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Much of the success of a relationship marketing program rests on the consumers' choice to participate in a service relationship in the first instance. The purpose of this study is to examine the degree to which this desire of the consumer to engage in a relationship impacts on their perceived cognitive‐state gains (motivation, confidence and affiliation) and key measures of consumer‐to‐business relationship success (relationship strength, satisfaction and retention intentions).

Following a qualitative study, the main quantitative study used a self‐administered survey of 334 service consumers to understand relationship perceptions. Structural equation modeling was then used to test the hypotheses.

Analysis revealed that consumers desire to participate in a relationship influenced their level of motivation, degree of confidence and these, in turn, impacted on the consumers' sense of affiliation with the service provider. A consumer's sense of affiliation subsequently influenced the strength of their relationship and their level of satisfaction with the relationship. Additionally, the effect of relationship desire on relationship strength and satisfaction was apparent. Consumers' desire indirectly impacted on retention intentions, suggesting that service managers should be careful not to assume that consumers' deliberate choice to participate in a relationship will routinely result in loyalty.

Practitioners and academics have sought to determine why some consumers, and not others, participate in relationships. This study adds to knowledge in this area by empirically demonstrating the extent to which the desire of a consumer to participate in a service relationship effects the gains accrued to the consumer and the relationship outcomes.

Although customer relationships transpire through a process of time, encounters and experience, few studies have examined the dynamics of service relationships. This paper aims to address this issue by examining the effect of experience on the association between relational benefits and relationship quality, and between relationship quality and loyalty.

Using a national sample of 376 service consumers and nine service industries, the study examines whether the impact of relationship benefits on perceptions of satisfaction, trust and commitment, and ultimately customer loyalty, differs significantly between novice and experienced customer cohorts.

The results indicate significant differences between novice and experienced cohorts. Specifically, the impact of confidence, social and special treatment benefits on perceptions of satisfaction, trust and commitment, and ultimately customer loyalty, differ significantly based on a customer's level of relationship experience.

The findings of this study have tactical and strategic implications for service firms, including effective customer asset management, resource allocation, and relationship strategy.

This study makes a significant new contribution to theory and practice.

This paper seeks to investigate the effects of relationship benefits on relationship quality and aspects of service quality, namely technical and functional quality, and the subsequent influence on word‐of‐mouth behavior.

The paper reports results from a structural equation model that utilizes data from 591 consumers across a range of services.

The findings highlight the important role of relationship benefits in driving customer perceptions of technical, functional and relationship quality. While confidence, social and special treatment benefits drive technical and functional quality, it is only confidence benefits that drive relationship quality. Furthermore, it is found that functional and relationship quality drive word‐of‐mouth behavior.

The findings of this study contribute to the literature by showing the differential impact that relationship benefits have on quality – technical, functional, and relationship – and subsequently the effect that functional and relationship quality have on word‐of‐mouth behavior.

The paper provides firms with the knowledge needed to more effectively implement relationship‐marketing activities. As the service economy continues to grow, competition intensifies, and to ensure service excellence, firms need to establish strong relationships with their customers as the quality of the customer‐provider relationship can increase word‐of‐mouth behavior.

The paper empirically investigates the role of relationship benefits in enhancing perceptions of quality while also providing an analysis of the differential role of functional, technical, and relationship quality in enhancing customers' word‐of‐mouth intentions.

Country‐of‐origin (COO) effects are concerned with buyers' opinions regarding the relative qualities of goods and services produced in various countries. It is the aim of this study to test a framework for investigating the match/mismatch between consumers' product category and country image perceptions. Specifically, the paper seeks to examine whether consumers perceive all products emanating from a particular country favourably simply because consumers associate favourable attributes with that country or whether this effect is specific to particular product categories.

The study employed a structured survey administered through mall intercepts. Data were collected from a sample of 188 Australian consumers. While Australian consumers were the focal country of study, countries selected for evaluation included Japan, Korea, the USA, Canada, China and New Zealand. The products selected included beer, automobiles, watches, leather shoes and stereos.

The findings suggest that when a strong favourable match exists between country and product image then COO will positively influence product evaluation and willingness to buy. Conversely, when an unfavourable mismatch is evident COO would negatively influence consumers' product evaluations and willingness to buy.

Given that most products originating in foreign countries are subject to country stereotyping or image effects, it is important for marketers and retailers to understand and manage the potential impact of COO effects. This study tests a framework that can be applied by marketers to determine the effect of product and country matches in relevant domestic or international markets.

This paper aims to argue that, traditionally, service recovery attempts have paid little attention to customer preferences. Despite attempts to recover the customer, firms generally do not know if the recovery solution is what the customer expects. Hence, the paper seeks to examine whether customer recovery preferences influence customers' evaluation of the recovery attempt in terms of recovery satisfaction and repurchase intentions.

First, a two‐stage qualitative study was conducted. Then the research model was tested empirically on a sample of 431 consumers using a multivariate analysis.

The findings support the argument that customers have distinct recovery preferences. Moreover, customers are satisfied with the service recovery solution only when it matches the most demanding recovery preference. Customers' recovery preferences have a significant impact on their satisfaction with recovery and their repurchase intentions.

First, the model developed is tested on a cross‐sectional sample. Second, the measure of recovery satisfaction and repurchase intentions used here was relatively simple. Third, the study relies on repurchase intentions instead of actual behavioural data.

This research indicates that customers have a preference for how service recovery should be undertaken. Given these distinct recovery preferences, different recovery solutions should be applied to address each preference appropriately.

It is widely accepted in the service recovery literature that customers' perceptions of a service recovery attempt are often different to those of the service provider. However, this research suggests that customer recovery preferences need to be carefully considered given their effect on customer satisfaction and repurchase intentions.

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.

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

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.

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

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.

There are a number of assumptions inherent in relationship marketing, including claims that a relationship should be developed with all customers in all situations. This paper seeks to show that marketers should not automatically use relationship marketing techniques for all products and for all customers.

This paper reports the results of an empirical survey of 287 consumers for five service products in which consumers were asked to assess the strength of the relationship between themselves and their supplier.

Relationship strength was found to vary significantly between service products and individual customers, and the impact of duration of the relationship and the frequency of purchase on relationship strength depends greatly on the nature of the service product. It was also demonstrated that some customers want a closer relationship with service providers than other customers, and this aspect significantly affects the strength of relationship perceived by the customer.

This paper clearly shows that the use of relationship marketing techniques for service products needs to be much more thoroughly researched to provide guidance for practitioners and marketing theorists. The complexity of the “relationship” construct in marketing is clearly shown and there is as yet no known set of “rules” that indicate when relationship marketing techniques should, or should not, be used.

The contribution of this paper is to empirically demonstrate that not all customers want to develop relationships with all service suppliers.

Building and maintaining strong customer relationships has been suggested as a means for gaining a competitive advantage. Despite this, few studies have examined the link between written communication and relationship perceptions. Yet understanding the establishment of this link is a necessary precursor for the development of concrete relationship management strategies. This paper aims to test the effectiveness of well‐known and cited written communication elements in enhancing relationship perceptions. The paper specifically seeks to identify which elements of written communication are relationally conducive by examining the impact of these elements on customers' perceptions of the relationship they have with their service provider.

The paper reports the results of an empirical survey of 422 distance education customers in which customers were asked to assess relationally conducive written communication elements and the importance of these elements on relationship development.

It was found that four components of written communication – message clarity, aesthetics, accuracy and physical features – were perceived by customers as relational cues that influence their relationship with the service organisation.

These findings are of value to service managers developing written communication that is conducive to relationship development. The contribution of the paper is that it empirically establishes a link between written communication and service relationships; an untested link that has been presumed in the literature. This basic empirical foundation is a necessary first step in the development of this research area.

While service quality, trust and commitment are frequently cited as critical to achieving important firm outcomes, the role of service differentiation in this framework is largely unknown. Yet, differentiation is important because a firm's distinctiveness is linked to client‐perceived value, competitive advantage, and a target market focus. Thus, the purpose of this study is to examine the role of service differentiation in business‐to‐business relationships.

Hypotheses were tested using a sample of business clients from a large European financial services firm. The senior primary contact in each client firm was contacted by phone/e‐mail to arrange for completion of the survey. Using the survey instrument, respondents provided information on their relationship with the provider organization.

Results indicated that service quality had an impact on trust, differentiation and relationship outcomes. Trust was found to drive service differentiation. Differentiation, in turn, drove commitment which ultimately had an impact on both satisfaction and word‐of‐mouth. Importantly, it was found that service differentiation is a full mediator of the impact that service quality and trust have on client commitment towards the firm.

The findings clearly show the importance of service differentiation in achieving high levels of relationship commitment and ultimately satisfaction and positive word‐of‐mouth. As the role of differentiation in business‐to‐business relationships has received limited research focus, this paper offers managers new insights into relationship development. Importantly, differentiation is a managerially controlled variable that firms can use to influence relationship outcomes.

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.

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.

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.

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

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

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