An empirical validation of a loyalty model based on expectation disconfirmation

Investigates the concept of maker loyalty as it applies to the automobile market in Korea. The study has three major objectives: first, it examines the effects of expectation disconfirmation on loyalty behavior and on overall satisfaction; second, it seeks to identify the four types of maker loyalty by means of interaction between expectation disconfirmation and the repeat purchase (or switching); and third, it seeks to identify the effects of moderating variables such as situational variables and normative variables on loyalty behavior. It was found that negatively disconfirmed expectation exerts greater impact on overall satisfaction as well as repurchase decision than positively disconfirmed expectation. The four maker loyalty groups (loyals, latent loyals, spurious loyals, no loyals) identified in this study were shown to have different reactions to the moderating variables. Managerial implications regarding customer segmentation based on loyalty are offered.