The interrelationships between relationship marketing constructs and customer engagement dimensions

The study examines the interrelationships between selected relationship marketing constructs, namely customer satisfaction, trust, perceived value and commitment, and their effect on the dimensions underlying customer engagement. The study is quantitative and an explanatory research design was followed. A total of 489 self-administered questionnaires were collected from customers of short-term insurance providers on the basis of convenience. Customer satisfaction impacts positively on affective commitment and trust. Customer value also impacts positively on affective commitment and trust, while trust impacts positively on affective commitment. Affective commitment in turn impacts positively on the four customer engagement dimensions: interaction, attention, absorption and affection. The research findings offer an initial understanding of the interrelationships between key relationship marketing constructs and their ultimate effect on various customer engagement dimensions. These matters have received little attention in marketing research, and knowledge of the proposed relationships may lead to further research on this topic.     

Social media engagement: a model of antecedents and relational outcomes

This article investigates individual-level antecedents and relational outcomes of social media engagement. Social media engagement approached in this study is a three-dimensional construct composed of affective, cognitive and behavioural dimensions. Surveying more than 48 Facebook pages, spanning nine product categories and 448 consumers, the results show that product involvement, attitude towards the community and online interaction propensity all impact social media engagement. The study also reveals that high social media engagement increases brand relationships significantly, particularly affecting brand trust, commitment and loyalty. Additionally, community engagement appears as a precursor of brand engagement. These findings provide insight into antecedents and outcomes of engagement for academic research and bring value to online brand and community management.     

An integrative approach to relationship marketing,customer value,and customer outcomes in the retail banking industry: a customer-based perspective from Turkey

Given how important it is to provide superior value to customers and to maintain customer loyalty for a sustainable competitive advantage, the aim of this paper is to examine the relationships among relationship marketing components of – trust, competency, commitment, communication, and conflict handling, – relationship investment, relationship quality, perceived customer value, satisfaction and loyalty in an integrated framework in the Turkish retail banking industry. Unlike previous studies, this research extends the literature by analysing affective as well as cognitive dimensions in the same model with a holistic view by simultaneously examining the direct and indirect effects of the related concepts. The distinctive nature of this study is its evaluation of customer satisfaction and loyalty from the perspective of actual consumers. The research model was tested using data collected from 685 retail banking customers by applying structural equation modelling. The findings show that relationship marketing induces loyalty through relationship quality, customer value, and satisfaction, which are mainly provided by trust, communication, and relationship investment. Furthermore, relationship investment and relationship quality are the most important factors in the development of customer value, satisfaction, and loyalty. The emotional value dimension, which captures the affective aspects of perceived value, has the strongest effect on both satisfaction and loyalty.     

Drivers of brand community engagement

Brand community engagement is evolving as a prominent relationship marketing variable that yields promising outcomes for the firms. Drawing upon the relevant premises of social exchange theory, this paper proposes a theoretical model portraying the role of online brand community based benefits (experience based and self-esteem based) and the community relationship investment in predicting the levels of brand community engagement.Data collected through a survey questionnaire technique from 925 members of the firm created online brand communities was employed to test the measurement and structural theory using confirmatory factor analysis and structural equation modeling respectively. The empirical results reveal that the customers’ experiential and self-esteem based benefits drive their brand community engagement. The perceived community relationship investment of the members also drives their brand community engagement positively. The sequential structural model also supported a positive impact exerted by brand community engagement on brand community commitment and brand loyalty. Additionally, it is observed that the focal brand ownership moderates the effect of community benefits and community relationship investment on brand community engagement.This study contributes to the nascent academic research on online brand communities and to the existing understanding of the brand community managers in managing customer engagement in online brand communities, thereby of profound theoretical and managerial relevance.     

“I won't leave you although you disappoint me”: The interplay between satisfaction,investment, and alternatives in determining consumer–brand relationship commitment

While commitment is among the key constructs of consumer–brand relationships, past research has regarded the impact of predictors of brand commitment as being linear and has ignored potential interactive effects among the different antecedents. Applying the investment model of interpersonal relationship, the present research examines the dynamic interplay among the key determinants of consumers' commitment to their relationship with brands (satisfaction, alternatives, and investment) and substantiates the roles of the antecedents in consumer–brand relationship contexts. Results of two studies demonstrate that greater consumer satisfaction and investment and less attractive alternatives lead to a higher level of consumers' commitment to their relationship with a brand. Most important, the results suggest that the perceived size of investment exerts a stronger impact on brand relationship commitment when satisfaction is low while making no significant difference in the commitment level when satisfaction is high. Conversely, the influence of alternative attractiveness on brand relationship commitment appeared to be largely monotonic. © 2010 Wiley Periodicals, Inc.     

The behavioural sequence of the financial services industry in Taiwan: Service quality,relationship quality and behavioural loyalty

This study develops and empirically tests a model for examination of the relations among service quality scales, relationship bonding tactics, customer satisfaction, trust and commitment, and customer behavioural loyalty in a relationship marketing system. This paper aims to test the relationship between perceived service quality satisfaction and relationship intentions, or, in other words, whether or not consumers will consider building long-term relationships with service providers on the basis of a single instance of perceived service quality. Based on three groups of samples from XYZ bank, one of the most famous banks providing merchant banking services in Taiwan, the findings suggest that financial products with different product attributes need different kinds and levels of service and relationship investment. The findings also suggest that there does exist a positive relationship between service quality satisfaction and perceived relationship investment.     

The link between customer satisfaction and loyalty: the moderating role of customer characteristics

This research examines whether trust and commitment mediate the extent to which satisfaction influences loyalty, and whether such mediation is conditional on certain demographic or situational customer characteristics. The findings suggest that assuming homogeneity supports the general notion that trust and commitment partially mediate the extent to which satisfaction influences loyalty. FIMIX-PLS and PLS-MGA analyses substantiate that this mediation differs between two distinct customer segments. The two segments reveal heterogeneity in how trust and commitment partially mediate the link between satisfaction and loyalty. That is, the effect of satisfaction on loyalty is fully mediated by trust and commitment in the segment of customers with high education, whereas satisfaction is partially mediated by trust, but not by commitment, in the other segment of customers with less education.     

Affective commitment and future purchase intentions in the performing arts: An empirical approach

We examine whether affective commitment can influence customers' future purchase intentions. Our empirical approach focuses on the performing arts sector in which we interviewed 927 theatregoers at the entrances or exits to 150 theatres throughout Spain. The theoretical relationship management model proposed herein provides an analysis of the role played by satisfaction, trust, and commitment in future purchase intentions. Our findings reveal that affective commitment mediates the relationship between future purchase intention and both satisfaction and trust. We discuss the theoretical and management implications of our findings and identify some possible future research directions. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

Distribution Channel Relationships: The Conditions and Strategic Outcomes of Cooperation between Manufacturer and Distributor

The purpose of this paper is to carry out an empirical examination of the antecedents of cooperation between manufacturer and distributor. A further objective is to study the levels of satisfaction with the strategic outcomes of such cooperation. We analyze the extent to which cooperation requires not only complementary resources and capabilities of the partners but also goal congruence, trust and relational norms. Cooperation between manufacturer and distributor also involves reciprocal commitment and joint investment in specific assets. Finally, manufacturers and distributors should not only gain satisfaction from the economic, psychological or social benefits of cooperation, but should also gain competitive advantage, profits and strategic outcomes that help to compete in the market more efficiently.     

Effects of web site characteristics on customer loyalty in B2B e-commerce: evidence from Taiwan

This study proposes a model to explain how web site characteristics influence customer e-loyalty and positive word-of-mouth (WOM) via relationship quality (trust, satisfaction, and commitment) in business-to-business e-commerce. Three hundred and twelve online services users of the Market Intelligence Center in Taiwan were recruited and structural equation modeling was used to test the research hypotheses. The result indicates that web site characteristics positively influence relationship quality. A follow-up post-analysis showed how five dimensions of the web site characteristics impacted relationship quality. In addition, both trust and satisfaction have a positive direct effect on e-loyalty, but not on positive WOM. Finally, theoretical and managerial implications of the findings were discussed.     

Procedural justice in promotion decisions of managerial staff in Malaysia

Previous research indicates that procedural justice in promotion decisions has affected employees' organizational commitment, intent to leave and career satisfaction. The purpose of this study was to examine the effect of procedural justice in promotion decisions on managers' commitment, specifically organizational commitment, intent to leave, career satisfaction and job performance in multinational companies in Malaysia. Data were obtained from a sample of managers with more than 10 years of service in the organization through in-depth interviews. The findings show that perceived procedural injustice in promotion decisions have an unfavourable impact on employee commitment, job performance and career satisfaction. The intent to leave is also higher, especially among young managerial staff.     

Loyalty in the Business-to-Business Service Context: A Literature Review and Proposed Framework

Loyalty has been named as one of the greatest competitive advantages for companies operating under high competition conditions. However, different authors look at this concept from different views and take different factors into account. This article consolidates academic research on loyalty in business services. The determinants of loyalty are identified and the development of loyalty as a process is investigated. These findings, together with the relationship development process and the possible influence of culture, are integrated into the resulting research framework. This framework suggests that relationship quality, comprising trust, satisfaction, and commitment, is a mediator of the loyalty development process. Furthermore, it suggests that these mediators, determining the transition from one stage to the other, are influenced by different antecedents. Finally, managerial recommendations and directions for future research are provided.     

Balancing the sequential logic of quality constructs in manufacturing-supplier relationships — Causes and outcomes

Manufacturers in business markets are experiencing a strong trend towards close versus distant relationships with suppliers. Three key relationship constructs in academic research are trust, commitment, and satisfaction. Although the relevant literature holds some evidence that trust and commitment are antecedent to satisfaction, the possibility that satisfaction plays a key mediation role between trust/commitment and other important outcomes (i.e., coordination, cooperation, and continuity) receives scant examination. This study tests this conceptual model by examining the relationships between manufacturers and suppliers. A random sample of small-to-medium-sized Norwegian manufacturers was contacted by phone in order to identify potential key informants. Shortly thereafter, a total of 581 surveys were mailed to the key informants. Two hundred and twelve surveys were returned, representing a response rate of 36.5%. Results support the conceptual model presented; trust and commitment relate positively to satisfaction; and satisfaction, in turn, relates positively to all three outcomes of coordination, cooperation, and continuity.     

The Precursor Role of Cooperation,Coordination, and Relationship Assets in a Relationship Model

ABSTRACT

Purpose: The primary purpose of this study is to test the importance of activity-oriented precursors in a relationship model. This study supports the theoretical view that firms create trust and knowledge through activities and these activities make a commitment decision less risky (Johanson & Vahlne, 2009). The secondary purpose of this study is to collect and examine data from interorganizational relationships in both Sweden and the United States. By including data from two countries, results will be more generalizable. Results can also lead to several managerial implications.

Methodology/approach: This study focuses on a sample of distributors from both the United States and Sweden. One hundred sixty-one usable surveys were returned from the U.S. survey, for a response rate of 27%. One hundred twenty-four usable surveys were returned from the Swedish survey, for a response rate of 21%. The PLS-SEM method was used to examine the model’s constructs.

Findings: Similar to past research results show that trust and commitment have a direct positive influence on satisfaction, and that trust also has a direct positive influence on commitment. However, this study uniquely supports four out of six newly tested hypotheses. Both cooperation and relationship assets have a direct positive influence on commitment. Cooperation has a direct positive influence on trust and commitment. Relationship assets have a direct negative influence on trust but a direct positive influence on commitment. Surprisingly, two hypotheses were not supported: Coordination did not have a significant relationship with either trust or commitment.

Research implications: Managers who want to achieve a satisfactory relationship based on trust and commitment need to prioritize their attention toward cooperation. They should also be aware that participation in joint activities (i.e., coordination and relationship investments) does not guarantee higher levels of trust or commitment in the relationship. It is the quality of the joint activities and the how dependent firms are on each other and not just participation in joint activities that are likely to create higher levels of trust or commitment. The quality of coordination and manageable levels of dependence may counteract the higher costs associated with joint activities compared to the costs associated with cooperation. Managers may be wise to not make major commitments to other firms unless high quality joint activities have created knowledge and trust between firms. Originality/value/contribution: The model adds the joint activity-oriented antecedents associated with collaboration which is essential to a successful relationship. Because of the high failure rate of collaboration may be due to cooperation and coordination failures and because these two constructs are underspecified in interorganizational research, this study is unique in examining activity-oriented antecedents in a trust/commitment model of relationship satisfaction in a cross-cultural context (i.e., with U.S. and Swedish samples).     

How managers in the financial services industry ensure financial performance

With the wide prevalence of the balanced scorecard, this study develops and empirically tests a model examining the relations between the customer perspective (relationship bonding tactics, perceived relationship investment, customer satisfaction, trust, commitment and customer behavioural loyalty) and the financial perspective (financial performance). A cross-departmental 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. The results show that the customer perspective does have positively significant effects on financial performance, as proposed by the BSC (Balanced Scorecard) and SPC (Service Profit Chain). In addition, the findings suggest that customers purchase financial services according to their perceived relationship to investment retailers, with corresponding bonding tactics, which results in different levels of customer satisfaction and behavioural sequences, and is important in reinforcing customers' trust, commitment, repurchase intentions and corporate financial performance.     

Relationship Commitment and Ethical Consumer Behavior in a Retail Setting: The Case of Receiving Too Much Change at the Checkout

In this study, we conducted two experiments to examine the effect of relationship commitment on the reaction of shoppers to receiving too much change, controlling for the amount of excess change. Hypotheses based on equity theory, opportunism and guilt were set up and tested. The first study showed that, when the less committed consumer is confronted with a large excess of change, he/she is less likely to report this mistake, compared with a small excess. Conversely, consumers with a high commitment towards the retailer are more likely to tell when they receive too much change, especially when the amount is large. The second experiment provided an explanation for these findings: the less committed consumer is driven by opportunism, whereas guilt-related feelings play an important role in a high commitment relationship. These results have several implications for both retail management and future research.     

Commitment,satisfaction, and customer loyalty: a theoretical explanation of the ‘satisfaction trap’

This paper examines the relationship between satisfaction and customer loyalty and the moderating effects of affective and calculative commitment. The results suggest that while customer loyalty increases monotonically with the enhancement of satisfaction, the marginal effect of satisfaction on customer loyalty actually decreases. Calculative commitment positively moderates the curvilinear relationship of satisfaction and customer loyalty, i.e. enhancing calculative commitment could intensify the relationship between satisfaction and customer loyalty. Affective commitment has no significant moderating effect on the relationship of satisfaction and customer loyalty, but it can directly enhance the customer loyalty. The research findings can help us to explain the phenomenon of the ‘satisfaction trap’.     

Service relationships and the customer disengagement – engagement conundrum

Abstract

Emergent research on customer engagement has focused on enhancing engagement within service relationships. Less attention has been given to how and why customers disengage from their relationships, and the potential interplay between engagement and disengagement has not yet been explored within the marketing literature. This study presents the findings from a qualitative exploration of the concept of customer disengagement, its initiating triggers, nature and the process by which it unfolds within functional/utilitarian (F/U) and participative/co-creative services (P/C). Rather than being mutually exclusive, it finds that engagement and disengagement are highly connected and that prior levels of engagement significantly influenced customers’ subsequent propensities to disengage. Specifically, customers’ propensity towards disengagement was higher within services considered F/U in nature and lower within services of a more P/C nature. In addition, the extent to which customers disengaged from their relationship was strongly determined by their prior levels of engagement with weak engagement for F/U services and strong engagement for P/C services. Relationships in the F/U category were subsequently transactional and volatile when compared to relationships within the P/C category that were comparatively emotionally bonded and enduring.