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Relationship Value and Relationship Quality: An Exploration of Its Antecedents on Customer Loyalty

Author

Listed:
  • Liew Yoong
  • Song Lian
  • Muthaloo Subramaniam

Abstract

The aim of this study is to examine relationship value and relationship quality, and its effect on customer loyalty in the context of relationship marketing. Four key relationship value variables of economic value, service value, relational value and social value are examined in this study. The study focuses on the Malaysian telecommunication industry and based on the business-to-customer environment. The structural equation modelling technique is used to empirically test the proposed hypotheses using a sample of 350 customers collected by a questionnaire survey. The results showed that three relationship value variables of economic value, service value, and social value have significantly influenced relationship quality. Customer loyalty is significantly affected by relationship quality. There is no significant effect of relational value and relationship quality. The contribution of this paper is twofold. From a theoretical perspective, the social exchange theory is used to explain and conceptualize relationship marketing paradigms. It offers both a conceptual foundation and empirical-based evaluation of customer loyalty through the context of relationship value and relationship quality. The relationship value dimensions of economic value, service value, and social value is the antecedent to relationship quality, which lead to customer loyalty. In the practical perspective, the findings proposed that the telecommunication service providers should focus on relationship value through providing better value for money packages, innovation of services and improve social interaction with customers to build stronger relationship quality and achieve customer loyalty.

Suggested Citation

  • Liew Yoong & Song Lian & Muthaloo Subramaniam, 2017. "Relationship Value and Relationship Quality: An Exploration of Its Antecedents on Customer Loyalty," Asian Social Science, Canadian Center of Science and Education, vol. 13(12), pages 1-51, December.
    • Handle: RePEc:ibn:assjnl:v:13:y:2017:i:12:p:51
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    References listed on IDEAS

    as
    1. Sheth, Jagdish N. & Newman, Bruce I. & Gross, Barbara L., 1991. "Why we buy what we buy: A theory of consumption values," Journal of Business Research, Elsevier, vol. 22(2), pages 159-170, March.
    2. Ruiz, David Martín & Gremler, Dwayne D. & Washburn, Judith H. & Carrión, Gabriel Cepeda, 2008. "Service value revisited: Specifying a higher-order, formative measure," Journal of Business Research, Elsevier, vol. 61(12), pages 1278-1291, December.
    3. Brown, Greg, 2013. "The relationship between social values for ecosystem services and global land cover: An empirical analysis," Ecosystem Services, Elsevier, vol. 5(C), pages 58-68.
    4. R. Chumpitaz & N. Paparoidamis, 2007. "Service quality, relationship satisfaction, trust, commitment, and business-to-business loyalty," Post-Print hal-00199063, HAL.
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    Cited by:

    1. María Belén Prados‐Peña & Francisco Jesús Gálvez‐Sánchez & Ana García‐López, 2023. "Moving toward sustainable development: Social, economic and environmental value as antecedents of purchase intention in the sustainable crafts sector," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 3024-3037, August.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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