Creating customer loyalty through service customization

Pedro S. Coelho, Jörg Henseler
  • European Journal of Marketing, March 2012, Emerald
  • DOI: 10.1108/03090561211202503

What is it about?

This paper answers three questions about the effectiveness of service customization: 1) Can service customization serve as customer relationship management instrument? 2) How does service customization affect customer loyalty? 3) When should firms customize their services?

Why is it important?

We give three clear answers: 1) Service customization ultimately increases customer loyalty and is thus a viable customer relationship management instrument. 2) While service customization has only a relatively small direct effect on customer loyalty, it has a substantial indirect effect on customer loyalty by increasing perceived service quality, satisfaction, and trust. 3) Service customization is most effective if customers highly trust a firm but are not entirely satisfied, yet.

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