Role of gratitude and obligation in long term customer relationships. (July 2016)

• Record Type: Journal Article
• Authors: Dewani, Prem Prakash; Sinha, Piyush Kumar; Mathur, Sameer
• Is Part Of: Journal of retailing and consumer services. Volume 31(2016)
• Page Start: 143
• Page End: 156
• Publication Date: 2016-07
• Subjects: Gratitude -- Obligation -- Relationship marketing -- Loyalty -- Purchase intentions; Retail trade -- Periodicals; Service industries -- Periodicals; Customer services -- Periodicals; Commerce de détail -- Périodiques; Service à la clientèle -- Périodiques; Customer services; Retail trade; Periodicals; 658.87
• DOI: 10.1016/j.jretconser.2016.01.005
• Languages: English
• ISSNs: 0969-6989

Abstract

Abstract: This paper examines the role of gratitude and obligation in customer relationships. We surveyed 398 customers exiting grocery and clothing stores in Ahmedabad and Jaipur cities in India, after they had finished shopping. We analysed their responses using structural equation modelling (SEM). We found that social and structural investments by sellers created gratitude among customers, resulting in short-term purchase intensions and increased customer loyalty. In contrast, financial investments made by sellers created obligation among customers, and reduced customer loyalty. The paper also discusses theoretical and managerial implications of these findings. Highlights: We examine role of gratitude and obligation in long-term customer relationships. We classify RM investments as per the feelings they trigger i.e. positive or negative. Social and structural investments lead to gratitude which in turn leads to loyalty. In contrasts, financial investments lead to obligation in-turn negative loyalty.