Brand reputation is not a single-dimension factor. That means the company should make brand reputation management a priority, in case sufficient resources are not available to manage these three areas at the same time. Out of these three factors, brand reputation is the most important one, followed by pricing and then customer satisfaction. Resources have to be allocated to look after these areas in general. Customer loyalty is influenced by several factors, including but not limit to brand reputation, product pricing, and customer satisfaction. The following findings and managerial implications can be drawn: This research has provided Susan with several insights into her photocopier business, especially the factors that drive loyalty from her business customers. Managerial Implications for the Photocopier Manufacturer There is no significant categorical moderating effect of the business type in the model so the last hypothesis (H 8) is rejected.įigure 98: Summary of Hypothesis Testing 3. Meanwhile, SATIS serves as a significant mediator to the relationship between PRICE and LOYAL (H 7). It has also been found that SATIS maintains a significant linkage to LOYAL (H 5). REPUT is found to have significant impact to both LOYAL and SATIS (H 1 & H 2), whereas PRICE significantly influences these two endogenous variables as well (H 3 & H 4). Summary of Hypothesis TestingĪll of the hypotheses except two are accepted in Susan’s research, and their results are summarized in Figure 98. Note: p(1) and p(2) are path coefficients of Group 1 and Group 2, respectively se(p(1)) and se(p(2)) are the standard error of p(1) and p(2), respectively. The lack of heterogeneity leads us to reject the eighth hypothesis (H 8) about the categorical moderation role of business type in the model. All other path coefficients do not differ significantly. As revealed in Figure 97, only 1 relationship (PRICE LOYAL) differs significantly- across the two groups. The standard errors 107 of the PLS parameter estimates can be found using the bootstrapping procedure. path coefficients) differ significantly across the 2 groups. The main idea is to check if the variances of the PLS parameter estimates (i.e. Becker, Rai, Ringle, & Volckner (2013) advise that researchers who failed to consider this potential issue may draw incorrect conclusions. This kind of concern is understandable because heterogeneity may exist to show significantly differences in model relationships. This way, Susan can explore if there is any categorical moderating effect of business type (i.e., non-profit = group 1 for-profit = group 2) on her research findings. H 8: There is significant categorical moderating effect of business type on the relationship among model constructs.Ī multi-group analysis (PLS-MGA) is conducted using the parametric approach 106 as suggested by Keil et al., (2000). To confirm such insights, the last hypothesis is built as follows: Multi-group Analysis – “Business Type” in the Photocopier Manufacturer Exampleīefore starting this research project, Susan’s colleagues in the sales department keep telling her that non-profit business customers often behave very differently from for-profit ones in their decision-making processes.