Proceedings of the 1st Business & Management Conference, Vienna

EXAMINING THE RELATIONSHIP BETWEEN RISK AVERSION AND BEHAVIORAL LOYALTY IN THE PRESENCE OF BRAND AFFECTS AND ATTITUDINAL LOYALTY AS MEDIATOR: EVIDENCE FROM EMERGING MARKET

MUHAMMAD IRFAN TARIQ

Abstract:

The Purpose of this study was to determine the effect of risk aversion on behavioral loyalty in telecom sector of Pakistan. A self-administered questionnaire was used to collect data from respondents using different mobile phone brands on five-point likert scale. Overall 300 filled useable questionnaires were used for data analysis. Data was analyzed through SPSS 21 and AMOS 18. The outcome of various path analyses such as confirmatory factor analysis and Structural Equation Modeling suggest that Risk aversion has direct and positive effect Attitudinal Loyalty; while it has no direct effect on behavioral loyalty Although Risk Aversion has indirect effect on behavioral loyalty through brand affects and attitudinal loyalty as mediator. Different factors are investigated and studies in this study which connects risk aversion with behavioral loyalty. As a result research endeavors to fill the gap about the lack of academic literature on risk aversion and behavioral loyalty relationship in Pakistani context. The results suggest that practitioners may need to be responsive of Loyalty programs as a key indicator in strengthening customer relationship management. The study proposed theoretical implications for Risk aversion and customer loyalty construct. The study will further help practitioners as well as academicians to formulize novel theories to understand consumers’ behavior.

Keywords: Risk aversion, behavioral loyalty, attitudinal loyalty, brand affects, customer relationship management

DOI: 10.20472/BMC.2015.001.021

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