The Role of Emotional and Rational Trust in Explaining Attitudinal and Behavioral Loyalty: An Insight Into SME Brands
Chuan Huat Ong, Salniza Md. Salleh, Rushami Zien Yusoff
Abstract
Brand trust is a powerful asset for Small and Medium size Enterprises (SMEs) to retain good relationships with their loyal customers, to ensure their long term survival. However, SME managers first need to understand the consequences of the two unique emotional and rational components of trust on attitudinal and behavioral loyalty, because both loyalty dimensions have unique consequences for a brand’s performance. Hence, this study aims to answer two research issues: (1) Do brand intentions and brand reliability influence both attitudinal loyalty and behavioral loyalty? (2) Which component of trust explains attitudinal and behavioral loyalty more? Data were obtained from 210 customers through the use of an intercept survey method on successful SME brands in the restaurant industry. The findings revealed that emotional and rational trust influenced both attitudinal and behavioral loyalty. Despite that, customers have a higher tendency to exhibit attitudinal and behavioral loyalty when a brand can be relied upon to deliver on its promises.
Investigating the Effects of Consumer Innovativeness, Service Quality and Service Switching Costs on Service Loyalty in the Mobile Phone Service Context
Farzana Quoquab, Nor Liza Abdullah, Jihad Mohammad
Abstract
The objective of this study is to examine the effects of consumer innovativeness, service quality, service switching costs and service satisfaction on service loyalty among mobile phone service users. A cross sectional survey was employed which yielded 535 responses. Structural equation modelling using the AMOS version 2.0 was utilized to test study the hypotheses. Test results reveal that service satisfaction, service switching costs and service quality are the three antecedents that directly influence service loyalty. However, consumer innovativeness does not have any direct effect on service loyalty. Moreover, service satisfaction is found to be a partial mediator between ‘service quality’ and ‘service loyalty’. Findings from this study will develop insights to enable policy-makers, managers and marketers to better strategize and effectively implement loyalty programs and prevent their customers from switching. This will enhance value creation for both their users and for the industry.
The Link between HR Attributions and Employees’ Turnover Intentions
Juliana Caesaria Tandung
Abstract
Human Resources Management (HRM) is part of the organizational functions that contribute to the effectiveness of a firm’s performance, and brings an organization a competitive advantage through the implementation of its Human Resources (HR) practices. HR practices adopted by management are perceived or attributed subjectively by individual employees, and can in turn affect the employees’ attitudes and behavior (e.g. Job satisfaction and turnover intention). The purpose of this study is to contribute to the process-based approach by investigating the effect of HR attributions on turnover intentions, with job satisfaction playing a mediating role. The analysis is on the individual level, with 454 respondents from various organizations within the Netherlands. The results show that HR attributions can affect the turnover intention, through the presence of job satisfaction. Thus, it can be said that it is important to always consider the employees’ attitudes and behavior when examining their perception of HR practices, and in predicting their intention to leave.
The Green Shoe Option’s Effectiveness at Stabilizing the IPO’S Stock Price on the Indonesian Stock Exchange (2000-2013)
Siti Saadah, Yunia Panjaitan
Abstract
The increased of price volatility due to positive initial returns will reduce investor confidence and impact on the overall market. Market stabilization mechanism is needed to control the price volatility. This research is intended to explore the effectiveness of Green-Shoe Option in reducing stock price volatility after IPO. This study is done through GARCH model development intended to identify the volatility of IPO shares price. This research compares the volatility price of company shares that apply Green shoe option at IPO with companies that do not apply it. The result of this research on companies that conduct IPO on 2000-2013 periods showed that the green shoe option stabilization program which was used by the issuers was effective in muffing the stock prices’ volatility. Therefore, according to researchers Green Shoe Option stabilization program can be used to prevent or ease the drop of shares price under Public offering.
Debunking the Monday Irrationality through the External Affection of Investors
Rayenda Brahmana, Chee-Wooi Hooy, Zamri Ahmad
Abstract
This study aims to reveal the mechanism of the influences of the full moon and high temperatures on investors’ Monday irrationality. In contrast to other studies, this research was built under a retroductive approach by using a time series quasi experimental study. Investors were directly assessed for their irrationality by using an adapted psychometric test on 4 occasions. The results indicate that there were indeed effects of the full moon and high temperatures on investors’ irrationality. Because the full moon and high temperatures frequently occurred on Mondays, it is most probably those two variables that were the drivers of the Monday irrationality. In the end, we concluded that the rational behaviour assumption can no longer be held. Instead of rationality, the investors were quasi rational. The utility function of Von Neumann-Morgenstern in decision making has to be replaced by the hedonic utility.