Relational Benefits as Predictors of Relationship Quality Outcomes in Online Retailing

Relational Benefits as Predictors of Relationship Quality Outcomes in Online Retailing

Daniel K. Maduku, Ryan L. Mathaba
Copyright: © 2022 |Pages: 34
DOI: 10.4018/JECO.305737
Article PDF Download
Open access articles are freely available for download

Abstract

The present study examines the extent to which structural assurance mechanisms and economic benefits of online shopping are used by online shoppers as cues to infer the relational benefits of confidence and special treatment, respectively. The study further posits that these relational benefits foster relationship quality outcomes for online retailers. The study's findings—based on survey data obtained from 580 online shoppers—suggest that the online retailing structural assurance mechanisms and the selected economic benefits online shopping positively predict online shoppers' special treatment benefits and confidence benefits. The results also show that special treatment benefits and confidence benefits positively predict relationship quality outcomes. The findings also show how the relational benefits serve as mediating mechanisms through which the online retailing structural assurance features and customisation and functional convenience affect the relationship quality outcomes.
Article Preview
Top

1. Introduction

Building strong online customer relationships is widely seen as a strategy that online retailers could implement in order to secure the future growth of the online retailing trade (Kozlenkova Palmatier, Fang, Xiao, & Huang, 2017; Verma, Sharma, & Sheth, 2016). Indeed, the literature has robustly and consistently linked building strong customer relationships to a number of business outcomes, including increased revenue, customer loyalty, price inelasticity, word-of-mouth referrals, lower acquisition costs, upselling, and cross-selling (Guerola-Navarro, Gil-Gomez, Oltra-Badenes, & Sendra-García, 2021; Rodriguez & Boyer, 2020). However, research suggests that online retailers find it increasingly challenging to foster relationships with customers (Verma et al., 2016). To improve this, online retailers are making significant investments in developing long-term relationships through the provision of additional benefits beyond the core product to their customers. These benefits that customers receive from firms through their sustained relationship are called ‘relational benefits’ (Gremler, Van Vaerenbergh, Brűggen, & Gwinner, 2020). Gwinner, Gremler, and Bitner (1998) specifically define relational benefits as the kinds of benefit that customers receive over and above the performance of the core service. Relational benefits thus accrue from long-term cooperation between a firm and its customers, and extend beyond the core benefits (such as products and service quality) that customers receive from the firm (Su, Li, & Cui, 2009).

Prior research has shown that relational benefits are important to firms owing to their role in fostering commitment, boosting loyalty intention, and increasing word-of-mouth referrals (Gremler et al., 2020; Hennig-Thurau, Gwinner, & Gremler, 2002; Lee, Choi, Kim, & Hyun, 2014). This logic holds true for online retailers too, with the provision of relational benefits enabling them to strengthen their existing customer relationships and to improve their ability to convert first-time buyers into committed and loyal customers. Relational benefits fall under the rubric of relationship marketing more generally, which denotes the act of “attracting, maintaining and enhancing customer relationships” (Berry, 1983). The raison d’être of relationship marketing is to foster enduring relationships with customers by delivering long-term value for them, with the aim of retaining them over the long-term (Grönroos, 1994). Relational marketing suggests that, to meet the long-term value needs of customers, firms must offer more resources and activities than just their core product/s (Grönroos, 1997). Previous research has shown that, beyond the core benefits offered to consumers, certain economic, psychological, social, and individual benefits inspire customers to develop and maintain long-term relationships with retailers (Berry, 1995; Bitner, 1995; Zeithaml, Berry, & Parasuraman, 1996). Grounded in these studies, Gwinner et al. (1998) proposed and empirically examined a framework for relational marketing. These authors posited that, in the long term, customers obtain three forms of benefit beyond a core product or service offering: confidence benefits, special treatment benefits, and social benefits.

Complete Article List

Search this Journal:
Reset
Volume 22: 1 Issue (2024)
Volume 21: 1 Issue (2023)
Volume 20: 4 Issues (2022): 2 Released, 2 Forthcoming
Volume 19: 4 Issues (2021)
Volume 18: 4 Issues (2020)
Volume 17: 4 Issues (2019)
Volume 16: 4 Issues (2018)
Volume 15: 4 Issues (2017)
Volume 14: 4 Issues (2016)
Volume 13: 4 Issues (2015)
Volume 12: 4 Issues (2014)
Volume 11: 4 Issues (2013)
Volume 10: 4 Issues (2012)
Volume 9: 4 Issues (2011)
Volume 8: 4 Issues (2010)
Volume 7: 4 Issues (2009)
Volume 6: 4 Issues (2008)
Volume 5: 4 Issues (2007)
Volume 4: 4 Issues (2006)
Volume 3: 4 Issues (2005)
Volume 2: 4 Issues (2004)
Volume 1: 4 Issues (2003)
View Complete Journal Contents Listing