Customer perceived values, skill-based habits and availability of resources towards behavioral loyalty of generation y smartphone usage

Abstract

Developing a better understanding of what drives consumers’ loyalty towards smartphone brand has become an important issue for academics and practitioners. This issue is even more challenging and crucial for Gen Y smartphone users as they are not only the largest population compared to other generations, but they are also classified as the most unpredictable and less loyal cohort. By integrating three theories which are Consumption Value Theory, Means-End Theory, and Cognitive Lock-in (Skill-Based Habit) Theory, this study aims to evaluate the relationships between perceived consumption values, perceived cost value, customer skill-based habit, facilitating condition, and personal innovativeness toward behavioural loyalty. A quantitative approach using questionnaire survey and purposive sampling method were adopted in this study. A total of 272 samples of Malaysian Gen Y smartphone users were involved in this study. The data were analysed using Partial Least Squares - Structural Equation Modelling (PLS–SEM) technique via SmartPLS 3.0 software. The findings of this study indicated that the effect of facilitating condition on behavioural loyalty was fully mediated by perceived consumption value. While customer skill-based habit was found to only have indirect influence on behavioural loyalty via perceived consumption value. The mediating role of perceived cost value in the relationship between perceived consumption value and behavioural loyalty was not supported in this study. Furthermore, the findings of this study also revealed that there was no moderating effect of personal innovativeness in the relationship between perceived consumption value and behavioural loyalty, and also in the relationship between perceived cost value and behavioural loyalty. Across all the variables tested, customer perceived value remains as key factor in influencing behavioural loyalty particularly among Gen Y smartphone users. The findings of this study suggest that the improvement on the factors such as facilitating condition and customer skill-based habit could result in better value perception, thus increase loyalty level.