THE RELATIONSHIP BETWEEN CUSTOMER SATISFACTION AND LOYALTY: A SYSTEMATIC LITERATURE REVIEW

 

Budi Utami*, M. Syamsul Hidayat, Eny Setyariningsih

Faculty of Economics and Business, Universitas Islam Majapahit, East Java, Indonesia

Email: [email protected]*

 

Article Information

 

ABSTRACT

Received: December 8, 2022

Revised: December 25, 2022

Approved: January 15, 2023

Online: January 24, 2023

 

 

Customer behavior in making decisions to purchase goods or services is always dynamic. The satisfaction obtained by customers ultimately leads to loyalty to the product or service. There are several studies and discussions that still have different results regarding the relationship between customer satisfaction and customer loyalty. Therefore, the goal This article aims to provide a clearer understanding of the relationship between satisfaction and customer loyalty by conducting a systematic literature review of 200 Scopus indexed publications. From these 200 articles, we selected a minimum of 95 citations. Then we further selected 23 relevant publication articles. from 2011 to 2022.The results of the analysis identify in general that customer satisfaction has a relationship and influence on customer loyalty.

Keywords

 

Customer Satisfaction; Customer Loyalty; Systematic Literature Review

 

 

INTRODUCTION

Many academics and researchers have carried out systematic literature reviews. From the various topics of the articles studied, the aim is to map articles in a journal or to further clarify the relationship between antecedent variables and latent variables.

Like Sánchez-Rebull, (2018) conducted a systematic literature review on customer satisfaction. A literature review was conducted on 495 articles published in 41 journals from 1988 to 2016 (29 years). The discussion and study is based on an analysis of the 100 most cited articles. The results show that the most popular antecedent variable of customer loyalty is service quality which ultimately results in customer satisfaction. This shows the importance of satisfaction in relation to customer loyalty.

Hidayat & Budi Utami, (2022) conducted a bibliometric analysis using publish and perish and Vos Viewer has conducted a study of scientific articles published in IJSTM journals from 2019 to 2021 (3 years) by grouping them based on article topic category, year, origin of the author and data analysis used. The results show that there are four clusters of articles, namely about the COVID-19 pandemic, activities, companies and case studies.

Allen et al., (2020) in an empirical study on Railway customers in Milan Italy states that value added service is the main service attribute that has a positive influence on customer satisfaction with the overall service and, in turn, customer satisfaction has an effect on loyalty.

Likewise with Raza, (2020), found that all dimensions of satisfaction were found to have a positive and significant effect on customer satisfaction of banks in Pakistan while customer satisfaction had a significant and positive effect on customer loyalty. Then, Pan (2012) found that the effect of customer satisfaction and trust on loyalty is less significant when the product is purchased regularly and relatively briefly.

From several theories and empirical studies, it shows that there are still differences related to the relationship and the influence of satisfaction on customer loyalty.

 

METHODS

In this study the methodology used includes:

A.  Data collection

1.  Do a search for articles related to innovation in 2011-2022

In this method, the authors search for scientific articles related to innovation in the Scopus and Emerald Data Bases, and Science Direct. Then a search for scientific articles is carried out through Article Publications in the database in Scopus indexed journals Q1 and Q2 and Q3 from 2011 to 2022.

2.  Data 200 articles

From the search that was carried out limited to Scopus Q1 and Q2 indexed journals, we found 200 consisting of articles, book chapters and seminar papers (proceedings) with 15,008 citations (citations). we found 198 articles with 14,654 citations (citations). we limited the analysis of referenced documents to articles with a minimum of 90 citations (citations) which in our opinion showed very high quality articles and there were sufficient number of articles that were selected for processing in further review and discussion.

In collecting data, the process of identifying articles and selecting the assessment (screening) is also carried out. The process can be explained as follows:

a)  Article Identification

There are several steps that are carried out in identifying articles, namely randomly and systematically. In a random search, articles were explored through published and Perish, Scopus, Elsevier, Emerald and SAGE databases which are widely known academically because we wanted to identify the most important keywords related to customer satisfaction with customer loyalty. To identify relevant articles in databases and journals, we carefully search articles through titles, abstracts, body text, and keywords. After completing a systematic search, we found 23 articles that were relevant and included in the discussion and review.

b)  Selection Assessment (screening)

Next, we conducted an assessment to select articles, through a four-step stage where the final collection of articles can be extracted with the help of Publish and Perish software and excel: (1) deletion of the same article, (2) title and abstract filtering, (3) full text filtering, and (4) data extraction, from the 38 articles that we selected, the authors found 38 articles. With the adoption of the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) model from Page et al., (2021)The stages in data collection can be presented in the following figure:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 1. Screening Assesment

 

B.  Data analysis

In this study the analysis used is descriptive analysis, where from the results of the review and review of the articles the author will group them into several categories. From these categories, scientific articles are then examined and analyzed descriptively.

 

RESULTS

Based on the results of data analysis, the authors group articles based on categories, so that it is easy to understand and explain research topics related to customer satisfaction and loyalty.

A.  Research type categories

In this category, it explains the research methodology related to the type of research in the selected articles. In Table 1 it is explained that the types of research are divided into 2 (three), namely Qualitative, there is 1 article and Quantitative research types, there are 9 articles. Where the percentage of quantitative articles is 90%, while qualitative articles are 10%. It can be concluded that researchers are more interested in quantitative research than qualitative

 

 

 

 

 

Table 1

Research category (n=10)

Types of research

Writer

Amount

Percentage

(%)

Qualitative

0

0

0

 

Quantitative

 

 

Islam et al.,(2021) Baabdullah et al., (2019)Chang, (2011) Hult, (2019),Ali, (2018),Kasiri et al., (2017), Ahrholdt, (2017),Hussain et al.,(2015)Howat,(2013),Coelho,(2012),Hsin Chang & Wang,(2011),Nisar,(2017),Kaura,(2015),Pan,(2012),Jiang & Zhang,(2016),Izogo,(2015),Hapsari et al.,(2017),Amen,(2016),Orel,(2014) Keisidou et al.,(2013),Lee,(2012),Kim,(2011),Ganguli & Roy,(2011)

23

100

Amount

23

100

Source: data processed by the author (2022)

 

Figure 1 explained in detail the amount and percentage for the category of research types in the article, including Qualitative (0%) and Quantitative, totaling 23 (100%)

Figure 1. Research Type Categories

 

B.  Data Analysis Category

From the data analysis of the scientific articles included in the discussion, it was found that there were 4 (four) groups of analytical tools used in the selected articles, including: Partial Least Square (PLS) and Structural Equation (SEM) in 5 articles, 1 Descriptive Statistics articles, Multiple Regression Analysis (Multiple Regression) 3 articles, Confirmatory Factor Analysis (CFA) and Structural Equation Model (SEM) have 1 article.

From table 2, it can be concluded that the data analysis that is widely used isPLS-SEM analysis. From the data analysis category used in the following table it can be seen that articles using data analysis with the Partial Least Suare Structural Equation Model (PLS-SEM) have a 50% greater percentage when compared to other data analysis. Where is the percentage of analysis Descriptive (10%), Multiple Regression (30%), Confirmatory Factor Analysis-Structural Equation Model /CFA-SEM (10%).

 

Table 2

Category Methodology and Data analysis techniques (n = 10)

Types of Data Analysis

Writer

Amount

Percentage

(%)

PLS-SEM

Islam (2020),AM Baabdullah (2019),Hsin chang (2011),Hult (2019),Ali 2016,LA Kasiri (2017), Ahrholdt 2016,Hussain 2015 Howat 2013 ,Coelho 2012 ,Hsinchang ,2011

11

48

Descriptive

-

0

0

Multiple Regressions

Nisar 2013, Kaura 2015, Pan 2012

3

13

EFA

Jiang 2016, Izogo

2015

2

9

CFA-SEM

Hapsari 2017,Amin 2016,Demirciorel 2014,Eisidou 2013,Lee2012,Kim2011,Ganguli 2011

7

30

Amount

23

100

Source: data processed by the author (2022)

 

From Figure 1, it is explained in detail the number and percentage for the category of types of data analysis used in the articles, including PLS-SEM totaling 7 articles (48%), CFA-SEM totaling 7 articles (30%), EFA amounted to 2 articles (9%) and no articles with descriptive analysis (0%).

 

Figure 2. Categories of data analysis techniques

Source: Data processed by the author (2022)

 

C.  Most Quotations Category

The grouped articles with the highest number of citations. From 2011-2022 of the 23 articles selected, there were 10 articles with the highest number of citations 421 citations and the lowest 191 citations. In table 3 it can be explained that the most articles are from the author MJKim (2011) with a total of 421 citations. This can show that many researchers are very interested in the discussion on the topic of the Relationship of Satisfaction with Customer Loyalty. The title of the article is and the effect of perceived trust on electronic commerce: Shopping online for tourism products and services in South Korea is described that satisfaction with the mediation of trust indirectly found a positive and significant effect on customer loyalty

 

Table 3

Categories according to the highest number of citations (n=10)

Number of Citations

Writer's Name

Title

Research result

 

421

MJKim (2011)

The effect of perceived trust on electronic commerce: Shopping online for tourism products and services in South Korea

transaction costs have no effect on trust. Satisfaction was found to have a positive impact on trust which, in turn, affects customer loyalty

 

265

F. Demirci Orel (2016)

Supermarket self-checkout service quality, customer satisfaction, and loyalty: Empirical evidence from an emerging market

SCS service quality has a positive effect on loyalty through customer satisfaction and customer satisfaction has a direct effect on loyalty

 

201

Baabdullah (2019)

Consumer use of mobile banking (M-Banking) in Saudi Arabia: Towards an integrated model

performance expectancy, price value, facilitating conditions, hedonic motivation, habit, system quality and service quality have a significant effect on the use of M Banking in Saudi Arabia. And customer satisfaction has an effect on customer loyalty.

 

202

LA Kasiri (2017)

Integration of standardization and customization: Impact on service quality, customer satisfaction, and loyalty

1) integration of standardization and customization of service offerings is essential to improve service quality; (2) standardization has a higher impact on service quality when compared to customization; (3) functional quality has a higher impact on customer satisfaction

when compared with technical quality; and (4) customer satisfaction has a significant effect on customer loyalty.

 

195

R. Hussain (2015)

Service quality and customer satisfaction of a UAE-based airline: An empirical investigation

quality, perceived value, and brand image have a significant positive impact on customer satisfaction, which in turn can affect brand loyalty

 

193

V. Kaura (2015)

Service quality, service convenience, price and fairness, customer loyalty, and the mediating role of customer satisfaction

The findings indicate that customer satisfaction acts as a mediating variable between service quality dimensions, perceived price and fairness, service convenience dimensions, and customer loyalty

 

191

Ganguli (2011)

Generic technology-based service quality dimensions in banking: Impact on customer satisfaction and loyalty

Service Quality (customer service, convenience, reliability, use of technology) has a positive and significant effect on customer satisfaction and customer loyalty

 

190

H. Hsin Chang (2011)

The moderating effect of customer perceived value on online shopping behavior

The results of the study show that the quality of electronic services and the customer's perceived value have an influence on customer satisfaction, and then influence customer loyalty. In addition, this study found that customers with high perceived value have a stronger relationship between customer satisfaction and loyalty than customers with low perceived value.

 

185

PS Coelho (2012

Creating customer loyalty through service customization

Customization improves perceived service quality, customer satisfaction, customer trust,

and finally customer loyalty

 

173

Amen 2016

Internet banking service quality and its implications on e-customer satisfaction and

e-customer loyalty

520 internet banking respondents

CFA-SEM

 

This study shows that

Quality of internet banking services

has a significant positive relationship with the quality of internet banking services. In addition, there is a significant relationship between the quality of internet banking services, e-customer satisfaction and e-customer loyalty

Source: data processed by the author (2022)

 

The following figure is explained in detail that the number and percentage of citations for the 10 categories of articles with the most citations included Kim with 421 citations (19%), Orel 193 citations (12%), Kasiri with 202 citations (9%), Baabdullah with 210 citations (9 %), Husaain with 195 citations (9%), Kaura with 193 citations (9%), Ganguli with 191 citations (9%), Hsinchang with 190 citations (8%), Coelho with 185 citations (8% ) and Amin with 185 citations (8%).

 

Figure 3. The highest number of citations

Source: Data processed by the author (2022)

 

 

 

D.  Satisfaction Relationship with Customer Loyalty

Most of the studies in this review show that customer satisfaction has a significant influence on customer loyalty. Where the effect of satisfaction on customer loyalty is directly or indirectly (through mediation). This significant direct effect is shown by Islam (2020), AM Baabdullah (2019), Hsin chang (2011), Hult (2019), Ali (2016), LA Kasiri (2017), Ahrholdt (2016), Nisar (2013), Jiang (2016), Izogo (2015), Amin (2016), Demirciorel (2014), Eisidou (2013), lee (2012).

Meanwhile Hapsari (2017), Hussain (2011) Howat (2013), Coelho (2012), Hsinchang (2011), Kaura (2015), Pan (2012), Kim (2011), Ganguli (2011) in the empirical study explains that customer satisfaction has a significant indirect effect on customer loyalty. In this article, customer satisfaction in general is a mediating and moderating variable. Meanwhile, the antecedent variable is service quality.

 

CONCLUSION

Many studies and research on the relationship between satisfaction and customer loyalty for both products and services are still being carried out in the future. From the review of the literature review, many empirically explain that customer satisfaction has a positive and significant relationship and influence on customer loyalty.

In the midst of today's business conditions where competition between companies is very tight, the focus of consumers related to satisfaction is of great concern to companies. They do this in order to win the competition. Because if customers are satisfied with the product or service purchased, the customer will repeat the purchase and customer loyalty will increase.

 

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