Effects of product quality, service quality and price fairness on customer engagement and customer loyalty
Effects of product quality, service quality and price fairness on customer engagement and customer loyalty
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2019
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Bangkok : Assumption University
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eng
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21 pages
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ABAC Journal Vol. 39 No.2 (April-June 2019), 82-102
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Abstract
This paper examines the key relationship effects between the customer perceived
value dimensions: product quality, service quality and price fairness on customer
engagement in a holistic model, using structural equation modeling. Further, the study
evaluated the direct and mediating effects of these factors on customer loyalty in the
automobile industry, with sample data from 224 existing car owners, based in Bangkok.
The study results illustrate significant direct effects on customer loyalty, with product
quality, service quality, price fairness and customer engagement all having a positive
influence. On the other hand, product quality and price fairness did not significantly
affect customer engagement. The findings support the prediction of direct effects
which significantly affect customer loyalty. In addition, the study shows that customer
engagement has a partial mediation effect on service quality and customer loyalty. This
research contributes to the customer engagement and customer perceived value
literature with empirical support in the context of the Thai automobile industry.
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