Predicting Loyalty of Korean Mobile Applications: A Dual-Factor Approach

Recent mobile technology enables various types of mobile applications and payments and the market for those payments are still in the infant stage in Korea. In this early stage of new market development, the success of mobile application services highly depends on inducing new consumers and fostering their loyalty on the platform. This study adopts a Dual-Factor Model framework, with a dedication-constraint based model, in consideration of relevant factors that lead to consumers’ loyalty. To this end, this study collected survey data from 549 experienced users of mobile applications and payments and empirically tested the research model. The results indicate that consumers’ loyalty is highly determined by their satisfaction and their existing usage habit. Switching cost also showed a marginal effect on consumers’ loyalty. In addition, both extrinsic and intrinsic motivations - perceived value and perceived enjoyment – were found to be direct influences on the satisfaction construct. With this outcome in mind, this study reveals and suggests that future theoretical and practical exploration should focus on pursuing factors that stimulate both consumer satisfaction and habit to win and foster consumers’ loyalty in the usage of mobile applications.