Online Relationship Marketing Research Articles

Online Relationship Marketing and Customer Loyalty Based on Signalling Theory

Objective – The purpose of this study was to determine the effect of Online Relationship Marketing on customer loyalty which was examined from the perspective of signalling theory in the banking sector. Methodology/Technique – Signalling theory is used to identify the tendency of companies to build relationships with consumers by sending signals to consumers through a variety internet tools and applications to communicate transparency, security, and privacy to influence consumer perceptions, behavior, and interests. Data was analyzed using quantitative methods with the SEM-PLS method involving 384 samples. Findings – The results of this study indicate that Online Relationship Marketing activities, such as engagement and interactivity, have a significant direct effect on customer loyalty and online trust. Novelty - Online trust in this study has a significant effect on customer loyalty and has a partial mediating role. Type of Paper: Empirical. JEL Classification: M31, M39. Keywords: Engagement; Interactivity; Online Trust; Customer Loyalty; Signalling Theory Reference to this paper should be made as follows: Pebrianti, W; Tanwira, W; Ahmadi. (2021). Online Relationship Marketing to Customer Loyalty Based on Signalling Theory, Journal of Management and Marketing Review, 6(1) 86 – 93. https://doi.org/10.35609/jmmr.2021.6.1(9)

Guest Editorial: Technologies and Relationship Marketing

In the special issue “The Impact of the Current and Future Technologies on Relationship Marketing,” the Australasian Marketing Journal presents a series of papers covering topics to gain a better understanding of the current and future technologies that may play a role or have a robust impact on relationship marketing and contribute to theories associated with relationship marketing. The topics for the special issue include, but are not limited to, (a) the role of social media–enabled technology; (b) social media marketing on value co-creation and engagement; (c) mobile app technology and intention to purchase; (d) digital content marketing and content marketing strategies; and (e) building and maintaining customer relationships via online relationship marketing.

Online Relationship Marketing to Customer Loyalty Based on Signaling Theory (Evidence of Bank Customers in Indonesia)

The internet has changed people's way of life, especially in dealing a transaction. Indonesian banking entered a new era since 2000 when banks in Indonesia began implementing electronic banking or e-banking systems. Integrating cellular communication technology and banking financial services is changing people's lifestyles to be more flexible in making it easier for users to access banking financial services without being hindered by time, place and space. The same integration also occurs in relationship marketing strategies and cellular communication technologies that make it easy for companies to be able to reach and provide the best service to their consumers. This study wants to reveal the relationship of interactivity and engagement which is an activity of Online Relationship Marketing at a bank to be able to understand consumers in order to create customer loyalty with online trust as mediation.Based on the above background, the problem in this study is "Does Online Relationship Marketing activities such as engagement and interactivity affect customer loyalty either through online trust as mediation or not?" Keywords: engagement, interactivity, online trust, customer loyalty, signaling theory

The Effectiveness of Electronic Integrated Marketing Communications on Customer Purchase Intention of Mobile Service Providers: The mediating role of customer trust.

This study examines the impact of electronic integrated marketing communication (E-IMC) on customer buying intention. Furthermore, it explores the mediation effect of customer trust in the relationship between E-IMC and customer purchase intention. Empirical evidence was obtained from 277 mobile phone users in Palestine, and structural equation modeling applied. The findings of this study revealed that E-IMC positively impacts purchase intention. Further, each of E-IMC dimensions (online advertising, online sales promotion, and online relationship marketing) were also a significant predictor of purchase intention. The findings also revealed that the positive relationship between E-IMC and purchase intention is mediated by customer trust. We conclude with a theoretical contribution, managerial implications, limitations, and suggestions for future studies.

Special issue introduction: online relationship marketing

In this special issue, the Marketing Intelligence & Planning presents a series of papers associated with Online Relationship Marketing. Relationship marketing involves the development and maintenance of strong relationships with customers and other stakeholders that result in customer loyalty and firm profitability (Bolton et al., 2004; Firdaus and Kanyan, 2014; Morgan and Hunt, 1994; Oly Ndubisi, 2007). It stresses the importance of continuous interactions between the seller and the buyer in order to develop a long-term relationship (Jain et al., 2017; Palmatier et al., 2006). However, the impact of the internet and technology on relationship marketing are often not adequately investigated, leading to overstated hypothetical predictions of its future potential (Hart et al., 2000). In many circumstances, the resources devoted to developing and retaining the e-platforms are fruitless (Gan et al., 2007). Therefore, it is imperative to advance our knowledge of relationship marketing in the online environment (Bilgihan and Bujisic, 2015). The special issue includes a synthesised, state-of-the-art overview of online relationship marketing research as well as six papers covering three main themes: “personalised relationships, value-added benefits, and social media as emerging sales and distribution channels”.

Multi-Item Scale Development for Online Consumption Emotion Construct And Psychometric Evaluation for Relationship Marketing

The present study aims to develop a multi-item scale to measure the online consumption emotion (OCE) to facilitate understanding of relationship marketing. Qualitative and quantitative approaches were employed, and psychometric procedures were followed for the scale development. The initial pool of scale items was tested using EFA with SPSS (v. 21.0), and CFA with AMOS (v. 18.0) to confirm the dimensionality of OCE scale. The EFA results revealed that OCE is a five-dimensional construct which consisted of 39 items. The scale includes excitement, comfort, ecstasy, annoyance and romance. The adequacy of employing a categorical approach to assess online shoppers’ emotional experiences in terms of positive/negative responses is required for online relationship marketing orientation. The online consumption emotion scale can be used to understand individual’s online shopping behavior. The findings can help online marketers to envisage relationship marketing strategies to increase their retail customer base, retain customers, improve positive word-of-mouth, and to improve relationship marketing for long-term profitability.

Live streaming commerce from the sellers’ perspective: implications for online relationship marketing

ABSTRACTLive streaming has recently become a popular direct selling channel which offers small, self-employed sellers unseen levels of consumer interaction and engagement. While the extant research focused on consumer motivation and intention to shop via live streaming, little is known from the seller’s perspective. Indeed, the potential advantages of live streaming commerce are accessible to everyone, but sellers experience different levels of success with this medium. Using a mixed quantitative and qualitative approach, this study analyses Facebook data of live streaming sellers to assess the nature and extent of engagement metrics, and delineate the dynamic, interactive live streaming sales process. We identify four sales approaches and twelve strategies adopted in acquiring and retaining customers. This typology of sales approach representing seller-focused antecedents is mapped against the relationship process and outcomes to provide a framework for understanding relationship mechanisms in live streaming commerce.

Dynamics of Online Relationship Marketing: Relationship Quality and Customer Loyalty in Iranian banks

Abstract Purpose: The purpose of this paper is to show the dynamics of relationship marketing in e-banking by examining the association between relationship quality and online customer loyalty at different stages of the relationship lifecycle. Design/methodology/approach: A sample of 651 customers of Iranian banks in East Azerbaijan Province who had used online banking services was selected for the study after completing a questionnaire. The research hypotheses were tested using structural equation modeling and the AMOS23 software. Findings: The results showed that the level of the customer relationship determines the effect of relationship quality on customer loyalty in e-banking. Specifically, the effect of online commitment on customer loyalty decreases over time. In addition, as the relationship develops between the customer and the business, the influence of online trust on loyalty increases. Originality/value: The main contribution of this paper is it enriches the relationship marketing literature with respect to the dynamics of relationships by challenging the effectiveness of relationship marketing, especially the use of the same relational constructs (online satisfaction, trust, and commitment) for customers at different stages of the relationship lifecycle.

Online relationship marketing: evolution and theoretical insights into online relationship marketing

Purpose The purpose of this paper is to review the past, current and future trends in empirical research and theoretical insights into online relationship marketing. Design/methodology/approach Review over 100 empirical and theoretical studies in the online relationship marketing from top marketing and management journals. Findings This paper examined three areas pertinent to online relationship marketing: first, the evolution of online relationship marketing from pre-1990s to the present, which offers a temporal snapshot of changes in and an overview of the critical components that make up the structure of online relationship marketing; second, key theoretical perspectives are underlying the development of online relationship marketing; and third, empirical insights into online relationship marketing. In general, online relationship marketing has evolved from customers being passive receivers of online information and services to active co-producers and value co-creators. Research limitations/implications The paper identifies future research areas, including multiple layers of interactions, use of new technologies and platforms and the dark side of online communications. Originality/value The authors dedicated summary tables for each area, highlighting key findings, which in turn suggest a series of managerial recommendations for facilitating efficient, effective buyer–seller interactions and maximising firm performance in relation to online relationship marketing.

Online relationship marketing

Online interactions have emerged as a dominant exchange mode for companies and customers. Cultivating online relationships—defined as relational exchanges that are mediated by Internet-based channels—presents firms with challenges and opportunities. In lockstep with exponential advancements in computing technology, a rich and ever-evolving toolbox is available to relationship marketers to manage customer relationships online, in settings including e-commerce, social media, online communities, mobile, big data, artificial intelligence, and augmented reality. To advance academic knowledge and guide managerial decision making, this study offers a comprehensive analysis of online relationship marketing in terms of its conceptual foundations, evolution in business practice, and empirical insights from academic research. The authors propose an evolving theory of online relationship marketing, characterizing online relationships as uniquely seamless, networked, omnichannel, personalized, and anthropomorphized. Based on these five essential features, six tenets and 11 corresponding propositions parsimoniously predict the performance effects of the manifold online relationship marketing strategies.

Online relationship marketing and customer loyalty: a signaling theory perspective

PurposeOnline technologies have, in recent times, revolutionized the process of relationship building between firms and their customers. Nonetheless, there is a limited focus and theorization when it comes to explaining the link between online relationship marketing (ORM) activities and their impact on firm relationship marketing (RM) objectives. Thus, the purpose of this paper is to examine the signaling role of ORM activities in generating online trust and customer loyalty, through the lens of the signaling theory.Design/methodology/approachData for the study were gathered through a survey of 429 Ghanaian retail bank customers. Results were analyzed using structural equation modeling techniques.FindingsThe paper highlights the signaling role of engagement and interactivity online in influencing banks’ RM outcomes per the signaling theory. It concludes that bank’s online relationship activities, over and above the online tools utilized, need to communicate appropriate and useful signals in order to positively influence online trust and loyalty among customers.Originality/valueThe study, in its uniqueness, utilizes the signaling theory to explain the role and impact of online RM activities in the banking industry.

Online relationship marketing for banks in face-to-face economies

Online relationship marketing enables organisations to maintain and develop relationships with new and existing customers. In this study, we investigate online relationship marketing and the resulting loyalty for banks and their customers in an economy where face-to-face interactions are the norm. We introduce a model comprising relationship interaction and relationship quality and validate this for Jordanian banks and their SME customers. Increases in relational interaction were found to have a positive effect on the relationship quality dimensions of trust, satisfaction, and commitment. These then led to an increase in customer loyalty. Despite the preference in the economy for social presence in retail interactions, banks were able to establish effective online retail relationships with their SME customers.

Online relationship marketing and affective customer commitment – The mediating role of trust

The pervasive use of information technology has implications for consumer relationship management among financial services organisations. There is a need for increased understanding of how digital channels might influence the development and maintenance of firm–customer relationships and in particular the role of the Internet upon commitment and trust outcomes. Thus, this research aims to determine the relationship between online relationship marketing practices and affective customer commitment, and how this relationship is mediated by online channel trust. Data were collected from 200 online retail bank customers and Structural Equation Modelling was used to test the impact of five key online relationship marketing practices on affective commitment, and how trust mediates these relationships. We found that advocacy and collaboration have a direct relationship with affective commitment, while trust mediates the influence of engagement and personalisation on affective commitment. The article highlights the significance of trust in technology when using online channels to build customer relationships.

The effect of website features in online relationship marketing: A case of online hotel booking

The primary objective of this research is to develop a theory-based model of utilitarian and hedonic website features, customer commitment, trust, and e-loyalty in an online hotel booking context. Structural Equation Modeling was deployed to test research hypotheses. Findings highlight the importance of creating loyalty by focusing on both hedonic and utilitarian features. Affective commitment is more influenced by hedonic features whereas calculative commitment is driven by utilitarian ones. Both commitment dimensions sway customers’ trust towards the online vendor and trust is an important antecedent of e-loyalty. Findings confirm that web design features are important for online relationship marketing. Both commitment dimensions were found to be precursors of trust whereas affective commitment is the precursor of e-loyalty.

Philosophical Debates in Marketing and the Application of Critical Realism to Online Relationship Marketing

Research paradigms form a critical part of research, defining what is to be studied by a researcher and how it is to be studied. Marketing researchers have engaged in philosophical debates on paradigms arguing on which paradigm best fits marketing science. The purpose of this paper is to discuss the ontological, epistemological and methodological debates in the field of marketing, and justify the choice of one of the paradigms to undertake a research on online relationship marketing practices in the Ghanaian banking sector. The paper reviews five paradigms, namely interpretivism, positivism, realism, relativism and critical realism, as they underpin the key debates in marketing. Concerning relationship marketing, though the debates have between positivist and interpretive/phenomenology, a conciliatory view, embracing the strengths of different research methods used in the two paradigms, have been echoed. The paper makes a case for using critical realism for a research seeking to describe how Ghanaian banks develop online relationship marketing practices, and to determine the constituents of these practices. The paper explains the fit of the paradigm with the research topic and discusses how the research could be undertaken. The paper concludes that marketing researchers need to understand the dynamism of marketing concepts and identify appropriate research problems and questions which can be adequately addressed within their research paradigms.

How to lengthen, deepen and broaden customer–firm relationships with online financial services?

This study aims to examine the influence of online relationship marketing on consolidating online customer–firm relationships. Through developing an empirical model, this research explores the links between online relationship bonds (financial, social and structural bond), online relationship satisfaction and commitment, and online relationship length, depth and breadth with the online financial services. Data from 686 online customers of a security corporation indicates that online relationship bonds influence online relationship satisfaction and commitment, except for the link between financial bond and relationship commitment. Results also identify that online relationship satisfaction influences relationship length and depth, whereas online relationship commitment has a positive impact on relationship length, depth and breadth. In sum, this study concludes that financial bond is the most important attribute in enhancing online relationship length, whereas structural bond contributes a lot to online relationship depth and breadth.

Does online relationship marketing enhance customer retention and cross-buying?

One characteristic of online consumer behavior is the low cost of searching for alternatives. Therefore, customer loyalty is more difficult to achieve in the online context than in the offline one. Although studies have discussed the effectiveness of relationship marketing, nearly all studies examining such constructs have been in the context of ‘offline’ consumer behavior. With regard to the ‘online’ context, the integration of Internet technology with the customer loyalty concept is rarely discussed in the relationship marketing literature. Furthermore, empirical research that integrates the actual purchase behavior of customer retention and cross-buying is relatively sparse. In response to this, the current study develops and empirically tests a model that examines the relations among relationship-bonding tactics, perceived relationship investment, perceived relationship quality, customer loyalty, customer retention, and cross-buying. Using survey data from 766 online customers of a securities corporation, the results demonstrate the effectiveness of relationship marketing as it positively influences online customers' perception, then their loyalty, and ultimately, their actual purchase behavior.

Online Relationship Marketing by Singapore Hotel Websites

This paper investigates the level of Internet adoption by Singapore hotels for the purpose of relationship marketing (RM). An RM model was created as a means of developing a measurement instrument to allow content analysis of the current development of Singapore hotel websites. This paper also attempts to examine the relationship between the level of online RM and the star rating of the hotels, the number of rooms, and the locality of the hotels' web domain, respectively. We found that the majority of Singapore hotels are in “level 2,” the stage of database collection. Specifically, we found the level of online RM adoption is positively related to the hotel rating and the number of rooms, but negatively related to the local web domain. This paper will benefit hotels in Singapore by indicating their degree of adoption in online RM, thus recommending the enhancement of their websites towards fostering a long-term relationship with customers.

E-Mail Customer Service in the Swiss Hotel Industry

This research explored the state of electronic customer service in Switzerland by e-mailing a typical room query to a random and stratified sample of 200 hotels. Based on the hotel responses, this study found that guests had less than a one in ten chance of receiving a prompt, polite and personal reply. Diffusion of innovations helps explain the poor e-mail replies by Swiss hoteliers. The quality of reply differed across hotel size, category, online relationship marketing tools and linguistic region while responsiveness differed across online relationship marketing tools, geographic location and linguistic region. This study suggests that hotels can gain an immediate competitive advantage by implementing basic e-mail procedures.