The Effects of Relational Benefits On Customers' Perception of Favorable Inequity, Affective Commitment, and Repurchase Intention in Full-Service Restaurants

Abstract

The purpose of this study is to investigate how relational benefits (including confidence benefits, social benefits, and special treatment benefits) affect customers' perceptions of favorable inequity and affective commitment, and thus ultimately affect customer retention. The study first develops and presents a conceptual model of the relationships that exist between the constructs of “relational benefits,” “favorable inequity,” “affective commitment,” and “repurchase intention.” This model is then empirically tested using 411 sample long-term customers of full-service restaurants. The results indicate that relational benefits trigger customers' perceptions of being favorably treated and that these perceptions, in turn, induce customers to form an affective commitment and repurchase intention with respect to particular restaurants. The study confirms the strategic importance of relational benefits in fostering relationships with long-term customers in the context of full-service restaurants.