How can social networking sites help build customer loyalty? An empirical investigation

Abstract

Social networking sites (SNSs) have been viewed as a useful tool that can be utilised to sustain customer loyalty. However, few studies have examined how SNSs can help build customers' loyalty. Building on past literature, this study developed a theoretical model to explain how SNSs can help build customer loyalty. The proposed model was tested empirically using data collected from 221 Facebook users who were customers of a famous convenience store in Taiwan. The results reveal that satisfaction with the vendor and trust in the vendor affect customer loyalty significantly. The results also show that satisfaction with the website has a positive effect on satisfaction with the vendor and trust in the website, which in turn affects trust in the vendor. Finally, the results indicate that utilitarian value, hedonic value, and social value have significant influences on satisfaction with the website, while utilitarian value exerts positive effects on trust in the website. Implications for theory and practice research are discussed.

Keywords:

• customer loyalty
• social networking websites
• trust
• satisfaction
• customer value