 0.8697 0.6282 1,3,4,5

InvAffective 0.95

0.8333 0.71771,3,7

Congnitive

0.73 8,9

Loy

Behavioral

0.79

0.9021 0.7554

3,4

Attitudinal

0.86 7,8,10

Trust 0.95 9,12

FL (factor loading) ≧ 0.71 CR (construct reliability) ≧ 0.7AVE (average variance extracted) ≧ 0.5

教育 & 電影Two-level CFATwo-level CFA

Variable Factor FL CR AVE Item

Education&

Film

Sat 0.8862 0.6629 2,3,4,5

InvAffective 0.93

0.8955 0.81095,7

Congnitive

0.87 4,6,9

Loy

Behavioral

0.91

0.9531 0.8714

1,2

Attitudinal

0.95 7,8,10

Trust 0.94 9,12FL (factor loading) ≧ 0.71 CR (construct reliability) ≧ 0.7AVE (average variance extracted) ≧ 0.5

Insurance &Bank ： SEM Model Fit

Model fit index　

Criterion　

FMM　

PMM　

DEM　

Moderation

Unrestricted

Restricted （ w1=

w2 ）

χ2 value Smaller 215.462 174.714 193.875 104.215 107.2

d.f. 61 60 61 50 51

χ2/df 1<NC<3 3.532 2.912 3.178 2.084 2.102

GFI >.90 0.943 0.951 0.947 0.957 0.955

RMR <0.05 0.964 0.049 0.058 0.040 0.049

RMSEA <0.08 0.07 0.061 0.065 0.046 0.046

AGFI >.90 0.914 0.926 0.921 0.922 0.921

NFI >.90 0.953 0.962 0.958 0.961 0.960

RFI >.90 0.94 0.951 0.946 0.944 0.943

CFI >.90 0.966 0.975 0.971 0.979 0.978

Convenience store & Transportation ： SEM Model Fit

Model fit index　

Criterion　

FMM　

PMM　

DEM　

Moderation

Unrestricted

Restricted （ w1=

w2 ）

χ2 smaller 146.268 146.250 150.552 146.655 164.423

d. f. 73 72 73 66 67

χ2/df 1<NC<3 2.004 2.031 2.062 2.222 2.454

GFI >.90 0.922 0.922 0.919 0.944 0.939

RMR <0.05 0.051 0.050 0.052 0.039 0.059

RMSEA <0.08 0.064 0.065 0.066 0.050 0.054

AGFI >.90 0.888 0.886 0.884 0.907 0.9

NFI >.90 0.932 0.932 0.930 0.922 0.912

RFI >.90 0.915 0.914 0.913 0.893 0.882

CFI >.90 0.964 0.964 0.962 0.955 0.945

Education & Film ： SEM Model Fit

Model fit index　

Criterion　

FMM　

PMM　

DEM　

Moderation

Unrestricted

Restricted （ w1=

w2 ）

χ2value smaller 300.775 284.186 312.545 249.375 249.527

d.f. 131 130 131 126 127

χ2/df 1<NC<3 2.296 2.186 2.386 1.979 1.965

GFI >.90 0.937 0.94 0.935 0.93 0.93

RMR <0.05 0.045 0.04 0.044 0.31 0.31

RMSEA <0.08 0.051 0.049 0.053 0.044 0.044

AGFI >.90 0.918 0.921 0.915 0.899 0.9

NFI >.90 0.958 0.96 0.956 0.925 0.925

RFI >.90 0.951 0.953 0.949 0.908 0.908

CFI >.90 0.976 0.978 0.974 0.961 0.962

Belonging & Invisible

Customer & Invisible

Customer & Visible

Insurance Bank Film EducationTransportatio

nConv. Store

DEM76%

PMM71%

PMM77%

DEM72%

Moderator (L27%, H83%)

Moderator (L28%, H66%)

PMM (71%) PMM (76%)Moderator

(L19%, H44%)

※Best Fit Model & Explanatory power for different service recipient and tangibility

ConclusionConclusionss

customers belongs

tangible Passenger transport

Convenience store

Moderation

invisible Education Banking

Theater Insurance

PMM PMM

Involvement play as partial mediator or moderator.

Direct service recipient has no effect on relationship for invisible service.

Tangibility affects the relationship for customers themselves.

Thank Thank youyou