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Relationship Quality and Purchase
Intention and Behavior: The Moderating
Impact of Relationship Strength

                       Presenter : Sharon Chang
                       Instructor : Dr. Teresa Hsu
                       Nov. 12, 2012

                                                1
Cannière, M., Pelsmacker, P., & Geuens, M.
(2010). Relationship Quality and Purchase
Intention and Behavior: The Moderating
Impact of Relationship Strength. J Bus
Psychol, 25, 87-98.




                                             2
Introduction

   Literature Review

    Methodology

Result & Conclusion

   Reflection

                       3
4
In the business world, research is increasingly
focusing on the customer-firm relationship.
Marketing shifts away from brands to
customers as the focal object of research.




                                              5
The purpose of this study-
 To investigate the link between perceived
 relationship quality, purchase intention and
 behavior, and the moderating role of
 relationship strength




                                                6
The relationship quality-buying behavior chain and the
moderating role of relationship strength

                                                         7
8
Literature Review
Relationship strength is the intensity of the
relationship between the customer and the
firm, as reflected in the length and the
regularity if the customer’s buying history.


         (Grayson & Ambler, 1999; Jap & Ganesan, 2000;
         Kumar et al., 2003; Verhoef et al., 2001)

                                                    9
Literature Review
  Loyalty is built up of attitudinal loyalty,
  which leads to repeat patronage
  intentions, which in turn lead to loyal
  behavior and, finally, to more profits.




                      (Reinartz & Kumar, 2000)
                                                 10
Hypothesis 1
H1a   A positive perception of relationship quality
      has a positive impact on buying intention.



  H1b     A positive buying intention has a positive
          impact on various aspects of buying intention.



                                                           11
Hypothesis 2
 H2a
       A stronger relationship has a positive
       impact on buying intention.


   H2b          A stronger relationship has a positive
                impact on various aspects of buying
                intention.



                                                         12
Hypothesis 3
H3a    The impact of relationship quality on buying
       intention is stronger for customers with a
       stronger relation with the company.


      H3b       The impact of buying intention on buying
                behavior is stronger for customers with a
                stronger relation with company.


                                                            13
14
Time-
            Survey data-
                                          During a 4-days period in
Gathered from apparel retailers,     beginning of the summer season
are in the low-to mid-price range.      (February-July)and winter
                                         season(August-January).


                               Procedure
Total : 1,226 questionnaires
                                               Total : 4,806 questionnaires
 Return the questionnaire-                 Questionnaire-
    ★960 questionnaires were           ★2,306 questionnaires were
    received in summer season.         distributed in summer season.
    ★266 questionnaires were           ★2,500 questionnaires were
     received in winter season.         distributed in winter season.

                                                                        15
7.7%
                                    less than 30 years old
1226 questionnaires were received
                                           30.8%
  Linkable-634 questionnaires
                                      Between 30 & 40
  Nonlinkable-575 questionnaires
                    90.1%                  31.5%
                                      Between 41 & 50
                    Female
    634                                    20.8%
Participants
                                      Between 51 & 60
                    9.9%
                     male                  9.1%
                                       Older than 60
                                                       16
The three indicators measure
                    partially different aspects of
Number of visits    buying behavior.
with buying event
                        Total
                     expenditure


        Criterion               Number of
        Variables              product types


                                                     17
Length and buying frequency reinforce each other in this
multiplicative definition of relationship strength.

                             Length of relationship with retailer
   Moderating                           (1-10 seasons)
    Variables

                               Number of seasons with buying
                                       event (1-10)


                                                                18
Predictor Variables
A pretest of the remaining items among 30 customers of the shop
under study confirmed the relevance, validity, and reliability of
the scales used. Each scale contained three items.




                                                                    19
20
Result
Confirmatory Factor Analysis(CFA)
 It is used to test whether measures of a construct are
 consistent with a researcher's understanding of the
 nature of that construct (or factor).
                                    Trust
                          0.91                   0.98

                                      0.91
                Commitment                     satisfaction
                   Each of the pairs of relationship quality
                   Constructs were highly correlated.
                                                               21
Result
   The means and standard deviations of the variables
   used in the analyses is given.
Table 2




                                                        22
Result
Means of two regression
analyses with purchase
intention.




                          23
Result
A regression analysis as in the
relationship quality-intention
section was carried out for
each behavioral outcome
variable.




                                  24
Result




In all three models purchase intention had a significant
impact on actual purchase behavior.
                                                       25
Result
                                                            Supported/
                Hypotheses
                                                            Confirmed
H1a     A positive perception of relationship quality
        has a positive impact on buying intention.             √
H1b     A positive buying intention has a positive impact
        on various aspects of buying intention.                √
    A stronger relationship has a positive
H2a impact on buying intention.                                √
    A stronger relationship has a positive impact on
H2b various aspects of buying intention.                       √
    The impact of relationship quality on buying
H3a intention relation withfor customers with a
    stronger
              is stronger
                            the company.
        The impact of buying intention on buying
H3b     behavior is stronger for customers with a
        stronger relation with company.
                                                               √
                                                                         26
Conclusion
In this study, a strong correlation was found between
the various components of relationship quality, which
has led us to consider them as one “relationship
quality” construct.




                                                        27
28
Reflection
Further research should focus upon the development
of better survey items that would discriminate these
conceptually related, but distinct constructs.




                                                       29
Thank
   you
         30

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10122619 ppt

  • 1. Relationship Quality and Purchase Intention and Behavior: The Moderating Impact of Relationship Strength Presenter : Sharon Chang Instructor : Dr. Teresa Hsu Nov. 12, 2012 1
  • 2. Cannière, M., Pelsmacker, P., & Geuens, M. (2010). Relationship Quality and Purchase Intention and Behavior: The Moderating Impact of Relationship Strength. J Bus Psychol, 25, 87-98. 2
  • 3. Introduction Literature Review Methodology Result & Conclusion Reflection 3
  • 4. 4
  • 5. In the business world, research is increasingly focusing on the customer-firm relationship. Marketing shifts away from brands to customers as the focal object of research. 5
  • 6. The purpose of this study- To investigate the link between perceived relationship quality, purchase intention and behavior, and the moderating role of relationship strength 6
  • 7. The relationship quality-buying behavior chain and the moderating role of relationship strength 7
  • 8. 8
  • 9. Literature Review Relationship strength is the intensity of the relationship between the customer and the firm, as reflected in the length and the regularity if the customer’s buying history. (Grayson & Ambler, 1999; Jap & Ganesan, 2000; Kumar et al., 2003; Verhoef et al., 2001) 9
  • 10. Literature Review Loyalty is built up of attitudinal loyalty, which leads to repeat patronage intentions, which in turn lead to loyal behavior and, finally, to more profits. (Reinartz & Kumar, 2000) 10
  • 11. Hypothesis 1 H1a A positive perception of relationship quality has a positive impact on buying intention. H1b A positive buying intention has a positive impact on various aspects of buying intention. 11
  • 12. Hypothesis 2 H2a A stronger relationship has a positive impact on buying intention. H2b A stronger relationship has a positive impact on various aspects of buying intention. 12
  • 13. Hypothesis 3 H3a The impact of relationship quality on buying intention is stronger for customers with a stronger relation with the company. H3b The impact of buying intention on buying behavior is stronger for customers with a stronger relation with company. 13
  • 14. 14
  • 15. Time- Survey data- During a 4-days period in Gathered from apparel retailers, beginning of the summer season are in the low-to mid-price range. (February-July)and winter season(August-January). Procedure Total : 1,226 questionnaires Total : 4,806 questionnaires Return the questionnaire- Questionnaire- ★960 questionnaires were ★2,306 questionnaires were received in summer season. distributed in summer season. ★266 questionnaires were ★2,500 questionnaires were received in winter season. distributed in winter season. 15
  • 16. 7.7% less than 30 years old 1226 questionnaires were received 30.8% Linkable-634 questionnaires Between 30 & 40 Nonlinkable-575 questionnaires 90.1% 31.5% Between 41 & 50 Female 634 20.8% Participants Between 51 & 60 9.9% male 9.1% Older than 60 16
  • 17. The three indicators measure partially different aspects of Number of visits buying behavior. with buying event Total expenditure Criterion Number of Variables product types 17
  • 18. Length and buying frequency reinforce each other in this multiplicative definition of relationship strength. Length of relationship with retailer Moderating (1-10 seasons) Variables Number of seasons with buying event (1-10) 18
  • 19. Predictor Variables A pretest of the remaining items among 30 customers of the shop under study confirmed the relevance, validity, and reliability of the scales used. Each scale contained three items. 19
  • 20. 20
  • 21. Result Confirmatory Factor Analysis(CFA) It is used to test whether measures of a construct are consistent with a researcher's understanding of the nature of that construct (or factor). Trust 0.91 0.98 0.91 Commitment satisfaction Each of the pairs of relationship quality Constructs were highly correlated. 21
  • 22. Result The means and standard deviations of the variables used in the analyses is given. Table 2 22
  • 23. Result Means of two regression analyses with purchase intention. 23
  • 24. Result A regression analysis as in the relationship quality-intention section was carried out for each behavioral outcome variable. 24
  • 25. Result In all three models purchase intention had a significant impact on actual purchase behavior. 25
  • 26. Result Supported/ Hypotheses Confirmed H1a A positive perception of relationship quality has a positive impact on buying intention. √ H1b A positive buying intention has a positive impact on various aspects of buying intention. √ A stronger relationship has a positive H2a impact on buying intention. √ A stronger relationship has a positive impact on H2b various aspects of buying intention. √ The impact of relationship quality on buying H3a intention relation withfor customers with a stronger is stronger the company. The impact of buying intention on buying H3b behavior is stronger for customers with a stronger relation with company. √ 26
  • 27. Conclusion In this study, a strong correlation was found between the various components of relationship quality, which has led us to consider them as one “relationship quality” construct. 27
  • 28. 28
  • 29. Reflection Further research should focus upon the development of better survey items that would discriminate these conceptually related, but distinct constructs. 29
  • 30. Thank you 30