Loyalty is measured by repurchase intention, price tolerance and intention to recommend products or services to others. It is expected that better image and higher customer satisfaction should increase customer loyalty. In addition it is expected that there is a reciprocal relationship between complaints and loyalty. When the relationship between
customer complaints and customer loyalty is positive it implies that the firm is
successful in turning customers who complain into loyal customers. Conversely, it is
expected that when the relationship is negative the firm has not handled complaints
adequately.