Customer Loyalty: The Role of Innovation, Customer Equity, Acculturation and Advertising

Document Type : Sterategic Management

Authors

1 MA student, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran

2 Assistant professor, Department of Management , Tarbiat Modares University, Tehran, Iran

3 Assistant Professor of Management Studies and Technology Development Center, Tarbiat Modares University, Tehran, Iran.

Abstract

Today competition is very intense and companies are looking for customer retention to survive. The fact that customers' demands, needs, and expectations change emphasizes the necessity of checking customer loyalty continuously. Attracting customer loyalty requires the exploitation and successful implementation of new ideas that called innovation. Also, considering the importance of special customer equity, it tries to improve customer loyalty. Therefore, the purpose of this study is to measure the impact of innovation on customer loyalty by considering the role of customer equity. Advertising has been considered as a moderator variable. This study is an applied and descriptive study. For data collection, a standard questionnaire was used to collect data. A sample of 392 people who were the consumers of Kale products, were selected from different ethnic groups in Tehran. Structural Equation Modeling (SEM) and Confirmatory Factor Analysis (CFA) were used to analyze the data by SPSS and Smart-PLS soft wares. The results of the research showed that innovation affects customer equity, and advertisements moderate their relationship. Also, a customer’s equity influences customer loyalty.

Keywords

References

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History

  • Receive Date: 09 October 2019
  • Revise Date: 06 December 2019
  • Accept Date: 22 December 2019

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