Effects of customer engagement behaviors on action loyalty : moderating roles of service failure and customization

Purpose: This paper aims to investigate multidimensional customer engagement behaviors (CEBs) as antecedents of action loyalty in hospitality contexts and examine service conditions that inhibit and facilitate the former relationship. Design/methodology/approach: This paper tests a holistic framework based on transaction data from 5,855 active members of a hotel firm. The hypotheses are examined using ordinary least squares regression. Findings: By integrating transaction-related CEBs with non-transaction-related CEBs, this paper found that three CEB constructs (i.e. feedback, mobilizing and cross-buying) contribute significantly to action loyalty in hospitality contexts. These effects vary depending on the inhibitor (service failure) and the facilitator (service customization). Practical implications: Hotel managers should value customer engagement as a marketing tool to retain customers. When engaged customers encounter service failure and customization, managers can react differently to facilitate consumers’ action loyalty. Originality/value: Contrary to prior studies focusing on the effects of general CEBs on attitudinal loyalty, this study examines the diverse impacts of multidimensional CEBs on customers’ action loyalty and confirms boundary conditions to coordinate the effects between CEBs from a hotel firm’s perspective.