A two-stage approach for a reflective-formative hierarchical latent variable model for measuring customer loyalty: special case of Indian e-customers

This study employs an integrated model, combining information system (IS) continuance studies and marketing theories, to examine the post-adoption attitudinal and behavioural loyalty of an e-customer shopping from an online web-store. Our research employs partial least squares (PLS-SEM) regression analysis to test the model. Hedonic value and utilitarian value are proposed as first-order reflective indicators of second-order formative value construct. Gender is included as a moderator for testing the difference in effect for all the relationship paths in the model. Data collected from 403 online shopping customers present a sound support for the research model. The results show that value, trust, satisfaction and habit strongly augment customer's loyalty. The results also indicate that the outcome of satisfaction on habit is significantly stronger for females.