A Longitudinal Analysis of Customer Satisfaction, Relationship Commitment Dimensions, and Triggers on Share of Wallet
The overwhelming majority of research in marketing has treated commitment as a one or two dimensional construct and largely disregarded temporal effects when investigating the relationship between satisfaction, commitment and customer loyalty. This under-specification of the commitment construct and cross-sectional nature of studies has the potential to misrepresent these relationships. This research uses a three-component model of commitment (affective, calculative, normative) and situational triggers to examine their impact on customers’ share of wallet (SOW). The data consists of 269 households whose banking relationships were tracked for two years. The results showed that changes in affective, calculative and normative commitment each have a significant positive association with change in share of wallet when one adjusts for the effects of customer characteristics such as age and tenure with company. The baseline level of calculative commitment, and changes in affective commitment provide the best explanations for changes in SOW, and when this information on commitment is used, contemporaneous changes in satisfaction has no significant incremental value as a predictor for changes in SOW. Finally the analysis reveals a two-segment customer model which demonstrates how managers can be misled if they assume that everyone will react to satisfaction and commitment improvement efforts similarly.
|Date of creation:||Jan 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Hoveniersberg 4, B-9000 Gent|
Phone: ++ 32 (0) 9 264 34 61
Fax: ++ 32 (0) 9 264 35 92
Web page: http://www.ugent.be/eb
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:rug:rugwps:11/700. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nathalie Verhaeghe)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.