Skip to main content
SpringerLink
Log in

Determinants of Relationship Quality and Loyalty in Personalized Services

  • Published:
Asia Pacific Journal of Management Aims and scope Submit manuscript

Abstract

The study adopts a relationship perspective to examine and better understand customers' interactions with service firms' contact personnel, physical environment and customer environment and their influence on the relationship quality, that is trust and satisfaction, and consequently loyalty. The conceptual model, which integrates relational and evaluative perspectives, is validated in the Asian context of personalized service through findings from a survey of 325 respondents. The findings at the aggregate level indicate that while the physical environment is an important determinant of both trust and satisfaction in personalized service encounters, the customer environment influences only satisfaction but not trust. Service contact personnel's friendliness and knowledge of customers strongly influence relationship quality; while expertise, similarity and disclosure influence trust but not satisfaction. Both relationship trust and satisfaction were found to significantly influence loyalty to the service provider. At the disaggregate level, trust was found to be a stronger predictor of loyalty for high-end service providers while satisfaction was a stronger predictor of loyalty for low-end service providers. The implications for high-end and low-end service providers to enhance loyalty by strategically leveraging on key customer-firm antecedents of relationship trust and satisfaction are discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

REFERENCES

  • Babin, B.J. and Griffin, M. 1998. The nature of satisfaction: an updated examination and analysis. Journal of Business Research, 41: 127–136.

    Google Scholar 

  • Baker, J., Grewal, D. and Parasuraman, A. 1994. The influence of store environment on quality inferences and store image. Journal of the Academy of Marketing Science, 22(4): 328–339.

    Google Scholar 

  • Baker, J., Berry, L.L. and Parasuraman, A. 1988. The marketing impact of branch facility design. Journal of Retail Banking, 10(2): 33–42.

    Google Scholar 

  • Bateson, J.E.G and Hoffman, K.D. 1999. Managing Services Marketing — Text and Readings, 4th Edition, Orlando: The Dryden Press.

    Google Scholar 

  • Berry, L.L. 1983. Relationship marketing. In L.L. Berry, L.G. Shostack and G.D. Upah (eds) Emerging Perspectives on Services Marketing, pp. 25–28. Chicago: American Marketing Association.

    Google Scholar 

  • Berry, L.L., and Parasuraman, A. 1991. Marketing Services, New York: The Free Press.

    Google Scholar 

  • Bitner, M.J. 1990. Evaluating service encounters: The effects of physical surroundings and employee responses. Journal of Marketing, 54: 69–82.

    Google Scholar 

  • Bitner, M.J. 1992. Servicescapes: The impact of physical surroundings on customers and employees. Journal of Marketing, 56: 57–71.

    Google Scholar 

  • Booms, B.H. and Bitner M.J. 1981. Marketing strategies and organizational structures for service firms. In J.H. Donnelly and W.R. George (eds) Marketing of Services, pp. 47–52. Chicago: American Marketing Association.

    Google Scholar 

  • Busch, P. and Wilson, D.T. 1976. An experimental analysis of a salesman's expert and referent bases of social power in the buyer-seller dyad. Journal of Marketing Research, 13: 3–11.

    Google Scholar 

  • Byrne, D. 1971. The Attraction Paradigm. New York: Academic Press.

    Google Scholar 

  • Carmen, J.M. and Langeard, E. 1980. Growth strategies of service firms. Strategic Management Journal, 1: 7–22.

    Google Scholar 

  • Clark, T, and Martin, C.L. 1994. Customer-to-customer: The forgotten relationship in relationship marketing. In J.N. Sheth and A. Parvatiyar (eds) 1994 Research Conference Proceedings — Relationship Marketing: Theory, Methods and Applications, Center for Relationship Marketing, Roberto C. Goizueta Business School, Emory University, Atlanta.

    Google Scholar 

  • Comer, J.M. 1984. A psychometric assessment of a measure of sales representatives' power perceptions. Journal of Marketing Research, 21: 221–225.

    Google Scholar 

  • Crosby, L.A., Evans, K.R. and Cowles, D. 1990. Relationship quality in services selling: An interpersonal influence perspective. Journal of Marketing, 54: 68–81.

    Google Scholar 

  • Cunningham, S.M. 1966. Brand loyalty — What, where, how much? Harvard Business Review, 34: 116–128.

    Google Scholar 

  • Dick, A.S. and Basu, K. 1994. Customer loyalty: Toward an integrated conceptual framework. Journal of the Academy of Marketing Science, 22(2): 99–113.

    Google Scholar 

  • Doney, P.M. and Canon, J.P. 1997. An examination of the nature of trust in buyer-seller relationships. Journal of Marketing, 61: 35–51.

    Google Scholar 

  • Evans, K.R. and Crosby, L.A. 1989. A theoretical model of interpersonal relational quality in enduring service sales relationships. In M.J. Bitner and L.A. Crosby (eds) Designing a Winning Service Strategy, pp. 58–63. Chicago: American Marketing Association.

    Google Scholar 

  • Goodwin, C. and Smith, K.L. 1990. Courtesy and friendliness: Conflicting goals for the service provider? Journal of Services Marketing, 4(1).

  • Gordon, M.E., McKeage, K. and Fox, M.A. 1998. Relationship marketing effectiveness: The role of involvement. Psychology and Marketing, 15(5): 443–459.

    Google Scholar 

  • Gronroos, C. 1978. A service-oriented approach to marketing of services. European Journal of Marketing, 12(8): 588–601.

    Google Scholar 

  • Gronroos, C. 1989. Services marketing: A relationship approach. In W. Laser, E.H. Shaw and C.H. Wee (eds), Proceedings from the 4th Bi-Annual World Marketing Congress, Academy of Marketing Science and the National University of Singapore.

  • Gronroos, C. 1990. Relationship marketing strategy: Why, when, how. Singapore Marketing Review, 5: 7–16.

    Google Scholar 

  • Gwinner, K.P., Gremler, D.D. and Bitner, M.J. 1998. Relational benefits in services industries: The customer's perspective. Journal of the Academy of Marketing Science, 26(2): 101–114.

    Google Scholar 

  • Hair, J.F. Jr., Anderson, R.E., Tatham, R.L. and Black, W.C. 1998. Multivariate Data Analysis. Fifth Edition. New Jersey: Prentice-Hall.

    Google Scholar 

  • Harris, R.B. 1993. Trust in relationship marketing: A foundation for building business. Manager's Magazine, 68(6): 14–17.

    Google Scholar 

  • Hrebiniak, L.G. 1974, Effects of job level and participation on employee attitudes and perceptions of influence. Academy of Management Journal, 17: 649–662.

    Google Scholar 

  • Hwang, K. K. 1983. Face and favor: Chinese power games. Unpublished manuscript. National Taiwan University.

  • Jacoby, J. and Chestnut, R. W. 1978. Brand Loyalty Measurement and Management, New York: Wiley.

    Google Scholar 

  • Jones, E.E. and Archer, R.L. 1976. Are there special effects of personalistic self-disclosure? Journal of Experimental Social Psychology, 12: 180–193.

    Google Scholar 

  • Kahn, B.E., Kalwani, M.U. and Morrison D.G. 1986. Measuring variety seeking and reinforcement behavior using panel data. Journal of Marketing Research, 23: 89–100.

    Google Scholar 

  • Keaveney, S.M. 1995. Customer switching behavior in service industries: An exploratory study. Journal of Marketing, 59: 71–82.

    Google Scholar 

  • Kurtz, D.L. and Clow, K.E. 1998. Services Marketing. New York: John Wiley and Sons.

    Google Scholar 

  • Levinger, G. and Snoek, J.D. 1972. Attraction in Relationship: A New Look at Interpersonal Attraction, Morristown: General Learning Press.

    Google Scholar 

  • Martin, C.L. and Pranter, C.A. 1989. Compatibility management: Customer-to-customer relationships in service environments. Journal of Services Marketing, 3(3): 5–15.

    Google Scholar 

  • Massey, W.F., Montgomery, D.B. and Morrison, D.G. 1970. Stochastic Models of Buyer Behavior, Cambridge: MIT Press.

    Google Scholar 

  • Moorman, C., Deshpande, R. and Zaltman, G. 1993. Factors affecting trust in marketing research relationships. Journal of Marketing, 57: 81–101.

    Google Scholar 

  • Morgan, R.M. and Hunt, S.D. 1994. The commitment — trust theory of relationship marketing. Journal of Marketing, 58: 20–38.

    Google Scholar 

  • Nunnally, J.C. 1978. Psychometric Theory. New York: McGraw-Hill Co.

    Google Scholar 

  • Oliva, T.A., Oliver, R.L. and MacMillan, I.C. 1992. A catastrophe model for developing service satisfaction strategies. Journal of Marketing, 56: 83–95.

    Google Scholar 

  • Oliver, R.L. and DeSarbo, W.S. 1988. Response determinants in satisfaction judgments. Journal of Consumer Research, 14: 495–507.

    Google Scholar 

  • Parasuraman, A., Zeithaml V.A. and Berry, L.L. 1988. SERVQUAL: A multi-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1): 12–40.

    Google Scholar 

  • Parasuraman, A., Zeithaml, V.A. and Berry, L.L. 1985. A conceptual model of service quality and its implications for future research. Journal of Marketing, 49: 41–50.

    Google Scholar 

  • Price, L.L., Arnould, E.J. and Tierney, P. 1995. Going to extremes: Managing service encounters and assessing provider performance. Journal of Marketing, 59: 83–97.

    Google Scholar 

  • Purchasing. 1984. Complete salesmanship: That's what buyer's appreciate. August: 59–66.

  • Russell, J.A. and Snodgrass, J. 1987. Emotion and the environment. In D. Stokols and I. Altman (eds) Handbook of Environmental Psychology, Vol. 1, pp. 245–281. New York: John Wiley and Sons, Inc.

    Google Scholar 

  • Saxe, R. and Weitz, B.A. 1982. The SOCO Scale: A measure of the customer orientation of salespeople. Journal of Marketing Research, 19: 343–351.

    Google Scholar 

  • Schurr, P.H. and Ozanne, J.L. 1985. Influences on exchange process: Buyer's perceptions of a seller's trustworthiness and bargaining toughness. Journal of Consumer Research, 11: 939–953.

    Google Scholar 

  • Shani, D. and Chalasani, S. 1992. Exploiting niches using relationship marketing. The Journal of Services Marketing, 9(3): 33–42.

    Google Scholar 

  • Shostack, G.L. 1977. Breaking free from product marketing. Journal of Marketing, 41: 73–80.

    Google Scholar 

  • Shostack, G.L. 1984. Designing services that deliver. Harvard Business Review, 62: 133–139.

    Google Scholar 

  • Shostack, G.L. 1987. Service positioning through structural change. Journal of Marketing, 51: 34–43.

    Google Scholar 

  • Smith, J.B. 1998. Buyer-seller relationships: Similarity, relationship management, and quality. Psychology and Marketing, 15(1): 3–21

    Google Scholar 

  • Sundstrom, E. and Sundstrom, M.G. 1986. Work Places, Cambridge, UK: Cambridge University Press.

    Google Scholar 

  • Suprenant, C.F. and Solomon M.R. 1987. Predictability and personalization in the service encounter. Journal of Marketing, 51: 73–80.

    Google Scholar 

  • Swan, J.E., Trawick, F.I. and Silva, D.W. 1985. How industrial salespeople gain customer trust. Industrial Marketing Management, 14(3): 203–211.

    Google Scholar 

  • Tan, A.S. 1981. Mass Communication Theories and Research, Columbus, OH: Grid Publishing, Inc.

    Google Scholar 

  • Tardy, C.H. and Dindia, K. 1997. Self disclosure. In O.D.W. Hargie (ed) Handbook of Communication Skills, pp. 213–235. Second edition. London and New York: Routledge.

    Google Scholar 

  • Wiener, J.L. and Mower, J.C. 1985. Source credibility: On the independent effects of trust and expertise when attractiveness is held constant. Working Paper, 85–3, Oklahoma State University.

  • Westbrook, R.A. 1980. A rating scale for measuring product/service satisfaction. Journal of Marketing, 44: 68–72.

    Google Scholar 

  • Williams, K.C. and Spiro, R.L. 1985. Communication style in the salesperson customer dyad. Journal of Marketing Research, 12: 434–442.

    Google Scholar 

  • Wilson, D.T. 1977. Dyadic interactions. In A.G. Woodside, J.N. Sheth, and P.D. Bennett (eds) Consumer and Industrial Buying Behavior, pp. 355–366. New York: North-Holland.

    Google Scholar 

  • Wineman, J.D. 1982. Office design and evaluation. Environment and Behavior, 14(3): 271–298.

    Google Scholar 

  • Wray, B., Palmer, A. and Bejou, D. 1994. Using neural network analysis to evaluate buyerseller relationships. European Journal of Marketing, 28: 32–48.

    Google Scholar 

  • Wirtz, J. and Bateson, J.E.G. 1999. Consumer satisfaction with services: Integrating the environment perspective in service marketing into the traditional disconfirmation paradigm. Journal of Business Research, 44: 55–66.

    Google Scholar 

  • Zeithaml, V.A., Parasuraman, A. and Berry, L.L. 1985. Problems and strategies in services marketing. Journal of Marketing, 49: 33–46.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Marketing, Faculty of Business Administration, National University of Singapore, 10 Kent Ridge Crescent, Singapore, 119260

    Prem N. Shamdasani & Audrey A. Balakrishnan

Authors
  1. Prem N. Shamdasani
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Audrey A. Balakrishnan
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Shamdasani, P.N., Balakrishnan, A.A. Determinants of Relationship Quality and Loyalty in Personalized Services. Asia Pacific Journal of Management 17, 399–422 (2000). https://doi.org/10.1023/A:1015834214570

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1015834214570

Keywords

Search

Navigation