20100427 seminar
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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!