Maintaining customer relationships in high credence services

Abstract

PurposeThe growing importance of relationship marketing has increased interest in the role of consumer trust and loyalty in establishing, developing, and maintaining successful relational exchanges. The aim of this study is first, to examine the differential effects of perceived service quality, trust, and loyalty on repurchase intentions, second, to specify loyalty as a key mediating variable in the consumer‐trust repurchase intentions relationship, and finally, to directly confront the thesis that loyalty is a more powerful determinant of long‐term relationships than trust.Design/methodology/approachTo test the proposed model in the context of professional services, the authors use data collected from 1,125 customers of a global financial services firm.FindingsThe results highlight customers' willingness to recommend the firm to relatives or friends to be the key driver of customer commitment to the organization.Research limitations/implicationsAlthough this single‐industry approach may establish the internal validity of the proposed model, replication in alternative service settings is needed to increase the generalizability of the findings. Further research is needed to investigate the longitudinal effects of trust and loyalty on repurchase intentions in professional service contexts.Originality/valueThe findings contribute to understanding of the relationships between different elements of service quality, trust, loyalty, and repurchase intentions; provide critical implications for managers of service organizations; and highlight directions for future research.