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Strengthening the Quality--Loyalty Linkage: The Role of Customer Orientation and Interpersonal Relationship

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  • Pei Chao
  • Hsin-Pin Fu
  • Iuan-Yuan Lu

Abstract

Customer loyalty has been suggested as the most important indicator of a firm's advantageous position relative to competitors. The effect of service quality on customer loyalty has been empirically proven in a variety of industries. For industries such as grocery wholesalers whose offerings seem to be almost homogeneous in the eyes of retail customers, by implication, service quality in itself may be insufficient. Therefore, this study aims to explore how to strengthen the effect of service quality on customer loyalty. In this study, we propose that customer orientation and interpersonal relationship may reinforce the quality--loyalty linkage. The empirical results showed that all three variables independently had significant power in discriminating among three levels of loyalty (high, medium, and low). Customer orientation and interpersonal relationships also functioned as moderators that strengthen the effect of service quality on customer loyalty. Moreover, customer orientation had a greater moderating effect than interpersonal relationship. The research findings could, we believe, assist wholesale managers to allocate their resources more effectively to establish customer loyalty in an era of fierce competition.

Suggested Citation

  • Pei Chao & Hsin-Pin Fu & Iuan-Yuan Lu, 2007. "Strengthening the Quality--Loyalty Linkage: The Role of Customer Orientation and Interpersonal Relationship," The Service Industries Journal, Taylor & Francis Journals, vol. 27(4), pages 471-494, June.
    • Handle: RePEc:taf:servic:v:27:y:2007:i:4:p:471-494
    DOI: 10.1080/02642060701346425
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