20100427 seminar

Relationship quality as a predictor of B2B customer loyaltyRelationship quality as a predictor of B2B customer loyalty

Professor: Dr. Pi-Ying Teresa Hsu

Presenter: Han-Ming Jeffrey Chen

Date: April 27, 2010

CitationCitation

Rauyruen, P., & Miller, K. E. (2007). Relationship

quality as a predictor of B2B customer loyalty.

Journal of Business Research, 60, 21-31.

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I. Introduction

II. Methodology

III. Result

IV. Conclusion

V. Reflection

ContentsContents

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IntroductionIntroduction

In a B2B environment, suppliers and/or service providers need to understand the nature and circumstances of their customers because of the unique characteristics of the customers acting as organizations.

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IntroductionIntroduction

Developing individual relationship with business customers offers supplier a secure loyal customer base and opportunities to reach a high level of profitability.

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Statement of ProblemStatement of Problem

Researchers have not widely explored either the development of loyalty or its potential application to the business-to-business settings.

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Purpose of ResearchPurpose of Research

to add the literature and provide a picture of how relationship quality can influence customer loyalty in a B2B context

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Conceptual backgroundConceptual background

Customer loyalty

Relationship quality

Perceived service quality

Trust

Commitment

Satisfaction

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The willingness of average business customers to repurchase the service and the product of the service provider and to maintain a relationship with the service provider/supplier

(Chaudhuri & Holbrook, 2001)

Customer loyaltyCustomer loyalty

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Relationship qualityRelationship quality

The concept of relationship quality arose from theory and research in the field of relationship marketing is to strengthen already strong relationships and to convert indifferent customers into loyal ones.

(Berry & Parasuraman, 1991)

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Perceived service qualityPerceived service quality

Modeling perceived quality as an influencing factor of customer loyalty will provide significant diagnostic ability to any framework that includes customer loyalty as a dependent construct.

(Zahorik & Rust, 1992)

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TrustTrust

Trust is an important feature or aspect in the building and development of quality relationships through a process of making and keeping promises.

(Hewett & Bearden, 2001)

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CommitmentCommitment

In a business relationship, commitment is a psychological sentiment of the mind through which an attitude forms concerning continuation of a relationship with a business partner.

(Wetzels et al., 1998)

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SatisfactionSatisfaction

In consumer marketing, consistent evidence explains satisfaction's contribution to repurchase intentions, behavioral intentions, customer retention, and customer loyalty.

(Burton et al., 2003)

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Methodology Methodology

Research Framework

Questionnaire Design

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Research Design

Research Framework Research Framework Trust in Employees

Purchase Purchase IntentionsIntentions

Attitudinal Attitudinal LoyaltyLoyalty

Trust in Supplier

Calculative Commitment to Supplier

Affective Commitment to Supplier

Calculative commitment to Employee

Affective Commitment to Employee

Overall Satisfaction

Overall Service Quality

H4A

H2A

H3A

H1A

H5A

H6AH7A H8A

H1BH2B

H3B

H4B

H5B

H6B

H7B

H8B

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Research DesignResearch DesignAustralian Small to Medium Enterprises (SMEs)

Mail survey Online survey

Distributed: 500

Received: 52

Distributed: 1216

Received: 254

20.8%10.4% Total: 306

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SMEs’ owners/decision-makers

QuestionnaireQuestionnaire

Part A

Part B

Demographic data

Construct measurements

Respondent’s position Type of industry Number of full-time employees Annual turnover & choice of

supplier

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Overall satisfaction Purchase intention Attitudinal loyalty Commitment to employee/supplier Trust in employees/supplier Overall service quality

ResultResult

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ResultResult

2220

ResultResult

H2B. Trust in the supplier relates positively attitudinal loyalty.

H4B. Affective commitment to the supplier relates positively to attitudinal loyalty.

H7A. Overall satisfaction relates positively to behavioral loyalty.

H7B.Overall satisfaction relates positively attitudinal loyalty.

H8A. Overall perceived service quality relates positively behavioral loyalty.

H8B. Overall perceived service quality relates attitudinal loyalty.

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ResultResult

H1A. Trust in the employees of the supplier relates positively to behavioral loyalty.

H1A. Trust in the employees of the supplier relates positively to behavioral loyalty.

H1B. Trust in the employees of the supplier relates positively to attitudinal loyalty.

H1B. Trust in the employees of the supplier relates positively to attitudinal loyalty.

H2A. Trust in the supplier relates positively to behavioral loyalty.H2A. Trust in the supplier relates positively to behavioral loyalty.

H3A. Calculative commitment to the supplier relates positively to behavioral loyalty.

H3A. Calculative commitment to the supplier relates positively to behavioral loyalty.

H3B. Calculative commitment to the supplier relates positively to attitudinal loyalty.

H3B. Calculative commitment to the supplier relates positively to attitudinal loyalty.

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ResultResult

H4A. Affective commitment to the supplier relates positively to behavioral loyalty.

H4A. Affective commitment to the supplier relates positively to behavioral loyalty.

H5A. Calculative commitment to the employees of the supplier relates positively to behavioral.

H5A. Calculative commitment to the employees of the supplier relates positively to behavioral.

H6B. Affective commitment to the employees of the supplier relates positively to attitudinal loyalty.

H6B. Affective commitment to the employees of the supplier relates positively to attitudinal loyalty.

H5B. Calculative commitment to the employees of the supplier relates positively attitudinal loyalty.

H5B. Calculative commitment to the employees of the supplier relates positively attitudinal loyalty.

H6A. Affective commitment to the employees of the supplier relates positively to behavioral loyalty.

H6A. Affective commitment to the employees of the supplier relates positively to behavioral loyalty.

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ConclusionConclusion

A supplier should focus on building a relationship on the basis of creating the customer's trust as an organization, maintaining the customer's affective commitment level, enhancing overall satisfaction, and providing excellent service systems in order to create and maintain attitudinal loyalty.

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ReflectionsReflections

Adding overall service quality as an additional dimension of relationship quality

Well and detailed explanations in methodology especially the part of research design

An organized article introduced in the part of introduction (p. 22)

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ReflectionsReflections

Low response rate (10.4% and 20.8%)

Most of the literature were before 2000.

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Thank you for your attention!