Customer Loyalty

Customer loyalty marketing research: A comparative approach
between hospitality and business journals

Abstract
Businesses, including the hospitality sector discovered the importance of customer retention as a
key success factor. Thus, customer loyalty is a topic that has received much attention since the
1990s as relationship marketing has become a popular marketing scheme. The purpose of this
study was to review published research on customer loyalty to better understand its evolution and
development in the hospitality industry. Specifically, the study took a comparative approach by
examining published research from academic hospitality journals and business journals. A total
number of 262 articles were reviewed. Topical areas, industry application, and research methods
were discussed. Lastly, study limitations were discussed.
Keywords
Business research;
Consumer behavior;
Customer loyalty;
Hospitality research;
Relationship marketing

1. Introduction
Hospitality marketers recognize that it is difficult for businesses to survive just by attracting new
customers as most industry segments are mature and competition is so fierce. Additionally,
service, as the core product of hospitality businesses, is distinctive with goods especially for
being considerably affected by the customers involvement and experience. The experience that
exists in the consumer's mind is what creates a differentiation point from competitors so
businesses strive to provide such products and services to satisfy the consumer's demand (Pine
and Gilmore, 1998). Thus, hospitality marketers make eminent efforts to provide good
experiences and ensure consumer delight by engaging in relationships with customers (Berry,
1983 and Morgan and Hunt, 1994).
Many organizations progressed relationship strategies intended to maintain and enhance
customer relationships and further obtain long-term competitive advantage. Hospitality
marketers also believe that relational engagement leads to customer longevity, which is
ultimately associated with customer loyalty (Berry, 1983 and Morgan and Hunt, 1994).
Businesses, including the hospitality sector discovered the importance of retaining their existing
customers as a key success factor. Thus, customer loyalty is a topic that has received much
attention since the 1990s as relationship marketing has become a popular marketing scheme. The
attention toward loyalty marketing has not declined and businesses are still trying to find various
ways to enhance the effectiveness of loyalty marketing (McCall and Voorhees, 2010, Sheth and
Parvatiyar, 2000, Shoemaker and Lewis, 1999 and Srinivasan and Moorman, 2005).
All in all, marketing research, including customer loyalty topics, in the hospitality industry has
been consistently growing and many scholars made efforts to provide the research status quo
(Bowen and Sparks, 1998, Dev et al., 2010, Oh et al., 2004 and Svensson et al., 2009). Based on
the previous hospitality marketing research, this study attempted to take a closer look on a
specific topic of customer loyalty. More recently, such an approach on narrowed area of interest
has been employed in various hospitality and business review studies. Scholars such as Leung
and Law (2007) analyzed research particularly on information technology within the hospitality
industry, Lu and Nepal (2009) on sustainable tourism, Anderson and Xie (2010) on hospitality
revenue management, Kusluvan et al. (2010) on human resources management issues in the
tourism and hospitality industry, and Hesford and Potter (2010) on hospitality accounting as
well. The purpose of this study was to review published research on customer loyalty to better
understand its evolution and development in the hospitality industry. Specifically, the study took
a comparative approach by examining published research from academic business and
hospitality journals. This study analyzed topical areas and research methods by examining the
prominent trends and further suggested directions for future research.
2. Literature review
2.1. Significance of customer loyalty
Customer loyalty is described as a customer's repeat visitation or repeat purchase behavior while
including the emotional commitment or expression of a favorable attitude toward the service
provider (McAlexander et al., 2003, Petrick, 2004 and Shoemaker and Lewis, 1999). Numerous
studies emphasize the value of customer loyalty to be significant. It is known that loyal
customers visit frequency is higher and make more purchase than non-loyal customers do. They
are also less likely to switch to a competitor brand just because of price and other special
promotions and bring in new customers through positive word-of-mouth which can sometimes
save a huge amount of the expenses for advertising (Haywood, 1988, Oliver, 1999, Petrick,
2004 and Shoemaker and Lewis, 1999). Petrick (2004) argued that repeat customers are more
than just a secure source economically, but they can also be information channels that casually
create a linkage to their friends, relatives, colleagues, and other probable consumers and thus
enable businesses to uphold a clientele base.
One of the most essential theories of loyalty marketing is that a small increase in loyal customers
can bring a significant increase in profitability to a business (Reichheld, 1993 and Reichheld and
Sasser, 1990). Reichheld and Sasser (1990) found that a 5% increase in customer retention
resulted up to a 125% increase in profits in their study in the service industry. Moreover, it has
been known that it is six times more expensive to plan marketing strategies to attract new
customers than it is to retain existing customers (Petrick, 2004). Companies realized they need to
do all they can to retain the top 1% of the customers of the pyramid top as it was discovered that
they generated as much profit as 50% of those at the bottom end of the pyramid (Forte, 2011).
On the whole, loyalty marketing emerged as being necessary and ideal as customer loyalty has
been recognized as a major source of competitive advantage for firms by having a powerful
impact on performance. It has been recognized that enhanced customer loyalty reduces customer
acquisition costs and increases revenue, which ultimately lead businesses to greater profitability
(Lam et al., 2004 and Reichheld and Sasser, 1990).
Industry operators are fully aware of the positive impact that customer loyalty brings to their
businesses and they have been constantly exploring various approaches to increase customer
loyalty. Given the interest and its high recognition on customer loyalty, research on the subject
expanded to various areas and industries both theoretically and practically. The domain of
loyalty was limited to customers repeat purchase behavior in early studies. However, research
on customer loyalty evolved appreciably and subsequent studies started to propose the
customers psychological attachment to the service provider or the brand as an important aspect
(Sheth and Parvatiyar, 2000). Overall, loyalty has been perceived as a multi-dimensional
construct and its research progress shows immense development (Bowen and Chen, 2001).
2.2. The construct of customer loyalty
To date, customer loyalty has been mostly accepted in the marketing literature as a three
dimensional conceptualization: behavioral, attitudinal, and composite (Bowen and Chen,
2001 and Jones and Taylor, 2007). The behavioral perspective measures loyalty as the static
outcome of a dynamic process including antecedents such as actual consumption, repeat
purchase, duration, longevity, frequency, proportion of market share, and word-of-mouth
recommendations (Baloglu, 2002, Jones and Sasser, 1995 and Mechinda et al., 2008). Probability
of future purchase of a brand and brand switching behavior are also examples that have been
addressed to assess behavioral loyalty (Jacoby and Kyner, 1973 and Ostrowski et al., 1993).
Ultimately, behavioral loyalty involves the actual share of wallet the degree of buying or
using of the service and their future purchasing intention (Jones et al., 2007, Jones and Sasser,
1995, Kim et al., 2008 and Tanford et al., 2010). Therefore, academic and the real business
world both emphasize its importance since it is of utmost crucial to the service provider and it
highly relates to revenue and prosperity (Chao, 2008).
The attitudinal approach conceptualizes loyalty as a function of a psychological process (Jacoby
and Chestnut, 1978) and measures loyalty in terms of a consumers strength of affection toward a
brand (Baloglu, 2002 and Petrick, 2004). Trust has been considered as a key factor in building
customer loyalty (Bowen and Chen, 2001 and Morgan and Hunt, 1994). Emotional attachment or
commitment could be defined as liking the company or the brand, enjoying the stay at a
particular property, and having a sense of belonging to the company.
Composite loyalty implies that neither the behavioral nor the attitudinal loyalty approach alone
describes loyalty. Instead it suggests that loyalty should be simultaneously considered from a
behavioral and attitudinal perspective (Backman and Crompton, 1991, Dick and Basu,
1994 and Petrick, 2004). Dick and Basu (1994) proposed repeat patronage (behavioral
dimension) and relative attitudes (attitudinal dimension) to conceptualize loyalty. Relative
attitudes were described into three categories: cognitive those related to informational
determinants toward a brand, affective those related to feelings toward a brand, and conative
those related with behavioral characters toward a brand. They argued that true brand loyalty
exists only when consumers attitude and intention all point to a focal preference toward the
brand at the same time. Similarly, Oliver (1999) argued that consumers develop a sense of
loyalty in the order from cognitive, affective, and to conative and finally in a behavioral manner.
Since composite measurements of loyalty combine both the behavioral and the attitudinal
perspective, customers preference of product, frequency of purchase, recency of purchase, total
amount of purchase, and propensity of switching brands are taken into consideration for
measurement (Bowen and Chen, 2001).
2.3. Factors that influence customer loyalty
Numerous studies attempted to identify the determinants of customer loyalty (Dick and Basu,
1994, Lee and Cunningham, 2001 and Yang and Peterson, 2004). Researchers may have
distinctive ideas in conceptualizing loyalty, thus, resulting in different discussions in verifying
the antecedents of loyalty. Nonetheless, it has been suggested that customer loyalty may be
fostered with distinctive outcomes depending on its factors and therefore, it should be managed
and integrated strategically (Shoemaker and Bowen, 1998). Overall, factors that influence
customer loyalty were categorized into two big sets in this study: one related to internal factors,
and the other related to external factors. Internal factors are described as factors associated
internally, which affect the organization to serve its customers directly. The firm holds the ability
to facilitate with the strategies and tactics. In contrast, external factors are conditions external to
the firm and relate to how consumers recognize the brand with respect to the brand competition.
These are often formidable as control is limited from the firm (Duffy, 2003 and Kotler et al.,
2010).
2.3.1. Internal factors
Examples of internal factors include the product itself (brand), service quality, promotion mix,
and costs. A brand is the genuine value that customers demand today, thus a product that creates
an extraordinary experience becomes a loyalty-enabling brand. Promotions and marketing tactics
are utilized not only to create a strong brand from enhancing customer experience and building
relationships, but also to efficiently manage competition. Service quality is a component of the
product that customers perceive and it is known as a critical determinant of loyalty. Recovery
strategies and service determinants are highly related to service quality as it has been measured
as a form of attitude often linked to satisfaction (Duffy, 2003 and Kotler et al., 2010). Whereas
satisfaction is either an end state or appraisal process resulting from exposure to a service
experience (Oliver, 1993), quality refers to the evaluation of the service attributes that is
primarily controlled by the service provider (Baker and Crompton, 2000). On the whole, it is
expected that the better the perceived quality of services, the higher customers intention to
repatronize that service provider (Baker and Crompton, 2000 and Lee and Cunningham, 2001).
Costs can be categorized into economic and transaction costs. Economic costs are costs that
customers have to sacrifice to acquire a product or service (Monroe, 1990). Transaction cost is a
type of nonmonetary cost that exists in exchange processes as a consequence of the interaction
among various factors. The intangible characteristic of service makes such difficulty prevailing
and gives rise to differences in the transaction costs (Williamson, 1987). Consequently,
transaction difficulty negatively affects customer loyalty. The service provider's increase in
understanding customers tastes and preferences speeds up the transaction process and further
increases customer satisfaction and loyalty through customization (Lovelock, 1983).
2.3.2. External factors
Examples of external factors include switching costs, situational factors, perceived value,
satisfaction, commitment, and trust. Switching costs are the costs involved in changing from one
service provider to another (Heide and Weiss, 1995). Switching costs are the costs that are
expected to encounter in the future, whereas economic and transaction costs are those incurred in
the present (Lee and Cunningham, 2001). Switching costs include monetary, behavioral, search,
and learning related, thus can be economic and emotional (Yang and Peterson, 2004). Once a
customer is involved in a transaction relationship, he/she is more likely to become behaviorally
loyal because the cost of switching transaction partners gets higher. Customers often become
locked into their service provider after considering information search cost, perceived risk, and
substitutability of the service provider (Dick and Basu, 1994 and Lee and Cunningham, 2001).
Marketing literature also suggests that consumers make purchases based on situational factors
(Wicker, 1969). Situational factors can be understood as the actual or perceived opportunity for
engaging in attitude-consistent behavior (e.g., in the case of stockouts of preferred brands),
incentives for brand switching through reduced prices (i.e., deals) of competing brands, and
effective in-store promotions that might increase the salience of a competing brand over one
normally preferred by the consumer (i.e., by impacting on the evoked set in a decision
environment) (Dick and Basu, 1994, p. 105).
Perceived value is defined as a customer's opinion of a product's value. It has been associated
with loyalty either directly or indirectly as it is essential for various marketing activities.
Customers are strongly motivated to repeat patronage when they are provided with high value
(Yang and Peterson, 2004). In context, one's intention to repeat patronage to a service provider
will be lower when perceived cost is higher, as well as when service time is longer (Dodds and
Monroe, 1984 and Zeithaml, 1988). Satisfaction refers to the overall affective response resulting
from the service experience (Oliver, 1993). Many scholars related satisfaction to customer
loyalty as a positive loyalty determinant (Bowen and Chen, 2001, Lam et al., 2004 and Yang and
Peterson, 2004).
The concept of trust is derived from the analysis of personal relationships because it is
considered an inherent characteristic of any valuable social interaction and has become a popular
issue due to the relational orientation in loyalty marketing (Morgan and Hunt, 1994). Trust may
include various meanings, nevertheless, all the terms share the same idea that trust is a feeling of
security based on the belief that the customer's behavior is guided and motivated by the favorable
and positive intentions toward the service provider. Therefore, the lesser the doubt, the lesser the
risk in the relationship, and thus, enabling the development of a valuable relationship (Ballester
and Aleman, 2001).
Commitment has been characterized in a variety of ways that can be classified into affective
(emotional), continuance (obligation), and value-driven (benefits). Affective commitment is an
emotional attachment to the brand that creates a sense of belonging (Baloglu, 2002 and Jones et
al., 2007). Continuance commitment is based more on relational motives, focusing on
termination, or switching costs. It carries a sense of actual or perceived obligation that could
engender negative emotions such as the feeling of locked in or stuck (Jones et al., 2007).
Value commitment is the value of benefits received, yet distinctive from positive tangible
benefits of reward membership, for being loyal to a specific brand (Mattila, 2006).
3. Methodology
The hospitality journals that were reviewed were selected based on the study by McKercher et al.
(2006). Hospitality journal rankings were decided on the aggregate importance scores in their
study. The four journals that received the highest scores were selected and they are mentioned
below. The business journals were selected based on the study by Hult et al. (1997). Scholarly
marketing journals were reviewed from a marketing doctorate-/non-doctorate-granting institution
criteria. The selected four journals for this study were overall ranked the highest.
The hospitality journals included Cornell Hospitality Quarterly (hereafter, Cornell Quarterly),
International Journal of Hospitality Management (hereafter, IJHM), Journal of Hospitality
and Tourism Research (hereafter, JHTR), and International Journal of Contemporary
Hospitality Management (hereafter, IJCHM). The business journals included Journal of
Marketing (hereafter, JM), Journal of Marketing Research (hereafter, JMR), Journal of
Consumer Research (hereafter, JCR), and Journal of Retailing (hereafter, JR).
In total, 117 loyalty marketing focused articles published in four hospitality-oriented
(hereafter, hospitality) journals were reviewed, and a total number of 145 loyalty marketing
focused articles published in four business-oriented (hereafter, business) journals were
reviewed from 2000 to 2010. Using a similar approach by Oh et al. (2004), one author classified
the articles to keep consistency after a comprehensive discussion with the other author along
with inter-rater reliability check. Loyalty focused articles were selected based on previous
research as it was suggested that customer loyalty is a multi-dimensional concept that consists of
various aspects. Thus, based on the literature review, articles with topics related to the construct
of loyalty and influential factors on loyalty were chosen. Overall, topics included repeat
visit/purchase, customer retention, emotional commitment, favorable attitude, relationship,
positive word-of-mouth, and switching behavior (Dick and Basu, 1994, Haywood, 1988, Lam et
al., 2004, McAlexander et al., 2003, Petrick, 2004, Reichheld, 1996 and Shoemaker and Lewis,
1999).
Only referred papers were included for the review and any type of discussion notes, comments,
reviews, and announcements were eliminated. Overall, this study reviewed research subjects,
employed research methods, noteworthy research trends, and target industry applications.
Several sub-categories had been adjusted for this study because they were redundant or omitted.
Finally, comparisons were made between hospitality and business research on customer loyalty.
3.1. Research subjects
This study classified the research subjects based on the dimensions of customer loyalty and
influential factors on loyalty. Consequently, the research subjects were categorized into two main
areas with three sub-categories under each. For the construct of customer loyalty, studies that
focused their investigation on customer loyalty from the behavioral perspective were classified
under Behavioral and studies that focused on the attitudinal perspective were classified under
Attitudinal. Others that included both perspectives were classified under Composite.
The other main subject area was related to influential factors on customer loyalty, including sub-
categories of internal factor, external factor, and both. Studies that included internal factors that
can affect customer loyalty such as service quality and cost were classified under Internal and
studies that included external factors such as satisfaction, perception, and situational factors were
classified under External. Those studies that included both factors were classified under
Both.
3.2. Industry application
Industry application was examined according to which industry the data was collected from.
Conclusively, a total number of 12 categories emerged: Airline, Automobile, Casino/Destination,
Electronics/IT, Finance, F&B, Hotel/lodging, General hospitality, General/Multiple, Grocery,
Retail, and Others. A number of studies collected data from university students or faculty
members under the condition that they were consumers. For example, if a study conducted an
experiment on undergraduate students to test their perception levels on retail brand loyalty, the
target industry was regarded as Retail. Therefore, industry application was categorized under
Retail. Likewise, if a study surveyed data from panels or consultants to investigate a hotel's
loyalty program, the target industry was regarded as Hotel/lodging since the study aimed that
specific industry. Casino/Destination included casinos or destination resorts. Electronics/IT
included computers, cellular phones, television, and online businesses. Finance included banks
and credit card companies. Some hospitality studies did not purposely target to a specific
industry or business; therefore, were classified under General hospitality. On the other hand,
many business articles targeted multiple or general industries. Hence, they were classified under
General/Multiple. Finally, a few other industries such as cruise, spa, cosmetics, newspaper,
and telecommunication were categorized under Others.
3.3. Main analysis methods
Many studies employed multiple data analysis techniques. However, this study only included the
main analysis method of each article that was used to test the hypotheses or answer the research
questions. Based on Oh et al. (2004), the main research analysis methods were classified into
eight categories with some modification. Descriptive method was separated into two categories:
Descriptive/Content analysis and t-test/Chi-square/Cross-tabulation analysis/Correlation.
This study separated t-test, Chi-square test, cross-tabulation, and correlation from descriptive
analysis because they tested significance. Explanatory methods such as content analysis and
importance-performance analysis, used in qualitative studies, were categorized under
Descriptive/Content analysis. In addition, there were few articles that utilized more than one
main method to test the hypotheses or to answer the research question and thus, a category
named Multiple methods was added. Most of those studies implemented mixed methods as the
research design. All other multivariate statistical methods and qualitative data analysis methods
were used occasionally, which were categorized under Others. Time series analysis was
excluded because none of the reviewed articles employed it.
Overall, the eight categories of data analysis method is summarized as the following: Analysis of
(co)variance (univariate and multivariate) (hereon, AN(C)OVA/MAN(C)OVA),
Descriptive/Content analysis, Factor/Cluster/Discriminant analysis, Linear/Non-linear modeling,
Structural equational modeling (hereon, SEM), t-test/Chi-square/Cross-tabulation
analysis/Correlation, Multiple methods, and Others. GLM (general linear model) repeated
measures was included in analysis of (co)variance, while regression analysis and logit models
were all included in Linear/Non-linear modeling.
4. Findings
4.1. Study topic review and trends
Table 1 represents the results of research subject classification by each journal. In summary,
hospitality journals published a total of 117 loyalty articles (18%) out of 655 marketing articles.
Business journals published a total of 145 loyalty articles (9%) out of 1655 marketing articles.
Although the total number of loyalty articles published in business journals was higher, the
overall percentage turned out to be lower because two business journals (JM and JMR) were
already specifically marketing oriented.
Table 1.
Customer loyalty research by subject.
Subject
Hospitality

Business

Total

Journal Cornell IJHM JHTR IJCHM # % JM JMR JCR JR # % # %
Construct
Behavioral 3 1 2 3 9 7 21 10 5 9 45 31 54 21
Attitudinal 16 17 15 16 64 55 16 9 11 7 43 30 107 41
Composite 14 9 8 13 44 38 19 15 9 14 57 39 101 38
Factors
Internal 17 16 9 10 51 44 23 17 6 14 60 41 111 42
External 6 5 7 8 27 22 7 8 10 5 30 21 57 22
Both 10 6 9 14 39 33 26 9 9 11 55 38 94 36
Total 33 27 25 32 117 100 56 34 25 30 145 100 262 100
Table options
Consequently, hospitality research studies focused more on attitudinal loyalty, while business
research studies indicated a more even distribution among behavioral, attitudinal, and composite
loyalty issues. Both hospitality and business research showed a similar tendency in terms of
factors that affected customer loyalty. Fig. 1 represents the comparison on the research subjects
between hospitality and business journals. Subsequently, a brief summary is presented about
each research subject on hospitality and business studies.

Fig. 1.
Research subject comparison between hospitality and business journals.
Figure options
4.1.1. Loyalty construct
Attitudinal loyalty (55%) received far more attention than behavioral loyalty (14%) among
hospitality journals. Some of the most common topics on attitudinal loyalty were related to
customers perceived value, repurchase intention, and satisfaction (Bowen and Chen, 2001,
Gupta et al., 2007, Hanaia et al., 2008 and Skogland and Siguaw, 2004). Customers emotional
perceptions and attitudes (Mason et al., 2006 and Ryu and Jang, 2007), brand image and brand
perception (Back, 2005 and Hsu, 2000), and emotional long-term relationships (Hendler and
LaTour, 2008, Mattila, 2006 and Scanlan and McPhail, 2000) were some other attitudinal loyalty
topics that were given much attention. In general, behavioral loyalty studies included topics
related to the effectiveness of loyalty schemes and rewards programs (Lucas and Bowen,
2002 and Taylor and Long-Tolbert, 2002). Yet, results show a considerable focus on composite
loyalty (32%) because many studies incorporated the attitudinal perspective (Baloglu,
2002 and Jang and Mattila, 2005).
In contrast, not only was behavioral loyalty (31%) more researched than attitudinal loyalty
(30%), but it was also more popular within business journals than hospitality journals (14%).
Similar to hospitality journals, many behavioral loyalty studies from business journals attempted
to understand the financial performance of customer loyalty programs (Liu, 2007 and Meyer-
Waarden, 2007), or dealt with topics related to schemes such as coupon proneness (Swaminathan
and Bawa, 2005), customized promotions (Zhang and Wedel, 2009), and loyalty cards
(Demoulin and Zidda, 2009).
Studies on attitudinal loyalty from the business journals turned out to be quite similar to those
from the hospitality journals. Gustafsson et al. (2005), for example, investigated the dimensions
of satisfaction-relationship commitment and how they impacted customer retention. Brand
relationships (Aggarwai, 2004 and Thompson and Sinha, 2008), loyalty program experience
(Allaway et al., 2003), and customer relationship management (Auha et al., 2007), and
strengthening customer loyalty through emotional bonding (Yim et al., 2008) were investigated.
Examples of composite loyalty studies include customers purchase intentions by satisfaction
level (Ganesh et al., 2000) and brand experience (Brakus et al., 2009).
4.1.2. Factors influencing loyalty
Both hospitality and business journals showed a parallel trend in terms of determining the factors
influencing customer loyalty. Overall, studies dealt with internal factors (44% from hospitality
journals and 41% from business journals) more than external factors (22% from hospitality
journals and 21% from business journals), and a considerable amount of studies covered both
factors (33% from hospitality journals and 38% from business journals).
In terms of internal loyalty factors, hospitality research concentrated on service failure and
recovery strategies (McCollough, 2000 and Namgung and Jang, 2010) or service determinants
(McCain et al., 2005), while business journals showed more interest on the products or specific
promotions (Ailawadi et al., 2008 and Feinberg et al., 2002). Both hospitality and business
research contributed a decent amount of studies related to information technology as well. For
example, study topics such as website quality (Bai et al., 2008) and online business (e-
commerce) antecedents (Srinivasan et al., 2002) were explored.
Customer satisfaction was the dominant subject related to external loyalty factors within
hospitality research (Bowen and Chen, 2001, Gupta et al., 2007 and Skogland and Siguaw,
2004). Business research included more various external loyalty subjects such as switching costs
(Patterson and Smith, 2003, Lam et al., 2010 and Zauberman, 2003) together with customer
satisfaction (Ganesh et al., 2000 and Yim et al., 2008).
4.2. Industry application review
Table 2 represents the industry application categorization and Fig. 2 illustrates the comparison
between hospitality and business journals. Most of the studies collected data from general
consumers targeting all types of businesses as a whole (52%). Such results are due to the fact that
nearly all the articles from the business journals were conducted from a broader perspective. In
particular, data was collected frequently from business sectors such as retail (13%), followed by
electronics (7%), grocery stores (6%), bank and credit card companies (4%), airlines (3%), and
automobile (3%). Data collection from other industries such as cosmetics, newspapers, and
telecommunication comprised a total of 10%.
Table 2.
Customer loyalty research by industry application.
Industry
application
Hospitality

Business

Total

Journal
Cornel
l
IJH
M
JHT
R
IJCH
M
# %
J
M
JM
R
JC
R
J
R
# % # %
Airline 1 0 0 0 1 0 3 0 0 1 4 3 5 2
Automobile 0 0 0 0 0 0 4 1 0 0 5 3 5 2
Casino/Destinati
on
3 2 1 0 6 5 0 0 0 1 1 0 7 3
Electronics 0 0 0 0 0 0 4 3 3 0 10 7 10 4
Hotel/lodging 11 9 9 12 41 36 0 0 0 0 0 0 41 16
Finance 0 0 0 0 0 0 2 1 0 3 6 4 6 2
F&B 7 11 6 8 32 27 2 0 0 0 2 0 34 13
Retail 0 0 0 0 0 0 7 3 0 9 19 13 19 7
General
hospitality
10 3 6 9 28 24 0 0 0 0 0 0 28 11
General/Multiple 0 0 0 0 0 0 26 24 17 8 75 52 75 29
Grocery 0 0 0 0 0 0 3 0 2 4 9 6 9 3
Others 1 2 3 3 9 9 5 2 3 4 14 10 23 9
Total 33 27 25 32
11
7
10
0
56 34 25 30
14
5
10
0
26
2
10
0
Table options

Fig. 2.
Industry application comparison between hospitality and business journals.
Figure options
Conversely, the range of businesses in the hospitality industry is limited so data collection for
hospitality articles was specific. The majority of data was collected from the Hotel/lodging sector
(36%), followed by the restaurant business (27%), and General hospitality businesses as a whole
(24%) mostly from travelers and potential tourists. Additionally, data collection from casinos
showed 5% and there was only one study from an airline company. Other industries such as
convention/meeting, cruise, and resort/leisure/timeshare received increasing attention while spas
were targeted occasionally, showing 9% all together.
4.3. Methodology review
Table 3 summarizes the research designs and methods and figures of comparisons between the
hospitality and business journals are illustrated below (see Fig. 3, Fig. 4, Fig. 5 and Fig. 6). In
summary, 90% of the articles were empirical studies and 85% used a quantitative research
design. Also from an individual perspective, empirical studies (85% from hospitality research
and 94% from business research) and quantitative research designs (79% from hospitality
research and 90% from business research) comprised the majority. While most of the qualitative
studies were conceptual, there were a few qualitative studies that attempted to apply empirical
research designs. Studies barely utilized mixed methods (see Table 3, Fig. 3 and Fig. 4). Those
studies that implemented mixed methods resulted in multiple stages of data collection.
Table 3.
Customer loyalty research by method employed.
Method
Hospitality

Business

Total

Journal
Corne
ll
IJH
M
JHT
R
IJCH
M
# %
J
M
JM
R
JC
R
J
R
# % # %
Type of study
Conceptual 8 0 1 9 18 15 5 0 2 1 8 6 26 10
Empirical 25 27 24 23 99 85 51 34 23 29
13
7
94
23
6
90
Research design
Qualitative 9 1 0 12 22 19 7 0 2 3 12 8 34 13
Quantitative 24 24 25 20 93 79 48 34 21 27
13
0
90
22
3
85
Mixed methods 0 2 0 0 2 2 1 0 2 0 3 2 5 2
Data collection/orientation
Case study 1 0 0 0 1 1 0 0 0 0 0 0 1 0
Experiment 4 2 3 1 10 9 5 5 20 3 33 23 43 16
Interviews/focus
groups
0 2 0 4 6 5 4 1 2 3 10 7 16 6
Primary field survey 17 19 22 19 77 66 20 13 1 18 52 36 12 50
Method
Hospitality

Business

Total

Journal
Corne
ll
IJH
M
JHT
R
IJCH
M
# %
J
M
JM
R
JC
R
J
R
# % # %
9
Secondary data 2 3 0 7 12 10 24 11 1 6 42 29 54 21
Simulation 0 0 0 0 0 0 1 2 0 0 3 2 3 1
Multiple 1 1 0 0 2 2 2 2 1 0 5 3 7 3
Other 8 0 0 1 9 8 0 0 0 0 0 0 9 3
Main analysis methods
AN(C)OVA/MAN(C)
OVA
2 1 3 1 7 6 3 4 19 3 29 20 36 14
Descriptive/Content 10 0 1 14 25 21 7 0 2 3 12 8 37 14
Factor/Cluster/Discrim
inant
0 0 1 0 1 1 0 0 0 0 0 0 1 0
(Non)Linear modeling 7 6 3 9 25 22 21 21 1 10 53 38 78 30
SEM 3 12 12 4 31 26 17 4 0 13 34 23 65 25
t-Test/Chi/Correlation 5 3 2 1 11 9 1 0 0 1 2 1 13 5
Multiple methods 1 3 3 0 7 6 6 4 3 0 13 9 20 8
Others 5 2 0 3 10 9 1 1 0 0 2 1 12 4
Total 33 27 25 32
11
7
10
0
56 34 25 30
14
5
10
0
26
2
10
0
Table options

Fig. 3.
Customer loyalty research design between hospitality and business journals.
Figure options

Fig. 4.
Customer loyalty research method between hospitality and business journals.
Figure options

Fig. 5.
Customer loyalty data collection between hospitality and business journals.
Figure options

Fig. 6.
Customer loyalty data analysis methods between hospitality and business journals.
Figure options
The majority of the hospitality articles employed primary field survey (66%) as the main data
collection whereas business articles showed a more comparable distribution within data
collection methods among primary field survey (36%), secondary data (29%), and experiments
(23%). Many business journal articles used secondary data or experiments compared to
hospitality journal articles. On the whole, interviews and focus groups (6%) were seldom used
and case studies (less than 1%) or simulations (1%) were found to be rarely employed (see Table
3 and Fig. 5).
In terms of main analysis methods, SEM (26%), Linear/Non-linear modeling (22%) and
Descriptive/Content analysis (21%), were most frequently employed for hospitality research.
Overall, causal modeling data analysis techniques were more popular than general significant
tests such as t-test, Chi-square test, and cross-tabulation analysis. Casual modeling data analysis
techniques were used more often in business research as well. Linear/Non-linear modeling
(38%), SEM (23%), and AN(C)OVA/MAN(C)OVA (20%) were the three data analysis methods
utilized most commonly. On the contrary to hospitality research, analysis of (co)variance and
GLM repeated measures was used more often because a large number of business studies were
based on experiments that were aimed to find out the disparity among diverse groups or using
stimulus. Despite Linear/Non-linear modeling was used frequently both in hospitality and
business research, hospitality research employed more regression analysis while business
research employed more logit models. Logit models were particularly employed more frequently
by exploiting secondary data within business research (see Table 3 and Fig. 6).
The objective of multivariate statistical methods such as factor analysis, cluster analysis, and
discriminant analysis is not to test a hypothesis or answer a research question, therefore, was not
used often by itself. However, these methods were often used together with other methods such
as analysis of variance, regression, or structural equational modeling. Numerous studies used
factor analysis or cluster analysis to categorize multiple variables and then used other statistical
data analysis methods to test the hypotheses. Some studies used multiple statistical methods
because it was impossible to test a variety of hypotheses with a single procedure. Other methods
such as correspondence analysis, multi-dimensional scaling, and ethnography, were seldom used
for data analysis (see Fig. 6).
5. Conclusion
This study reviewed customer loyalty articles published in four hospitality journals (Cornell
Quarterly, IJHM, JHTR, and IJCHM) and four business journals (JM, JMR, JCR, and JR) from
2000 to 2010. In general, study results showed similar research trends in terms of study topic and
study design between n hospitality journals and business journals. Both journals examined
similar research subjects. The only exception was that hospitality research journals focused on
more attitudinal loyalty while business research journals showed more interest in behavioral
loyalty. Likewise, the majority of the studies conducted empirical research using quantitative
research designs and most frequently selected primary field survey as data collection methods.
Linear/Non-linear modeling and SEM were employed quite frequently in both areas, and
Descriptive/Content analysis was used dominantly for qualitative studies in both areas as well.
One division where the biggest discrepancy existed was that it seemed hospitality research
focused more on hypotheses testing or answering research questions by using significance testing
methods and regression analysis. For business research, more models using Linear/Non-linear
modeling methods with secondary data (actual performance data) were suggested or more
experiments using analysis of variance and GLM repeated measure methods were conducted.
In sum, hospitality loyalty marketing research progressed by focusing on customers emotion
and the cognitive aspect of purchasing. While some research from hospitality journals adopted
theories from sociology and psychology, the majority attempted to apply marketing theories and
findings to further develop its research scope. For example, the loyalty framework (Dick and
Basu, 1994), commitment-trust model (Morgan and Hunt, 1994), relationship marketing theory
(Berry, 1983, Gronroos, 1990 and Gronroos, 1994), service quality theory (Reichheld and Sasser,
1990, Parasuraman et al., 1985, Parasuraman et al., 1988 and Zeithaml et al., 1996), satisfaction
model (Oliver, 1980 and Oliver, 1993), involvement theory (Beatty et al., 1988), and brand
equity theory (Aaker, 1991 and Keller, 1993) were most commonly integrated from business
research to develop models. The number of studies that developed models solely based on
hospitality research was scarce, which implies that more theory development needs to be done in
hospitality.
Loyalty research from business journals also focused on the role of satisfaction and commitment
and implemented theories from social science and marketing. While theories such as relationship
marketing theory and service quality theory found in hospitality research were also commonly
adopted in business research, brand extension theory (Aaker and Keller, 1990) and brand equity
theory (Aaker, 1991 and Keller, 1993) were recurrently applied. However, business research
showed a higher rate of behavioral loyalty articles in an attempt to estimate various types of
financial values and applied joint models by combining a considerable amount of theories and
models that originated from economics and finance. Studies that adopted models from hospitality
research did not exist, yet hospitality research was referred in some studies. Especially, as loyalty
programs were first introduced from the airline industry, those studies mainly contained loyalty
program topics and compared loyalty program effectiveness to airline companies (Liu and Yang,
2009) or the type of rewards as customization has been recognized as a success factor in service
industries (Agustin and Singh, 2005 and Noble and Phillips, 2004).
As mentioned before, hospitality business products are more influenced by customer experience
and emotion as service is intangible, heterogeneous, and the production and consumption occur
simultaneously. Therefore, while study topics showed similar trends, hospitality research still
conducted more research focusing on the customers, while business research focused more on
the firm's performance. For instance, even on the same topic of loyalty determinants, hospitality
research generally centered on what customers think, whereas business research normally
investigated how customers react. As a consequence, it seems to make sense for the
discrepancy to exist with hospitality research journals focusing more on attitudinal loyalty
studies and business research journals more on behavioral loyalty studies. It goes well along with
the fact that business research used far more secondary data and experiments to understand
consumers actual behavior or discover determinants to build models upon them.
However, it is important to note that there exist differences in orientation between hospitality
journals and business journals, thus it is complicated to derive certain conclusions from a
comparative approach. It was expected that the research scope within business journals would be
more diverse as they serve a broader audience than hospitality journals. Accordingly, business
journals covered topics ranging from micro-level processes to macro-level issues from
psychology, marketing, sociology, economics, to anthropology. JM and JMR were specifically
positioned as the leading scholarly journal in marketing discipline covering a wide range of
topics. The former focused on issues in marketing and marketing management where the latter
focused more on marketing research, from philosophies, theories, to methods. JCR was
particularly recognized for investigation on consumer behavior and JR focused more on the field
of retailing including both products and services. Although some studies from JCR and JR
covered the service industry, hospitality studies were rarely found. JM and JMR relatively had a
higher ratio of hospitality studies, but still extremely low. Overall, business journals showed a
higher level of being interdisciplinary by targeting a variety of areas.
The impact factor for an academic journal indicates the average number of times published
papers are cited up to two years after publication. It is calculated based on a three-year period
and a higher value signifies higher frequency of being cited in a given period. Business journals
showed an impact factor of on average of 2.85 (JM; 3.77, JMR; 2.8, JCR; 2.59, JR; 2.257) while
hospitality journals showed 0.82 (Cornell; 0.549, IJHM; 1.382, IJCHM; 0.71, JHTR; 0.653). It is
assumed that studies from business journals were cited more frequently because they covered a
broad-spectrum and hospitality studies are relatively specialized. Additionally, the majority of
business journals were published bi-monthly whereas the majority of hospitality journals were
published quarterly (one business journal was published quarterly, and one hospitality journal
was published bi-monthly) with an average number of 10 articles in each issue (except for
IJHM). Therefore, business journals were superior in quantity.
Customer loyalty and customer relationship management earned substantial amount of interest
for research especially during the 1990s and early 2000s as chain hotels realized the importance
of existing customers through brand extension. Research at that time focused on understanding
customers and developing closer relationships to retain them as loyal customers (Dev et al.,
2010). Although, Internet marketing has emerged as a hot topic during the 2000s as the World
Wide Web became prominence, customer loyalty still remains as one of the most frequently
addressed topics in hospitality marketing research due to its prime importance (Kumar et al.,
2010 and Tanford et al., 2012). It is expected that marketing communications, social media,
service scapes, brand management, sustainability will continue to gain interest in the 2010s, but
the core idea is to incorporate smart usage of data as hospitality businesses are clearly
understanding the need to focus their investments on profitable relationships (Dev et al., 2010).
Thus, the main theme of customer loyalty in hospitality marketing research is expected to
emerge by incorporating data-driven marketing and a mixture of other marketing subjects. For
example, evaluating the effectiveness of loyalty programs and schemes will continue to be
conducted using a mixture of data, methods, and industries. Despite that loyalty programs were
developed to increase profitability for a firm, it has also been questioned whether these schemes
were merely provoked by competition due to negative results (Meyer-Waarden, 2007). More
recently, hospitality marketers accentuated the importance of investing in profitable customer
relationships (Dev et al., 2010), and many scholars attempted to investigate the effectiveness of
loyalty programs in terms of its performance (Liu, 2007 and Lucas and Bowen, 2002). This trend
may remain steady as attention on database marketing is growing. The use of integrated data
with innovative analytical techniques is expected to support advanced research. As the main
objective of loyalty programs is to encourage customers repeat purchase behavior by offering
rewards, whether tangible or intangible (Meyer-Waarden, 2007), future research should
incorporate different types of rewards from a costbenefit analysis approach as well. Research on
consumer behavior from a dynamic perspective would be necessary to strategically manage
loyalty program/schemes as new traveler markets and diverse segments are constantly emerging
(Hanaia et al., 2008).
Although the number of studies on branding and E-loyalty/IT were considerably smaller, these
two research subjects are anticipated to acquire exceptional growth going on forward. Computers
are now regarded as commonplace and the Internet serves as the main method for
communication for the younger generations (Piccoli, 2010), so research will be needed to
acknowledge how to effectively communicate and engage with generations born in the late
1970s and thereafter. Social media is a dynamic field rising as a hot topic and many hospitality
marketers are trying to maximize its utilization. Consumers from diverse backgrounds are
communicating more and exchanging abundant amount of information through social media
(Piccoli, 2010). It is expected that it will continue to receive attention, if not more. Additionally,
mobiles are stepping up as practical marketing devices as the usage rate of smart phones is
extensively increasing nowadays (Sileo and Rheem, 2010). Therefore, the use of mobile
technology is expected to rise as one hot topic for research along with social media. The Internet,
social media, mobiles, and further advanced technology are likely to have an impact on customer
loyalty and this should be investigated in various phases and aspects.
Brand loyalty has developed into diverse areas from brand preference to brand community.
However, sub-categories such as brand alliance and brand viability will probably emerge
connected to customer loyalty. For example, GHA Discovery (global hotel alliance) is an
upgraded loyalty program, where different hotel brands throughout the world participate under
one universal program (Garrido, 2011). Las Vegas Sands Corporation recently announced a 10-
year brand alliance licensing agreement with Intercontinental hotels (Stutz, 2010), and the
Cosmopolitan Las Vegas announced a partnership with Marriott International as well (Benston,
2010). The hospitality industry often engages in a range of brand alliance to enhance revenue and
increase market share. With the exploration of brand growth and the role of brands, brand
alliances should continue emerging and research on its outcome is more likely to be pursued.
Loyal customers have been known to less likely switch to a competitor brand (Petrick,
2004 and Shoemaker and Lewis, 1999) and it has been discovered that loyalty programs play an
important role to customers on hotel brand selection (Barsky and Nash, 2003 and Barsky and
Nash, 2006). Therefore, it would be interesting to see what type of impact brand alliance would
have on customer loyalty and loyalty program performance.
In terms of research methods, future academic research is expected to advance by continuously
implementing causal modeling data in more dynamic stages as businesses are striving to obtain
competitive advantages by understanding their customers more deeply. Besides, it would be
beneficial by optimizing other study designs for data collection such as case studies,
experiments, and secondary data. The majority of hospitality research exploited primary field
surveys, which seems limited and under-utilized. Overall, there should be an implementation of
diverse methods of data collection, data analysis techniques in future hospitality marketing
research.
To our knowledge, this was the first study that specifically reviewed customer loyalty articles
within the hospitality industry that additionally took a comparative approach between hospitality
journals and business journals. However, there is no study without flaws. Even though this study
referred to the studies by Oh et al. (2004) and Hult et al. (1997), the selection of journals, the
assortment of articles, and the classification process may be considered may be biased or
subjective. Future studies may enhance the inter-coder reliability by including more systematic
analysis and ensure the validity of the interpretations. Finally, observing previous studies for a
period of ten years may not be enough to recognize its full evolution and development of
research in the two areas of customer loyalty discipline. Regardless of the aforementioned
limitations, this study is expected to contribute to the growing knowledge of customer loyalty
research.
Acknowledgement
We graciouly acknowledge the support by the Caesars Foundation for this research.
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Customer loyalty marketing research: A comparative approach

between hospitality and business journals

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