The impact of creative competence and project management on longevity of the client-advertising agency relationship

Abstract

Purpose – The study aims to consider the overall impact of the service encounters and projects undertaken on the long-term relationship between the agency and its clients. Design/methodology/approach – The study uses a parallel mixed-method design incorporating quantitative and qualitative elements in the client–advertising agency context. Data obtain via an online survey in Study 1 were analysed using structural equation modelling and bias-corrected bootstrapping technique. Study 2 featured 15 in-depth interviews with marketing managers and project leaders. Findings – The findings revealed that advertising agencies deliver value and create trust through creativity aspects as well as project management processes. In addition, both perceived value and trust have crucial roles in fostering client–agency relationships and the continuance of business relationships. Value has a stronger direct effect on loyalty when compared with trust, confirmed by the results of Study 2. Several respondents pointed out the influence of client characteristics on both evaluation of creativity as well as loyalty. Practical implications – The results highlight the importance of project management and planning which should be seen as an investment by both parties. Moreover, agencies need to involve clients in the creative process and focus on marketing themselves and the value they add to enhance client loyalty. Originality/value – This study was the first to develop a model for the drivers of loyalty, drawing from literature in three key areas: service quality, relationship marketing and project management. An additional contribution of the study stems from the incorporation of an integrated parallel mixed-methods approach.