Skip to main content
Frontiers of Business Research in China
Download PDF
  • Research Article
  • Published:

Market segmentation based on customer satisfaction-loyalty links

Frontiers of Business Research in China volume 1, pages 211–221 (2007)Cite this article

Abstract

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.

References

  • Anderson E W (1996). Customer satisfaction and price tolerance. Marketing Letters, (7): 19–30

  • Anderson E W (2000). Strengthening the satisfaction-profit chain. Journal of Service Research, (3): 107–120

  • Anderson E W, Fornell C (2000). Foundations of the American customer satisfaction index. Journal of Total Quality Measurement, 11(7): 869–882

    Article  Google Scholar 

  • Anderson E W, Sullivan M W (1993). The antecedents and consequences of customer satisfaction for firms. Marketing Science, (12): 125–143

  • Bloemer J, Ruyter K (1999). Customer loyalty in high and low involvement service settings: the moderating impact of positive emotions. Journal of Marketing Management, (15): 315–330

  • Copeland M T (1923). Relation of consumer’s buying habits to marketing methods. Harvard Business Review, (1): 282–289

  • DeSarbo W S, Cron W L (1988). A maximum likelihood methodology for clusterwise linear regression. Journal of Classification, (5): 249–282

  • Fornell C (1992). A national customer satisfaction barometer: the Swedish experience. Journal of Marketing, (56): 6–22

  • Garbarino E, Johnson M S (1999). The different roles of satisfaction, trust, and commitment in customer relationships. Journal of Marketing, (63): 70–87

  • Han Jinglun, Wei Fuxiang (2001). Study on the interactive relationship between customer satisfaction and loyalty. Nankai Business Review, (6): 8–10 (in Chinese)

  • Homburg C, Giering A (2001). Personal characteristics as moderators of the relationship between customer satisfaction and loyalty-an empirical analysis. Psychology & Marketing, (18): 43–66

  • Johnson M D, Auh S (1998). Customer satisfaction, loyalty, and the trust environment. Advances in Consumer Research, (25): 15–20

  • Jones T O, Sasser E W (1995). Why satisfied customers defect. Harvard Business Review, (73): 88–101

  • Lars G, Anne M, Kai K (2000). The relationship between customer satisfaction and loyalty: cross-industry differences. Total Quality Management, (11): 509–514

  • Oliva T A, Oliver R, MacMillan I C (1992). A catastrophe model for developing service satisfaction strategies. Journal of Marketing, (56): 83–95

  • Reichheld F F, Sasser E W (1990). Zero defections: quality comes to services. Harvard Business Review, (68): 105–111

  • Reichheld F F (1996). Loyalty effect. Boston, MA: Bain & Company

    Google Scholar 

  • Rust R T, Lemon K N, Zeithaml V A (2004). Return on marketing: using customer equity to focus marketing strategy. Journal of Marketing, (68): 109–128

  • Rust R T, Zahorik A J (1993). Customer satisfaction, customer retention, and market share. Journal of Retailing, (69): 145–156

  • Spath H (1979). Clusterwise linear regression. Computing, 22(4): 367–373

    Article  Google Scholar 

  • Wang Chunxiao, Han Xiaoyun, Wen Biyan (2003). An empirical study of the relationship between customer satisfaction and loyalty. Nankai Business Review, 4: 70–74 (in Chinese)

    Google Scholar 

  • Wang Chunxiao, Wen Biyan, Jiang Caifen (2001). Service quality, consumption value, customer satisfaction and behavior intention. Nankai Business Review, (6): 11–15 (in Chinese)

  • Wang Xia, Zhao Ping (2003). Research of the impact of customer satisfaction on loyalty in durable goods industry. Journal of Beijing Technology and Business University Social Science, (6): 41–44 (in Chinese)

  • Wedel M, DeSarbo W S (1995). A mixture likelihood approach for generalized linear models. Journal of Classification, 12: 21–56

    Article  Google Scholar 

  • Wu Ying, Shao Bingjia (2003). Causes and countermeasures for customer satisfaction traps. Commercial Research, (8): 7–8 (in Chinese)

  • Yang Zhilin, Peterson R T (2004). Customer perceived value, satisfaction and loyalty: the role of switching costs. Psychology & Marketing, 21(10): 799–822

    Article  Google Scholar 

  • Zhang Xinan, Tian Peng, Zhu Guofeng (2003). An examination on the relationship between perceived performance, customer satisfaction, and loyalty. Nankai Business Review, (5): 46–51 (in Chinese)

Download references

Author information

Authors and Affiliations

  1. School of Business, Renmin University of China, Beijing, 100872, China

    Wang Xia

  2. School of Economics and Management, Tsinghua University, Beijing, 100084, China

    Zhao Ping, Wang Gao & Liu Jia

Authors
  1. Wang Xia
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Zhao Ping
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Wang Gao
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Liu Jia
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Wang Xia.

Additional information

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

Rights and permissions

Reprints and permissions

About this article

Cite this article

Wang, X., Zhao, P., Wang, G. et al. Market segmentation based on customer satisfaction-loyalty links. Front. Bus. Res. China 1, 211–221 (2007). https://doi.org/10.1007/s11782-007-0013-0

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11782-007-0013-0

Keywords