Role of Brand Image and Switching Cost

Abstract

The study attempts to analyze the re l ationship between custome r sati sfaction and progress i ve phases of loyalty in mid -markethotel precinct. It succinctly intended to gauge the direct effects of brand image and switching cost on progressive phases ofloyalty and moderating effects of brand image and switching cost on th e satisfaction -loyalty dyad ic. The outcom e of the studyrevealed that custome r satisfaction has a strong po si tiv e impact on co gn itive loyalty, but un expe ctedly not on affe ctive,conative , and action loyalty in the hotel sectors of midmarket. Further, brand image has a direct and sign ificant effect onprogress ive levels of loyalty. It moderates the link between customer satisfaction and affective loyalty; an d customersatisfaction and action loyalty. The direct effect of sw itching cost on cogn i tive and affective loyalty is insign ificant, but onconative and acti on loyalty Is positive and significant. Furthe r inves ti ga ti on of the moderating effects of switching cost showsthat it strengthens the negative relationship between customer satisfacti on and conative loyalty; customer sati sfaction andaction loyalty. But it dampens the negative relationship between customer satisfaction and affective loyalty. The results wouldprovide necessary inputs and managerial insights to develop marketing strategies through careful introspection of theirpresent pos itions in the loyalty-satisfaction matrix. This research is premised on questioning the status qu o regarding thecustomer satisfact ion -loyalty link and factually argued that customer satisfaction is necessary, but is not a suffic ient conditionto forge loyalty. Meagre studies have attempted to integrate switching cost and brand image wi th customer satisfaction andloyalty relationship . This research gap is further evident due to sporadic research on moderating effects of swi tch i ng cost andbrand image directly and in Interactions with satisfaction on progressive levels of loyalty. This study provides new insightsand enlightens some phenomenon explalning customer satisfaction-loyalty dyadic interactions in emerging mid-market hotelsegment.