The effect of customer satisfaction on customer loyalty: The moderation roles of experiential encounter and customer patronage

Abstract

This study investigated the links between customer satisfaction and customer loyalty related to customers patronizing star rated hotels, and the moderation roles of experiential encounter and customer patronage. This was investigated in a sample of 347 loyalty program members. Data was analyzed using descriptive analysis and bivariate relationships. In addition simple moderation, additive moderation and moderated moderation were performed to analyze the effects of customer satisfaction, experiential encounter, and customer patronage in predicting customer loyalty of loyalty program members patronizing star rated hotels. Results show that customer satisfaction moderated by experiential encounter did not predict the levels of change in customer’s loyalty to star rated hotels. Additive moderation shows a significant conditional effect of experiential encounter and customer patronage on the relationship between customer satisfaction and customer loyalty. This raises the importance of further researching customer satisfaction impacts on loyalty programs members especially during periods of high customer patronage of the star rated hotels.