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Article
Publication date: 7 October 2014

Yung-Shen Yen

The purpose of this paper is to examine quality satisfaction between transactional and relational customers in e-commerce, and it also explores the moderating effect of perceived…

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Abstract

Purpose

The purpose of this paper is to examine quality satisfaction between transactional and relational customers in e-commerce, and it also explores the moderating effect of perceived control and perceived enjoyment on quality satisfaction.

Design/methodology/approach

Multivariate analysis of variance and two-way ANOVA were conducted to test the study hypotheses. The samples include 470 university students in the northeastern USA to whom an online survey was administered.

Findings

Results show that system quality satisfaction is more significant for transactional customers, but information quality and service quality satisfactions are more important for relational customers. Moreover, perceived control and perceived enjoyment partially moderate quality satisfaction between transactional and relational customers.

Research limitations/implications

One limitation is that a student cohort is selected as the sample. This study verifies the understanding of quality satisfaction between transactional and relational customers in e-commerce.

Practical implications

Practitioners shall consider the quality of services for fitting different types of customers. While a high-quality system design is better for new customers, high-quality information and service support is helpful for loyal customers. However, if loyal customers have a high degree of perceived control, they may also be more sensitive to system quality satisfaction. Similarly, if new customers have a high degree of perceived control or a high degree of perceived enjoyment, they may be more sensitive to information quality satisfaction.

Originality/value

This study contributes to the knowledge regarding quality satisfaction for transactional and relational customers in e-commerce.

Details

The TQM Journal, vol. 26 no. 6
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 15 May 2017

Kent Eriksson and Cecilia Hermansson

Customer interactions with sellers change as social interactions in society change. The old dichotomy between transaction and relation exchange may no longer be valid as customers

Abstract

Purpose

Customer interactions with sellers change as social interactions in society change. The old dichotomy between transaction and relation exchange may no longer be valid as customers form relationships with sellers in new ways. It is against this background that the authors study how customers’ subjective perception of relational exchange appears in objectively defined transactional and relational exchange forms. The authors study one bank’s customers, and, based on objective bank records, the authors identify segments that behave as transactional and relational customers. The authors also identify a group of customers who are in between transactional and relational, and the authors call these interimistic relational, since they interact repeatedly with the bank in a short period of time. The paper aims to discuss these issues.

Design/methodology/approach

The authors study how subjective attributes of relational exchange differ in objectively defined transactional, interimistic, and relational customer groups. The authors use a large data set, consisting of a combination of survey and objective bank records for 90,528 bank customers.

Findings

Findings are that the old dichotomy between transaction and relation is no longer valid, since customers’ exchange behavior and perception of exchange do not match up when it comes to the transaction-relation dichotomy. The authors find empirical evidence for that the subjective relational attributes can be observed in objectively defined relational, interimistic, and transactional customer groups. Overall, subjective relational attributes are strongest in the objective relational group; they are weaker in the interimistic group. Relational attributes are weakest, but still present, in the transactional group.

Practical implications

The findings presented here suggest strong support for relationship marketing practice, since even customers who behave transactionally perceive that they have an element of relationship with the seller. The authors find that customers may behave in a relational, interimistic, and transactional way, but that they perceive themselves as more or less relational. The practical implication is that customer analysis should focus on exchange forms, and that it is essential to analyze how exchange changes, and how multiple exchange forms may be combined in customer behavior and perception.

Social implications

The social implications of this paper are that marketers should consider the exchange between customer and financial service supplier as more or less of a relationship, and more or less of a service. Financial service firm strategies and regulation of financial services should acknowledge that no financial service transaction is independent of the relationship between the financial service provider and the customer. It may seem so objectively, but subjectively, it is not.

Originality/value

The authors present a unique comparison of objective and subjective customer exchange. There are two contributions that come from this research. The first is that customers perceive themselves as partially relational, even though they behave transactionally. The other contribution is that the authors identified interimistic relational exchange (IRE) as an exchange form in between relational and transactional. IRE can potentially be very important for market research and practice, as it captures modern market behavior. In today’s world, consumers form their perceptions in a multitude of ways, and may therefore have relational attitudes and transactional behaviors. More research is needed into how consumer perceptions and behaviors relate to each other, and how it impacts consumer purchase of financial services.

Details

International Journal of Bank Marketing, vol. 35 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 17 April 2009

Hanaa Osman, Nigel Hemmington and David Bowie

The purpose of this paper is to explore the ways in which a transactional marketing approach can generate customer loyalty in a hotel brand.

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Abstract

Purpose

The purpose of this paper is to explore the ways in which a transactional marketing approach can generate customer loyalty in a hotel brand.

Design/methodology/approach

The paper provides a review of the paradigm shift from transactional marketing to relationship marketing, in the services marketing literature. The inductive research used a qualitative approach, with multiple techniques including non‐participant observation in several hotels; in‐depth interviews with hotel managers; and telephone interviews with hotel customers in the UK.

Findings

The findings suggest that a transactional approach to marketing can be an effective strategy for hotels, which target niche segments with highly differentiated offers at competitive prices. It was found that this approach can create significant customer loyalty.

Research limitations/implications

The case study approach and focused sample mean that attempts to generalize the findings should be taken with care. Furthermore, this study does not attempt to measure the effectiveness of transactional marketing on customer loyalty; it reports findings from a qualitative study carried out to explore marketing practices in a small sample of hotels.

Practical implications

For practitioners, the paper suggests that transactional marketing and relationship marketing can be seen as complementary marketing strategies.

Originality/value

The paper provides novel insights into hotel culture, hotel/customer relationships, hotel service customization and customer loyalty. The paper challenges the received view that transactional marketing is less appropriate than relationship marketing in achieving customer loyalty in hotel branded operations.

Details

International Journal of Contemporary Hospitality Management, vol. 21 no. 3
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 13 February 2019

Miguel Angel Moliner-Tena, Diego Monferrer-Tirado and Marta Estrada-Guillén

The purpose of this paper is to highlight the central role of bank customers’ engagement as a mediating variable between customer experience and two non-transactional customer

2829

Abstract

Purpose

The purpose of this paper is to highlight the central role of bank customers’ engagement as a mediating variable between customer experience and two non-transactional customer behaviors (advocacy and attitudinal loyalty).

Design/methodology/approach

To test the hypothesis, a model was designed with two antecedents of bank customer engagement (satisfaction and customer emotions), and two non-transactional behaviors (attitudinal loyalty and customer advocacy). The model was tested on a sample of 1,790 customers of two Spanish banks.

Findings

Results confirm bank customer engagement as the mediating variable between customer experience outcomes and non-transactional behaviors.

Practical implications

Banks should design physical spaces with an atmosphere that will have a positive impact on their customers, and pay particular attention to interactions with contact personnel and other customers present at that moment of truth. The new concept of the branch now being introduced looks to the future, transforming it into a place to attend to and advise customers, and designed to encourage and facilitate a more personal and enduring relationship. This transformation includes longer opening hours and a concept that appears to draw from the store model. Its design is more accessible, more agile, more welcoming and more digital, conceived to attract the customer’s attention from the first moment.

Originality/value

The contribution of this research is related to the analysis from a theoretical and empirical perspective of the mediating impact of customer engagement between customer experience outcomes (satisfaction and emotions during the service) and non-transactional behaviors (advocacy and attitudinal loyalty).

Details

International Journal of Bank Marketing, vol. 37 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 2 February 2023

Jing Zhang, Linghua Zhang and Bei Ma

This study examines how customer loyalty among DiDi users in China is affected by two types of online social interaction (transactional and interpersonal) and how the online…

Abstract

Purpose

This study examines how customer loyalty among DiDi users in China is affected by two types of online social interaction (transactional and interpersonal) and how the online interaction–customer loyalty relationship is mediated by three kinds of perceived benefits (functional, social-hedonic and safety).

Design/methodology/approach

This study empirically examines research hypotheses based on a questionnaire survey of 428 DiDi consumers.

Findings

The results reveal that transactional interactions significantly enhance customer loyalty among DiDi users via the partial mediating effects of customers' perceived functional, social-hedonic and safety benefits. By contrast, interpersonal interactions do not directly influence customer loyalty, and only social-hedonic benefits fully mediate the positive influence of interpersonal interactions on loyalty.

Originality/value

This study contributes to the theoretical development of interactive marketing management by examining how two types of online social interactions contribute to customer loyalty on sharing economy platforms by influencing the perception of benefits. It also provides useful managerial insights to help ride-sharing platforms design online social interaction functions that improve customer perceptions and loyalty.

Details

Journal of Research in Interactive Marketing, vol. 17 no. 5
Type: Research Article
ISSN: 2040-7122

Keywords

Article
Publication date: 30 July 2010

Yang Li and Yang Lin

The purpose of this paper, taking banking as the research object, is to build up a psychology covenant model for service enterprises and customers and to seek the form of the…

Abstract

Purpose

The purpose of this paper, taking banking as the research object, is to build up a psychology covenant model for service enterprises and customers and to seek the form of the construction dimension in the psychology covenant between the service enterprise and the customer.

Design/methodology/approach

SPSS16.0 was used for the exploratory factor analysis and AMOS7.0 for the confirmatory factor analysis.

Findings

The psychological contract between service enterprises and customers is composed of two‐dimensional structures: the transactional psychological contract and the relational psychological contract.

Research limitations/implications

The biggest limitation of this paper is the research region being limited to banking. Future research can extend to other industries.

Originality/value

The result has the theoretic reference to the tactic establishment for customer relationship management in China's service industry against the background of a transfer economy.

Details

Nankai Business Review International, vol. 1 no. 3
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 6 April 2012

Cristiane Pizzutti dos Santos and Kenny Basso

This study aims to fill an important gap in the literature by exploring the moderating role of client‐company relationship type on the impact of service recovery judgments on…

3103

Abstract

Purpose

This study aims to fill an important gap in the literature by exploring the moderating role of client‐company relationship type on the impact of service recovery judgments on clients' trust and loyalty intentions.

Design/methodology/approach

A sample of 216 Brazilian banks clients who made a complaint to their bank within the previous 12 months answered the survey. Data collection took place at a major Brazilian international airport. In terms of relationship type, the authors segmented their sample in two groups: relational and transactional clients. They used multi‐group structural equation modeling to test their hypotheses.

Findings

Relational clients showed higher switching costs, trust, and loyalty intentions than transactional clients. The client‐company relationship type also moderated the impact of distributive justice on satisfaction, satisfaction on trust in the management policies and practices (MPP trust), and switching costs on repurchase intentions. MPP trust fully mediated the effects of trust in frontline employees (FLE trust) on loyalty (repurchase and WOM intentions).

Practical implications

The findings suggest that stronger client‐company relationships may limit the impact of service and recovery failures on customer trust and loyalty. This is a critical piece of information for banks as they could customize their recovery strategies to fit the different types of relationships they have with their clients.

Originality/value

By exploring the impact of the type of relationship on the service recovery process and their consequences, this study answers the following important research question: do ongoing client‐company relationships buffer the impact of service recovery on trust and loyalty intentions?

Details

International Journal of Bank Marketing, vol. 30 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 1 August 1999

Elliot Rabinovich, Robert Windle, Martin Dresner and Thomas Corsi

A survey of 372 logistics managers in different industries revealed multiple outsourcing linkages among logistics activities. These results are consistent with previous findings…

13030

Abstract

A survey of 372 logistics managers in different industries revealed multiple outsourcing linkages among logistics activities. These results are consistent with previous findings that suggest that firms can improve customer service and reduce costs by outsourcing multiple logistics functions. The results are also consistent with previous research on the role that improved coordination of information and material flows have in the achievement of economies of scale and economies of scope. Future research developments in the field of logistics outsourcing are also proposed.

Details

International Journal of Physical Distribution & Logistics Management, vol. 29 no. 6
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 5 July 2021

Eman Abo ElHamd, Hamed Shamma, Mohamed Saleh and Ehab Elkhodary

The purpose of this paper is to close the gap between the theoretical nature of existing contributions in customer engagement value (CEV) and its need to practically empower…

1245

Abstract

Purpose

The purpose of this paper is to close the gap between the theoretical nature of existing contributions in customer engagement value (CEV) and its need to practically empower business decisions. This is done by proposing a framework that consists of three techniques, each of which combines the components of CEV to make it more comprehensive and applicable. The paper also reviews and analyzes the work that has been done so far in the area of CEV whether in business to business (B2B), business to consumer (B2C) or consumer to consumer (C2C) markets.

Design/methodology/approach

CEV is a comprehensive term that measures the total value of the customer through capturing his transactional and non-transactional behaviors. Hence, it is an essential term for measuring the value of the customer in direct marketing. This motivates researchers to compete in developing models to maximize CEV. Meanwhile, most of the existing models are conceptual and the majority of them lack applicability due to many reasons. First, these models relied on a linear version of the CEV model, hence double-counting the value of the customer; also they weighted the components of CEV equally, which is unrealistic. Finally, the effect of the environmental components in determining the engagement level of each customer was almost ignored. In this paper, two main contributions are presented. First, a summary and analysis of the contributions of the literature in the CEV field for different market types whether in B2C, B2B or C2C. Furthermore, three modifications are added to the existing models. The first model introduces a non-linear relationship of the components of CEV. The second model is a weighted linear model of these components. Finally, the third model adds the environmental factors to the CEV components. All the proposed models are theoretical in nature, however, these models are expected to show superiority when being applied to real data sets due to their ability to capture the complexity in the relationship between the firm and its customers in real-life situations. The proposed models are expected to attract the practitioners and other researchers and they both are encouraged to apply the proposed models on real-life data sets, test their performance, compare them against each other, to be able to apply each of them on the best suitable data set and business scenario.

Findings

Based on the review and analysis that has been done on about 87 papers, it is found that the majority of the contributions that have been done in the area of CEV are theoretical in nature, in spite of the effectiveness of CEV in empowering business decision. It is also found that few researchers proposed a set of theoretical comprehensive frameworks that combined CEV’s components together. Meanwhile, those frameworks are not practically applicable.

Research limitations/implications

Although the contribution of the proposed models expected to attract both researchers and practitioners, these are not applied to real-life case studies to prove their effectiveness.

Practical implications

The research in this paper has many industrial and managerial implications. First, it helps managers and decision takers to treat the customers as assets and cost-free resources who can work with the firm to achieve what’s both aims to (i.e. increase customer satisfaction and firm’s profitability). Second, it helps the firm to determine the total value of each customer and treat its customers accordingly. Third, it empowers the managers to do target marketing, based on grouping the customers upon their total engagement. This would save time and cost and for sure increase the profitability and customer satisfaction. Forth, the proposed models take into consideration not only the transactional behavior of the customers but also the non-transactional factors that play a significant role in formulating the relationship between the firm and its customers.

Originality/value

This is hereby to certify that the paper is original, neither the paper nor a part of it is under consideration for publication anywhere else. Also, this study has no conflicts of interest to disclose.

Article
Publication date: 2 March 2012

C.M. Sashi

The advent of the internet and in particular the interactive features of Web 2.0 in recent years have led to an explosion of interest in customer engagement. The opportunities…

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Abstract

Purpose

The advent of the internet and in particular the interactive features of Web 2.0 in recent years have led to an explosion of interest in customer engagement. The opportunities presented by social media to help build close relationships with customers seem to have excited practitioners in a wide variety of industries worldwide. Academic scholarship on customer engagement, however, has lagged practice and its theoretical foundation is relatively underdeveloped and a better understanding of the concept is essential to develop strategies for customer engagement. This paper seeks to address some of these issues.

Design/methodology/approach

The paper attempts to enhance understanding of customer engagement by examining practitioner views of customer engagement, linking it to the marketing concept, market orientation, and relationship marketing, modeling the customer engagement cycle, and developing a customer engagement matrix.

Findings

The paper develops a model of the customer engagement cycle with connection, interaction, satisfaction, retention, loyalty, advocacy, and engagement as stages in the cycle. It arrays customers in a customer engagement matrix according to the degree of relational exchange and emotional bonds that characterize their relationship with sellers. Four types of relationships emerge: transactional customers, delighted customers, loyal customers, and fans.

Research limitations/implications

The paper is an initial attempt to develop a theoretical framework for customer engagement and further research is required to better understand several aspects of the framework. Future research can also investigate questions stemming from this research, for instance, how different Web 2.0 tools may be used to build customer engagement in consumer and business markets.

Practical implications

Customer engagement turns customers into fans. But for customers to become fans they have to progress through the stages of the customer engagement cycle. In addition to current fans, sellers need a mix of transactional, delighted, and loyal customers who can be turned into fans in the future. A mix of digital and nondigital technologies can be employed to facilitate customers' transition through the stages in the customer engagement cycle.

Originality/value

The paper develops a conceptual model of customer engagement that improves understanding of the concept and provides the foundation for strategies to better satisfy customers using Web 2.0 tools like social media.

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