Title: A two-stage approach for a reflective-formative hierarchical latent variable model for measuring customer loyalty: special case of Indian e-customers

Authors: Thomas John Paul; Jayanth Jacob

Addresses: Department of Management Studies, College of Engineering, Anna University, Chennai 600025, India ' Department of Management Studies, College of Engineering, Anna University, Chennai 600025, India

Abstract: This study employs an integrated model, combining information system (IS) continuance studies and marketing theories, to examine the post-adoption attitudinal and behavioural loyalty of an e-customer shopping from an online web-store. Our research employs partial least squares (PLS-SEM) regression analysis to test the model. Hedonic value and utilitarian value are proposed as first-order reflective indicators of second-order formative value construct. Gender is included as a moderator for testing the difference in effect for all the relationship paths in the model. Data collected from 403 online shopping customers present a sound support for the research model. The results show that value, trust, satisfaction and habit strongly augment customer's loyalty. The results also indicate that the outcome of satisfaction on habit is significantly stronger for females.

Keywords: loyalty; habit; value; satisfaction; trust; information system continuance; latent variable score; reflective formative construct; gender; moderator; mediator; two-stage approach; PLS-SEM.

DOI: 10.1504/IJEMR.2018.092694

International Journal of Electronic Marketing and Retailing, 2018 Vol.9 No.3, pp.230 - 253

Received: 11 Nov 2016
Accepted: 03 Apr 2017
Published online: 28 Jun 2018 *

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