The Effect of Interaction Quality on Trust, Loyalty and Cross-Selling
The benefits accruing from service excellence are well-documented in the literature but controversy exists as to the exact relationship between the quality of interaction, trust and loyalty. With the hair care industry as the empirical base, 150 questionnaires were administered. The paper discusses the strategic importance and role of interaction quality, as it is found to significantly influence trust and behavioral loyalty and to have a stronger effect on these than perceived service outcome. The results also reveal gender differences and suggest that trust plays both a direct and a mediating role, and enhances cross-selling opportunities of tangible products sold at hair salons.
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