Does experience matter?

Abstract

PurposeAlthough 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.Design/methodology/approachUsing 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.FindingsThe 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.Practical implicationsThe findings of this study have tactical and strategic implications for service firms, including effective customer asset management, resource allocation, and relationship strategy.Originality/valueThis study makes a significant new contribution to theory and practice.