Effects of relationship quality on Customer behavioral responses at different stages of the customer relationship life cycle: case study of Tabriz Kheshavarzy Bank

Document Type : Research Paper

Authors

Abstract

The current Paper seeks to study the effects of Relationship quality on customer’s behavioral responses at different stages of the relationship life cycle in Iran's Banking industry. In this respect Agriculture bank of Iran was selected as the target population of the suggested theoretical model of this experiment and 417customers of the bank have participated as the statistical samples to achieve the goals of this paper. Samples were selected using simple random sampling and Research hypotheses were tested through structural equation modeling and AMOS software. Findings of the research showed that the quality of bank-customer relationship has positive effects on customer loyalty, word-of-mouth and customer’s share. Also the results of the research showed that by aging of the bank-customer relationship, the effects of relationship quality on word-of-mouth and customer’s loyalty are diminished but the effect of relationship quality on customer’s share is the same at different stages of the relationship life cycle.

Keywords

Main Subjects


Abbasi, E. & Rajabi Miandareh A. A. (2015). A survey of E-loyalty effective factors and barriers to E-banking services in private banks customers in Golestan province. Journal of Business Management, 6(4): 827-844. (in Persian)
Amini M. T. & Sohrabi, SH. (2010). Investigating Effect of Gender on Customer’s Loyalty Base on Relationship Marketing Approach. Journal of Development Evolution Management, 4 (2): 73-83. (in Persian)
Anderson, J. C. & Gerbing, D. W. (1988). Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach, Psychological Bulletin, 103(3): 411-423.
Anderson, J. C. & Narus, J. A. (1990). A model of distributor firm and manufacturer firm working partnerships. Journal of Marketing, 54 (1): 42-58.
Bagozzi, R. P. (1981). Evaluating structural equation models with unobservable variables and measurement error: A comment. Journal of marketing Research, 18(3): 375-381.
Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of The Academy of Marketing Science, 16(1): 74-94.
Bansal, H., Irving, G., & Taylor, S. (2004). A three-component model of customer commitment to service providers. Journal of Academy of Marketing Science, 32(3): 234-250.
Baumann, C., Burton, S. & Elliott, G. (2007). Determinants of customer loyalty and share of wallet in retail banking. Journal of Financial Services Marketing, 9(3): 231-248.   
Begalle, Mary Susan (2008). Effectiveness of relationship marketing bonding tactics in predicting customer share in the public sector school foodservice market. A dissertation submitted for the degree of Doctor of Philosophy, Iowa State University.
Bendall‐Lyon, D. &  Powers, T. L. (2004). The impact of structure and process attributes on satisfaction and behavioral intentions. Journal of Services Marketing, 18(2): 114-121.
Castellanos-Verdugo, M., Oviedo-García, M. Á., Roldán, J. L., Veerapermal, N. (2009). The employee-customer relationship quality: Antecedents and consequences in the hotel industry. International Journal of Contemporary Hospitality Management, 21(3): 251 – 274
Chen, C. Y., Chen, C.C., Chen Y. S., & Wey, S. C. (2011). Moderating effects in relationship marketing: The roles of customer expertise and price orientation. African Journal of Business Management, 5(22): 9490-9502
Chung, L. & Shin W. (2010). The antecedents and consequents of relationship quality in internet shopping. Journal of marketing research, 17(4): 460-469.
Churchill, G. A., & Surprenant, C. (1982). An investigation into the determinant of customer satisfaction. Journal of Marketing Research, 19(4): 491-504.
Clemes, M., Mollenkopf, D. & Burn, D. (2010). An Investigation of Marketing Problems across Service Typologies. Journal of Services Marketing, 14(7): 573-594.
Crosby, L. A., Evans, K. R. & Cowles, D. (1990). Relationship quality in services selling: An interpersonal influence perspective. Journal of Marketing, 54(3): 68-81.      
Dawn Bendall‐Lyon, Thomas L. P. (2004). The impact of structure and process attributes on satisfaction and behavioral intentions. Journal of Services Marketing, 18(2): 114-121.
De Wulf, K., Odekerken-Schröder, G., & Van Kenhove, P. (2003). Investments in consumer relationships: A critical reassessment and model extension. The International Review of Retail, Distribution and Consumer Research, 13(3): 245-261.
Doney P.M. & Cannon J.P. (1997). An examination of the nature of trust in buyer-seller relationships. Journal of Marketing, 61(2): 35-51.
Dwyer, F., Schurr, P. & Oh, S. (1987). Developing buyer seller relationships. Journal of marketing, 51(2): 11-27.
Ennew, Christine T., Banerjee, Ashish K. & Li, D. (2000). Managing Word of Mouth communication: Empirical Evidence from India. International Journal of Bank Marketing, 18(2): 94-117
Fazli, S. Rashidi Astaneh, M. (2014). The Role of Factors Affecting the Success of Customer Relationship Management Strategy in Car Dealerships in Guilan Province, Journal of Business Management, 6(1): 125-144. (in Persian)
Fullerton, G. (2005). How commitment both enables and undermines marketing relationships. European Journal of Marketing, 39(11/12): 1372-1388.
Ganesan, S. (1994). Determinants of long-term orientation in buyer-seller relationship. Journal of Marketing, 58(2): 1-19.
Golrokh, A. & khanlari, A. (2014). Identification and Examination of the Factors Affecting Customer Intentions for Cross Buying Bancassurance. Journal of Business Management, 6(2): 381-400. (in Persian)
Grayson, K. & Ambler, T. (1999). The Dark Side of Long-Term Relationships in Marketing Services. Journal of Marketing Research 36(February): 132–141.
Gummesson, E. (1996). Relationship marketing and imaginary organizations: A synthesis. European Journal of Marketing, 30(2): 31-44.
Gundlach, G. T., Achrol, R. S. & Mentzer, J. T. (1995). The structure of commitment in exchange. Journal of Marketing, 59(1): 78-92.
Hair, J. F., Anderson, R. E., Tatham, R. L. & Black, W. C. (1995). Multivariate Data Analysis with Readings (4th ed.). Englewood Cliffs, NJ: Prentice Hall.
Hasangholipour, T., Rahrovi, E. & Abachian ghasemi, R. (2013). Theoretical and Empirical Study of Determinants of Word of Mouth in Airline Companies: The Case of Iran Airline Company. Journal of Business Management, 5(1): 41-60. (in Persian)
Heide, J. B. (1994). Interorganizational Governance in Marketing Channels. Journal of Marketing, 58 (January): 71–85.
Hennig-Thurau, T., Gwinner, K. P. & Gremler, D. D. (2002). Understanding relationship marketing outcomes: An integration of relational benefits and relationship quality. Journal of Service Research, 4(3): 230-247.
Hibbard, Jonathan D., Frederic F. B., Rajiv P. D. & Iacobucci, D. (2001). Does Relationship Marketing Age Well?. Business Strategy Review 12(4): 29–35.
Hinnawi, R. S. (2011). The impact of relationship marketing underpinnings on customer’s loyalty Case study - Bank of Palestine. Master’s Dissertation in business administration, Faculty of commerce, The Islamic University-Gaza.
Huntley, J. K. (2006). Conceptualization and measurement of relationship quality: Linking relationship quality to actual sales and recommendation intention. Industrial Marketing Management, 35(6): 703-714.
Jap, S. D. & Ganesan S. (2000). Control Mechanisms and the Relationship Life Cycle: Implications for Safeguarding Specific Investments and Developing Commitment. Journal of Marketing Research, 37(May): 227–245.
Kim, W. G. & Cha, Y. (2002). Antecedents and consequences of relationship quality in hotel industry. Hospitality Management, 21(4), 321-338.
Kim, W. G., Lee, Y., & Yoo, Y. (2006). Predictors of Relationship Quality and Relationship Outcomes in Luxury Restaurants. Journal of Hospitality and Tourism Research, 30(2): 143-169.
Kline, R. B. (2005). Principles and Practice of Structural Equation Modelling (2nd ed.). New York: The Guilford Press.
Liang, C. & Wang, W. (2005). Integrative research into the financial services industry in Taiwan: Relationship bonding tactics, relationship quality and behavioural loyalty. Journal of Financial Services Marketing, 10(1): 65-83.
Lusch, R. F. & Brown, J. R. (1996). Interdependency, contracting, and relational behavior in marketing channel. Journal of Marketing, 60(4): 19-38.
Macintosh, G. & Lawrence S. L. (2007). Retail Relationships and Store Loyalty: A Multi-level Perspective. International Journal of Research in Marketing, 14(5): 487–497.
Moorman, C., Zaltman, G. & Deshpanede, R. (1992). Relationship between providers and users of market research: The dynamics of trust within and between organizations. Journal of Marketing Research, 29(3): 314-329.
Morgan, R. M. & Hunt S. D. (1994). The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing, 58(July): 20–38.
Naoui, F. B. & Zaiem, I. (2010). The impact of relationship quality on client's loyalty: An application in the parapharmaceutical industry. International Journal of Pharmaceutical and Healthcare Marketing, 4(2): 137–156
Ndubisi, N. O. (2007). Relationship marketing and customer loyalty. Marketing Intelligence & Planning, 25(1): 98–106
Ngo, M. H. & OCass, M. (2009). Relationship marketing in practice: myths and realities. Industrial marketing management, 27(5): 359-371.
Palmatier, R. W. (2007). What Drives Customer Relationship Value in Business-to-Business Exchanges? Cambridge, Mass: Marketing Science Institute, Report No. 07.
Palmatier, R. W. (2009). Relationship marketing, Cambridge, Massachusetts: Marketing Science Institute.
Palmatier, R. W., Dant, R. P., Grewal, D. & Evans, K. R. (2006). Factors influencing the ffectiveness Of Relationship Marketing: A Meta-Analysis. Journal of Marketing, 70(October): 136–153.
Rajaobelina, L. & Bergeron, J. (2009). Antecedents and consequences of buyer-seller relationship quality in the financial services industry. International Journal of Bank Marketing, 27(5): 359 – 380.
Ranjbrian, B. & Barari M. (2009). The Contribution of Relationship Marketing Underpinning to Customer Loyalty: A Comparison of a Private with a Government Owned Bank. Journal of Business Management, 1(2): 83-100. (in Persian)
Ranjbrian, B., Barari M. & Rezai, T. (2012). Evaluate the relationship between elements of relationship marketing and customer loyalty. Journal of Commercial strategies, 19th Year, 2(1): 1-14. (in Persian)
Reynolds, K. E. & Beatty, S. E. (1999). Customer benefits and company consequences of customer-salesperson relationships in retailing. Journal of Retailing, 75(1): 11-32.
Ring, P.S. &. Van de Ven. A.H. (1994). Developmental Processes of Cooperative Interorganizational Relationships. Academy of Management Review 19 (1): 90–118.
Roberts, K., Varki, S. & Brodie, R. (2003). Measuring the quality of relationships in consumer services: An empirical study. European Journal of Marketing, 37(1/2): 169-196.
Shamdasani, P. N. & Balakrishnan, A. A. (2000). Determinants of relationship quality and loyalty in personalized services. Asia Pacific Journal of Management, 17(3): 399-422.
Smith, B. (1998). Buyer-seller relationship: Bonds, relationship management, and sex type. Canadian Journal of Administrative Sciences, 15(1): 76-92.
Terawatanavong, C., Whitwell, G. J. & Widing, R. E. (2007). Buyer satisfaction with relational exchange across the relationship lifecycle. European Journal of Marketing, 41(7/8): 915-938
Wang, W., Liang, C. & Wu, Y. (2006). Relationship bonding tactics, relationship quality and customer behavioural loyalty-behavioural sequence in Taiwan's information service industry. Journal of Service Research, 6(1): 31-57.
Wilson, David T. (1995). An Integrated Model of Buyer-Seller Relationships. Journal of the Academy of Marketing Science, 23(4): 335–45.
Wong, A. & Sohal, A. (2007). Customer-salesperson relationships: the effects of trust and commitment on relationship quality. Working paper Faculty of Business and Economics, Monash University.
Woo, K. & Ennew, C. T. (2004). Business-to-business relationship quality: An IMP interaction-based conceptualisation and Measurement. European Journal of Marketing, 38(9/10): 1252-1271.
Wulf, K. D., Odekerken-schroder, G. & Iacobucci, D. (2001). Investments in consume relationships: a cross-country and cross-industry exploration. Journal of Marketing, 65(4): 33-50.