Relationship Marketing Outcomes Research Articles

A profile deviation approach to enhancing relationship marketing outcomes

The study examines seven key dimensions of online customer engagement behaviour and uses these to build ideal and baseline profiles. This ensures verbal and statistical correspondence. This approach allows identification of critical customer engagement behaviour to invest in and which one to invest in for maintenance. The study finds that deviating from the critical behaviours has negative implications for the spreading of positive word of mouth and brand loyalty. The findings and the methodological procedures are of interest to hospitality managers and academics. Data for the study was obtained from 326 customers at various hotels in Mauritius. The configural conceptual framework was tested using profile deviation to assure verbal and statistical correspondence leading to clear actionable recommendations for managers. The analysis goes beyond the approach in extant research by examining both the global and disaggregated impacts on PWOM and brand loyalty. The theoretical and managerial implications of the study are further discussed.

Customer lifetime value: the effect of relational benefits, brand experiences, quality, satisfaction, trust and commitment in the fast-food restaurants

PurposeThis study examines factors that affect customer lifetime value (CLV) in fast-food restaurants (FFRs) in Jordan. These factors are relational benefits, brand experiences, service quality (SQ), satisfaction, trust and commitment.Design/methodology/approachAn online survey was collected from a sample of 503 respondents. The authors used SPSS to test the constructs' relationships and analyse the data. SmartPLS was used to test the hypotheses.FindingsIn contrast to previous studies, not all dimensions of brand experiences and relational benefits had a significant and positive influence on relationship marketing outcomes (satisfaction, trust and commitment). On the other hand, results demonstrated that SQ had a significant and positive influence on relationship marketing outcomes. Furthermore, research reveals that satisfaction, trust and commitment significantly and positively influenced CLV.Practical implicationsThose FFRs that seek to enhance CLV should build solid and sustainable bonds with their customers. This paper concludes by stating its implications, its limitations and the opportunities available for future research.Originality/valueThis study, which is unique in the Middle East, includes essential strategies for managing customer relationship that can be universally applied to improve customer benefits and maximise the performance of businesses.

Smart vending machine experiences, experiential relationship quality and experiential relationship marketing outcomes

ABSTRACT This study aims to examine the relationships between the dimensions of smart vending machine experiences, experiential relationship quality and experiential relationship marketing outcomes. The study findings are based on structural equation modeling of a convenience sample of 443 consumers purchasing products using smart vending machines in Taipei, Taiwan, indicating that the proposed model fits the data. The analysis results contribute to the services marketing theory by providing additional insights into the dimensions of smart vending machine experiences, experiential relationship quality and experiential relationship marketing outcomes. These findings are discussed in terms of both academic and practitioner implications.

How gratitude improves relationship marketing outcomes for young consumers

PurposeRelationship marketing is about developing, maintaining and sustaining mutually beneficial customer–organisation relationships as measured by economic gains. Yet, a purely economic focus does not fully offer a psychological explanation of relationship marketing outcomes. In this regard, this paper has considered gratitude as a significant component of personal relationships, which offers insights into a customer–organisation relationships. Accordingly, this study aims to examine gratitude as a mechanism to predict relationship marketing outcomes, such as overall satisfaction, trust and commitment.Design/methodology/approachData were collected from 1,093 millennial consumers across three university campuses.FindingsResults indicate that gratitude is a mediating mechanism that can explain the relationship between young consumers’ perceptions of relationship marketing investments and overall satisfaction, trust and commitment. Perceived benevolence strengthens the relationship between perceived relationship marketing investments and customer gratitude.Originality/valueThe gratitude model contributes an alternative understanding of how young consumers’ perceptions of an organisation’s marketing investments are important in achieving a high degree of relationship marketing outcomes. This paper further incorporates the moderating roles of customer cynicism and perceptions of benevolence, key individual and relational characteristics, that influence the level of gratitude individuals to experience in response to the investments made by organisations.

Relationship value in business-to-business markets: a replication and extension of Ulaga and Eggert’s (2006) study

PurposeUlaga and Eggert (2006a) examined a framework of relationship value in business markets. This study aims to replicate their study to show that relationship benefits are more important than relationship costs when it comes to choosing a main supplier. This research also extends the original study by hypothesising that the development of relationship value has a positive impact on relationship marketing outcomes, thus providing evidence for the nomological validity of the original scale.Design/methodology/approachThe study used empirical data from purchasing managers in manufacturing firms in the UK. The research instrument was a structured questionnaire. The study adopted a close replication to Ulaga and Eggert (2006a) using a rather similar context and methodology for comparison reasons.FindingsRelationship benefits are more important than relationship costs when it comes to choosing a main supplier. Cost competitiveness is a necessary but not sufficient condition to differentiate in business markets. Value dimensions relate significantly to relationship marketing outcomes, providing evidence for the nomological validity of the original scale.Research limitations/implicationsGiven the dynamic nature of the relationship value construct, future longitudinal research could offer useful insights on how value is created over time.Practical implicationsAlthough internal cost reduction, which can ultimately lead to price reduction, should not be ignored, suppliers should focus on creating value through personal interaction, service quality, product enhancements and delivery efficiency.Originality/valueThe findings provide support for Ulaga and Eggert’s (2006a) conceptualisation, indicating that the relationship value is not merely a theoretical construct viewed on a high level of abstraction but rather can also be empirically measured.

The impact of country of origin on relationship marketing outcomes in a market with a large migrant population

The impact of country of origin on relationship marketing outcomes in a market with a large migrant population

The impact of country of origin on relationship marketing outcomes in a market with a large migrant population

The purpose of this study was to investigate the effects of brand country of origin on a variety of relationship marketing outcome measures in the food services industry of Kuwait. The results demonstrate that foreign brands have more current users, higher preference rankings and larger customer shares than domestic brands. No differences were found between foreign brands and domestic brands on customer retention or satisfaction. Overall, it appears that, despite their inability to achieve higher satisfaction or retention scores, foreign brands have been able to achieve superior share performance due to their higher preference scores. It appears that foreign firms have a built in advantage. Rather than suffering from the well-known 'liability of foreignness' reported in other markets, foreign brands may have an inherent preference-based advantage in a market with a majority of foreign born consumers.

A comparison of the relationship marketing outcomes of SMEs vs large enterprises in the Kuwait fast food industry

Purpose The purpose of this paper is to investigate the effects of retail chain size on a variety of relationship marketing performance measures in the Kuwait fast food industry. These include customer satisfaction, customer retention, penetration rate, preference ranking and share of customer. Design/methodology/approach A total of 49 fast food chains, operating a total of 508 restaurants, were included in the study. Interviews with the home office marketing managers of each chain were conducted. In addition, a quota sample of 650 consumers representative of the Kuwait population with respect to age and gender was selected for participation in the study. Findings Findings suggest that large enterprises (LE) exhibit superior outcomes than small- and medium-sized enterprises (SMEs) on many relationship marketing (RM) performance dimensions, including satisfaction, retention, penetration, preference and share of customer. In contrast, SMEs appear to have few advantages in achieving RM outcomes over LEs. Larger firms appear to use their superior resources to take actions to develop and manage customer relationships in ways that smaller firms cannot. Originality/value Kuwait is an important emerging market in the Middle East, and managers need to understand the dynamics of this specific market.

An integrative approach to relationship marketing, customer value, and customer outcomes in the retail banking industry: a customer-based perspective from Turkey

ABSTRACTGiven how important it is to provide superior value to customers and to maintain customer loyalty for a sustainable competitive advantage, the aim of this paper is to examine the relationships among relationship marketing components of – trust, competency, commitment, communication, and conflict handling, – relationship investment, relationship quality, perceived customer value, satisfaction and loyalty in an integrated framework in the Turkish retail banking industry. Unlike previous studies, this research extends the literature by analysing affective as well as cognitive dimensions in the same model with a holistic view by simultaneously examining the direct and indirect effects of the related concepts. The distinctive nature of this study is its evaluation of customer satisfaction and loyalty from the perspective of actual consumers. The research model was tested using data collected from 685 retail banking customers by applying structural equation modelling. The findings show that relationship marketing induces loyalty through relationship quality, customer value, and satisfaction, which are mainly provided by trust, communication, and relationship investment. Furthermore, relationship investment and relationship quality are the most important factors in the development of customer value, satisfaction, and loyalty. The emotional value dimension, which captures the affective aspects of perceived value, has the strongest effect on both satisfaction and loyalty.

How do different types of customer engagement affect important relationship marketing outcomes? An empirical analysis

How do different types of customer engagement affect important relationship marketing outcomes? An empirical analysis

The effect of digital design in retail banking on customers’ commitment and loyalty: The mediating role of positive affect

Facing an exodus of customers, some banks want to propose a new customer experience in their branches, notably with digital proposals to enhance positive affective reactions. This article studies the influence of digital design factors and the mediating effect of positive affect on two important relationship marketing outcomes: customer commitment and loyalty. This approach is quite innovative because research on the impact of atmospheric factors, and especially design cues, is quite unusual in retail banking sector. The results show that digital factors have a direct effect on positive affect but no direct influence on attitudinal loyalty or commitment. Positive affect has a mediating role between digital displays and these outcomes.

Do product returns hurt relational outcomes? some evidence from online retailing

Customer product returns are a key challenge for online retailers. Previous research primarily focused on causes of returns and possible interventions to reduce customers’ product returns and concomitant costs for online retailers. However, little is known about the effect of product returns on key relational outcomes. Drawing on relationship marketing theory, we test a model that relates product returns to three relationship marketing outcomes—customer satisfaction, trust, and positive word-of-mouth. A field study based on online panel data from customers of eight large online retailers demonstrates that product returns negatively affect customer satisfaction with the retailer, customer trust, and word-of-mouth. The findings extend previous research by revealing that product returns can detrimentally affect relationships with customers. Implications for e-commerce research and management are discussed.

A framework for encouraging retail customer feedback

Purpose– The purpose of this study is to examine antecedents of the under researched area of customer feedback in a retail context with feedback defined as positive and negative comments as well as suggestions for product/service improvements. A market-oriented firm listens to customers and puts their feedback into practice. Research on customer engagement, which includes customer feedback, has recently surged. The preponderance of feedback research to date has been focused on customer complaint behavior which is negatively valenced. Much less attention has been paid to customer feedback (including sharing positive information, thoughts and suggestions for new ideas, in addition to negative information) even though it has great value for companies. This research addresses this gap by integrating literature on customer orientation and engagement and relationship marketing antecedents (social benefits) and outcomes (commitment) to better understand what retailers can do to encourage customer feedback through relationships with frontline employees.Design/methodology/approach– This study employs a cross-sectional, single retailer approach surveying 864 customers who have varying relationships to a coffee house.Findings– Conditional process analysis was used to test the hypothesized mediating and moderating relationships. Results were consistent with predictions, showing that retail employee customer-oriented behavior is mediated by customer social benefit perceptions to influence feedback. Further, social benefit perceptions will interact with the level of customer continuance commitment to impact feedback. Specifically, the impact of social benefits will be stronger when commitment to the retailer is higher.Originality/value– This research has academic and practical implications by increasing our understanding of an underrepresented and valuable aspect of engagement – customer feedback. Specifically, it addresses a key marketing research priority set forth in a 2010JSRspecial issue, calling for more work contributing to this topic. Also, this research implies managers have the ability to influence the amount of feedback that they receive by encouraging certain employee behaviors.

Study of relationship quality dimensionality in the parcel delivery services market

The article is organized in five parts. First part is introduction. In this part the research problem, the aim of this work and objectives are formulated. The aim of this work is as follows: after having analyzed an integrative model of determinants of key relationship marketing outcomes, to perform confirmatory factor analysis of the scale in order to assess if the same dimensions structure exists for parcel delivery services. The objectives of this work are: 1) to analyze T. Hennig-Thurau et al. (2002) model of determinants of key relationship outcomes, 2) to do survey of Lithuanian parcel delivery services consumers and to measure relationship quality using this instrument, 3) to perform confirmatory factor analysis in order to determine if dimensions structure of the model is the same for Lithuanian parcel delivery services. The problem solved in this paper is as follows: an integrative model of determinants of key relationship marketing outcomes was developed using a wide variety of services to expand the generalization therefore it is possible to examine context-specific relationships of a single service type. Moreover, it is not known if the same relationship quality dimensions exist in other than North-American cultural context such as Lithuanian culture. In the second part of this article relationship quality model suggested by T. Hennig-Thurau et al. (2002) is analyzed and research hypotheses are formulated. Hypotheses are formulated in order to test relationships between dimensions and their discriminant validity. In the third part of this work research methods are described. Confirmatory factor analysis process is analyzed. In the fourth part of this article the results of study are analyzed. Various goodness of fit statistics such as degrees of freedom and chi-square test, RMSEA, NFI, NNFI, PNFI, CFI, IFI, RFI, standardized RMR, GFI, AGFI, PGFI, D2, Fornell-Larcker test is analyzed in order to accept or reject hypotheses and to assess relationships between dimensions and discriminant validity of these dimensions. Nested models are compared with the original model and differences in goodness of fit statistics are examined. In the fifth part of this work final conclusions are formulated about model’s reliability and validity in parcel delivery services setting.

Making Up Lost Ground: The Relative Advantage of Achieving Relationship Marketing Outcomes Versus Time-In-Market Effects

ABSTRACTThe authors study the time-in-market phenomenon among Kuwait coffee shops. Data was collected from more than 600 users of 39 separate coffee shop brands in the Kuwait market. The evidence does not support a direct effect for time-in-market impact on market share. The evidence does, however, show an interaction effect, with time-in-market interacting with relationship marketing (RM)-related consumer outcome measures to influence market share. Specifically, (1) coffee shops in the market longer and that exhibit higher levels of consumer preference exhibit higher market shares, and (2) coffee shops in the market for a shorter period, yet with higher rates of consumer trial, also exhibit higher market shares. Additionally, evidence shows that two RM outcomes (the percentage of respondents that include a retailer in their brand repertoire and the percentage of respondents indicating a preference for a given retailer) are positively related to market share. Therefore, time-in-market may not be as important in this setting as RM efforts to establish consumer trial and preference.

The Relationships among Theatrical Components, Experiential Value, Relationship Quality, and Relationship Marketing Outcomes

Both marketing practitioners and academic researchers have traditionally recognized the major influence that relationship quality (RQ) has on relationship marketing outcomes. Differing from previous studies, this study proposes a more integrated model by including theatrical components and experiential value in the “RQ-relationship marketing outcomes” paradigm. The structural relationships among the variables are examined by adopting a structural equation modeling (SEM) approach in the context of a theme park. The results confirm the existence of the path “theatrical components → experiential value → RQ → relationship marketing outcomes”.

The Role of Friendship in Relationship Marketing, Investigated in the Retail Service Industries

This study examines the role of friendship in relationship marketing attributes. Specific friendship components are evaluated in terms of their contribution to relationship outcomes, customer loyalty, and customer commitment. We analyze the relationship between friendship and relationship marketing variables in two different service industries. For relationship development, different aspects of friendship are expected to serve as pivotal attributes. The positive effect of friendship on customer commitment and customer loyalty is examined. We also investigate the mediating role of friendship regarding other relationship marketing characteristics. Friendship is evaluated as both an antecedent and as a mediator in relationship marketing outcomes.

Customer Relational Benefits and Relationship-Marketing Outcomes: Comparing Three Transaction Types of Travel Product

Given the increasing popularity of the Internet and TV shopping, travel agencies are using these electronic channels to conduct business transactions. However, few studies investigate how customers' relational benefits affect relationship-marketing outcomes in the travel industry. This study examines the effects of the relational benefits on customer satisfaction and loyalty by focusing on three types of transaction used for travel products. The results indicate that confidence and social benefits, but not special treatment benefits, positively affect customer satisfaction. All three types of customers' relational benefits are positively related to loyalty. The influences of confidence benefits on satisfaction and loyalty are stronger for Internet transaction than interpersonal transaction and TV shopping transaction. The influences of social benefits on satisfaction and loyalty are stronger for TV shopping transaction than interpersonal transaction and Internet transaction. Therefore, the relationships among customer relational benefits, satisfaction, and loyalty are moderated by the three types of transaction.

Relationship marketing and its impact on customer loyalty in service industry

The importance of developing and maintaining enduring relationships with customers of service businesses is generally accepted in the marketing literature. A key challenge for marketers, therefore, is to formulate and implement marketing programmes that will produce important relationship marketing outcomes. The main purpose of this paper is to examine the impact of relationship marketing strategy on customer loyalty in the service industry. It is a theoretical paper which reviews different literature on some key constructs of relationship marketing that shape customer loyalty such as trust, commitment, communication, service quality and conflict handling. The review reveals that the aforementioned variables have a significant effect on customer loyalty. Thus, it is concluded that customer loyalty can be created, reinforced and retained by marketing plans aimed at building trust, demonstrating commitment to service quality and delivery, communicating with customers in a timely, reliable and proactive fashion, and handling conflict efficiently. Therefore, companies and strategists aiming to nurture loyal customers should pay close attention to issues of trust, commitment, communication and conflict handling among other things.

Empowering senior citizens via third places: research driven model development of seniors ' empowerment and social engagement in social places

Purpose – This paper aims to report on a qualitative study that explores senior citizen consumers ' empowerment through social engagement in third places and their subsequent loyalty to third places. Design/methodology/approach – Data were collected via a qualitative research design from four seniors ' clubs in Australia using focus groups (12), and participant observation. The data were analyzed using QSR NVivo software using an interpretive approach. Findings – Ten themes based on 34 codes were identified in the study, which were grouped to develop a conceptual model of the antecedents and consequences of seniors ' empowerment in third places for further testing. The themes under consumer empowerment were important in assisting to understand the significance of place and social engagement within the place to empower seniors with a positive self-image, better access to information and exercise of choices for smarter purchase decisions. The themes under social capital contributed to a better understanding of the ramification of social capital to marketing knowledge. This was particularly so for marketing constructs embedded in community or aggregate level issues such as value co-creation, relationship marketing, customer involvement and related outcomes. Finally the study reports three types of loyalty: cognitive, ultimate and communal loyalty, that underpinned the behavioral, attitudinal and cognitive dimension of loyalty. The findings suggested that consequent to seniors ' social capital and feeling of empowerment in third places they display loyalty to the third place. Research limitations/implications – The present study has three theoretical implications; first, it extends knowledge into the notion of third place which underlies the broader domain of servicescape. It also extends understanding of the significance of third places in practicing consumer centric marketing through consumer empowerment. The study also contributes to understanding how third places enhance seniors ' social capital through social engagement. Practical implications – The managerial implications suggested by the findings provide a number of aspects that managers may consider in relation to service places in three key broad categories of customer-firm interest: improve customer patronage through community engagement, improve local business practices via customer-owner friendship, and redesigning spatial settings to deliver meaningful customer experiences. Originality/value – This paper uses the concepts of social engagement within customer community in third places for the development of social capital and empowerment. It provides a customer centric focus to servicescape and incorporates recent works on third places, empowerment, social capital and loyalty.