Nor Asiah Omar

Measuring service quality in retail loyalty programmes (LPSQual): Implications for retailers' retention strategies

Purpose – This research aims to empirically develop a reliable and valid scale for measuring the service quality of retail loyalty programmes (loyalty programme service quality (LPSQual)) in the context of department stores and superstores in Malaysia.Design/methodology/approach – By adapting the process proposed by Churchill for developing measures of marketing constructs, an instrument to assess LPSQual in Malaysia is formulated. The methodology consists of developing the scale based on a literature review and qualitative method. The proposed scale is then purified and validated through exploratory factor analysis and confirmatory factor analysis.Findings – The proposed instrument (LPSQual) contains 26 attributes in seven dimensions: reward, tangibility, policy, information usefulness, courteousness/helpfulness, personalization and communication.Research limitations/implications – Further testing of the scales across multiple contexts is necessary for validity enhancement.Practical implications – Retail...

Retail Loyalty Programs in Malaysia: The Relationship of Equity, Value, Satisfaction, Trust, and Loyalty among Cardholders

This study examines loyalty programs in Malaysia in terms of perceived equity, value, program satisfaction, program trust, and store loyalty. A total of 400 questionnaires were collected from cardholders in Klang Valley, Malaysia. The hypotheses were based on social exchange and equity theories. The structural equation model that assessed the relationship between the proposed variables was tested using AMOS 6.0. The findings revealed that perceived equity and perceived value of the loyalty program significantly influence program satisfaction and trust. Program trust was the most important predictor of store loyalty. Limitations of the study and recommendations for future research are discussed.

Investigating the structural relationship between loyalty programme service quality, satisfaction and loyalty for retail loyalty programmes: evidence from Malaysia

Purpose – Retaining and cultivating customer loyalty has become increasingly important for loyalty programme providers and retailers due to the highly competitive environment. The purpose of this paper is to develop and test a model investigating how loyalty programme service quality (LPSQual) enhances programme perceived value and programme satisfaction to win loyalty among cardholders.Design/methodology/approach – Quota sampling technique, using a self‐administered questionnaire survey, was used with a total of 400 respondents who are card holders of loyalty programmes from departments and superstores in the capital of Malaysia.Findings – It is found that all the loyalty programme service attributes (policy, reward, tangibility, information usefulness, courteousness/helpfulness and communication quality), with the exception of personalization, have a significant positive influence on perceived value. The positive relationship between perceived value‐programme loyalty and programme satisfaction‐programme...

Measuring halal brand association (HalBA) for Islamic banks

Purpose The main purpose of this paper is to develop a reliable and valid scale for measuring halal brand association (HalBA) for Islamic banks. Brand association is a core dimension of brand equity that Islamic bank managers need to develop to maintain competitiveness. Using the process proposed by Churchill for developing measures of marketing constructs, an instrument to assess HalBA for Islamic bank is formulated. Design/methodology/approach The methodology consists of developing the scale based on a literature review and qualitative method. The proposed scale is then purified and validated through exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). Findings Based on the EFA and CFA, the result reveals that HalBA for Islamic banks contains 15 attributes which can be categorized into three dimensions: Shari’ah-compliant association, God-consciousness association and corporate social responsibility association. Practical implications The scale developed could assist practitioners in further understanding the dimensions and measurement of halal bank association, particularly in Islamic banking institutions. Knowledge of the dimensions of HalBA that customers seek from an Islamic bank can help managers and marketers to design branding strategies that better meet the needs of consumers, thereby increasing their satisfaction and loyalty. Originality/value The concept of brand association has been explored primarily from a conventional marketing perspective. This study offers a new dimension of HalBA in the context of Islamic banks.

Determining the Key Factors of Customer–Brand Relationship Investment Dimensions: Insights From Malaysian Mobile Phone Users

This study aims to empirically test a scale to measure the dimensions of relationship investment. An exploratory factor analysis and reliability analysis were conducted on a sample of 150 mobile phone customers, whereas a confirmatory factor analysis was conducted on a sample of 539 customers. The results identified 2 dimensions each for customer and brand investment and validated the measurement items for each dimension. Thus, this study offers a sound scale for potential use in future studies and a useful tool for companies to use to diagnose and plan for an effective engagement strategy.

Does Psychological Contract Violation Moderate the Impact of Severity and Recovery Satisfaction on Boycott? An Analysis of Halal Violation

ABSTRCK Halal violation is a critical issue in the Islamic market, but little is known on its impact on the Muslim consumer. Thus, this study investigates the effect of psychological contract violation (PCV), recovery satisfaction, and severity of halal violation on product boycott. The moderating role of PCV in the relationship between recovery satisfaction and seriousness of a violation on the product boycott is also examined. Data collected from a sample of 360 customers were analyzed using PLS-SEM. The results show that recovery satisfaction, severity, and PCV significantly influence product boycott and PCV significantly moderates the relationship between recovery satisfaction and product boycott. This study provides new insights into the relationships among recovery satisfaction, the severity of the halal violation, psychological contract violation, and product boycott and helps the managers to design recovery action toward halal violation.

Halal violation episode: does severity and trust recovery impact negative consumption behavior?

Purpose Managing trust recovery in case of violation of halal products should be seen in light of the severity of violation as perceived by the consumer. This study aims to investigate how the severity of violation on halal directly impact negative consumer behavior (avoidance, boycott and revenge), and its moderating effect on the relationship between trust recovery and avoidance, boycott and revenge. Design/methodology/approach In total, 212 questionnaires were distributed amongst customers who were aware and/or had experienced the violation of a halal product in Klang Valley, Malaysia – each of whom were selected using convenience sampling methods. Data were analyzed using descriptive statistics and structural equation modelling techniques, were partial least squares (PLS) software was used to measure the direct and indirect relationships between the variables. Findings The results of this investigation showed that trust recovery and negative consumer behavior are negatively related; severity is positively related to avoidance, boycott and revenge; and severity moderates the relationship between trust recovery and avoidance. Research limitations/implications Empirically, it was found that severity and trust recovery are a significant component that influence negative consumption behavior. This study has significant implications alongside research implications despite some limitations. Practical implications In a severe violation case, a company needs to ensure that the strategy to fix the problem is genuine and trustworthy, as consumer trust on the recovery action by company is significance to influence customer avoidance in consuming the company’s product. Originality/value The uniqueness of this study exists in the fact that it is the first known one to concentrate on halal violation and examine the moderating effect of severity of halal violation on the relationship between trust recovery and negative consumer behaviors (avoidance, boycott and revenge).

Exploring the influence of store attributes on customer experience and customer engagement

The global retail landscape has changed drastically. The rising role of Asia as one of the fastest growing international retail penetration and expansion will continue to make the region to be the driving force in world economic growth. However, the ambitious expansion plans are making the retail sector to be more challenging. Emphasizing on the customer experience and enhancing the value proposition to customers are undeniably vital factors for the long-term survival of any retail business. Therefore, the purpose of this paper is to examine the influence of store attributes on customer experience and customer engagement in the context of department store in Malaysia. Subsequently, the influence of customer experience on customer engagement is also analyzed.,Using drop and collect survey, 484 valid responses of department store cardholders of age 18 years and above in the area Klang Valley, Malaysia, were collected. PLS structural equation modeling was used to test the hypotheses of this study.,Results revealed that customer experience is influenced by merchandise, store atmosphere, and loyalty program, while customer engagement is influenced by merchandise, communication, interpersonal communication, and loyalty. In contrast, post-transaction services were found to have non-significant impact on both customer experience and customer engagement. Analysis also revealed a strong relationship between customer experience and customer engagement.,This study is carried out on customers of department store in Malaysia. However, the researchers urge other researchers to replicate the study from different countries and category of department stores.,Retail researchers recognize little knowledge on the contribution of store attributes to customer experience and customer engagement. This paper represents original research that encourages foreign retailers to employ service-dominant logic as a new marketing thought in designing strong customer engagement and experience strategies to capture the Malaysia market.

ANALYZING THE IMPACT OF FIRM’S EMBEDDEDNESS IN A CENTRALIZED SUPPLY NETWORK STRUCTURE ON RELATIONAL CAPITAL OUTCOMES

Abstract This research looks at the different effects of firms’ network structural positions in an upstream supply network upon the firms’ level of relational capital outcomes. Previous research largely focused on the context of decentralized network structure. However, the supply network is a centralized network because of the existence of the focal firm. The existence of the focal firm may influence the impact of relational capital outcomes. Hence, the objective of this research is to determine the type of network structural positions required to obtain a reasonable relational capital outcome in upstream supply network. This study found that network structural positions, i.e. degree centrality contributed to firms’ level of relational capital trust. Hence, a firm embedded in upstream supply network benefits differently in terms of relational capital through different degree of embeddedness. The firm resources should be re-aligned to match the benefits of the different network structural positions.