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Book part
Publication date: 16 June 2005

Thorsten Hennig-Thurau, Kevin P. Gwinner, Dwayne D. Gremler and Michael Paul

Customer relational benefits have been identified as a driving motivation for consumers to engage in long term relationships with service providers. Such benefits can be expected…

Abstract

Customer relational benefits have been identified as a driving motivation for consumers to engage in long term relationships with service providers. Such benefits can be expected to play a crucial role in the success of service firms when extending their business into other countries and cultures. Most of the previous discussion of relational benefits has been conducted almost exclusively in North-American contexts and has not addressed the impact a nation’s culture may have on the relevance of relational benefits for gaining relationship outcomes such as customer loyalty. The aim of this article is to deepen our understanding of the role of relational benefits in developing long-term relationships with consumers in a cross-cultural context. Specifically, propositions focusing on the moderating role of power distance, individualism/collectivism, masculinity/femininity, and uncertainty avoidance for the benefits-outcomes relationship are developed. The article concludes with a discussion of potential implications for service firms and researchers.

Details

Research on International Service Marketing: A state of the Art
Type: Book
ISBN: 978-0-76231-185-9

Article
Publication date: 5 July 2011

Tracey S. Dagger, Meredith E. David and Sandy Ng

This paper seeks to examine the central role that commitment plays in driving customer loyalty and to identify the effect that confidence, social and special treatment benefits as…

7656

Abstract

Purpose

This paper seeks to examine the central role that commitment plays in driving customer loyalty and to identify the effect that confidence, social and special treatment benefits as well as relationship investment, communication and management have on the development of commitment, and ultimately customer loyalty.

Design/methodology/approach

The paper reports the results of a national mail survey of 591 consumers across nine different service industries.

Findings

The findings of the study suggest that relationship commitment drives customer loyalty and that confidence, social and special treatment benefits affect commitment to the service, as does relationship investment and management. Surprisingly, relationship communication was found to have a negative effect on commitment to the service.

Practical implications

This paper provides managers with insight as to how they can better create and sustain loyal relationships through the creation of customer commitment.

Originality/value

The paper empirically demonstrates the importance of commitment in developing and sustaining loyal relationships while also providing a detailed assessment of the role of relationship benefits and maintenance in creating committed customers.

Details

Journal of Services Marketing, vol. 25 no. 4
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 4 November 2014

Jin-Soo Lee, Seongseop Kim and Steve Pan

This paper aims to, building on the concept of relational benefits, relationship marketing investments, gratitude, satisfaction and favorable reciprocal behaviors, examine the…

3041

Abstract

Purpose

This paper aims to, building on the concept of relational benefits, relationship marketing investments, gratitude, satisfaction and favorable reciprocal behaviors, examine the mechanism of cultivating relationships with valued customers at an upscale restaurant.

Design/methodology/approach

To capture the traits of the population (upscale restaurant customers who perceive relationship marketing investments by experiencing relational benefits), upscale restaurant customers with membership cards were contacted in the survey. Structural equation modeling was used to test measurement and structural models.

Findings

Empirical findings indicated that confidence and social benefits positively contributed to relationship marketing investments, whereas special treatment benefits were not significantly related to relationship marketing investments. In turn, relationship marketing investments positively affected both gratitude and satisfaction; relationship marketing investments were also more associated with gratitude than satisfaction. Gratitude positively evoked favorable reciprocal behaviors; however, satisfaction did not trigger favorable reciprocal behaviors.

Originality/value

The integration of relationship marketing investments and gratitude into the conceptual model would allow the current findings to generate rich theoretical and practical implications that the extant hospitality literature has not elucidated.

Details

International Journal of Contemporary Hospitality Management, vol. 26 no. 8
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 25 October 2019

Pavleen Soni

Given the importance of relationship benefits in creating customer satisfaction, the purpose of this paper is to investigate the moderating role of relationship benefits (special…

Abstract

Purpose

Given the importance of relationship benefits in creating customer satisfaction, the purpose of this paper is to investigate the moderating role of relationship benefits (special treatment benefits and confidence benefits) on relationship quality and word of mouth (WOM) for online retailers. The conditional mediating role of relationship quality between customer satisfaction and WOM is also examined.

Design/methodology/approach

A sample of 700 MBA students from two universities in Punjab (North India) has been used to collect data. Structural equation modelling and PROCESS Macro (Hayes (2017) have been used for data analysis (mod mod mediation).

Findings

When customers perceive high confidence benefits, special treatment benefits moderate the mediational role of relationship quality between customer satisfaction and WOM. Specific conditions under which use of confidence benefits and special treatment benefits are successful for online retailers have also been identified.

Practical implications

Tailored use of special treatment benefits with confidence benefits in appropriate combinations will help the online retailers in segmenting the customers and differentiating amongst them according to the customers’ receptivity towards these benefits. Marketers can devise communication strategies, create customer segments and position their services using the results obtained in the study.

Originality/value

The present study is the first of its kind which clarifies as to why the previous literature considered special treatment benefits as less relevant to customers. It also establishes the situations in which these benefits successfully moderate the effect of customer satisfaction in developing relationship quality and eliciting positive WOM in the Indian internet retailing context.

Details

Marketing Intelligence & Planning, vol. 38 no. 6
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 30 March 2012

Tracey S. Dagger and Meredith E. David

This paper seeks to demonstrate that assuming an increase in satisfaction will always lead to greater loyalty oversimplifies the complex association between these constructs. A…

4063

Abstract

Purpose

This paper seeks to demonstrate that assuming an increase in satisfaction will always lead to greater loyalty oversimplifies the complex association between these constructs. A more accurate view of the satisfaction‐loyalty relationship is gained by examining the moderating effect of involvement, switching costs, and relationship benefits.

Design/methodology/approach

This paper reports the results of a hierarchal‐moderated regression analysis on data gathered from a national mail survey of 509 customers across nine service types.

Findings

The findings of this study suggest that the satisfaction‐loyalty relationship is not as simple as it seems. Specifically, the negative effect that switching costs have on the association between satisfaction and loyalty declines as customer involvement with the service relationship grows, but increases as the customer perceives greater relationship benefit. These findings suggest that simply enhancing satisfaction will not always generate greater customer loyalty.

Research limitations/implications

Future research should consider the effects of other moderating variables, such as relationship investment and quality, on the satisfaction‐loyalty link.

Practical implications

This paper provides managers with insight as to how to best increase customer loyalty.

Originality/value

This paper is the first to simultaneously examine the moderating effect of customer involvement, switching costs, and social benefits on the satisfaction‐loyalty association.

Details

European Journal of Marketing, vol. 46 no. 3/4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 August 2016

Mingli Zhang and Nuan Luo

Brand communities have been labeled as a social aggregation of brand fans and businesses. Yet, limited research has examined customers’ perceived relationship benefits in brand…

4984

Abstract

Purpose

Brand communities have been labeled as a social aggregation of brand fans and businesses. Yet, limited research has examined customers’ perceived relationship benefits in brand community on social media. Drawing from social capital theory and relationship benefits research, the purpose of this paper is to discover how online harmonious brand community influence customers’ perceived relationship benefits (i.e. confidence, special treatment, social and honor).

Design/methodology/approach

Hypotheses are tested by applying a structural equation modeling and the data are collected from a survey of smartphone community members (n=543) based on Sina Weibo.

Findings

The results suggest that harmonious brand communities strengthen customers’ perceived relationship benefits on social media, which are the important factors to form community satisfaction and positive word-of-mouth of community. And community engagement amplifies the influence of harmonious brand communities and has a moderating effect on the role of harmonious community relationships in confidence benefits.

Originality/value

The present study extends prior research on relationship benefits from the perspective of brand community based on social media and reveals the role of harmonious community relationships in developing community satisfaction and positive word-of-mouth.

Details

Internet Research, vol. 26 no. 4
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 3 August 2012

Johanna Gummerus, Veronica Liljander, Emil Weman and Minna Pihlström

Customer engagement is a concept that has emerged recently to capture customers' total set of behavioral activities toward a firm. The purpose of this paper is to study the effect…

35603

Abstract

Purpose

Customer engagement is a concept that has emerged recently to capture customers' total set of behavioral activities toward a firm. The purpose of this paper is to study the effect of customer engagement behaviors on perceived relationship benefits and relationship outcomes.

Design/methodology/approach

An online survey of members of a gaming Facebook brand community, resulting in 276 usable responses from gaming customers.

Findings

Customer engagement was divided into “Community Engagement Behaviors” (CEB) and “Transactional Engagement Behaviors” (TEB). In addition, three relationship benefits were identified: social benefits, entertainment benefits and economic benefits. The engagement behaviors largely influenced the benefits received. Furthermore, the mediation analysis results show that the influence of CEB on satisfaction is partially mediated by social benefits and entertainment benefits, while the effect of TEB on satisfaction is fully mediated through the same benefits. The effect of CEB on loyalty is mediated through entertainment benefits.

Research limitations/implications

The findings are limited to one brand community. The findings have implications for further research on customer engagement.

Practical implications

The paper's findings give ideas about how firms can utilize Facebook communities to enhance satisfaction and loyalty by offering the right kinds of relationship benefits. Managers are encouraged to study customer engagement behaviors on, and perceptions of, all channels and to utilize this information for the development of their social media strategies.

Originality/value

Customer engagement is a newly introduced concept on which scarce empirical research exists, and there is very little evidence of its effect on customer relationships. This is the first paper to study customer engagement empirically on a Facebook brand community, and to relate customer engagement to relationship constructs.

Article
Publication date: 28 March 2008

Hoang Thi Phuong Thao and Fredric William Swierczek

The purpose of this paper is to investigate how small and medium‐sized travel agencies as business customers perceive the benefits and barriers of Internet use that related to the…

4501

Abstract

Purpose

The purpose of this paper is to investigate how small and medium‐sized travel agencies as business customers perceive the benefits and barriers of Internet use that related to the development of a positive relationships and loyalty with their service suppliers.

Design/methodology/approach

Relevant hypotheses were constructed and a self‐administered questionnaire survey was conducted in the travel industry. Factor analysis and regression analysis were used to test these hypotheses.

Findings

The major benefits of Internet use were interactional and transactional benefits. The main barriers of the Internet use were organizational weaknesses, poor IT infrastructure, mistrust of the Internet system and legal issues. While the benefits positively contributed to the service and social bonds, the barriers negatively impacted the development of these bonds. The interactional benefits play a major role to increase switching costs. The customer relationships and switching costs concurrently enhanced the customer loyalty.

Research limitations/implications

Cross‐sectional data were used to explore customer relationships while these bonds are basically a dynamic phenomenon that evolves over time. The travel industry in one country was examined in this study. This limits generalization to other contexts.

Practical implications

Guidelines for practical solutions to reduce the barriers to create business customer value and strengthen customer relationships and loyalty through the Internet were proposed.

Originality/value

This paper improves the understanding of the impact of benefits and barriers of the Internet use on customer relationships and loyalty in the travel industry.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 20 no. 2
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 26 July 2011

Nurdilek Dalziel, Fiona Harris and Angus Laing

The complexity of customer relationships has been recognized in the relationship marketing literature. Yet, the understanding of how this complexity impacts on the formation and…

2688

Abstract

Purpose

The complexity of customer relationships has been recognized in the relationship marketing literature. Yet, the understanding of how this complexity impacts on the formation and development of different relationship forms is limited. Focusing on the development of customer‐service provider relationships in a financial services context, this paper aims to critically examine the nature and formation of business‐to‐consumer service relationships.

Design/methodology/approach

Qualitative methods were employed, with in‐depth interviews undertaken with a sample of UK bank customers.

Findings

The complexity of customer relationships was documented by approaching relationships as multidimensional, dynamic and contextual. A relationship typology based on four key relationship components (trust, commitment, buyer‐seller bonds, and relationship benefits) is proposed. This typology suggests that for a relationship to exist it does not necessarily have to encompass an emotional dimension. Moreover, the paper demonstrates the importance of the fit between customers' relational expectations and their experiences with service providers in developing long‐term committed relationships.

Research limitations/implications

The study was limited to the UK context. The extension of this study to other sectors or financial institutions operating in different regulatory and technological environments needs to be tested.

Practical implications

It is crucial that relationships are viewed as multidimensional, taking into account various relationship components. Since different relationship components influence relationships differently, organisations need to develop different relationship marketing strategies for each consumer segment according to consumers' relational expectations.

Originality/value

Building on preceding research, this paper broadens understanding of the complexity of customer‐firm relationships by presenting insight into the affective element of relationships and highlighting the role of the fit between customers' relational expectations and their experiences in relationship development.

Details

International Journal of Bank Marketing, vol. 29 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 27 February 2009

Chiung‐Ju Liang, Wen‐Hung Wang and Jillian Dawes Farquhar

The purpose of this study is to develop and empirically test a model examining the relationship between customer perceptions (product attributes, benefits, customer satisfaction…

5526

Abstract

Purpose

The purpose of this study is to develop and empirically test a model examining the relationship between customer perceptions (product attributes, benefits, customer satisfaction, trust, commitment and customer behavioral loyalty) and financial performance of a merchant bank.

Design/methodology/approach

Based on the SEM tool of Linear Structure Relation (LISREL), this study develops and empirically tests a model examining the relationships between customer perspectives (product attributes, benefits, customer satisfaction, trust, commitment and customer behavioral loyalty) and the financial perspective (financial performance). A cross‐department study in the financial services industry was conducted based on three consumer samples (department of Loans, Deposits, and Credit Cards) drawn from XYZ bank, one of the most famous banks providing merchant banking services in Taiwan.

Findings

SEM results indicate that: customer perceptions positively affect financial performance; and customers purchase financial services with dissimilar benefits, all of which come with corresponding attributes, and hence result in different levels of customer satisfaction and behavioral sequence, which is important in reinforcing customers' trust, commitment, repurchase intentions and corporate financial performance.

Practical implications

The findings suggest that financial service managers could consider treating consumers as partners in their provision of existing services or their quest to develop successful new services. Reciprocal behavior will foster a positive atmosphere, remove barriers arising from risk, and enable relationships to progress, ultimately improving financial performance.

Originality/value

The research proposes an empirical model of the customer perceptions in the consumption of financial services that has a positive impact on the financial performance of the company. The findings are based on data from one company across three product departments.

Details

International Journal of Bank Marketing, vol. 27 no. 2
Type: Research Article
ISSN: 0265-2323

Keywords

1 – 10 of over 101000