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Evaluating the Interrelation of a Retailer's Relationship Efforts And Evaluating the interrelation of a retailer’s relationship efforts and consumers’ attitudes and behaviour Received (in revised form): 12th October, 2005 Chiung-Ju Liang is an associate professor of the Department of Business Administration, National Taiwan University of Science and Technology. Her research focuses on relationship marketing, consumer loyalty and strategic marketing. Her papers have been published in the Journal of Services Research, and are forthcoming in the Journal of Financial Services Marketing, The Services Industries Journal and the Journal of Services Research. Wen-Hung Wang is an assistant professor of the Department of Business Administration, Chung-Kuo Institute of Technology. Wen-Hung has also written for the Journal of Services Research, with forthcoming papers scheduled for publication in the Journal of Financial Services Marketing, The Services Industries Journal and the Journal of Services Research. Abstract This study develops and empirically tests a model for examining the impact of different relationship efforts made by a retailer (financial bonding, social bonding and structural bonding) on key relationship marketing outcomes (trust, relationship commitment and behavioural loyalty). A study in information services industry was conducted based on samples drawn from XYZ Company, the largest information education services institute in Taiwan. Standard error of the mean results indicate that retailers undertaking relationship efforts to loyal consumers can positively affect these consumers’ attitudes and behaviour. In addition, the findings suggest that information services with different attributes need different kinds and levels of relationship efforts. Consequently, managers and employees of retail companies need to be trained, motivated and rewarded for making relationship efforts to regular consumers. Keywords: relationship efforts, trust, commitment, consumer relationship management, LISREL INTRODUCTION general, however, retailers have little Providing qualified service is considered knowledge on the types of consumer Chiung-Ju Liang Department of Business an essential strategy for success and value drivers on which they should Administration, survival in today’s competitive focus.10 Bendapudi and Berry11 and National Taiwan University 1–4 12 of Science and Technology, environment. As most retail markets Bitner conceptualised what some of 43, Sec. 4, Keelung Road, have reached maturity and have these drivers might be, but no Taipei, 106, Taiwan, ROC difficulties differentiating themselves systematic, empirical investigation has 5,6 Tel: +886 (02) 27333141 based on merchandise selection only, been reported. In particular, research ext. 6507 retailers are increasingly obliged to seek pertaining to relationship marketing in Fax: +886 (02) 27376744 E-mail: out products, processes and technologies consumer markets has advanced 7–9 13 [email protected] to increase consumer value. In little. 156 Journal of Targeting, Measurement and Analysis for Marketing Vol. 14, 2, 156–172 ᭧ Palgrave Macmillan Ltd 1479-1862/06 $30.00 Retailer’s relationship efforts and consumers’ attitudes and behaviour In general, marketing literature has evidence of its impact on consumers’ focused on product and service efforts as behavioural responses (ie trust, drivers of total consumer value, to the commitment and behavioural loyalty) neglect of relationship efforts.14–17 should be detectable. The sequences of Additionally, research has shown that relationship efforts on consumer service quality enhancement and behavioural intentions can be viewed as relationship marketing18–20 are appropriate signals of retention or defection and are strategies for commercial banks and other desirable for monitoring. With that in service institutes. What is more, mind, the objectives are fourfold: Kimball21 has suggested that, ‘relationship- and product-oriented 1 To summarise existing evidence about strategies are diametrically opposed to the behavioural sequences of one another, with relationship-oriented relationship efforts and relationship banks striving to consolidate scattered outcomes at the individual consumer consumer accounts, and product-oriented level. banks chipping away at competitors’ 2 To offer a conceptual model of the relationship-oriented consumers’. impact of relationship efforts on Therefore, the present study defines and relationship marketing and particular operationalises three types of relationship behaviours that signal whether efforts and empirically validates their consumers remain with or defect from impact on consumers’ trust, relationship the company. commitment and behavioural loyalty. 3 Toreporttheresultsofanempirical Relationship efforts increasingly study examining the correlation become important as a source of between relationship efforts and consumer value. First, consumers’ quality consumers’ behavioural intentions (ie expectations related to consuming trust, commitment and loyalty). products and services have risen.22 4 To suggest a research agenda whereby Secondly, retailers are increasingly information about individual-level competing with one another on the basis behavioural sequences of relationship of the same or highly comparable efforts can be monitored and linked to marketing tactics and strategies. Thirdly, relationship outcomes to provide retailers are faced with new challenges of ongoing evidence of the impact of the marketing environment, such as relationship bonding tactics on blurring boundaries between markets or behavioural loyalty. industries, an increasing fragmentation of markets and shorter product lifecycles.23 Furthermore, several authors have argued CONCEPTUAL FRAMEWORK that when companies offer similarly high AND HYPOTHESES levels of product or service quality, the A tally with the study of De Wulf and delivery of relationship benefits becomes Odekerken-Schroder27 provided the idea an important means of gaining behind the present model. They defined a competitive advantage.24–26 relationship effort as, ‘any effort that is This paper aims to test the correlation actively made by a retailer towards a between relationship efforts and consumer, that is intended to contribute relationship outcomes (consumer attitudes to the consumer’s perceived consumer and behaviour). The underlying concept valueaboveandbeyondthecoreproduct of this paper is that if relationship effort and/or service efforts received,28 and that relates to behavioural outcome, then can only be perceived by the consumer ᭧ Palgrave Macmillan Ltd 1479-1862/06 $30.00 Vol. 14, 2, 156–172 Journal of Targeting, Measurement and Analysis for Marketing 157 Liang and Wang after continued exchange with the inevitable that consumers are able to retailer’. Generally speaking, a relationship perceive a relationship effort for applying effort refers to an effort that is actively effective relationship outcomes. made by a retailer. For example, a Consequently, the definition presented ‘convenience benefit,’ resulting from the here stresses that relationship efforts can fact that a consumer gradually learns only be perceived after a continued where products are located in a exchange with the retailer. convenience store, is not regarded as an To determine the extent to which actively provided effort because the relationship marketing efforts contribute convenience store has no active role in its to consumers’ relationship outcomes, the development.29 Specifically, Fontenot and study assesses the interconnection Wilson30 andFrenzenandDavis31 argued between trust and three relationship that product/service efforts and marketing tactics (financial bonding, relationship efforts offer two distinct and social bonding and structural bonding), independent sources of value. constructs that differ from the four Product/service efforts correspond to relationship marketing tactics of De Wulf what Parasuraman et al.32 referred to as et al.38 (tangible rewards, direct mail, ‘transaction-specific efforts’ dealing with preferential treatment and interpersonal the exchange object and process communication). surrounding one particular transaction. In Figure 1 represents a conceptual their framework, transaction-specific model that depicts the behavioural efforts consist of product quality, price and sequence of trust and commitment as service quality (often measured by the intervening variables between SERVQUAL scales, including tangibles, relationship bonding tactics and reliability, empathy, responsiveness and behavioural loyalty. This portion is at assurance as dimensions). This study the level of the individual consumer focuses upon relationship-specific efforts and proposes that relationship efforts beyond transaction-specific efforts as an and consumers’ trust and commitment additional means of competitive are positively related with respect to differentiation.33 Relationship efforts go information education services. The beyond a single exchange, focusing upon second portion of the model proposes a range of transactions that are interrelated that consumers’ trust and commitment, to past and future exchanges.34 and behavioural loyalty are positively Parasuraman35 indicated that, related. Thus, relationship efforts, trust ‘consumers may need to accumulate and commitment are determinants for considerable experience with a product whether a consumer ultimately remains before being able to accurately assess the with or defects from a company. The extent to which a company’s offering specific hypotheses are presented in the helps them realise their
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