The mediating effect of commitment on customer loyalty in e-brokerage: An enhanced investment model

Li Ting Huang, Cheng Kiang Farn, Tsung Chieh Cheng

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Customers could switch service provider easily because of lower searching cost and identical service in online environment. Most marketing research for customer loyalty emphasizes the effect of satisfaction and switching barrier, derived from investment model. However, how satisfaction and switching barrier influence customer loyalty has been less conclusive. The possible reason is neglect of commitment. We inject the concept of commitment in relationship marketing, which consists of affective and continuous commitment, into investment model for enhancing mediating role of commitment. Empirical results gathered from online survey in virtual financial communities show that commitment is the essential mediator in cultivating customer loyalty. Besides, satisfaction and switching barrier influence loyalty by different component of commitment, affective continuous commitment respectively. Affective commitment is more important than continuous commitment. E-brokerage should pay attention to earning customers' commitment for retaining customers.

Original languageEnglish
Title of host publicationAssociation for Information Systems - 11th Americas Conference on Information Systems, AMCIS 2005
Subtitle of host publicationA Conference on a Human Scale
Pages404-413
Number of pages10
StatePublished - 2005
Event11th Americas Conference on Information Systems, AMCIS 2005 - Omaha, NE, United States
Duration: 11 Aug 200515 Aug 2005

Publication series

NameAssociation for Information Systems - 11th Americas Conference on Information Systems, AMCIS 2005: A Conference on a Human Scale
Volume1

Conference

Conference11th Americas Conference on Information Systems, AMCIS 2005
Country/TerritoryUnited States
CityOmaha, NE
Period11/08/0515/08/05

Keywords

  • Commitment
  • Customer loyalty
  • E-brokerage
  • Investment model

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