Relationship quality as a predictor of B2B customer loyalty Professor: Dr. Pi-Ying Teresa Hsu Presenter: Han-Ming Jeffrey Chen Date: April 27, 2010
Rauyruen, P., & Miller, K. E. (2007). Relationship
quality as a predictor of B2B customer loyalty.
Journal of Business Research , 60 , 21-31.
Contents I. Introduction II. Methodology III. Result IV. Conclusion V. Reflection 3
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.
Developing individual relationship with business customers offers supplier a secure loyal customer base and opportunities to reach a high level of profitability.
Statement of Problem Researchers have not widely explored either the development of loyalty or its potential application to the business-to-business settings. 6
Purpose of Research to add the literature and provide a picture of how relationship quality can influence customer loyalty in a B2B context 7
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 loyalty 9
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)
Perceived 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)
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)
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)
In consumer marketing, consistent evidence explains satisfaction's contribution to repurchase intentions , behavioral intentions , customer retention , and customer loyalty .
(Burton et al., 2003)
Methodology Research Framework Questionnaire Design 15 Research Design
Research Framework Trust in Employees H4A H2A H3A H1A H5A H6A H7A H8A H1B H2B H3B H4B H5B H6B H7B H8B 16 Purchase Intentions Attitudinal Loyalty Trust in Supplier Calculative Commitment to Supplier Affective Commitment to Supplier Calculative commitment to Employee Affective Commitment to Employee Overall Satisfaction Overall Service Quality
Research Design Australian Small to Medium Enterprises (SMEs) 17 Mail survey Online survey Distributed: 500 Received: 52 Distributed: 1216 Received: 254 20.8% 10.4% Total: 306 SMEs’ owners/decision-makers
Questionnaire Part A Part B Demographic data Construct measurements
Type of industry
Number of full-time employees
Annual turnover & choice of
Commitment to employee/supplier
Trust in employees/supplier
Overall service quality
Result 22 20
Result 21 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.
Result 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. H2A. Trust in 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. 22
Result H4A. Affective commitment to the supplier relates positively to behavioral loyalty. 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. 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. 23
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.
Reflections 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) 25
Reflections Low response rate ( 10.4% and 20.8% ) Most of the literature were before 2000. 26