IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v51y2019icp152-164.html
   My bibliography  Save this article

The unique role of relationship marketing in small businesses’ customer experience

Author

Listed:
  • Gilboa, Shaked
  • Seger-Guttmann, Tali
  • Mimran, Ofir

Abstract

The current study explores what defines customer experience in small businesses. Unlike the technology-oriented customer experience characterizing large enterprises, small businesses’ distinctive customer experience lies in their human interaction with customers. Two aspects of relationship marketing, namely, social relationship and personal care, have been found to be crucial components of this experience. Combining in-depth interviews with small business owners and customers, as well as customer survey, we identified two parallel relationship strategies: communication and personal care enhances trust in the business, and social relationship foster commitment. Both strategies lead to positive customer outcomes.

Suggested Citation

  • Gilboa, Shaked & Seger-Guttmann, Tali & Mimran, Ofir, 2019. "The unique role of relationship marketing in small businesses’ customer experience," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 152-164.
  • Handle: RePEc:eee:joreco:v:51:y:2019:i:c:p:152-164
    DOI: 10.1016/j.jretconser.2019.06.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698918310907
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jretconser.2019.06.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rouxelle de Villiers & Po-Ju Chen & Pedro Mir Bernal & Linda Coleman & Tung-Cheng (TC) Huan & Arch G. Woodside, 2017. "Achieving Requisite Variety in Customer Experience Research for Improving Marketing Relationship Performances," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 16(2), pages 127-143, December.
    2. Adjei, Mavis T. & Griffith, David A. & Noble, Stephanie M., 2009. "When Do Relationships Pay Off for Small Retailers? Exploring Targets and Contexts to Understand the Value of Relationship Marketing," Journal of Retailing, Elsevier, vol. 85(4), pages 493-501.
    3. Runyan, Rodney C. & Droge, Cornelia, 2008. "A categorization of small retailer research streams: What does it portend for future research?," Journal of Retailing, Elsevier, vol. 84(1), pages 77-94.
    4. Johnson, Devon & Grayson, Kent, 2005. "Cognitive and affective trust in service relationships," Journal of Business Research, Elsevier, vol. 58(4), pages 500-507, April.
    5. Tajeddini, Kayhan & Elg, Ulf & Trueman, Myfanwy, 2013. "Efficiency and effectiveness of small retailers: The role of customer and entrepreneurial orientation," Journal of Retailing and Consumer Services, Elsevier, vol. 20(5), pages 453-462.
    6. Naresh K. Malhotra & Sung S. Kim & Ashutosh Patil, 2006. "Common Method Variance in IS Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research," Management Science, INFORMS, vol. 52(12), pages 1865-1883, December.
    7. Stacey A. Sutton, 2010. "Rethinking Commercial Revitalization: A Neighborhood Small Business Perspective," Economic Development Quarterly, , vol. 24(4), pages 352-371, November.
    8. Campbell, Jeffrey M. & Park, Joohyung, 2017. "Extending the resource-based view: Effects of strategic orientation toward community on small business performance," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 302-308.
    9. Orth, Ulrich R. & Green, Mark T., 2009. "Consumer loyalty to family versus non-family business: The roles of store image, trust and satisfaction," Journal of Retailing and Consumer Services, Elsevier, vol. 16(4), pages 248-259.
    10. Verhoef, Peter C. & Lemon, Katherine N. & Parasuraman, A. & Roggeveen, Anne & Tsiros, Michael & Schlesinger, Leonard A., 2009. "Customer Experience Creation: Determinants, Dynamics and Management Strategies," Journal of Retailing, Elsevier, vol. 85(1), pages 31-41.
    11. Azin Mostajer Haghighi & Thomas Baum & Farhad Shafti, 2014. "Dimensions of customer loyalty in hospitality micro-enterprises," The Service Industries Journal, Taylor & Francis Journals, vol. 34(3), pages 251-273, February.
    12. Varsha Verma & Dheeraj Sharma & Jagdish Sheth, 2016. "Does relationship marketing matter in online retailing? A meta-analytic approach," Journal of the Academy of Marketing Science, Springer, vol. 44(2), pages 206-217, March.
    13. Tali Seger-Guttmann & Hana Medler-Liraz, 2016. "Does emotional labor moderate customer participation and buying?," The Service Industries Journal, Taylor & Francis Journals, vol. 36(7-8), pages 356-373, June.
    14. Ramakrishnan, K., 2010. "The competitive response of small, independent retailers to organized retail: Study in an emerging economy," Journal of Retailing and Consumer Services, Elsevier, vol. 17(4), pages 251-258.
    15. Grimmer, Louise & Grimmer, Martin & Mortimer, Gary, 2018. "The more things change the more they stay the same: A replicated study of small retail firm resources," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 54-63.
    16. Huang, Min-Hsin, 2015. "The influence of relationship marketing investments on customer gratitude in retailing," Journal of Business Research, Elsevier, vol. 68(6), pages 1318-1323.
    17. Adjei, Mavis T. & Clark, Melissa N., 2010. "Relationship marketing in A B2C context: The moderating role of personality traits," Journal of Retailing and Consumer Services, Elsevier, vol. 17(1), pages 73-79.
    18. Kenneth A. Bollen, 1989. "A New Incremental Fit Index for General Structural Equation Models," Sociological Methods & Research, , vol. 17(3), pages 303-316, February.
    19. Yoo, Boonghee & Donthu, Naveen, 2001. "Developing and validating a multidimensional consumer-based brand equity scale," Journal of Business Research, Elsevier, vol. 52(1), pages 1-14, April.
    20. Goodman, Steve & Remaud, Hervé, 2015. "Store choice: How understanding consumer choice of ‘where’ to shop may assist the small retailer," Journal of Retailing and Consumer Services, Elsevier, vol. 23(C), pages 118-124.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Archita Pal Choudhury & Amit Kundu & Dev Narayan Sarkar & Arabinda Bhattacharya, 2023. "Practitioners’ perspectives on the marketing strategies in Indian banking sector: a framework for strategy formulation," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(1), pages 146-177, March.
    2. Rizomyliotis, Ioannis & Kastanakis, Minas N. & Giovanis, Apostolos & Konstantoulaki, Kleopatra & Kostopoulos, Ioannis, 2022. "“How mAy I help you today?” The use of AI chatbots in small family businesses and the moderating role of customer affective commitment," Journal of Business Research, Elsevier, vol. 153(C), pages 329-340.
    3. Marwa Salah & Mohamed A Abou-Shouk, 2019. "The effect of customer relationship management practices on airline customer loyalty," Post-Print hal-02454932, HAL.
    4. Rangson Chirakranont & Sirijit Sunanta, 2021. "Applications of Experience Economy in Craft Beer Tourism: A Case Study in Thailand’s Context," Sustainability, MDPI, vol. 13(18), pages 1-23, September.
    5. Kim, Junic, 2021. "Platform quality factors influencing content providers’ loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    6. Salah, Marwa & Abou-Shouk, Mohamed A., 2019. "The effect of customer relationship management practices on airline customer loyalty," MPRA Paper 98032, University Library of Munich, Germany.
    7. Cheng-Feng Cheng & Chien-Che Huang & Ming-Chang Lin & Ta-Cheng Chen, 2023. "Exploring Effectiveness of Relationship Marketing on Artificial Intelligence Adopting Intention," SAGE Open, , vol. 13(4), pages 21582440231, December.
    8. Gilboa, Shaked & Seger-Guttmann, Tali & Partouche-Sebban, Judith, 2022. "Increasing customer loyalty and WOM in an age of terror: Cross-cultural development and validation of the customers’ reactions to terror scale (CRTS)," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    9. Rosenbaum, Mark S. & Friman, Margareta & Ramirez, Germán Contreras & Otterbring, Tobias, 2020. "Therapeutic servicescapes: Restorative and relational resources in service settings," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    10. Uzir, Md. Uzir Hossain & Al Halbusi, Hussam & Thurasamy, Ramayah & Thiam Hock, Rodney Lim & Aljaberi, Musheer A. & Hasan, Najmul & Hamid, Mahmud, 2021. "The effects of service quality, perceived value and trust in home delivery service personnel on customer satisfaction: Evidence from a developing country," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    11. Salah, Marwa & Abou-Shouk, Mohamed A., 2019. "The effect of customer relationship management practices on airline customer loyalty," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 5(2), pages 11-19.
    12. Cambra-Fierro, Jesús & Gao, Lily (Xuehui) & Melero-Polo, Iguácel & Trifu, Andreea, 2021. "How do firms handle variability in customer experience? A dynamic approach to better understanding customer retention," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    13. Gliga, Gabriela & Evers, Natasha, 2023. "Marketing capability development through networking – An entrepreneurial marketing perspective," Journal of Business Research, Elsevier, vol. 156(C).
    14. Pekovic, Sanja & Rolland, Sylvie, 2020. "Recipes for achieving customer loyalty: A qualitative comparative analysis of the dimensions of customer experience," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    15. Ekström, Karin M. & Jönsson, Håkan, 2022. "Orchestrating retail in small cities," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    16. Anna Sieczko & Anna J. Parzonko & Wioletta Bieńkowska-Gołasa, 2020. "Principles of the experience economy in designing an agritourism product," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(4), pages 175-182.
    17. Kalanit Efrat & Shaked Gilboa, 2020. "Relationship approach to crowdfunding: how creators and supporters interaction enhances projects’ success," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(4), pages 899-911, December.
    18. Cambra-Fierro, Jesús & Polo-Redondo, Yolanda & Trifu, Andreea, 2021. "Short-term and long-term effects of touchpoints on customer perceptions," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    19. Yeo Amy Chu May & Lai Marcus Ee Ken, 2020. "The Influence of B2B Relationship Quality on Opportunism and Firm Performance," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 11(3), pages 59-87, December.
    20. Lewlisa Saha & Hrudaya Kumar Tripathy & Soumya Ranjan Nayak & Akash Kumar Bhoi & Paolo Barsocchi, 2021. "Amalgamation of Customer Relationship Management and Data Analytics in Different Business Sectors—A Systematic Literature Review," Sustainability, MDPI, vol. 13(9), pages 1-35, May.
    21. Radia, Karan Nilesh & Purohit, Sonal & Desai, Shachi & Nenavani, Jitendra, 2022. "Psychological comfort in service relationships: A mixed-method approach," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fabien Eymas & Faouzi Bensebaa, 2021. "Competitive strategies of small independent retailers," Post-Print hal-03960130, HAL.
    2. Fabien Eymas & Faouzi Bensebaa, 2021. "Competitive strategies of small independent retailers," Post-Print hal-03179166, HAL.
    3. Seger-Guttmann, Tali, 2019. "Customers' irrational beliefs: Scale development and validation," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 54-66.
    4. Terblanche, Nic S., 2018. "Revisiting the supermarket in-store customer shopping experience," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 48-59.
    5. Grimmer, Louise & Grimmer, Martin & Mortimer, Gary, 2018. "The more things change the more they stay the same: A replicated study of small retail firm resources," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 54-63.
    6. Fabien Eymas & Faouzi Bensebaa, 2021. "Small independant retailers: from avoidance to competitive indifference? [Petits distributeurs indépendants : de l’évitement à l’indifférence concurrentielle ?]," Post-Print hal-03960110, HAL.
    7. Anselmsson, Johan & Burt, Steve & Tunca, Burak, 2017. "An integrated retailer image and brand equity framework: Re-examining, extending, and restructuring retailer brand equity," Journal of Retailing and Consumer Services, Elsevier, vol. 38(C), pages 194-203.
    8. Tajeddini Kayhan & Mueller Stephen, 2019. "Moderating Effect of Environmental Dynamism on the Relationship between a Firm’s Entrepreneurial Orientation and Financial Performance," Entrepreneurship Research Journal, De Gruyter, vol. 9(4), pages 1-13, October.
    9. Waqas, Muhammad & Salleh, Noor Akma Mohd & Hamzah, Zalfa Laili, 2021. "Branded Content Experience in Social Media: Conceptualization, Scale Development, and Validation," Journal of Interactive Marketing, Elsevier, vol. 56(C), pages 106-120.
    10. Barnes, Stuart J. & Mattsson, Jan & Sørensen, Flemming, 2014. "Destination brand experience and visitor behavior: Testing a scale in the tourism context," Annals of Tourism Research, Elsevier, vol. 48(C), pages 121-139.
    11. Tajeddini, Kayhan & Gamage, Thilini Chathurika & Tajdini, Javad & Qalati, Sikandar Ali & Siddiqui, Faiza, 2023. "Achieving sustained competitive advantage in retail and consumer service firms: The role of entrepreneurial orientation and entrepreneurial bricolage," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    12. Khan, Imran & Hollebeek, Linda D. & Fatma, Mobin & Islam, Jamid Ul & Riivits-Arkonsuo, Iivi, 2020. "Customer experience and commitment in retailing: Does customer age matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    13. Troiville, Julien & Hair, Joe F. & Cliquet, Gérard, 2019. "Definition, conceptualization and measurement of consumer-based retailer brand equity," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 73-84.
    14. Munyaradzi W. Nyadzayo & Civilai Leckie & Lester W. Johnson, 0. "The impact of relational drivers on customer brand engagement and brand outcomes," Journal of Brand Management, Palgrave Macmillan, vol. 0, pages 1-18.
    15. Gilboa, Shaked & Vilnai-Yavetz, Iris & Mitchell, Vince & Borges, Adilson & Frimpong, Kwabena & Belhsen, Nourdine, 2020. "Mall experiences are not universal: The moderating roles of national culture and mall industry age," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    16. Abosag, Ibrahim & Baker, Thomas L. & Hall, Kristina Lindsey & Voulgari, Aliki-Dimitra & Zheng, Xiaoyuan, 2017. "Antecedents and consequences of liking in retail service relationships in China and Greece," International Business Review, Elsevier, vol. 26(3), pages 566-578.
    17. Isabelle Collin-Lachaud & Mbaye Fall Diallo, 2021. "Smartphone use during shopping and store loyalty: The role of social influence," Post-Print hal-03156195, HAL.
    18. Shahzad Khalil & Mirza Ameen ul Haq, 2022. "Enhancing Retail Brand Equity through Consumption Value: The Mediating Effect of Brand Experience," iRASD Journal of Management, International Research Alliance for Sustainable Development (iRASD), vol. 4(1), pages 114-126, March.
    19. Brocato, E. Deanne & Voorhees, Clay M. & Baker, Julie, 2012. "Understanding the Influence of Cues from Other Customers in the Service Experience: A Scale Development and Validation," Journal of Retailing, Elsevier, vol. 88(3), pages 384-398.
    20. Kalanit Efrat & Shaked Gilboa, 2020. "Relationship approach to crowdfunding: how creators and supporters interaction enhances projects’ success," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(4), pages 899-911, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:51:y:2019:i:c:p:152-164. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.