The mediating roles ofrenqingandganqingin Chinese relationship marketing

Purpose - – This paper aims to investigate the roles ofrenqing(reciprocal favor) andganqing(positive affect) as consequences of relationship marketing investments (three dimensions: financial, social and structural) and antecedents of customer loyalty. Design/methodology/approach - – A quantitative survey methodology using self-administered questionnaires has been adopted to collect data of 218 procurement staffs from the database of China Purchasing Managers’ Club. Hypotheses tests were conducted using structural equation modeling. Findings - – The results reveal that financial and social relationship marketing investments, but not structural relationship marketing investments, are crucial in evokingrenqingandganqing. The results also provide strong evidence of the relationship betweenrenqingandganqing, which in turn are necessary determinants of customer loyalty. Originality/value - – This research is among the first to examine and confirmrenqingandganqingas a mediating mechanism through which financial and social relationship marketing investments influence attitudinal loyalty, and also through attitudinal loyalty ultimately affects behavioral loyalty. Findings imply the need for Chinese firms in general, and business-to-business context in particular, to strategically lever on the key antecedents of customer loyalty including relationship marketing investments,renqingandganqing, in pursuit of a more competitive advantage and long-term profit.