The Relationship between Customer Value and Customer Loyalty The Relationship between Customer Satisfaction and Customer

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G. HYPOTHESES

The researcher‘s have generated four hypotheses associated with the model. These hypotheses focus on the interrelationships among customer value, customer satisfaction, trust in brand, and customer loyalty.

1. The Relationship between Customer Value and Customer Loyalty

Heskett et al. 2003 discuss how companies can deliver high-value services quality services at a reasonable price to their customers, thereby satisfying their customers‘ needs well, so it can create the customer loyalty. According to Sirdeshmukh et al., 2002 that customer value is the subordination of the customer objectives, so the value will direct customer action, that is loyalty. Kotler 2009 stated that customers will only keep the exchange with institutions that provide the maximum value. Thus the hypothesis can be drawn as follows: H1: there is significant influence between customer value and customer loyalty.

2. The Relationship between Customer Satisfaction and Customer

Loyalty The relationship between customer satisfaction and customer loyalty has been explained in a number of ways. According to Lee et al., 2007 customer satisfaction is viewed as a function of perceived performance and expectations and consumer behavioral studies show that customers who are only just satisfied still find it easy to switch over when a better offer comes along. According to Lewis and Newman 2001 satisfaction is 51 an element which fulfills the need of the customer associated with that product. Unsatisfied customers tend to convey their negative impression to other consumers. Consequently customer dissatisfaction leads to decrease in loyalty. This implies that customer satisfaction and customer loyalty are highly related Hoq et al., 2010. Bennett Rundle-Thiele, 2004 stated that customer satisfaction for the positive influence on loyalty has been widely supported by references related to marketing research. Satisfaction can be considered as a key to establishing and maintaining loyalty, and a foundation for customers to use website for a long period of time. High satisfaction can enhance the possibility of recommending service by customers. Thus, customer satisfaction is the key factor for enterprise operation and customer loyalty. Bowen and Chen 2001 said that having satisfied customers is not enough, there has to be extremely satisfied customers. This is because customer satisfaction must lead to customer loyalty. Bansal and Gupta 2001 building customer loyalty is not a choice any longer with businesses: it ‘s the only way of building sustainable competitive advantage. When consumers are satisfied with the productbrand, they are more likely to recommend the product to others, are less likely to switch to other alternative brand, and are likely to repeat purchase. According to Deng et al., 2009 customer loyalty is the consequence of customer satisfaction. It has also been found to be a key determinant of a firm‘s long-term viability. Heskett et al. 2003 suggested that customer 52 loyalty should increase rapidly after customer satisfaction passes a certain threshold —that is, there are increasing returns to scale in the relationship between customer satisfaction and customer loyalty. Thus the hypothesis can be drawn as follows: H1: there is significant influence between customer satisfaction and customer loyalty.

3. The Relationship between Trust in Brand and Customer Loyalty