ABSTRACT

Although increased customer loyalty offers a myriad of benefits (Reichheld & Sasser 1990), retaining current customer loyalty is a daunting task. There is vast literature that emphasizes creating customer satisfaction as the key to customer loyalty. However, some recent literature revealed that high satisfaction does not always ensure loyalty. This finding put forward the understanding that companies should not expend all their efforts creating customer satisfaction since customer satisfaction is a necessary condition but one that is not solely responsible for maintaining customer loyalty. Thus, this notion provides motivation to include other variables in the model.