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From the Archives: Trust, Satisfaction Affect Loyalty Differently
In their December 2000 article, "Determinants of Relationship Quality and Loyalty in Personalized Services," Prem Shamdasani and Audrey Balakrishnan of the Department of Marketing at the National University of Singapore explore the effects of contact personnel, physical environment, and customer environment on customers' relationships with service firms. The authors show particular interest in factors that contribute to feelings of simultaneous satisfaction and trust, which they believe leads to customer loyalty and, in turn, advocacy.
Research findings:
* Physical environment affects both trust and satisfaction in personalized service encounters.
* Friendliness and knowledge of personnel strongly influence relationship quality.
* Expertise, similarity, and disclosure influence only trust.
* Trust and satisfaction influence loyalty.
* Trust is a stronger predictor of loyalty for high-end service providers, while satisfaction is a stronger predictor of loyalty for low-end service providers.