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Abstract
This study aims to investigate the effects of customer value, service quality, trust and commitment on customer loyalty in the context of business-to-business. Moreover, this study examines the mediating role of commitment and trust between service quality, customer value and customer loyalty. This study is informed by a sample of 350 managers and employees working for two Iranian automotive industries. The results reveal a significant effect for service quality, customer value, commitment and trust on customer loyalty. In addition, the findings confirm a mediating role for commitment and trust between service quality, customer value and customer loyalty. This study makes a significant theoretical contribution to the B2B literature by examining the effects service quality and customer value on customer loyalty in a single model, and by exploring the meditating role of commitment and trust between these constructs. Moreover, the findings of this study have a number of practical implications.
Keywords: Customer loyalty, service quality, customer value, commitment, trust, business to business (B2B)
1.INTRODUCTION
Customer loyalty has a significant positive impact on the profitability of business-to-business (B2B) firms. Moreover, by staying with the same supplier and rejecting competitors, loyal customers provide a company with a steady stream of revenue (Lam, Shankar, Erramilli, & Murthy, 2004). In the context of B2B, loyal customers are more likely to focus on long-term benefits and engage in cooperative actions beneficial to both partners, thus enhancing their competitiveness by reducing the costs of further transactions (Doney & Cannon, 1997). However, business service providers face a number of challenges due to the complex nature of the B2B market, increased competition, increased deregulation, technological convergence, a rapidly evolving internet, and increasingly tailored products and services (Olu Adeyoyin, 2005). Creating a loyal customer base is not only about maintaining customers over time, but in the context of B2B, it is also about nurturing one's relationship with their business customers to encourage future purchases and a level of advocacy (Rauyruen & Miller, 2007). Berry and Parasuraman (1991) demonstrated the need for firms to establish high levels of customer loyalty for themselves as a prerequisite for developing and maintaining effective B2B relationships. Focusing on corporate customer relationships contributes toward the development of a secure and loyal customer base and provides opportunities for increased profitability...