The Influential Roles of Marketing Stimuli on Customer Retention

Abstract

The purpose of this study is to explore the necessity of creating retention strategies, emphasize the significance of customer retention, and propose a customer value/retention model. The main objective is to combine three mediators - customer satisfaction (CS), customer loyalty (CL), and word of mouth (WOM) - and evaluate their effect on customer retention using YL Company, a Taiwanese chemical manufacturing company, as a case study. The proposed model's goodness-of-fit was assessed using confirmatory factor analysis (CFA) and SEM-AMOS. Hierarchical regression and the PROCESS macro were employed to examine mediation and moderation effects. The outcomes indicate that product quality, service quality, and price attribution act as marketing stimuli factors that significantly influence the three mediators. Relationship proneness serves as a negative moderator that impedes customer WOM and loyalty's influence on customer retention.