The aim of this study is to identify why some brand buyers are satisfied, but are not necessarily loyal.
Based on prior literature, this study posits and tests nine potential reasons for why some satisfied buyers are loyal, and others are not. The factors examined are: distribution intensity, familiarity, popularity, customer satisfaction levels, category experience, variety-seeking, service design fit, satisfaction advantages (consumers having higher satisfaction for one brand versus others) and loyalty advantages (consumers showing higher loyalty for one brand versus others). The authors use the context of food retailing, focusing on the fast-food industry in the State of Kuwait.
The authors find that approximately 70% of fast-food brand users are satisfied, but only 28% of those satisfied users can be classified as highly loyal. While overall, the study finds satisfaction is positively correlated with individual-level buyer loyalty, analysis also finds that brand popularity, overall customer satisfaction levels, experience, variety-seeking, satisfaction advantages and loyalty advantages are factors that explain why many customers are satisfied, but do not have high levels of loyalty.
This study makes a novel and original contribution in assessing a broad range of factors that help explain why many satisfied buyers are not necessarily also loyal. The findings will assist managers to contextualize their firm’s performance on satisfaction and loyalty.
