A Study of Factors Influencing Customer Loyalty on Keretapi Tanah Melayu Intercity Services

The cost of selling to new customers is much higher than the cost of selling to existing customers. Therefore, it is important for the company to foster customer loyalty. This research is about a study on relationship between factors influencing customer loyalty on KTM Intercity Services. Factors su...

Full description

Saved in:
Bibliographic Details
Main Author: Irfah Nazuha, Ayob
Format: Thesis
Language:eng
Published: 2009
Subjects:
Online Access:https://etd.uum.edu.my/3635/1/s800488.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-uum-etd.3635
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
advisor Mokhtar, Sany Sanuri
topic HF5001-6182 Business
spellingShingle HF5001-6182 Business
Irfah Nazuha, Ayob
A Study of Factors Influencing Customer Loyalty on Keretapi Tanah Melayu Intercity Services
description The cost of selling to new customers is much higher than the cost of selling to existing customers. Therefore, it is important for the company to foster customer loyalty. This research is about a study on relationship between factors influencing customer loyalty on KTM Intercity Services. Factors such as corporate image, service quality, customer trust and customer switching cost have been identified in order to investigate whether or not these factors have significant relationship with customer loyalty. The survey is conducted at Arau, Alor Setar , and Sungai Petani Station. The sample size for this study is 250 customers who are also have experience in using KTM Intercity Services. Data obtained using two methods that are primary and secondary data. Respondents are required to answer the questionnaires that include the statements regarding factors influencing customer loyalty on KTM Intercity Services. The data were analyzed and summarized in a readable and easily interpretable form. The Statistical Package for the Social Science (SPSS) version 12.0 has been used to summarize the data. The results are in the form of reliability testing, frequency, cross tabulation and correlation. Based on this research, the result indicates that there are significant relationships between all the factors toward customer loyalty. Based on the mean and standard deviation for each factor, the first rank that gives the highest significant level according to their importance in influencing customer loyalty on KTM Intercity Services is customer trust. It is followed by the second rank is service quality, the third rank is corporate image, and the fourth rank is switching cost.
format Thesis
qualification_name masters
qualification_level Master's degree
author Irfah Nazuha, Ayob
author_facet Irfah Nazuha, Ayob
author_sort Irfah Nazuha, Ayob
title A Study of Factors Influencing Customer Loyalty on Keretapi Tanah Melayu Intercity Services
title_short A Study of Factors Influencing Customer Loyalty on Keretapi Tanah Melayu Intercity Services
title_full A Study of Factors Influencing Customer Loyalty on Keretapi Tanah Melayu Intercity Services
title_fullStr A Study of Factors Influencing Customer Loyalty on Keretapi Tanah Melayu Intercity Services
title_full_unstemmed A Study of Factors Influencing Customer Loyalty on Keretapi Tanah Melayu Intercity Services
title_sort study of factors influencing customer loyalty on keretapi tanah melayu intercity services
granting_institution Universiti Utara Malaysia
granting_department College of Business (COB)
publishDate 2009
url https://etd.uum.edu.my/3635/1/s800488.pdf
_version_ 1747827616483639296
spelling my-uum-etd.36352013-11-11T03:42:09Z A Study of Factors Influencing Customer Loyalty on Keretapi Tanah Melayu Intercity Services 2009 Irfah Nazuha, Ayob Mokhtar, Sany Sanuri College of Business (COB) College of Business HF5001-6182 Business The cost of selling to new customers is much higher than the cost of selling to existing customers. Therefore, it is important for the company to foster customer loyalty. This research is about a study on relationship between factors influencing customer loyalty on KTM Intercity Services. Factors such as corporate image, service quality, customer trust and customer switching cost have been identified in order to investigate whether or not these factors have significant relationship with customer loyalty. The survey is conducted at Arau, Alor Setar , and Sungai Petani Station. The sample size for this study is 250 customers who are also have experience in using KTM Intercity Services. Data obtained using two methods that are primary and secondary data. Respondents are required to answer the questionnaires that include the statements regarding factors influencing customer loyalty on KTM Intercity Services. The data were analyzed and summarized in a readable and easily interpretable form. The Statistical Package for the Social Science (SPSS) version 12.0 has been used to summarize the data. The results are in the form of reliability testing, frequency, cross tabulation and correlation. Based on this research, the result indicates that there are significant relationships between all the factors toward customer loyalty. Based on the mean and standard deviation for each factor, the first rank that gives the highest significant level according to their importance in influencing customer loyalty on KTM Intercity Services is customer trust. It is followed by the second rank is service quality, the third rank is corporate image, and the fourth rank is switching cost. 2009 Thesis https://etd.uum.edu.my/3635/ https://etd.uum.edu.my/3635/1/s800488.pdf text eng validuser http://lintas.uum.edu.my:8080/elmu/index.jsp?module=webopac-l&action=fullDisplayRetriever.jsp&szMaterialNo=0000337040 masters masters Universiti Utara Malaysia Anderson, J.C., & Narus, J.A. (1990). A model of distributor firm and manufacturer firm working partnerships . Journal of Marketing, Vol. 54, pp. 42-58. Aydin, S., & Ozer, G. (2004). The analysis of antecedents of customer loyalty in the Turkish mobile telecommunication market. European Journal of Marketing, Vol.39 pp. 910-925. Keretapi Tanah Melayu Berhad Annual Report (2005) Baker, J. (1987). The Role of environment in marketing services: The consumer Perspective in Czepiel, J.A., Congram, C.A., Shanahan, J. (Eds), The services Challenge: Integrating for competitive advantage. American Marketing Association, Chicago, pp.79-84. Baldinger, A.L., & Rubinson, J. (1996). Brand loyalty: The link between attitude and behavior. Journal of Advertising Research, 36(6), pp.22-34. Bansal, H.S., & Taylor, S.F. (1999). The service provider switching model (SPSM): A model of consumer switching behaviour in the service industry. Journal of Service Research, 2(2), pp.200-18. Barich, H., & Kotler, P. (1991). A framework for marketing image management, Sloan Management Review, 32(2), pp.94-104. Bentler, P.M., & Bonett, D.G. (1990). Comparative fit indices in structural models. Psychological Bulletin, 107(2) , pp.238-246. Bitner, M.J. (1990). Evaluating service encounters: The effects of physical surroundings and employee responses. Journal of Marketing, 54 pp. 69-82. Bitner, M.J. (1992). Servicescapes: The impact of physical surroundings on customers and employees. Journal of Marketing, 56 pp. 57-71. Bloemer, J., Ruyter, K., & Wetzels, M. (1998). On the relationship between perceived service quality, service loyalty and switching costs. International Journal of Industry Management, 9(5), pp.436-53. Bloemer, J., De Ruyter, K., & Wetzels, M. (1999). Linking perceived service quality and service loyalty: A multi-dimensional perspective. European Journal of Marketing, 33(11), pp. 1082-106. Boulding, W., Kalra, A., Staelin, R., & Zeithaml, V. A. (1993). A dynamic process model of service quality: From expectations to behavioral intentions. Journal of Marketing Research, 30, pp. 727. Bowen, J.T., & Shoemaker, S. (1998). Loyalty: A strategic commitment. Cornell and Hotel Restaurant Administration Quarterly, 39(1), pp.12-25. Bowen, J.T., & Chen, S.L. (2001). The relationship between customer loyalty and customer Satisfaction. International Journal of Contemporary Hospitality Management, 13(5), pp. 213-7. Burnham, T.A., Frels, J.K. R., & Mahajan, V. (2003). Consumer switching costs: A typology, antecedents and consequences. Journal of the Academy of Marketing Science, Vol. 31(2), pp. 109-26. Boulding, K.E. (1956). The Image. University of Michigan Press: Ann Arbor, MI . Carman, J.M. (1990). Consumer perceptions of service quality: An assessment of the SERVQUAL dimensions. Journal of Retailing, 66, pp. 33-55. Chaudhuri, A. & Holbrook, M. (2001). The chain of effects from brand trust and brand effect to brand performance: The role of brand loyalty. Journal of Marketing, 65(2), pp. 81- 93. Cody, K., & Hope, B. (1999). EX-SERVQUAL: An instrument to measure service quality of extranets. Proceedings of The 10th Australasian Conference on Information Systems. Wellington, 1-3 December, pp. 207 . Cronin, J.J., & Taylor, S.A. (1994). SERVPERF versus SERVQUAL: Reconciling performance-based and perceptions-minus-expectations, measurement of service quality. Journal of Marketing, 58 pp. 125-31. Crosby, L., Evans, K.R., & Cowles, D. (1990). Relationship quality in services selling: An interpersonaliInfluence perspective. Journal of Marketing, 54 pp. 68-81. Day, G.S. (1969). A two-dimensional concept of brand loyalty. Journal of Advertising Research, 9(3), pp.29-36. Dekimpe, M.G., Steenkamp, J.-B.E.M., Mellens, M., & Abeele, P.V. (1997). Decline and variability in brandlLoyalty. International Journal of Research In Marketing, 14 pp. 405- 20. Dewulf, K., & Odeberken-Schroder, G. (2003). Assessing the impact of a retailer's relationship efforts on consumers’ attitudes and behaviour. Journal of Retailing and Consumer Services, 10 pp. 95-108. Dick, S.A., & Basu, K. (1994). Customer loyalty: Toward an integrated conceptual Framework. Journal of the Academy of Marketing Science, 22(2), pp. 99-113. Donovan, R.J., & Rossiter, J.R. (1982). Store atmosphere: An environmental psychology approach. Journal of Retailing, 58(1), pp. 34-57. Dowling, G.R. (1988). Measuring corporate images: A review of alternative approaches. Journal of Business Research, 17, pp.27-34. Ehrenberg, A.S.C. (1988). Repeat Buying: Facts, Theory and applications. Oxford University Press: Oxford. Erdem, T., Louviere, J., & Swait, J. (2002). The impact of brand credibility on consumer price sensitivity. International Journal of Research in Marketing, 19, pp.1-19. Etzel, M.J., Stanton, W.J., & Walker, B.J. (1997). Marketing. New York: Mcgraw-Hill. Fishbein, M., & Ajzen, I. (1975). Belief, attiude, intention , and behaviour: An introducing to theory and research. Reading MA: Addison-Wesley. Fournier, S., & Yao, J.L. (1997). Reviving brand loyalty: A conceptualization within the framework of Consumer-brand relationships. International Journal of Research in Marketing, 14(5), pp. 451-72. Ganesan, S. (1994). Determinants of long-term orientation in buyer-seller Relationships. Journal of Marketing, 58(2), pp. 1-19. Ganesh, J., Arnold, M.J., & Reynolds, K.E. (2000). Understanding the customer base of service providers: An examination of the differences between switchers and stayers. Journal of Marketing, 64(7), pp. 65-87. Garbarino, E. & Johnson, M. (1999). The different roles of satisfaction, trust and commitment in customer relationships . Journal of Marketing, 63(2), pp. 70-87. Gerpott, T.J., Rams, W., & Schindler, A. (2001). Customer retention, loyalty and satisfaction in the German Mobile Cellular Telecommunications Market, Telecommunications Policy, 25, pp. 249-69. Golden, L.L., Albaum, G., & Zimmer, M. (1987). The numerical comparative scale: An economical format for retail image measurement. Journal of Retailing, 63(4), pp. 393-411. Gremler, D.D., & Brown, S.W. (1996). Service loyalty: Its nature, importance and implications, in Edvardsson, B., Brown, S.W., Johnston, R., Scheuing, E. (Eds), QUIS V: Advancing service quality: A global Perspective, International Service Quality Association (ISQA), New York, pp. 171-81. Griffin, J. (1996). The internet’s expanding role in building customer loyalty. Direct Marketing, 59(7), pp.50-3. Gronroos, C. (1990). Service Management and marketing: Managing the moments of truth in service competition. Lexington MA: Lexington Books. Gronroos, C. (1984). A service quality model and its marketing implications. European Journal of Marketing, 18(4) , pp.36-44. Gundlach, G.T., & Murphy, P.E. (1993). EthicaSl and legal foundations of relational marketing exchanges. Journal of Marketing, 57(10), pp.35-46. Gursoy, D., Kim, K., & Uysal, M. (2004). Perceived impacts of festivals and special events by organizers: An extension and validation. Tourism Management, 25, pp.171-81. Jacoby, J., & Kyner, D.B. (1973l. Brand loyalty vs. repeat purchasing behaviour. Journal of Marketing Research, 10(2), pp.1-9. Jackson, B.B. (1985). Winning and keeping industrial customers. Lexington MA: Lexington Books. Jones, M.A., Beatty, S.E., & Mothersbaugh, D.V. (2002. Why customers stay: Measuring the underlying dimensions of services switching costs and managing their differential strategic outcomes. Journal of Business Research, 55, pp. 441-50. Juhl, H.J., Kristensen, K., & Ostergaard, P. (2002). Consumer satisfaction in European food retailing. Journal of Retailing and Consumer Services, 9(6), pp.327-34. Keaveney, S.M. (1995). Customer switching behaviour in service industries: An exploratory study. Journal of Marketing, 59 pp. 71-82. Kennedy, S.H. (1977). Nurturing corporate image. European Journal of Marketing, 11(3), pp.120-64. Kim, M.K., Park, M.C., & Jeong, D.H. (2004). The effects of customer satisfaction and switching Barrier on customer loyalty in Korean Mobile Telecommunication Services, Telecommunications Policy, 28, pp.145-59. Klemperer, P. (1987). Markets with consumer switching costs. The Quarterly Journal of Economics, 102, pp.376-94. Kotler, P., Singh, R. (1981). Marketing warfare in the 1980’s. Journal of Business Strategy, pp. 30-4. Kotler, P. (1984). Marketing management: Analysis, planning, and control (5th Ed.) Englewood Cliffs: Prentice-Hall. Kotler, P., & Armstrong, G. (2004). Principles of marketing (10th edition). Upper Saddle River, New Jersey: Prentice-Hall. Kotler, P.,Keller , K.L., Ang, S.H., Leong, S.M., & Tan, C.T. (2006). Marketing Management: An Asian perspective (4th edition). Jurong, Singapore: Prentice-Hall. Krejcie, R.V., & Morgan, D.W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30, pp. 607-610. Kristensen, K., Gronholdt, L., & Martensen, A. (2000). Customer satisfaction measurement at Post Denmark: Results of application of the European customer satisfaction index methodology. Total Quality Management, Vol. 11 No.7, pp. 1007-15. Lau, G., & Lee, S. (1999). Consumers' trust in a brand and link to brand loyalty. Journal of Market Focused Management , 4, pp.341-70. Lee, J., Lee, J., & Feick, L. (2001). The Impact of switching costs on the customer satisfaction-loyaltylLink: Mobile phone service in France. Journal of Services Marketing, 15(1), pp.35-48. Lim, K. & Razzaque, A.M. (1997). Brand loyalty and situational effects: An interactionist perspective. Journal of International Consumer Marketing, 9(4), pp. 95-115. MacInnis, D.J., & Price, L.L. (1987). The role of imagery in information processing: Review and extensions. Journal of Consumer Research, 13, pp.473-91. Malhorta, N.K. (2004). Marketing research: An applied orientation (4th edition). Upper Saddle River, New Jersey: Prentice-Hall. Mazursky, D., & Jacoby, J. (1986). Exploring the developement of store images. Journal of Retailing, 62(2), pp.145-65. Morgan, R.M., & Hunt, S.D. (1994). The commitment-trust Theory of relationship Marketing. Journal of Marketing, 58(7), pp.20-38. Nguyen, N., & Leblanc, G. (2001). Corporate image and corporate reputation in customers' retention decisions in services. Journal of Retailing and Consumer Services, 8, pp. 227-36. Odin, Y., Odin, N., & Florence, P.V. (2001). Conceptual and operational aspects of brand loyalty: An empirical investigation. Journal of Business Research, 53, pp.75-84. Oh, H. (1999). Service quality, customer satisfaction, and customer value: A aolistic perspective. International Journal of Hospitality Management, 18, pp.67-82. Oliver, R. (1997). Satisfaction: A behavioural perspective on the consumer. New York: McGraw-Hill. Parasuraman, A, Zeithaml, V.A, & Berry, L.L (1985). A conceptual model of service quality and its implication for future research. Journal of Marketing, 49, pp.41-50. Parasuraman, A., Zeithaml, V.A., & Berry, L.L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1) , pp.12-40. Pavlou, P.A. (2003). Consumer acceptance of electronic commerce–Integrating trust and risk with the technology acceptance model. International Journal of Electronic Commerce, 7(3), pp.101-34 Pritchard, M.P., & Howard, D.R. (1997). The loyal traveler: Examining a typology of service patronage. Journal of Travel Research, pp.2-10. Reichheld, F.F., Markey, R.G. & Jr, Hopton, C. (2000). E-customer loyalty–Applying the traditional rules of business for online success. European Business Journal, 12(4), pp.173-9. Reichheld, F.F. (1993). Loyalty-based management. Harvard Business Review, pp.64-73. Reynolds, T.J., & Gutman, J. (1988). Laddering theory method analysis and interpretation. Journal of Advertising Research, 28, pp. 11-31. Rhoades, L., Eisenberger, R., & Armeli, S. (2001). Affective commitment to the organization: The contribution of perceived organizational support. Journal of Applied Psychology, 86(5), pp.825-36. Porter, M. (1998). Competitive strategy: Techniques for analyzing industries and Competitors. New York: The Free Press. Sekaran, U. (2003). Research methods for business: A skill building approach (4th Edition). New York: John Wiley & Sons Sharma, N., & Patterson, P.G. (2000). Switching costs, alternative attractiveness and experience as moderators of relationship commitment in professional consumer services. International Journal of Service Industry Management, 11(5) , pp.470-90. Shy, O. (2002). A quick and qasy method for estimating switching costs. International Journal of Industrial Organisation, 20, pp.71-87. Singh, J.V., & Sirdeshmukh, D. (2000). Agency and trust mechanisms in consumer satisfaction and loyalty judgments. Journal of the Academy of Marketing Science, 28(1), pp. 150- 67. Venetis, K.A., & Ghauri, P.N. (2000). The importance of service quality on customer retention: An empirical study of business service relationships. Proceedings of the marketing in a global economy conference. Buenos Aires, June 28-July 1, pp. 215-224. Yuille, J.C., & Catchpole, M.J. (1977). The role of imagery in models of cognition. Journal of Mental Imagery, 1, pp. 171-80. Zeithaml, V.A. (1988). Consumers' perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing, 52(7), pp.2-22.