This study examines the mediating role of customer relationship management (CRM) quality to better explain the effects of service evaluation variables (service quality, customer satisfaction and ...customer value) on customer loyalty. The study also investigates the moderating effect of brand image on these mediated relationships. The mediating role of CRM quality on the relationship between the service evaluation variables and customer loyalty is supported. Further, it is found that the indirect effect of customer satisfaction on customer loyalty via CRM quality is stronger when perceived brand image is high than when it is low. The results have implications for relationship managers, brand managers and scholars who use service evaluation and relational metrics to predict customer loyalty.
•We establish a moderated mediation model of antecedents to customer loyalty.•Effects of service evaluation variables on loyalty are mediated by CRM quality.•The effect of satisfaction on loyalty via CRM quality vary with brand image.•We identify factors that influence customer loyalty in a developing nation.
The concept of engagement in regard to the business-to-business (B2B) sector has received less attention due to the complexity and heterogeneity of people involved in making the buying decisions. ...Hence, there is limited research examining the role of professional service firms' simultaneous collaboration with stakeholders in general, and the drivers and outcomes of engagement in particular, within the B2B sector. To address this gap, this study examines the drivers and outcomes of purchase engagement in B2B professional services. Using the structural equation modelling approach, the results from a survey of CEOs and/or owner-managers of small and medium-sized enterprises in Australia found that customization and loyalty to the account manager are two salient drivers of purchase engagement. Purchase engagement is also found to yield three important outcomes, namely consideration set size (CSZ), dependence, and willingness to pay a premium price (WTP). In the study, customers' dependence on the suppliers was found to act as a mechanism through which engagement can influence CSZ and WTP.
•The study is among the first of empirical studies to examine the concept of purchase engagement in a B2B context.•Customization and loyalty to the account manager emerge as two salient drivers of purchase engagement.•Purchase engagement engenders three outcomes (consideration set size, dependence, and willingness to pay premium price).•Customer’s dependence on the supplier acts as a key mechanism through which engagement influences CSZ and WTP.
Literature on consumer engagement is growing significantly, yet there is limited empirical research on its drivers and outcomes. This study examines the key drivers and outcomes of consumer brand ...engagement (CBE) in the context of Australian mobile phone service providers. The results reveal that consumer involvement, consumer participation and self-expressive brand have differing effects on the CBE dimensions (cognitive processing, affection and activation) and brand loyalty. Specifically, involvement, participation and self-expressive brand are all found to positively impact cognitive processing. Also, involvement and self-expressive brand positively influence affection. While, a positive relationship is established between involvement and activation, self-expressive brand emerges as a negative driver of activation. Further, the results show that affection and activation positively influence brand loyalty. Surprisingly, cognitive processing negatively impacts brand loyalty, whilst involvement (unlike participation and self-expressive brand) has a positive direct effect on brand loyalty. Managerial and academic implications, as well as areas for future research are discussed.
Existing studies offer limited explanations regarding the determinants of business-to-business (B2B) brand sensitivity: the degree to which brand stimuli are actively considered during buyer ...deliberations. This research addresses this gap by comparing the relative influence of organizational buyers' functional versus imagery beliefs on brand outcomes in B2B professional service settings. Specifically, it compares the influence of buyers' perceived operational competence and prestige sensitivity on brand preference and brand sensitivity. Further, it evaluates the effect of brand sensitivity on brand importance and customer engagement, two particularly relevant outcomes in the B2B professional services setting. A qualitative pilot study was conducted to gain insight into the salient drivers of brand preference and brand sensitivity. Then, a survey of 324 CEOs and owner-managers of small and medium-sized firms was carried out to test the hypothesized model. The results confirm the importance of imagery beliefs in organizational buying decisions, but not at the expense of operational competence, a more fundamental functional belief.
•The effects of functional and imagery beliefs on brand sensitivity are examined.•Functional and imagery beliefs affect brand preference and brand sensitivity.•Brand sensitivity influences brand importance and customer engagement.
The aim of this study is to examine the underlying mechanism that explains the effects of supplier firms' sustained competitive advantage (SCA) on customer firms' willingness-to-pay a price premium ...(WTP) across Eastern and Western settings. Drawing upon the relationship marketing (RM) paradigm, we posit that SCA influences WTP via calculative commitment and relationship quality (RQ). A survey involving executives from Australian (n = 336) and Chinese (n = 360) firms was conducted to test the theoretical model. The findings reveal that the effect of SCA on WTP is mediated by RQ and calculative commitment among Chinese firms. Among Australian firms, however, the effect of SCA on WTP is mediated only by RQ and not calculative commitment. The study contributes to the literature by distinguishing the role of ‘rational’ (i.e., calculative commitment) and ‘emotional’ (i.e., affective commitment and RQ) relationship factors in influencing WTP, and by validating a multidimensional RQ model that is applicable to culturally diverse contexts. To marketing practitioners, this research helps to identify the conditions under which RM practices can be effective for B2B firms that operate across diverse cultures.
•Sustainable competitive advantage (SCA) affects willingness-to-pay (WTP) uniquely.•Relational factors mediate the SCA→WTP link differently in east-west settings.•SCA strengthens (weakens) calculative commitment among Chinese (Australian) firms.•The mediating role of relationship quality is positive in both east-west settings.•The mediating role of calculative commitment is only significant in China.
Purpose
The purpose of this study is to investigate the role of perceived value and innovativeness (service concept newness and relative advantage) in promoting customer brand engagement behaviors ...(CBEBs) and brand loyalty.
Design/methodology/approach
The conceptual model was empirically tested using nationwide survey data from 430 customers of Uber in Australia. The data were analyzed using structural equation modeling.
Findings
The results of this study show that collecting brand information is positively influenced by perceived value, service concept newness and relative advantage. Participating in brand marketing activities is positively influenced by service concept newness and relative advantage. Interacting with others is positively influenced by perceived value and service concept newness. Subsequently, brand loyalty is positively influenced by participating in brand marketing activities and interacting with others. The direct impacts of perceived value and relative advantage on brand loyalty are also established.
Research limitations/implications
This study only collected data from Uber customers. Another limitation of this study is the use of cross-sectional data.
Practical implications
To promote brand loyalty, service innovation needs to have both the right characteristics (i.e. perceived value, service concept newness and relative advantage) and practices that foster customer brand engagement behaviors.
Originality/value
Although service-dominant logic (SDL) is a theoretical lens used by research in the areas of service innovation and customer engagement, empirical studies that integrate the two areas remain limited. The findings of this study suggest a new mechanism in which service innovation can increase loyalty through increased CBEBs.
Purpose
This paper aims to examine how suppliers doing business with customers in emerging industrial markets can leverage their innovativeness to foster trust and commitment toward maximizing ...customer adoption behaviors.
Design/methodology/approach
Based on commitment-trust theory, this research uses survey data collected from a large sample of Chinese business-to-business executives, which were then analyzed using three-stage least squares simultaneous estimation models and PROCESS.
Findings
The results show that supplier innovativeness can help customers build trust in a supplier. Consequently, a reciprocal commitment is forged among customers that manifest in favorable adoption decisions, including a higher willingness to pay premium prices. Notably, this approach is beneficial when robust interfirm communications are difficult to establish.
Originality/value
Innovation decisions in interfirm relationships are important for suppliers doing business in emerging markets. This is because customer adoptions in such settings can foster enduring relational market-based assets and other competitive advantages that can improve supplier performance. Unfortunately, the understanding of how interfirm relationships influence innovation-adoption decisions in emerging markets is lacking. The findings of this research shed light on how suppliers interested in entering emerging markets can interact with customer firms in such settings to maximize favorable adoption outcomes.
Brand loyalty remains a salient measure of brand success in business-to-business (B2B) markets, yet the drivers of B2B brand loyalty vary from one context to another. While global franchising is ...accepted as a major entry mode into emerging markets, limited research has focused on the drivers of franchise brand loyalty in emerging markets. This study advances a nomological network model of the determinants of franchise brand loyalty in an emerging market. The hypotheses were tested from the franchisees' perspective using survey data from Indian franchises. The respondents were selected using stratified random sampling based on geographic location and industry type. The findings indicated that perceived franchisor competence and the level of information sharing play key roles in influencing franchisees' emotional brand attachment and perceived relationship value, which in turn enhance brand loyalty. Theoretical and practical implications as well as future research directions are discussed.
Despite the evidence that brand management is core to the success of franchising businesses, limited empirical work has focused on branding in such business-to-business (B2B) exchanges. Integrating ...social exchange theory and the identity-based brand management framework, this study proposes that brand relationship quality is crucial in promoting franchisee brand citizenship behavior that can enhance brand equity attributable to franchisees, thereby advancing a model of ‘franchisee-based brand equity’ (FBBE). Survey results from 352 franchisees in franchised B2B exchanges suggest that brand relationship quality promotes brand citizenship behavior, thereby enhancing FBBE. Additionally, moderated mediation analysis indicates that the indirect effect of brand relationship quality on FBBE via brand citizenship behavior is stronger when franchisor competence is high. However, franchisor–franchisee relationship duration has no moderating effects on these relationships. The findings of this study have implications for franchising practitioners that are interested in understanding the role of brand relationship management in promoting franchisee brand citizenship behavior and FBBE.
•We develop and empirically test a new model of franchisee-based brand equity (FBBE).•Brand relationship quality enhances FBBE via brand citizenship behavior.•Results show that the factors affecting FBBE vary with franchisor competence but not with relationship duration.•This is the first study to empirically test the concept of brand relationship management in B2B markets.
PurposeThis study aims to investigate how customers' perception of service innovation aspects (innovativeness, service newness and relative advantage) and their participation impact value perception, ...satisfaction and loyalty.Design/methodology/approachThe conceptual model was tested using a nationwide survey from 430 Australian customers of Uber, using structural equation modeling.FindingsResults show that customer participation (CP) and innovativeness positively influence perceived value. Satisfaction is positively influenced by perceived value, innovativeness and relative advantage. Both perceived value and satisfaction drive loyalty. Yet, CP did not influence satisfaction. The study’s findings generally support the mediating roles of perceived value and satisfaction.Research limitations/implicationsCross-sectional data were used. Thus, the results only provide a snapshot of the relationships among constructs.Practical implicationsTo promote loyalty, service organizations emphasize how innovative aspects of services (innovativeness and relative advantage) can create value and satisfaction. Also, CP is critical in promoting customer perceived value and loyalty.Originality/valueBuilding on service-dominant logic (SDL), this study proposes a conceptual model investigating how perceived innovative aspects of service and CP influence perceived value, satisfaction and loyalty of service organizations.
