Loyalty and innovation: Evidence from Algerian mobile service providers

Theoretical considerations imply a positive association between innovation and customer loyalty. However, two major gaps remain in the literature. First, there is little empirical support for the relationship between innovation and customer loyalty. The few existing studies have so far found mixed results. Second, apart from a recent study, differential studies on innovation are non-existent. This article aims to fill these gaps by discussing the relationship between innovation and customer loyalty in the mobile industry using survey data collected from Algerian mobile customers. The results show that discriminating innovation is consequential. Only effective innovations are positively associated with customer loyalty. Ineffective innovations are neutral for behavioral loyalty, but harmful for attitudinal loyalty. Implications for managers and researchers are provided.