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Market segmentation based on customer satisfaction-loyalty links


There exist different views and opinions on the links between customer satisfaction and loyalty. This paper suggests that the impact of customer satisfaction on loyalty varies across customers. This study choose the cell phone industry in China as an example and segmented customers with a novel method of clusterwise linear regression, based on the association between customer satisfaction and loyalty. Results revealed sample heterogeneity in relation to the two factors. The loyalty of some subgroups is positively related to satisfaction significantly, while that of other clusters is independent of satisfaction.


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Correspondence to Xia Wang.

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Translated from Nankai Guanli Pinglun 南开管理评论 (Nankai Business Review), 2005, 8(5): 26–30

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Wang, X., Zhao, P., Wang, G. et al. Market segmentation based on customer satisfaction-loyalty links. Front. Bus. Res. China 1, 211–221 (2007).

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  • customer satisfaction
  • loyalty
  • clusterwise linear regression
  • market segmentation