Demographic correlates of loyalty in a service context

While numerous published works have extensively examined customer retention models and even motives for loyalty, none to date has systematically examined which consumer segments are more or less predisposed to exhibit loyal behaviour in a services context. The purpose of this study is to examine whether loyalty behavior and loyalty motives for a range of service industries varies with three demographic characteristics (age, sex and occupation).

The overriding research propositions were tested by administering over 700 questionnaires across three medium‐high contact service industries (dental, hairdressing and travel agents).

Results indicate that age and occupation are associated with service loyalty (repurchase intention and loyalty behavior) across the three industries studied, while gender is not. What is especially evident from the data is that more mature age groups (35‐54 and over 55 years) display significantly more loyal behaviour than their younger counterparts (18‐24, and 25‐34 years). Additionally, it was found that older clients possess different motives (social benefits, special treatment and confidence) for staying loyal compared to the younger clients.

The results can be explained by the fact that people (consumers) reach a point in their life where their social networks shrink (children leave home, retirement from work, etc.). In many cases this relationship void is not easily filled. The concept of social support explains why older consumers satisfy their social needs by engaging in social conversation with service providers. By staying with a particular service provider (hairdresser, doctor, dentist, fitness center, dry cleaner, etc.) they become recognised and feel a sense of familiarity. It facilitates social engagement with service providers, and older consumers derive considerable psychological value from these social exchanges. The implications for firms' market segmentation strategy and future research implications are discussed.