1. In Search of Customer Loyalty
A research on the relation between
tenants’ satisfaction
and behavioural intentions
Jos Smeets
Patrick Dogge
University of Technology Eindhoven
TU/e
technische universiteit eindhoven

2. TU/e content 1. Introduction 2. Concepts 3. Survey 4. Models
5. Results
6. Managerial implications
TU/e
technische universiteit eindhoven

3. 1. Introduction
Customer loyalty is seen as one of the major sources of sustainable competitive advantages for service firms.
In this paper we identify potential determinants of customer loyalty to non profit landlords and examine their relative influences.
TU/e
technische universiteit eindhoven

4. Service Profit Chain: a relation between
2. Concepts
Service Profit Chain: a relation between
satisfaction and loyalty is supposed
internal
service
quality
external
customer
value
loyalty
Satis-
faction
income
growth
profitability
TU/e
technische universiteit eindhoven

5. 2. Concepts TU/e Marketing literature shows that the model is not
completely valid.
Other aspect are relevant:
Commitment
Switching barriers
TU/e
technische universiteit eindhoven

6. 2. Concepts
In this paper we will enter on the influence of commitment
3 aspects are relevant in the relation between satisfaction and commitment:
High/low involvement
Duration of a relation
Degree of satisfaction
TU/e
technische universiteit eindhoven

7. Extended Service Profit Chain:
internal
service
quality
external
customer
value
loyalty
satis-
faction
income
growth
profitability
Switching
barriers
Commit-
ment
High/low involvement
Duration of relationship
Degree of satisfaction
TU/e
technische universiteit eindhoven

8. 3. Survey
Using the data of a survey among 7066 tenants of Eindhoven housing association SWS we gained insight into the relationship between satisfaction with and commitment to the housing package a landlord has to offer. The effect of switching barriers was not researched.
TU/e
technische universiteit eindhoven

9. 3. Survey
Commitment of the tenants to the housing package was measured in two ways:
by asking the tenants whether they intent to move house in the next two years,
and by asking the tenants whether they would recommend their living environment to others.
Figure 3 and 4 show the two models used in this
TU/e
technische universiteit eindhoven

10. 4. Models: Structural Equation Modelling
TU/e
technische universiteit eindhoven

11. 4. Model 1: tendency to move house
TU/e
technische universiteit eindhoven

12. 4. Model 2:tendency to recommend
TU/e
technische universiteit eindhoven

13. 5. Results
In terms of commitment the tendency to recommend ones living environment (beta=0,68) is much more influenced by satisfaction with the housing package than the tendency to move house (beta=-0,24). This might be caused by the fact the tendency to move house implicates much more rigorous behaviour (moving house) than the tendency to recommend ones living environment does.
TU/e
technische universiteit eindhoven

14. 5. Results
To get insight into the influence of the duration of the relationship between satisfaction and commitment, model 1 was also estimated for two different groups.
One group tenants shorter than 5 years.
The other group period longer than 10 years
The results show that in housing the effect of satisfaction on commitment is much larger in shorter relationships than it is in longer relationships.
TU/e
technische universiteit eindhoven

15. TU/e 6. Managerial implications
The survey shows that de relation between satisfaction and loyalty is very complex. The assumptions often made by housing managers, that satisfied tenant are also loyal tenant is defied .
It would be better for housing managers to see the creation of customer value as a source of sustainable competitive advantage.
TU/e
technische universiteit eindhoven