Asia Pacific Paper 1

Asia Pacific Journal of Marketing and Logistics
The moderating impact of emotions on customer equity drivers and loyalty

intentions: Evidence of within sector differences
Zohaib Razzaq, Salman Yousaf, Zhao Hong,
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Zohaib Razzaq, Salman Yousaf, Zhao Hong, (2017) "The moderating impact of emotions on customer
equity drivers and loyalty intentions: Evidence of within sector differences", Asia Pacific Journal of
Marketing and Logistics, Vol. 29 Issue: 2, pp.239-264, doi: 10.1108/APJML-03-2016-0053
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Moderating
The moderating impact of impact of
emotions on customer equity emotions
drivers and loyalty intentions

Evidence of within sector differences 239
Zohaib Razzaq Received 23 March 2016

Revised 22 June 2016
School of Economics and Management, Accepted 26 June 2016
University of Chinese Academy of Sciences (UCAS), Beijing, China
Salman Yousaf
Institute of Banking and Finance,
Bahauddin Zakariya University, Multan, Pakistan, and

Zhao Hong
School of Economics and Management,
University of Chinese Academy of Sciences (UCAS), Beijing, China
Abstract
Purpose – The purpose of this paper is to investigate the significant contribution of emotions along with
other conventional loyalty drivers on the loyalty intentions.
Design/methodology/approach – The influence of three conventional loyalty drivers, i.e., value equity,
brand equity, relationship equity on loyalty intentions was investigated by further exploring the moderating
effects of negative and positive emotions. A sample of 834 Pakistani consumers in the supermarkets and
banking industries was studied employing store-intercept survey design.
Findings – Consumer behavior is driven by emotions in both the supermarkets and banking context.
Thus, in order to better predict customer loyalty intentions, the emotional component is crucial and should be
included along with other cognitive components.
Practical implications – Since customers’ emotional responses throughout service delivery are strongly
linked to loyalty, therefore supermarkets and bank service managers need to make sure that the customers
experience with their services as pleasurable as possible and for this purpose, customer service employees
need to be trained in order to better understand the customers’ emotional responses during the course of
service delivery process.
Originality/value – The present study complements the existing literature regarding the role of emotions in
service settings and offers a new point of view for the linkage among emotions, customer equity drivers and
customer loyalty intentions.
Keywords Emotions, Brand equity, Consumer loyalty, Value equity, Customer equity drivers,
Relationship equity
Paper type Research paper
1. Introduction
Consumers experience a broad range of emotions, both simultaneously and successively
while interacting with service providers (Maguire and Geiger, 2015). Consumer emotions
have significant implications because the way consumers feel, while consuming a service or
product influences decision making, repeat patronage, satisfaction, loyalty, complaining and
switching behavior (Stephens and Gwinner, 1998; Dewitt and Brady, 2003; Han et al., 2009).
The role and effect of emotion are drawing greater attention from marketing intellectuals in
Asia Pacific Journal of Marketing
their quest for a better understanding of consumers and their consumption experiences and Logistics
(Mattila and Enz, 2002; Ladhari, 2007). More recently, findings of Bilgihan et al. (2016) bring Vol. 29 No. 2, 2017
pp. 239-264
into consideration the key role of emotions in services and emphasize that in service context, © Emerald Publishing Limited
1355-5855
firms need to pay more attention to customer emotions in order to improve customer loyalty. DOI 10.1108/APJML-03-2016-0053
APJML Loyalty intentions are viewed as consumers’ strength of affection toward a brand or a firm
29,2 (Petrick, 2004). Existing research has shown the positive impact of conventional loyalty
drivers (i.e. value equity, relationship equity, brand equity) on loyalty intentions
(Vogel et al., 2008). Firms need to recognize the importance of loyalty drivers on key
customers and concentrate on improving them in order to retain loyal ones (Kumar and
George, 2007). Furthermore, emotions should be related to loyalty intentions because attitude
240 theory suggests a number of affective antecedents of loyalty, including emotions and feelings
(Dick and Basu, 1994) and Jones et al. (2006) posit that loyalty due to its affective component
may be closely linked to emotional experiences. Moreover, existing research suggests that
emotional and affective constituents of customer firm relationship are important drivers of
customer loyalty (Yim et al., 2008; Bügel et al., 2011). Loyalty toward a firm depends on
consumers’ emotions because it incorporates the psychological state that reflects the affective
relationship between the consumers and the firm, leading to favorable attitudes toward the
firm (Kumar et al., 1995). Firm loyalty is driven by positive emotions toward the brand and
shape consumers’ intentions and behavior (Evanschitzky et al., 2012). Furthermore, customer
loyalty originates from positive emotional experiences, particularly, in the service sector,
customer emotions help firms to create and retain loyal customers (Kandampully et al., 2015).
Thus, emotional attachment and positive feelings toward the firm maintain long-term
relationship and induce positive purchase intentions (Fullerton, 2003).
Despite significant advances in loyalty research, scarce empirical work can be found on
the possible impact of emotions on customer loyalty intentions. Therefore, the current study
aims to fill the potential gaps in the existing literature by trying to explain the development
of affective aspects of loyalty. Little is known about the affective or emotional aspects of
loyalty (Taylor et al., 2006), which is surprising because researchers have recognized a high
degree of emotionality to loyalty (Yu and Dean, 2001; Vogel et al., 2008), but the customers’
emotional responses to the relationship between customer loyalty drivers and loyalty
intentions have been largely ignored. The parallel consideration of loyalty drivers, loyalty
intentions and emotions will yield a more in-depth and comprehensive understanding of the
relationship between loyalty intentions and customer loyalty drivers. Thus, for more
accurate and precise understanding of customers’ decision-making process and its impact
on firms’ strategies and decision making, simultaneous examination of these variables is
necessary. Moreover, present study examines the impact of emotions on customer loyalty
drivers and loyalty intentions in Pakistan, which is itself novel in its setting being the sixth
largest consumer market in the world. Lastly, the premise of the study is set in making
comparisons between two contrasting sectors, i.e., supermarket and banking. The rationale
for choosing these two sectors is that the literature has established that degree of consumer
contact and level of involvement can have a profound impact on consumer attitudes
(e.g. Mayer et al., 2009). Patronizing supermarkets is relatively a low involvement affair,
while bank on the other hand, is a high involvement service setting. Further both sectors
differ in terms of level of service provision (Zeithaml and Bitner, 2000), consumer
relationship philosophies, i.e., transactional vs relational (Paulin et al., 2000) and costs
associated with switching (Bügel et al., 2011). It must be noted that this study refers to the
supermarket brand itself instead of individual brands stocked by the same.
The objectives of this research are twofold: does emotions contribute along with other
loyalty drivers to effect loyalty intentions? How relationship is moderated between
conventional loyalty drivers and loyalty intentions by emotions? Or how emotions influence
the effectiveness of marketing strategies? In practical terms, the findings of this research could
have important theoretical and managerial implications. By presenting the role of emotions in
the relationship between customer equity drivers and loyalty intentions, this research would
demonstrate that emotions are intrinsic and vital to the rational decision-making process.
Firms should not ignore the emotions experienced by consumers and paying attention to
consumers’ emotions may result in better decision-making process and helps managers in Moderating
devising marketing strategies accordingly. impact of
The remainder of this study is structured as follows: first, the background and literature emotions
is presented, next we present the conceptual framework and hypotheses. Then, the
discussion pertaining to methodology and the hypotheses testing is made. Eventually,
the study concludes with the results and their theoretical and managerial implications.
241
2. Literature review
2.1 Customer loyalty
Customer loyalty is a multifaceted concept and is composed of many dimensions.
Oliver (1997) classified loyalty into four distinct phases: cognitive loyalty, affective loyalty,
conative loyalty and action loyalty. The first phase, i.e., cognitive loyalty is related to brand
performance and brand information aspects, while the next stage, affective loyalty refers to
likeability and positive attitudes toward the brand. The third step comprises conative
loyalty in which customer shows the intention to buy the brand. The last phase consists of
action loyalty which is deeply held commitment to repurchase the product or service
(Yang and Peterson, 2004; Ha and Jang, 2010). Customer loyalty is the most important asset
possessed by a firm. Therefore, for the service marketing researchers, examining the
antecedents of customer loyalty should be a top priority (Kandampully et al., 2015).
Currently, researchers view loyalty as a three dimensional construct: behavioral,
attitudinal and composite (Bowen and Chen, 2001). The behavioral dimension is associated
with actual consumption behavior and is measured as likelihood of future purchases based
on previous purchasing behavior (Ehrenberg, 1988). Attitudinal loyalty reveals the
customer’s favorable emotional disposition toward the brand or firm (Dick and Basu, 1994).
It is measured as customer’s strength of affection toward the brand (Petrick, 2004).
Attitudinal loyalty is considered as emotional attachment or sense of belonging toward the
brand or firm (Yoo and Bai, 2013). Composite view of loyalty suggests that loyalty should be
considered simultaneously from both the behavioral and attitudinal perspective (Dick and
Basu, 1994). The current study adopts an attitudinal conception of loyalty.
2.2 Drivers of loyalty intentions

Customer loyalty intentions reveal positive attitudes toward the brand or firm in a purchase
situation and are perceived as psychological disposition toward an object (Dick and Basu, 1994).
The loyalty intention drivers evolve over time and are not static ( Johnson et al., 2006;
Nyffenegger et al., 2014). The loyalty has both cognitive and affective aspects and both should
be viewed in terms of loyalty evolution. Value equity, brand equity and relationship equity are
the three conventional drivers of customer loyalty (Vogel et al., 2008). Recently, Segarra-Moliner
and Moliner-Tena (2016) revealed that value equity, brand equity and relationship equity have
direct and positive impact on loyalty intentions.
2.2.1 Value equity. Value equity is the ratio or customers’ overall evaluation of what is
received compared with what is paid or sacrificed. Customers’ perception of favorable
price-quality ratio is a signal of high quality. Previous research suggests a positive
relation between perceived value and satisfaction (Bolton and Lemon, 1999), and
Jomnonkwao et al. (2015) found that perceived value had significant influence on customer
loyalty. Furthermore, Vogel et al. (2008) empirically showed a positive relation between
value equity and loyalty intentions.
2.2.2 Relationship equity. Relationship equity is the affective commitment that includes
the components that link a consumer toward a brand or a firm (Rust et al., 2001).
The relationship is high if consumers feel attached with the firms’ relationship building
and retention programs. Customers trust the brand and become committed to the
APJML firms’ offerings. There is a significant relationship between relationship equity, satisfaction
29,2 and loyalty (Reynolds and Beatty, 1999; Hennig-Thurau et al., 2002). Moreover, Vogel et al.
(2008) showed a positive association between relationship equity and loyalty intentions.
2.2.3 Brand equity. Brand equity consists of subjective appraisals of a brand that are not
taken into account by objective performance. Brand equity is the personal fit with a brand
beyond the effects of value and relationship equity (Keller, 1993). Brand equity will be higher if
242 customers form unique, strong and desirable perceptions about a brand. Brand attaches
additional value and help in differentiating from competitors. Rust et al. (2000) point out that
brand equity influences the probability to repurchase and recommend the brand. According to
Liu et al. (2015), brand equity is the most important factor to enhance customer loyalty.
Moreover, brand equity has a positive impact on loyalty intentions (Vogel et al., 2008).
2.3 Emotions
Emotion is a multifaceted compound of different factors, both mental and physical
(Izard, 1991; Lazarus, 1991; Lazarus et al., 1980; Omdahl, 2014; Plutchik, 1980). Emotions are
not fixed states; instead they are brief episodes that change, as the environment that caused
them, changes (Lazarus et al., 1980). Emotions are valued and reliable predictors of human
behavior (Carlson and Wang, 2007). Bagozzi et al. (1999) define emotion as “mental
states of readiness that arise from cognitive appraisals of events or thoughts; has a
phenomenological tone; is accompanied by physiological processes; is often expressed
physically (e.g. in gestures, posture, facial features); and may result in specific actions to affirm
or cope with the emotion, depending on its nature and meaning for the person having it.”
Emotion is a response that occurs when individuals come across significant relationships with
others or with their environment (Barrett and Campos, 1987; Frijda, 1986).
There is no distinct agreement on what emotions are. The concept of emotions is often
poorly defined (Shouse, 2005; Koenig-Lewis and Palmer, 2014). The exact definition is a matter
of dispute among psychologists, philosophers and other researchers (Kleinginna and
Kleinginna, 1981), primarily because of the broad range of possible emotions
that one can experience (guilt, shame, regret, disappointment, envy, anger, fear, joy, pride, to
name a few), and because there is no single defining feature that applies to all emotions
(Edwards et al., 2002). Due to these complexities, Huang (2001) calls for further investigation of
the characteristics of emotions specifically related to marketing. However, there is
understanding on several aspects. Emotions are acute and are comparatively momentary
experiences. This differentiates emotions from moods and from other more general affects
which usually last longer (Frijda, 1993). Emotion is, to quote Neuroscientist Antonio Damasio,
“in the loop of reason.” It guides our opinions and deeds (Shaw et al., 2010).
There are two major approaches to the study and categorization of emotions within the
context of marketing and consumer behavior (Oh, 2005). The first approach considers
emotions as having continuous dimensions that distinguish specific emotions from others
and are often referred to as dimensional theories. The examples of dimensional theories of
emotions are Russell and Mehrabian’s (1977) pleasure arousal dominance model and
Watson and Tellegen’s (1985) circumplex model. Dimensional theories have been useful
predictors of the consumers’ response to store atmosphere (Donovan et al., 1994), service
experiences (Hui and Bateson, 1991) and advertising (Holbrook and Batra, 1987).
Dimensional approaches distinguish between valence and arousal dimensions, but
dimensional approaches have been criticized due to their failure to capture the wide range of
emotions experienced by consumers’ (Lazarus, 1991). The second approach was established
to overcome the limitations of dimensional theories and is called basic or discrete emotional
set including emotions such as joy, anger, sadness and fear that is natural to all human
beings (Izard, 1992; Plutchik, 1982). Thus, emotional response can be described by
measuring the extent of the basic emotions that a person experienced (Richins, 1997).
However, the opponents of basic emotion approach criticize it by arguing that it has Moderating
no sound theoretical foundation (Roseman, 1984). Furthermore, basic or discrete emotions impact of
are related to one another and also have tendency to co-occur (Diener, 1999). emotions
There is divergence in the content and dimensions of emotions in consumer research
(pleasure, arousal, dominance; upbeat, negative, warm; positive and negative affect) and
different researchers use different scales to measure emotions (Bagozzi et al., 1999; Mehta and
Purvis, 2006). Among these dimensions, the classification of emotions in positive and negative 243
is the most widely used conceptualization (Laros and Steenkamp, 2005). Positive and
negative emotions are considered as independent of each other and are treated as different
constructs in the literature (Watson et al., 1988; Larson et al., 2001; Petzer et al., 2012). Moreover,
Bagozzi et al. (1999) have pointed out that emotions work in broad categories or groupings of
positive and negative emotion. Lazarus (1991) identified and classified different emotions into
nine negative emotions: anger, fright, anxiety, guilt, shame, sadness, envy, jealousy and disgust
and four positive emotions: happiness, pride, relief and love. This study also uses the positive
and negative categorical approach of emotions.
The proposed conceptual framework is shown in Figure 1. The model is based on the
customer equity model of Rust et al. (2004), which postulates that equity drivers (i.e. value
equity, brand equity and relationship equity) determine factors of loyalty intentions.
In the current research, the theoretical model depicts the association between customer
loyalty drivers, loyalty intentions, emotions and how emotions shape the relationship
between customer loyalty drivers and loyalty intentions.
As discussed in Section 2.2, prior literature suggests that all three customer equity
drivers (value, brand and relationship equity) relate positively to customer loyalty intentions
(Vogel et al., 2008). This leads to the following hypotheses:
H1. Value equity has a significant positive impact on loyalty intentions.
H2. Brand equity has a significant positive impact on loyalty intentions.
H3. Relationship equity has a significant positive impact on loyalty intentions.
During the decision-making evaluations, people question themselves, “How do I feel
about it?” and take decisions based on their present feelings (Loewenstein and Lerner,
2003). Likewise, if present feelings are positive, then the evaluation about the
Positive
Emotions
H6 H4
Value Equity
H1
H2
Brand Equity Loyalty
Intentions
Relationship H3
Equity
H7 H5
Negative Figure 1.
Emotions Research model
APJML specific options tend to be positive and on the other hand, if the present feelings tend
29,2 to be negative, then the decision-making evaluations are more likely to be negative
(Clore, 1992).
Several researchers have pointed out that emotions significantly contribute to the selection
of service providers, evaluation of service quality, determination of repeat purchasing
behaviors, development of brand loyalty and directly influence behavioral intentions
244 (Mattila and Enz, 2002; Jaiswal and Niraj, 2011; Bigdeli and Bigdeli, 2014; Ali and Amin, 2014;
Palau-Saumell et al., 2014; Tsaur et al., 2015). Morris et al. (2002) stated that emotions are an
influential predictor of intentions and attitude, which is in line with Allen et al.’s (1992) study
that consumer buying behavior is heavily determined by their emotions. Yu and Dean (2001)
proposed a high degree of correlation between loyalty and positive emotions. Lee, Amir and
Ariely (2009) and Lee, Back and Kim (2009) suggested that consumers’ emotions play
the leading role in describing loyalty. Suwanamas et al. (2015) showed that customer
emotions significantly influence customer loyalty in hospitality and tourism industry.
In the banking sector, Hayiel Hino reported that emotions had direct and positive effect
on bank customers’ loyalty. Medler-Liraz (2016) found that positive emotions had a
significant positive impact on customer loyalty. Ladhari (2007) analyzed the influence of
emotions in creating behavioral intentions. Their results revealed that consumers’ positive
or negative emotional responses will enhance or lessen their consumption experiences that
ultimately influence loyalty intentions.
In line with the previous context, Smith and Bolton (2002) examined the effect of consumer
emotions in service setting and found that consumers’ emotional response significantly
influence their decision making and behavioral intentions. These empirical findings highlight
the importance of emotions in promoting favorable evaluations of brands/services in the
formation and development of loyalty intentions, thus increasing favorable intentions to be
loyal (Han et al., 2009; Ladhari, 2007). Moreover, Lee et al. (2008) showed that positive emotions
had a positive impact on loyalty and negative emotions had a significant indirect effect on
loyalty. Su et al. (2014) reported that in hospitality service context, positive emotions had a
significant positive impact on loyalty intentions, while negative emotions significantly reduced
loyalty intentions. Thus the following hypothesis is proposed:
H4. Positive emotions have a significant positive impact on loyalty intentions.
H5. Negative emotions have a significant negative impact on loyalty intentions.
Consumers often experience multiple emotions in response to market stimuli and these
diverse emotions are related to marketing outcomes such as attitude toward the brand
(Ruth et al., 2002). Consumers make favorable perceptions based on basic emotions when
evaluating the brand (Ruth, 2001). According to the experiential view of information
retrieval (Schwartz, 2004), consumers use emotions and feelings aroused by brands to form
an evaluative judgment (Brakus et al., 2009). Due to these emotions and feelings, consumers
may experience an attachment toward the brand (Park and Macinnis, 2006), and
emotions play a vital role in establishing and maintaining consumer-brand relationships
(Nyffenegger et al., 2014). Strong brands are more likely to generate positive brand
associations and positive feelings (Esch et al., 2012).
Consumers may not always purchase the brands they like due to reasons of price and
quality but also due to the emotions associated with the brands (Chaudhuri and Holbrook, 2001).
There are two dimensions of perceived value, i.e., functional and affective (Palmer and
Ponsonby, 2002; Lapierre, 2000). The functional dimension refers to rational evaluation made by
consumers, while affective dimension captures the emotions generated by the products or
services (Sanchez et al., 2006). Thus, perceived value should also contain an affective component
because emotions affect the choices between functionally equivalent alternatives (Havlena and
Holbrook, 1986; Bolton and Drew, 1991; Sanchez et al., 2006). Consumers often use emotions
and experiences to judge product quality in purchase decisions (Pham, 1998). Positive feelings Moderating
lead to favorable perceptions of the product, and negative feelings lead to unfavorable impact of
perceptions (Schwarz and Clore, 1988). emotions
Positive consumption emotions lead to high levels of commitment. Also, Musa et al. (2005)
suggest the importance of relational commitment in building positive emotions among
consumers. Kumar et al. (2015) and Lewicka (2014) posit that consumers can develop post-
purchase emotional commitment to the brands. And emotional commitment is the key driver 245
of customer loyalty toward the brand (Pandit and Vilches-Montero, 2016). In order to maintain
brand relationships, emotional antecedents of brand loyalty need to be considered and
positive feelings are coupled with high levels of brand commitment (Chaudhuri and Holbrook,
2001). Commitment toward a brand is associated with prevalence of positive feelings
(Gundlach et al., 1995). In a similar notion, Dick and Basu (1994) proposed that brand loyalty
should be greater under conditions of more positive emotions. The affective component of
brand loyalty is concerned with emotions (positive or negative) that customers have toward
the brand. Consumers tend to form emotional relationships with brands and develop feelings
toward the brands of their choice (Veloutsou, 2007). Positive customer experiences lead
to positive attitudes toward the brand and thus add toward building brand equity (Nowak
et al., 2006).
According to the attitude formation theories, for instance, the elaboration likelihood
model (ELM; Petty and Cacioppo, 1986) and the heuristic-systematic processing model
(HSM), the main variable for attitude formation is consumer experience. Thought processes of
human cognition are situation sensitive, resulting in different processing strategies under
positive and negative emotional states (Schwarz and Clore, 2003). Consumers in positive
emotional states have been displayed to evaluate products more positively than consumers in
negative emotional states (Avnet and Higgins, 2006; Kim et al., 2010). Contemporary research
has shown that individuals in the positive emotional state process less information and are
more likely to use top-down information processing strategies, simple heuristics and holistic
judgments with less consideration to rationality. Therefore, individuals in a positive emotional
state rely on heuristic cues and may not engage in detailed processing and this strategy is
called heuristic processing (HSM) or peripheral route (ELM) to persuasion (Kim and Benbasat,
2003; Rodgers et al., 2005).
In contrast, individuals in the negative emotional state process additional information
and are more likely to use bottom-up strategies, logical reasoning and extensive analytic
procedures. Thus, individuals in a negative emotional state pay close attention to detail and
analytical process and this strategy is known as systematic processing (HSM) or central
route (ELM) to persuasion (Yang et al., 2006; Pomering and Jhonson, 2009).
Negative emotions signal that the environment is a threat and problematic, whereas
positive emotions signal that the environment is safe and calm. Thus, individuals
with positive emotions are less driven to involve in detailed processing. In contrast,
individuals in negative emotional states are more inclined to involve in detailed processing for
handling problematic situations (Schwarz, 1990). Different studies have found support
signifying the use of heuristic processing by individuals in a positive emotional state and
systematic processing by individuals in a negative emotional state (e.g. Weisgerber et al., 2013;
Chan and Park, 2013). In the same context, individuals with positive emotions will tend to
minimize the intricacy of their decision making and have reduced decision-making times as
compared to individuals in negative emotional states (Sauter, 2010).
Emotions (positive and negative) are presented as moderators in this study. A moderator
is a variable that affects the strength or direction of the relationship between the
independent variable and the dependent variable (Helm and Mark, 2012). Few studies have
examined the moderating impact of emotions. For instance, in the service setting, emotions
act as a moderator of the cognitive antecedents of satisfaction (Smith and Bolton, 2002).
APJML Positive emotions guide to higher purchase intentions (Bitner, 1992). However,
29,2 negative emotions may also augment purchase intentions depending on activation
(Menon and Kahn, 2002), or shopping-environment quality (Mano, 1999). Furthermore,
Bloemer et al. (1999) revealed that the relationship between satisfaction and loyalty is
moderated by positive emotions in high involvement service settings.
According to American Marketing Association, “the term supermarket is defined as a
246 large departmentalized retail establishment offering a relatively broad and complete stock
of dry groceries, fresh meat, perishable produce, and dairy products, supplemented by a
variety of conveniences, nonfood merchandise and operated primarily on a self-service
basis.” Furthermore, Deb and Lomo-David (2014, p. 523) defined supermarket retail store as
“an aggregate of more than food and food-related items, offers self-service to customers and
use the service/merchandize quality and sales process digitization as baits for competitive
advantage that hopes for competitor dislocation.” Customer contact or involvement can
impact customer attitudes and has a positive effect when there is service relationship
between a customer and the service provider (Mayer et al., 2009).
Supermarkets are low involvement service setting as compared to banks, which are high
involvement services. Thus, we propose that positive emotions will increase the positive
impact of all three equity drivers on loyalty intentions and negative emotions will decrease
the positive impact of equity drivers on loyalty intentions. On the other hand, as banks
are high involvement service setting and customers have to engage in detailed thought
processing, we assume that negative emotions will increase the positive impact of equity
drivers on loyalty intentions and positive emotions will decrease the positive impact of the
conventional loyalty drivers on loyalty intentions. Thus emotions may act as moderators of
the relationship between loyalty drivers and loyalty intentions and this leads to the
following hypothesis in supermarkets service sector:
H6a. Positive emotions enhance the positive effect of equity drivers on loyalty intentions.
H6b. Negative emotions diminish the positive effect of equity drivers on loyalty intentions.
In the banking sector, based on the previous discussion, the following hypotheses are proposed:
H7a. Positive emotions diminish the positive effect of equity drivers on loyalty intentions.
H7b. Negative emotions enhance the positive effect of equity drivers on loyalty intentions.
3. Methodology
3.1 Survey design and sampling
In this study, we collected data from Pakistan. Customers of two service sectors, i.e., banks
and supermarkets were interviewed as both are high customer involvement services
(Parasuraman et al., 1985). Previous research pointed out the disparity in the effectiveness of
loyalty strategies in distinct service sectors (East et al., 2006). We have chosen these sectors
because they vary on several facets, and it was important to investigate if the impact of
emotions on customer loyalty was same in divergent sectors. First, these sectors differ in
terms of the level of service provided (Zeithaml and Bitner, 2000). For instance, the banking
sector has a high service level, whereas supermarket sector has a comparatively low service
level. Second, they are viewed as two different kinds of services (relational vs transactional)
(Paulin et al., 2000). Third, the switching costs are typically higher in banking sector, while
in supermarkets sector the switching costs are relatively low (Bügel et al., 2011).
Lastly, these sectors also differ in terms of service heterogeneity. In Pakistan, a
store-intercept survey was conducted in Islamabad. As a capital, Islamabad draws many
migrants from several parts of Pakistan. Therefore, the results of this study should be
valuable indicators of Pakistani consumer behaviors. In order to collect this data,
interviewers approached consumers in or outside banks and supermarkets and requested Moderating
them to cooperate and complete the questionnaire. This procedure resulted in the collection impact of
of 834 useable questionnaires (bank customers 426; supermarket customers 408). emotions
3.2 Measures
The measures of value equity were taken from Rust et al. (2004) and Verhoef et al. (2007).
Brand equity measures were adopted from Verhoef et al. (2007) and Mizik and Jacobson (2008) 247
scholarly works, while relationship equity measurement was adopted from the scholarly work
of Bügel et al. (2011). The measure for loyalty intentions was adopted from Gupta and
Zeithaml (2006). All items were measured using seven-point Likert scale (1 ¼ strongly
disagree to 7 ¼ strongly agree). The emotions scale for this study was adopted from
Richin’s (1997) consumption emotion set and (Laros and Steenkamp, 2005). It was measured
using three positive items ( joy, enthusiasm and happiness) and five negative items
(anger, regret, disappointed, sadness and irritation) (1 ¼ not at all, 7 ¼ to a very large extent).
3.3 Statistical analysis

The model and hypotheses were tested using hierarchical moderated regression analysis.
A natural log transformation was performed on the dependent variable (loyalty intentions)
to estimate the normal distribution of the disturbances. Composite reliability, convergent
validity and discriminant validity were examined before conducting confirmatory factor
analysis (CFA) for validating the measurement indexes.
4. Results
4.1 Scale reliability and validity
Composite reliability for each construct was above 0.60 (Bagozzi et al., 1998). According to
Hair et al. (2011) measurement model possesses convergent validity if CR WAVE and
AVEW0.50 and it possesses discriminant validity if MSV WASV and AVEWASV
and square root of AVE is greater than inter-factor correlations. Tables I and IV show that
both in supermarket data and in bank data all values comfortably surpass the reliability and
validity standards.
CFA was carried out using AMOS 22 software to test the measurement model. Nine
common model-fit measures were employed to evaluate the measurement model: the ratio of
χ2 (2) to degrees of freedom (df), goodness of fit index (GFI), adjusted goodness of fit index
(AGFI), normalized fit index (NFI), Tucker-Lewis index (TLI), comparative fit index (CFI),
incremental fit index (IFI), relative fit index (RFI), and root mean square error. As per criteria
laid by Hu and Bentler (1999), Thompson (2004) and Steiger (1995), the measurement model
holds fitness if the values of fit indices are greater than 0.90 and χ2/df is lesser than 3 and
RMSEA value is lesser than 0.06. The values in Table II show that measurement model is
adequately fit for both supermarkets and bank data.
Average Mean Average

Composite variance shared shared Positive Value Brand Relationship Negative
reliability extracted variance variance emotions equity equity equity emotions
Positive emotions 0.917 0.786 0.164 0.102 0.887 Table I.

Value equity 0.874 0.697 0.401 0.174 0.318 0.835 Composite reliability,
Brand equity 0.924 0.859 0.401 0.229 0.360 0.633 0.927 convergent validity
Relationship and discriminant
equity 0.785 0.550 0.360 0.174 0.405 0.397 0.600 0.742 validity of
Negative emotions 0.941 0.760 0.036 0.022 −0.110 −0.191 −0.161 −0.123 0.872 supermarket data
APJML As shown in Table III, in both supermarkets and bank data, all items have factor loadings
29,2 above 0.50 (Yousaf and Samreen, 2015).
4.2 Hypothesis testing and analysis

H1, H2 and H3 were all substantiated. It was found that in both data sets, i.e., supermarket
data as well as bank data, value equity ( β ¼ 0.489, p o0.001; β ¼ 0.105, p o0.05), brand
248 equity ( β ¼ 0.206, p o0.001; β ¼ 0.229, p o0.001) and relationship equity ( β ¼ 0.225,
p o0.001; β ¼ 0.455, p o0.001) have significant positive impact on loyalty intentions,
respectively. H4 was confirmed as positive emotions were found to have a significant
positive impact on loyalty intentions in both supermarket data ( β ¼ 0.295, p o0.001) and
bank data ( β ¼ 0.199, p o0.001). H5 was also supported as negative emotions were found to
have a significant negative impact on loyalty intentions in supermarket data ( β ¼ −0.332,
p o0.001) as well as bank data ( β ¼ −0.290, p o0.001) Table IV.
A hierarchical moderated analysis was run to test the hypotheses. The moderated
regression analysis seeks to determine the change in R2 that results during a hierarchical
test of three regression equations. In the first regression, the dependent variable loyalty
intention is regressed on the equity drivers as the independent variable. This is followed by
Indicator Supermarket data values Bank data values
χ /df
2
2.580 1.712
GFI 0.933 0.956
AGFI 0.903 0.936
NFI 0.949 0.965
TLI 0.959 0.981
Table II. CFI 0.968 0.985
Measurement model IFI 0.968 0.985
for supermarket RFI 0.935 0.955
and bank data RMSEA 0.062 0.041
Factor loadings Factor loadings

Item Statement supermarket data bank data
V1 The price-quality ratio of the product/service the company

is offering is good 0.837 0.867
V2 I can buy this product/service at places that are
convenient for me 0.828 0.898
V3 I can make use of the product/service of this company at
any time and place I want 0.840 0.863
BE1 This company has a strong brand 0.903 0.909
BE2 This company has an innovative brand 0.950 0.896
RE1 I have a confidential relationship with the company 0.696 0.702
RE2 I attach much value to the company 0.773 0.806
RE3 I am very enthusiastic about the company 0.754 0.707
P1 Joy 0.902 0.866
P2 Enthusiasm 0.855 0.874
P3 Happiness 0.902 0.893
N1 Anger 0.871 0.786
Table III. N2 Sadness 0.870 0.800
Standardized factor N3 Disappointment 0.886 0.828
loadings in N4 Regret 0.861 0.845
supermarket data N5 Irritation 0.870 0.822
Moderating
Average Mean Average
Composite variance shared shared Positive Value Brand Relationship Negative impact of
reliability extracted variance variance emotions equity equity equity emotions emotions
Positive
emotions 0.910 0.770 0.137 0.069 0.878
Value equity 0.908 0.768 0.630 0.268 −0.136 0.876
Brand
249
equity 0.898 0.815 0.630 0.271 −0.140 0.794 0.903
Table IV.
Relationship Composite reliability,
equity 0.783 0.547 0.381 0.258 −0.370 0.617 0.601 0.740 convergent validity
Negative and discriminant
emotions 0.909 0.667 0.154 0.092 −0.320 0.204 0.267 0.392 0.816 validity of bank data
a second regression of loyalty intentions with both the independent variable equity drivers
and moderator variable emotions. In the third regression, an interaction term obtained by
multiplying the independent variable with the moderator variable is also entered.
To minimize the risk of multicollinearity resulting from the correlation, these variables have
had their data mean centered (Aiken et al., 1991; Cronbach, 1987). In case of supermarket
data, the increase in R2 value from 0.724 to 0.751 shows that there is a statistically
significant direct moderation effect of positive emotions (F ¼ 58.952, p o0.001) and an
improved R2 from 0.730 to 0.754 also provides evidence of statistically significant direct
moderation effect of negative emotions (F ¼ 185.248, p o0.001). Partial support for H6a was
available. Positive emotions enhance the positive effect of value equity ( β ¼ 0.771, p o0.001)
and brand equity ( β ¼ −0.679, p o0.05) on loyalty intentions. Opposite to our stipulated
relationship, it was found out that after moderation of positive emotions, brand equity has a
significant negative influence on loyalty intentions ( β ¼ −0.679, po0.05). H6b was also
partially confirmed as negative emotions diminish the positive effect of value equity
( β ¼ −0.360, p o0.001) and relationship equity ( β ¼ −0.164, p o0.05) on loyalty intentions.
Contrary to our hypothesized relationship, it was found out that negative emotions enhance
the positive effect of brand equity on loyalty intentions ( β ¼ −0.482, p o0.001).
In the bank data, the findings show that the increase in R2 value from 0.490 to 0.497
shows statistically significant direct moderation effect of positive emotions (F ¼ 58.952,
p o0.001) and an improved R2 from 0.530 to 0.544 provides evidence of the presence of the
statistically significant direct moderation effect of negative emotions (F ¼ 71.269, p o0.001).
H7a was partially confirmed as positive emotions diminish the positive effect of value
equity ( β ¼ −0.117, p o0.05) and relationship equity ( β ¼ −0.404, p o0.001) on loyalty
intentions. But positive emotions did not have a significant interaction effect on the
influence of brand equity on the loyalty intentions. H7b was also partially substantiated.
It was found out that apart from brand equity, negative emotions strengthen the positive
relationship between value equity ( β ¼ 0.300, p o0.05) and relationship equity ( β ¼ 0.365,
p o0.001). The results of the hierarchical moderated analysis are shown in Tables V-VIII.
The interaction plots of H6a, H6b and H7a, H7b are presented in Figures 2-13.
5. Discussion
This study observed the direct effects of emotions (positive and negative) and customer
loyalty drivers on loyalty intentions as well as the moderating effects of emotions on the
relationship between customer loyalty drivers and loyalty intentions in the two Pakistani
service sectors. Overall, this study found that positive emotions, positively influenced
loyalty intentions, while negative emotions negatively influenced loyalty intentions, as
expected. This finding is in line with the previous literature (Han et al., 2009; Lee et al., 2008).
APJML Loyalty intention
29,2
R2 0.678 0.724 0.751
Adj. R2 0.676 0.721 0.746
F 283.543*** 264.039*** 172.211***
Total equities
Total value equity 0.489*** 0.360*** −0.117
250 Total brand equity 0.206*** 0.160** 0.561***
Total relationship equity 0.225*** 0.173** −0.057
Moderating variable
Positive emotions 0.295*** 0.148**
Interaction
Positive total value equity 0.771***
Table V. Positive total brand equity −0.679**
Supermarket data Positive total relationship equity 0.353**
positive emotions Notes: **p o0.005; ***p o0.001
Loyalty intention
Regression Equation (1) Regression Equation (2) Regression Equation (3)
R2 0.678 0.730 0.754

Adj. R2 0.676 0.728 0.750
F 283.543*** 272.865*** 175.248***
Total equities
Total value equity 0.489*** 0.352*** 0.675***
Total brand equity 0.206*** 0.159*** −0.296**
Total relationship equity 0.225*** 0.139** 0.256**
Moderating variable
Negative emotions −0.332*** −0.254***
Interaction
Negative total value equity −0.360***
Negative total brand equity 0.482***
Table VI. Negative total relationship
Supermarkets data equity −0.164**
negative emotions Notes: **p o0.005; ***p o0.001
This finding suggests that customers’ positive and negative emotions are vital and critical
elements for determining loyalty intentions in addition to the conventional loyalty drivers.
The second step of the analysis tested the direct effect of customer loyalty drivers on loyalty
intentions. This step showed that all three customer loyalty drivers had a significant
positive effect on loyalty intentions, as predicted in the literature (Vogel et al., 2008).
This study also revealed that the effect of customer loyalty drivers on loyalty intentions
can differ depending on customer emotions. Therefore, in the third step of the analysis,
moderating effect was examined. In the supermarket sector, the interaction terms between
customer equity drivers (value, brand and relationship) and positive emotions were
significant. The results revealed that the positive emotions play a moderating role in the
relationship between customer loyalty drivers and loyalty intentions. Furthermore, the
standardized coefficients of the interaction terms between value equity, relationship equity
were positive, whereas there was a negative standardized coefficient of the interaction term
Loyalty intention
Moderating
Regression Equation (1) Regression Equation (2) Regression Equation (3) impact of
emotions
R2 0.455 0.490 0.497
Adj. R2 0.451 0.485 0.488
F 117.419*** 100.972*** 58.952***
Total equities 251
Total value equity 0.105** 0.113*** 0.199**
Total brand equity 0.229*** 0.188*** 0.115
Total relationship equity 0.455*** 0.405*** 0.555***
Moderating variable
Positive emotions 0.199*** 0.638***
Interaction
Positive total value equity −0.117**
Positive total brand equity 0.023 Table VII.
Positive total relationship equity −0.404*** Bank data positive

Notes: **p o0.005; ***po 0.001 emotions
Loyalty intention
Regression Equation (1) Regression Equation (2) Regression Equation (3)
R2 0.455 0.530 0.544

Adj. R2 0.451 0.526 0.536
F 117.419*** 118.858*** 71.269***
Total equities
Total value equity 0.105** 0.114** −0.104
Total brand equity 0.229*** 0.218*** 0.272**
Total relationship equity 0.455*** 0.310*** 0.136
Moderating variable
Negative emotions −0.290*** −0.769***
Interaction
Negative total value equity 0.300**
Negative total brand equity −0.055
Negative total relationship Table VIII.
equity 0.365*** Bank data negative
Notes: **p o0.005; ***po 0.001 emotions
between brand equity and positive emotions. This finding indicated that positive emotions
increase the positive effect of value equity and relationship equity on loyalty intentions,
whereas decrease the positive effect of brand equity on loyalty intentions. On the other hand,
the interaction terms between customer equity drivers (value, brand and relationship) and
negative emotions were also significant, indicating the moderating role in the relationship
between customer loyalty drivers and loyalty intentions. The standardized coefficients of the
interaction terms between value equity, relationship equity and negative emotions were
negative, whereas there was a positive standardized coefficient of the interaction term
between brand equity and negative emotions. This finding indicated that negative emotions
decrease the positive effect of value equity and relationship equity on loyalty intentions,
whereas increase the positive effect of brand equity on loyalty intentions. In the banking
APJML sector, the interaction terms between value equity, relationship equity and positive emotions
29,2 were significant indicating the moderating effect, while the interaction between brand equity
was not significant. The standardized coefficients of the interaction between value
equity, relationship equity and positive emotions were negative, indicating that negative
emotions decrease the positive effect of these loyalty drivers on loyalty intentions. Moreover,
the interaction terms between value equity, relationship equity and negative emotions were
252
Moderator
5
4.5
Loyalty Intentions
4
Figure 2. 3.5 Low Positive Emotions
Positive emotions 3
strengthens the 2.5 High Positive Emotions
positive relationship 2
between value equity
1.5
and loyalty intentions 1
Low Value Equity High Value Equity
Moderator
5
4.5
Loyalty Intentions
4
Figure 3. 3.5 Low Positive Emotions
Positive emotions 3
dampens the positive 2.5 High Positive Emotions
relationship between 2
brand equity and 1.5
loyalty intentions 1
Low Brand Equity High Brand Equity
Moderator
5
Loyalty Intentions
4.5
Figure 4. 4
Positive emotions 3.5 Low Positive Emotions
3
strengthens the High Positive Emotions
2.5
positive relationship 2
between relationship 1.5
equity and loyalty 1
intentions Low Relationship High Relationship
Equity Equity
Moderator
5
4.5
Loyalty Intentions
4
Figure 5. 3.5 Low Negative Emotions
Negative emotions 3
dampens the positive 2.5 High Negative Emotions
value equity and 1.5
significant, while the interaction term between brand equity and negative emotions was Moderating
not significant. The coefficients of the interaction between value equity, relationship equity impact of
and negative emotions were positive, indicating that negative emotions increase the positive emotions
effect of these two loyalty drivers on loyalty intentions.
Moderator
5
4.5
253
Loyalty Intentions
4
3.5 Low Negative Emotions Figure 6.
3 Negative emotions
2.5 High Negative Emotions strengthens the
2 positive relationship
1.5 between brand equity
1 and loyalty intentions
Moderator
5
4.5
Loyalty Intentions
4
3.5
Low Negative Emotions Figure 7.
3
High Negative Emotions Negative emotions
2.5 dampens the positive
2 relationship between
1.5 relationship equity
Moderator
5
4.5
Loyalty Intentions
4
3.5 Low Negative Emotions Figure 8.
3 Negative emotions
2.5 High Negative Emotions
strengthens the
2 positive relationship
1.5 between value equity
Moderator
5
4.5
Loyalty Intentions
4
3.5 Low Negative Emotions
3
2.5 High Negative Emotions
2
1.5
1
Low Brand Equity High Brand Equity Figure 9.
No interaction effect
Note: Negative emotions have no significant interaction effect on the was found
positive relationship between brand equity and loyalty intentions
APJML However, our results regarding the moderating effect of emotions on the relation between
29,2 brand equity and loyalty intentions are somewhat different from expected. In the banking
sector, emotions do not moderate the effect of brand equity on loyalty intentions.
One possible reason behind this result could be that impact of culture on emotions.
Culture shapes individuals “feelings and therefore has an impact on individuals” emotional
254 Loyalty Intentions 5

Moderator
4.5
Figure 10. 4
Negative emotions 3.5
strengthens the 3
Low Negative Emotions
positive relationship 2.5
between relationship 2 High Negative Emotions
1.5
equity and loyalty 1
intentions Low Relationship High Relationship
Equity Equity
Moderator
5
4.5
Loyalty Intentions
4
Figure 11. 3.5
Positive emotions Low Positive Emotions
3
dampens the positive 2.5 High Positive Emotions
value equity and 1.5
Moderator
5
4.5
Loyalty Intentions
4
3.5
Low Positive Emotions
3
High Positive Emotions
2.5
2
1.5
1
Figure 12. Low Brand Equity High Brand Equity
No interaction
effect was found Note: Positive emotions have no significant interaction effect on the
positive relationship between brand equity and loyalty intentions
Moderator
5
4.5
Loyalty Intentions
4
3.5
Low Positive Emotions
3
Figure 13. High Positive Emotions
Positive emotions 2.5
dampens the positive 2
relationship between 1.5
relation equity and 1
loyalty intentions Low Relation High Relation
Equity Equity
experiences. Various researchers claim that emotions differ primarily across cultures Moderating
(Barrett, 2006; Mesquita, 2001). For instance, emotions are more subdued in the collectivistic impact of
and high power distanced cultures (Kagitcibasi, 1997) and East Asian collectivists try to emotions
control their emotions in public (De Mooij and Hofstede, 2011). Moreover, there is empirical
evidence that brands are more important in the collectivistic cultures, particularly for visible
categories (Zhang et al., 2012). Thus, we believe that emotions might moderate the effect of
brand equity on loyalty intentions in more visible consumption settings. Yet in the retail 255
banking sector, emotions effect on the relation between brand equity and loyalty intention
seems to be less important for Pakistani consumers.
Furthermore, in the supermarket sector, positive emotions decrease the effect of brand
equity on loyalty intentions, while negative emotions increase the effect of brand equity on
loyalty intentions, which is opposite to the proposed relation. The possible explanation could
be that, in eastern cultures, brand consumption does not only fulfill material needs, but also
satisfies social needs, the desire for favorable social self, to earn respect from others and to
maintain, save and increase face (Ting-Toomey and Kurogi, 1998; Liao and Wang, 2009).
And also, eastern consumers might choose branded products because of their high
uncertainty avoidance, due to a large number of counterfeit products (Fan and Xiao, 1998).
Therefore, in supermarkets, Pakistani consumers might prefer to buy branded products, and
need to engage in detailed thinking and information processing. Thus, negative emotions will
increase the effect of brand equity, while positive emotions will decrease the effect of brand
equity on loyalty intentions.
5.1 Theoretical contributions

Two theoretical contributions to the literature stem from our findings. The first contribution
of this study relates to the explanatory power of emotions. In line with our hypotheses, both
positive and negative emotions significantly predict loyalty intentions, beyond the
explanatory power of conventional customer equity drivers. These findings show that
customer behavior is driven by emotions in both the supermarkets and banking context.
Thus, in order to better predict customer loyalty intentions, the emotional component is
crucial and should be included along with other cognitive components.
The second unique contribution of this study is that it examined emotions as moderators in
the relationship between customer equity drivers and loyalty intentions. In preceding studies,
the direct effects of emotions on loyalty intentions have been reported (Ladhari, 2007). But this
study uniquely contributes to explain the influence of emotions on the effectiveness of
marketing strategies by examining the moderating effect of emotions. This finding
complements the existing literature regarding the role of emotions in service settings and
offers a new point of view for the linkage among emotions, customer equity drivers and
customer loyalty intentions.
5.2 Managerial implications

The findings of this study have a number of implications for service managers in both the
supermarkets and the banking sector. First, the present study asserts that positive emotions
are positively linked to loyalty intentions, while negative emotions are negatively associated
with loyalty intentions. Thus, supermarkets and bank service managers need to make sure
that the customer experience with their services as pleasant as possible and try to avoid or
minimize unfavorable or unpleasant feelings during service encounters. For instance,
managers should design an effective delivery system to minimize the expected waiting time,
or they can provide pleasant environment or atmospheric cues in order to induce positive
emotions which lead to positive views about the firms’ services or products. These findings
reveal that customer emotions should be continuously monitored during the service delivery
process. Since customers’ emotional responses throughout service delivery are strongly
APJML linked to loyalty (Lee et al., 2008), service managers need to make sure that service
29,2 encounters should evoke positive feelings to the customers. For this purpose, customer
service employees need to be trained in order to better understand the customers’ emotional
responses during the course of service delivery process for creating pleasant customer
experiences (Mattila and Enz, 2002).
Second, the moderating effect of emotions on the relation between customers’ loyalty
256 drivers and loyalty intentions, helps the service managers in devising marketing strategies
accordingly and have an influence on the customer decision-making process. In the
supermarket sector, positive emotions increase the effect of loyalty drivers on loyalty
intentions. It means that when customers are in positive emotional states, they do not buy
the product or service based solely on value equity or relationship equity. This means that
service firms that lack behind in conventional loyalty drivers or do not pay much attention
to loyalty drivers, can still enhance customer loyalty intentions by inducing positive
customer emotions and creating favorable customer experiences. Moreover, negative
emotions decrease the effect of loyalty drivers on loyalty intentions. Thus, in order to retain
customer loyalty intentions, service managers should devise strategies to lessen the
unfavorable or negative feelings during service encounters.
On the other hand, in the bank sector, positive emotions decrease the positive effect of
loyalty drivers on loyalty intentions. This finding can be explained in a way that positive
emotions do not only shield the firms from complacent service provision, but also can
restrain the firms if they have done well in the domain of loyalty drivers. Therefore, positive
emotions can reduce the customers focus on loyalty drivers for the firms that are weak in
loyalty drivers as well as for the firms that are strong in this area. Furthermore, negative
emotions increase the positive effect of loyalty drivers on loyalty intentions. This implies
that negative emotions may help firms maintain customer loyalty intentions, when
customers perceive that firms are doing well. Thus, when customers are in negative
emotional states, firms focusing more on loyalty drivers as compared to the firms paying
less attention can still retain customer loyalty.
5.3 Limitations
We caution against generalization of these results because this study is not without
limitations: though future work should try to overcome its limitations. First, this study is
confined to two service settings (supermarkets and banking) in which the influence
of brands can be less evident. Future research should collect data in more visible
categories. Second, the data are collected from one city of Pakistan, therefore results
cannot be generalized to other countries and cultures. Future research should confirm
and extend our model in different cultures. Third, the measurement of emotions in the
marketing and consumer behavior literature appears to be mixed, therefore further
refining of existing emotional scales should be beneficial. Finally, one-time survey
methodology postures some restraints. As customers’ emotional responses are changing
throughout the services delivery process, future research should collect the data in
different time frames.
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The moderating impact of emotions on customer equity drivers and loyalty

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drivers and loyalty intentions

Zohaib Razzaq Received 23 March 2016

Bahauddin Zakariya University, Multan, Pakistan, and

2.2 Drivers of loyalty intentions

3.3 Statistical analysis

Average Mean Average

Positive emotions 0.917 0.786 0.164 0.102 0.887 Table I.

4.2 Hypothesis testing and analysis

Indicator Supermarket data values Bank data values

Factor loadings Factor loadings

V1 The price-quality ratio of the product/service the company

positive emotions Notes: **p o0.005; ***p o0.001

R2 0.678 0.730 0.754

Positive total relationship equity −0.404*** Bank data positive

R2 0.455 0.530 0.544

254 Loyalty Intentions 5

5.1 Theoretical contributions

5.2 Managerial implications

No. 6, pp. 789-832.

Psychological Review, Vol. 99, pp. 561-565.

Marketing Science, Vol. 30 No. 1, pp. 44-58.

Zohaib Razzaq can be contacted at: zohaib365@outlook.com

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positive emotions Notes: p o0.005; *p o0.001