Many customer satisfaction studies have concluded that there is a significa
nt relationship between customer satisfaction and loyalty, but this finding
has been questioned in that most of the studies focus on measuring the cog
nitive component of customer satisfaction. This study includes the cognitiv
e component, but focuses oil the affective component. It explores the role
of emotions in satisfaction, and then compares the predictive ability of th
e cognitive and affective elements. Key findings are that both positive and
negative emotions, and the cognitive component of satisfaction correlate w
ith loyalty. Regression analysis indicates that the affective component ser
ves as a better predictor of customer loyalty than the cognitive component.
Further, the best predictor of both overall loyalty and the most reliable
dimension of loyalty, positive word of mouth, is positive emotions. The the
oretical and practical implications of these findings are discussed.