Journal of Business Ethics

, Volume 93, Issue 2, pp 277–291 | Cite as

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

  • Leslier M. Valenzuela
  • Jay P. Mulki
  • Jorge Fernando Jaramillo
Article

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.

Keywords

customer orientation inducements ethical reputation loyalty to the firm customer retention 

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Notes

Acknowledgments

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

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Copyright information

© Springer Science+Business Media B.V. 2009

Authors and Affiliations

  • Leslier M. Valenzuela
    • 1
  • Jay P. Mulki
    • 2
  • Jorge Fernando Jaramillo
    • 1
  1. 1.Marketing Department, College of BusinessUniversidad del Bío-BíoConcepciónChile
  2. 2.Marketing Group, College of Business AdministrationNortheastern UniversityBostonU.S.A.

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