Enhancing customer loyalty in tourism services: the role of customer-company identification and customer participation

Abstract

Travel agencies are high-contact service organizations and customer orientation plays a critical role in their success. However, not all the academic research on the effect of customer orientation on service performance has been positive. This research examines the effect of customer orientation on customer loyalty through two mediators: customer satisfaction and customer-company identification. The study also investigates how customer participation moderates the relationships between two mediators and customer loyalty. The findings are as follows: (1) customer orientation has significantly positive impacts on customer satisfaction and customer-company identification as well as on customer loyalty; (2) two mediators have significantly positive impacts on customer loyalty; and (3) customer participation moderates the relationships between the two mediators and customer loyalty. The research results indicate that customer-company identification can be used as an additional way to enhance customer loyalty. Important theoretical and managerial implications for travel agencies are also provided in this research.