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Impact of Customer Orientation, Inducements and Ethics on Loyalty to the Firm: Customers’ Perspective

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Abstract

Customer orientation (CO) and the development of long-term relationships with customers are known conditions for growth and profit sustainability. Businesses use special treatments, inducements, and personal gestures to show their appreciation to customers. However, there are concerns about whether these inducements really create the right perceptions in customer’s mind. This study suggests that when customers believe that the firm is ethical, the inducements and special treatments received are seen in a positive light and can help develop loyalty. The hypotheses were tested with responses from 299 customers of financial institutions in Chile. Results support the hypotheses that firm’s ethical reputation helps in retaining customers. Managerial implications are provided.

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Acknowledgments

This research was sponsored by the Universidad del Bio-Bio, Chile (Project 095816 2/R).

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Authors and Affiliations

  1. Marketing Department, College of Business, Universidad del Bío-Bío, Concepción, Chile

    Leslier M. Valenzuela & Jorge Fernando Jaramillo

  2. Marketing Group, College of Business Administration, Northeastern University, Boston, MA, 02115, U.S.A.

    Jay P. Mulki

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  1. Leslier M. Valenzuela
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  2. Jay P. Mulki
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  3. Jorge Fernando Jaramillo
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Correspondence to Jorge Fernando Jaramillo.

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Valenzuela, L.M., Mulki, J.P. & Jaramillo, J.F. Impact of Customer Orientation, Inducements and Ethics on Loyalty to the Firm: Customers’ Perspective. J Bus Ethics 93, 277–291 (2010). https://doi.org/10.1007/s10551-009-0220-z

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