PREDICTING THE EFFECT OF SERVITIZATION ON CUSTOMER LOYALTY: EMPIRICAL EVIDENCE FROM EMERGING ECONOMY CONTEXT
The tangible and imitable nature of products has led to the commoditization of most manufactured goods. Manufacturing companies have recognized servitization as a strategic solution to avoid falling into the trap of product commoditization. This study examines the relationship between servitizati...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Hailey College of Banking and Finance, University of the Punjab Lahore
2023-06-01
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| Series: | International Journal of Business Reflections |
| Subjects: | |
| Online Access: | http://journals.pu.edu.pk/journals/index.php/ijbr/article/view/6888/3782 |
| _version_ | 1827394889564815360 |
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| author | Obinna Christian Ojiaku Abude Peter |
| author_facet | Obinna Christian Ojiaku Abude Peter |
| author_sort | Obinna Christian Ojiaku |
| collection | DOAJ |
| description | The tangible and imitable nature of products has led to the commoditization of most
manufactured goods. Manufacturing companies have recognized servitization as a strategic
solution to avoid falling into the trap of product commoditization. This study examines the
relationship between servitization and customer loyalty in indigenous cable manufacturing
firms in Anambra State. Four hypotheses and research questions, formulated in line with the
research objective, guide the study. A survey research design was adopted, and the primary
instrument for data collection was a structured questionnaire. Data were collected from 270
customers across three cable manufacturing firms in Southeast Nigeria. The collected data
were sorted, coded, and analyzed using the Statistical Package for Social Sciences (SPSS)
version 25, and the study hypotheses were tested using multiple regression analysis. The
study found a significant positive effect for advanced services, while basic services had a
significant negative effect. However, the effect of intermediate services was not significant. It
is concluded that servitization can increase customer loyalty, although its contribution is
minimal. Furthermore, the study demonstrates that advanced services have the highest
positive impact on customer loyalty. Based on the findings, the study recommends, among
other things, that firms seeking to servitize should provide advanced services to customers to
increase loyalty. Additionally, they should offer product support and consulting services, as well as provide technical training and seminars to help customers achieve their goals while
using their products. |
| first_indexed | 2024-03-08T18:21:06Z |
| format | Article |
| id | doaj.art-8ca8bbb252564378ad092264a641fefe |
| institution | Directory Open Access Journal |
| issn | 2708-9290 2708-9304 |
| language | English |
| last_indexed | 2024-03-08T18:21:06Z |
| publishDate | 2023-06-01 |
| publisher | Hailey College of Banking and Finance, University of the Punjab Lahore |
| record_format | Article |
| series | International Journal of Business Reflections |
| spelling | doaj.art-8ca8bbb252564378ad092264a641fefe2023-12-30T22:22:21ZengHailey College of Banking and Finance, University of the Punjab LahoreInternational Journal of Business Reflections2708-92902708-93042023-06-0141121https://doi.org/10.56249/ijbr.03.01.37PREDICTING THE EFFECT OF SERVITIZATION ON CUSTOMER LOYALTY: EMPIRICAL EVIDENCE FROM EMERGING ECONOMY CONTEXTObinna Christian Ojiaku0Abude Peter1Nnamdi Azikiwe University, Awka Anambra, NigeriaDepartment of Port Management Warri, Delta State, NigeriaThe tangible and imitable nature of products has led to the commoditization of most manufactured goods. Manufacturing companies have recognized servitization as a strategic solution to avoid falling into the trap of product commoditization. This study examines the relationship between servitization and customer loyalty in indigenous cable manufacturing firms in Anambra State. Four hypotheses and research questions, formulated in line with the research objective, guide the study. A survey research design was adopted, and the primary instrument for data collection was a structured questionnaire. Data were collected from 270 customers across three cable manufacturing firms in Southeast Nigeria. The collected data were sorted, coded, and analyzed using the Statistical Package for Social Sciences (SPSS) version 25, and the study hypotheses were tested using multiple regression analysis. The study found a significant positive effect for advanced services, while basic services had a significant negative effect. However, the effect of intermediate services was not significant. It is concluded that servitization can increase customer loyalty, although its contribution is minimal. Furthermore, the study demonstrates that advanced services have the highest positive impact on customer loyalty. Based on the findings, the study recommends, among other things, that firms seeking to servitize should provide advanced services to customers to increase loyalty. Additionally, they should offer product support and consulting services, as well as provide technical training and seminars to help customers achieve their goals while using their products.http://journals.pu.edu.pk/journals/index.php/ijbr/article/view/6888/3782servitizationserviceintermediate services |
| spellingShingle | Obinna Christian Ojiaku Abude Peter PREDICTING THE EFFECT OF SERVITIZATION ON CUSTOMER LOYALTY: EMPIRICAL EVIDENCE FROM EMERGING ECONOMY CONTEXT International Journal of Business Reflections servitization service intermediate services |
| title | PREDICTING THE EFFECT OF SERVITIZATION ON CUSTOMER LOYALTY: EMPIRICAL EVIDENCE FROM EMERGING ECONOMY CONTEXT |
| title_full | PREDICTING THE EFFECT OF SERVITIZATION ON CUSTOMER LOYALTY: EMPIRICAL EVIDENCE FROM EMERGING ECONOMY CONTEXT |
| title_fullStr | PREDICTING THE EFFECT OF SERVITIZATION ON CUSTOMER LOYALTY: EMPIRICAL EVIDENCE FROM EMERGING ECONOMY CONTEXT |
| title_full_unstemmed | PREDICTING THE EFFECT OF SERVITIZATION ON CUSTOMER LOYALTY: EMPIRICAL EVIDENCE FROM EMERGING ECONOMY CONTEXT |
| title_short | PREDICTING THE EFFECT OF SERVITIZATION ON CUSTOMER LOYALTY: EMPIRICAL EVIDENCE FROM EMERGING ECONOMY CONTEXT |
| title_sort | predicting the effect of servitization on customer loyalty empirical evidence from emerging economy context |
| topic | servitization service intermediate services |
| url | http://journals.pu.edu.pk/journals/index.php/ijbr/article/view/6888/3782 |
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