The Dynamics of Customisation, Perceived Fairness, and Customer Loyalty within a Corporate Sustainability Framework
By: Mislav Ante Omazić, Mijo Renić and Alica Grilec
References
- Adams, J. S. (1965). Inequity in social exchange. In L. Berkowitz (Ed.), Advances in Experimental Social Psychology, 2, 267-299. https://doi.org/10.1016/S0065-2601(08)60108-2
- Anderson, E. W., Fornell, C., & Lehmann, D. R. (1994). Customer Satisfaction, Market Share, and Profitability: Findings from Sweden. Journal of Marketing, 58(3), 53–66. https://doi.org/10.1177/002224299405800304
- Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74-94. https://doi.org/10.1007/bf02723327
- Bart, Y., Shankar, V., Sultan, F., & Urban, G. L. (2005). Are the Drivers and Role of Online Trust the Same for All Websites and Consumers? A Large-Scale Exploratory Empirical Study. Journal of Marketing, 69(4), 133-152. https://doi.org/10.1509/jmkg.2005.69.4.133
- Bendapudi, N., & Leone, R. P. (2003). Psychological Implications of Customer Participation in Co-Production. Journal of Marketing, 67(1), 14-28. https://doi.org/10.1509/jmkg.67.1.14.1859
- Bhattacharya, C. B., & Sen, S. (2004). Doing Better at Doing Good: When, Why, and How Consumers Respond to Corporate Social Initiatives. California Management Review, 47(1), 9-24. https://doi.org/10.2307/41166284
- Bitner, M. J., Booms, B. H., & Tetreault, M. S. (1990). The Service Encounter: Diagnosing Favorable and Unfavorable Incidents. Journal of Marketing, 54(1), 71-84. https://doi.org/10.1177/002224299005400105
- Blodgett, J. G., Hill, D. J., & Tax, S. S. (1997). The effects of distributive, procedural, and interactional justice on postcomplaint behavior. Journal of Retailing, 73(2), 185-210. https://doi.org/10.1016/s0022-4359(97)90003-8
- Boulding, W., Staelin, R., Ehret, M., & Johnston, W. J. (2005). A Customer Relationship Management Roadmap: What is Known, Potential Pitfalls, and Where to Go. Journal of Marketing, 69(4), 155-166. https://doi.org/10.1509/jmkg.2005.69.4.155
- Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39-48. https://doi.org/10.1016/0007-6813(91)90005-G
- Chandra, S., Verma, S., Lim, W. M., Kumar, S., & Donthu, N. (2022). Personalization in personalized marketing: Trends and ways forward. Psychology & Marketing, 39(8), 1529-1562. https://doi.org/10.1002/mar.21670
- Chhabra, S. (2017). An Empirical Analysis of the Effect of a Retailers Loyalty Programme on Their customers’ Loyalty. Global Business Review, 18(2), 445–464. https://doi.org/10.1177/0972150916668612
- Du, S., Bhattacharya, C. B., & Sen, S. (2010). Maximizing business returns to Corporate Social Responsibility (CSR): The Role of CSR communication. International Journal of Management Reviews, 12(1), 8-19. https://doi.org/10.1111/j.1468-2370.2009.00276.x
- Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39. https://doi.org/10.2307/3151312
- Fornell, C., Johnson, M. D., Anderson, E. W., Cha, J., & Bryant, B. E. (1996). The American Customer Satisfaction Index: Nature, Purpose, and Findings. Journal of Marketing, 60(4), 7-18. https://doi.org/10.1177/002224299606000403
- Franke, N., Keinz, P., & Steger, C. J. (2009). Testing the Value of Customization: When Do Customers Really Prefer Products Tailored to Their Preferences? Journal of Marketing, 73(5), 103-121. https://doi.org/10.1509/jmkg.73.5.103
- Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Cambridge: Cambridge University Press.
- Frow, P., Payne, A., Wilkinson, I. F., & Young, L. (2011). Customer management and CRM: Addressing the dark side. Journal of Services Marketing, 25(2), 79-89. https://doi.org/10.1108/08876041111119804
- Gandomi, A., & Zolfaghari, S. (2013). Profitability of loyalty reward programs: An analytical investigation. Omega, 41(4), 797-807. https://doi.org/10.1016/j.omega.2012.10.003
- Geisser, S. (1974). A predictive approach to the random effect model. Biometrika, 61(1), 101 – 107. https://doi.org/10.2307/2334290
- Giovanis, A., Athanasopoulou, P., & Tsoukatos, E. (2015). The role of service fairness in the service quality – relationship quality – customer loyalty chain: An empirical study. Journal of Service Theory and Practice, 25(6), 744-776. https://doi.org/10.1108/JSTP-11-2013-0263
- Grégoire, Y., & Fisher, R. J. (2008). Customer betrayal and retaliation: When your best customers become your worst enemies. Journal of the Academy of Marketing Science, 36(2), 247-261. https://doi.org/10.1007/s11747-007-0054-0
- Gumussoy, C. A., & Koseoglu, B. (2016). The Effects of Service Quality, Perceived Value and Price Fairness on Hotel Customers’ Satisfaction and Loyalty. Journal of Economics, Business and Management, 4(9), 523-527. https://doi.org/10.18178/joebm.2016.4.9.446
- Hair, F. Jr., J., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM). European Business Review, 26(2), 106 – 121. https://doi.org/10.1108/EBR-10-2013-0128
- Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling. 2nd ed. London: Sage.
- Han, H., & Hyun, S. S. (2017). Impact of hotel-restaurant image and quality of physical-environment, service, and food on satisfaction and intention. International Journal of Hospitality Management, 63, 82-92. https://doi.org/10.1016/j.ijhm.2017.03.006
- Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135. https://doi.org/10.1007/s11747-014-0403-8
- Hohenberg, S., & Taylor, W. (2020). Measuring Customer Satisfaction and Customer Loyalty. In: Homburg, C., Klarmann, M., Vomberg, A. (eds) Handbook of Market Research (1-30). Springer, Cham. https://doi.org/10.1007/978-3-319-05542-8_30-1
- Homans, G. C. (1961). Social behaviour: Its elementary forms. New York: Harcourt Brace.
- Homburg, C., Droll, M., & Totzek, D. (2008). Customer prioritization: Does it pay off, and how should it be implemented? Journal of Marketing, 72(5), 110-130. https://doi.org/10.1509/jmkg.72.5.110
- Homburg, C., Koschate, N., & Hoyer, W. D. (2005). Do Satisfied Customers Really Pay More? A Study of the Relationship between Customer Satisfaction and Willingness to Pay. Journal of Marketing, 69(2), 84-96. https://doi.org/10.1509/jmkg.69.2.84.60760
- Hu, L.-t., & Bentler, P. M. (1998). Fit Indices in Covariance Structure Modeling: Sensitivity to Underparameterized Model Misspecification. Psychological Methods, 3(4): 424-453. https://doi.org/10.1037/1082-989X.3.4.424
- Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strategic Management Journal, 20(2), 195-204. https://doi.org/10.1002/(sici)1097-0266(199902)20:2<195::aid-smj13>3.0.co;2-7
- Huppertz, J. W., Arenson, S. J., & Evans, R. H. (1978). An Application of Equity Theory to Buyer-Seller Exchange Situations. Journal of Marketing Research, 15(2), 250-260. https://doi.org/10.1177/002224377801500208
- Johnson, M. D., Herrmann, A., & Huber, F. (2006). The Evolution of Loyalty Intentions. Journal of Marketing, 70(2), 122-132. https://doi.org/10.1509/jmkg.70.2.122
- Jung, N. Y., & Seock, Y.-K. (2017). Effect of service recovery on customers’ perceived justice, satisfaction, and word-of-mouth intentions on online shopping websites. Journal of Retailing and Consumer Services, 37, 23-30. https://doi.org/10.1016/j.jretconser.2017.01.012
- Kumar, V., & Shah, D. (2004). Building and sustaining profitable customer loyalty for the 21st century. Journal of Retailing, 80(4), 317-329. https://doi.org/10.1016/j.jretai.2004.10.007
- Lee, M. K. (2018). Understanding perception of algorithmic decisions: Fairness, trust, and emotion in response to algorithmic management. Big Data & Society, 5(1). https://doi.org/10.1177/2053951718756684
- Lemmink, J., & Mattsson, J. (2002). Employee behavior, feelings of warmth and customer perception in service encounters. International Journal of Retail & Distribution Management, 30(1), 18-33. https://doi.org/10.1108/09590550210415239
- Liao, H., & Chuang, A. (2004). A Multilevel Investigation of Factors Influencing Employee Service Performance and Customer Outcomes. Academy of Management Journal, 47(1), 41-58. https://doi.org/10.2307/20159559
- Morris, B. (1998). The Service Profit Chain: How Leading Companies Link Profit and Growth to Loyalty, Satisfaction, and Value. International Journal of Service Industry Management, 9(3), 312-313. https://doi.org/10.1108/ijsim.1998.9.3.312.3
- Nguyen, B., & Klaus, P. P. (2013). Retail fairness: Exploring consumer perceptions of fairness towards retailers’ marketing tactics. Journal of Retailing and Consumer Services, 20(3), 311-324. https://doi.org/10.1016/j.jretconser.2013.02.001
- Nguyen, B., & Simkin, L. (2013). The dark side of CRM: advantaged and disadvantaged customers. Journal of Consumer Marketing, 30(1), 17-30. https://doi.org/10.1108/07363761311290812
- Nguyen, B., Klaus, P., & Simkin, L. (2014). It’s just not fair: exploring the effects of firm customisation on unfairness perceptions, trust and loyalty. Journal of Services Marketing, 28(6), 484-497. https://doi.org/10.1108/JSM-05-2013-0113
- Oliver, R. L. (1999). Whence Consumer Loyalty? Journal of Marketing, 63(4-1), 33-44. https://doi.org/10.1177/00222429990634s105
- Oliver, R. L., & Swan, J. E. (1989). Consumer perceptions of interpersonal equity and satisfaction in transactions: a field survey approach. Journal of Marketing, 53(2), 21-35. https://doi.org/10.2307/1251411
- Pallant, J. L., Karpen, I. O., & Sands, S. J. (2022). What drives consumers to customize products? The mediating role of brand experience. Journal of Retailing and Consumer Services, 64, 102773. https://doi.org/10.1016/j.jretconser.2021.102773
- Peppers, D., & Rogers, M. (1997). Enterprise One to One: Tools for Competing in the Interactive Age. New York: Currency Doubleday.
- Porath, C., MacInnis, D., & Folkes, V. (2010). Witnessing Incivility among Employees: Effects on Consumer Anger and Negative Inferences about Companies. Journal of Consumer Research, 37(2), 292-303. https://doi.org/10.1086/651565
- Pratama Hafidz, G., & Huriyahnuryi, K. (2023). The Effect of Perceived Value on Customer Satisfaction and Customer Loyalty in the Fast-Food Industry in Indonesia. International Journal of Social Science, Education, Communication and Economics (SINOMICS JOURNAL), 2(1), 41-62. https://doi.org/10.54443/sj.v2i1.113
- Ringle, C. M., Wende, S., & Becker, J.-M. (2015). SmartPLS 3. Bönningstedt: SmartPLS GmbH. Retrieved from http://www.smartpls.com
- Scholl-Grissemann, U., Stokburger-Sauer, N. E., & Teichmann, K. (2022). The importance of perceived fairness in product customisation settings. The Service Industries Journal, 42(11–12), 823–842. https://doi.org/10.1080/02642069.2020.1819252
- Sharma, N., & Patterson, P. G. (1999). The impact of communication effectiveness and service quality on relationship commitment in consumer, professional services. Journal of Services Marketing, 13(2), 151-170. https://doi.org/10.1108/08876049910266059
- Simonson, I. (2005). Determinants of Customers’ Responses to Customized Offers: Conceptual Framework and Research Propositions. Journal of Marketing, 69(1), 32-45. https://doi.org/10.1509/jmkg.69.1.32.55512
- Smith, A. K., Bolton, R. N., & Wagner, J. (1999). A model of customer satisfaction with service encounters involving failure and recovery. Journal of Marketing Research, 36(3), 356–372. https://doi.org/10.1177/002224379903600305
- Srinivasan, S. S., Anderson, R., & Ponnavolu, K. (2002). Customer loyalty in e-commerce: an exploration of its antecedents and consequences. Journal of Retailing, 78(1), 41-50. https://doi.org/10.1016/S0022-4359(01)00065-3
- Stone, M. (1974). Cross-validatory choice and assessment of statistical predictions. Journal of the Royal Statistical Society: Series B (Methodological), 36(2), 111–147. https://doi.org/10.1111/j.2517-6161.1974.tb00994.x
- Thompson, C. J., Rindfleisch, A., & Arsel, Z. (2006). Emotional branding and the strategic value of the doppelgänger brand image. Journal of Marketing, 70(1), 50-64. https://doi.org/10.1509/jmkg.70.1.050.qxd
- Wallström, S., Hjelm Lidholm, S., & Sundström, M. (2024). Retailers view on customer loyalty–a social resource theory perspective. The International Review of Retail, Distribution and Consumer Research, 34(4), 399-416. https://doi.org/10.1080/09593969.2023.2287998
- Xia, L., Monroe, K. B., & Cox, J. L. (2004). The price is unfair! A conceptual framework of price fairness perceptions. Journal of Marketing, 68(4), 1–15. https://doi.org/10.1509/jmkg.68.4.1.42733
- Xu, Y., Wang, Y., Lu, F., & Xiao, Q. (2023). Toss a peach and get back a plum: Impact of customized services on firm performance. SAGE Open, 13(3), 1–14. https://doi.org/10.1177/21582440231195942
Language: English
Page range: 37 - 56
Submitted on: Mar 10, 2025
Accepted on: Sep 19, 2025
Published on: May 10, 2026
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year
Keywords:
Related subjects:
© 2026 Mislav Ante Omazić, Mijo Renić, Alica Grilec, published by IRENET - Society for Advancing Innovation and Research in Economy
This work is licensed under the Creative Commons Attribution 4.0 License.