Towards an Integrative Model of Loyalty Formation: The Role of Quality and Value

Abstract

Researchers have noted the utility of the Investment Model in explaining the formation of loyalty. This study extends the Investment Model in a leisure service context by including two additional constructs of quality and value. Quality and value are proposed as antecedents of satisfaction, with their effects on loyalty mediated by satisfaction. Results from an online panel survey of American cruise passengers support these hypotheses. The study provides a model of loyalty building that may shed new insight on loyalty research.

Keywords:

• cruise
• Investment Model
• loyalty
• quality
• value

This paper is based on the first author's dissertation.

Notes

∗∗∗p < 0.001.