AN EXTENSION OF THE FOUR-STAGE LOYALTY MODEL: THE CRITICAL ROLE OF POSITIVE SWITCHING BARRIERS

Abstract

This study broadened Oliver's (1997) four-stage loyalty theory by incorporating positive switching barriers and multiple dimensions of cognition, and altering the links in the original theory to build a robust model that offers a clearer understanding of customers' loyalty formation. A total of 394 survey responses from full-service restaurant customers was used to achieve study objectives. Findings for the measurement model revealed a satisfactory level of construct reliability and validity. Supporting all research hypotheses, results from the structural model verified the adequacy of the extended loyalty theory. In particular, five paths were added for model improvement; a sequential process of loyalty development through cognitive, affective, conative, and action loyalty was confirmed; mediating impacts of attitudinal loyalty were identified; and an asymmetric role between factors of positive switching barriers in determining action loyalty was found. Implications of this study are discussed.