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Influence of share ownership on repeat patronage

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Business researchers have recently become interested in how an individual's share ownership in a publicly-listed company may affect his/her repeat patronage towards the company's products and services. The purpose of this article is to investigate the influence of share ownership on repeat patronage, in conjunction with the influence of customer satisfaction. Survey data of a large sample of customers of a retail bank are examined. The results suggest that a customer's share ownership in a company decreases the probability that he/she will switch the company to another product or service provider. The results also suggest that customers who are simultaneously shareowners of the company will, on average, accept a lower level of customer satisfaction to repeatedly patronise the company and its services than non-share-owning customers. For managers, the findings highlight the importance of paying attention to the fact that same individuals may both purchase the company's products/services and own the company's shares as well as treating people who might do so as a special customer-owner segment.
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Document Type: Research Article

Publication date: 2008-06-01

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