Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

Key Words
: Investment Model, Loyalty, Satisfaction, Quality of Alternatives, Investments, Cruise 
INTRODUCTION 
Brand loyalty
has drawn wide research attention since marketing first took shape as a discipline (Copeland, 
1923). Although considerable work has been done in loyalty studies, how consumers develop loyalty to a brand is 
not yet well understood (Agustin & Singh, 2005; Morais, Dorsch, & Backman, 2004). Numerous variables have 
been suggested as plausible antecedents of loyalty. However, the identification of these antecedents was not always 
theoretically justified. As a consequence, empirical tests on such links have led to conflicting results and 
questionable conclusions. That is, readers may find that the same variable suggested as a critical “determinant” of 
loyalty in one study, could be revealed as only marginally relevant to loyalty in another. Although a couple of 
theoretical frameworks have been proposed (Dick & Basu, 1994; Morais et al., 2004), one may argue that a 
parsimonious and unifying explanation that can integrate existing findings still lacks.
This study proposes that the Investment Model (Rusbult, 1980a, 1980b, 1983) from the social psychology 
literature may help us understand how loyalty develops. This model, if supported, would (1) integrate extant 
research findings, which appear somewhat fragmented, (2) lend a concrete theoretical foundation to the discussion 
on loyalty formation, and (3) provide guidance to service providers in developing and diagnosing loyalty programs.