Customer orientation, relationship quality, and relational benefits to the firm

Abstract

Purpose – This research seeks to test a model examining the potential links between customer orientation, expertise, and relationship quality at the interpersonal level and the link between relationship quality and positive service outcomes at the firm level, such as loyalty and positive word of mouth. Design/methodology/approach – The study employs a survey methodology to obtain the opinions of 220 business travelers regarding their relationships with their travel agents. The hypothesized relationships were testing using structural equation modeling (SEM). Findings – The research found significant positive relationships between customer orientation and expertise and respondents' perception of relationship quality. It also found significant links between relationship quality at the interpersonal level and positive outcomes at the organizational level. Interpersonal relationship quality enhanced customer satisfaction with the service firm but was also directly linked to loyalty to the firm and positive word-of-mouth about the firm. Research limitations/implications – The study reinforces the importance of examining firm-level and personal-level relationships in services. Further, it verifies empirically an important link between customer orientation and relationship quality. Originality/value – For managers, the study demonstrates the importance of having customer-oriented employees and the importance that the relationship between customers and employees plays in fostering customer loyalty and positive word-of-mouth about the firm.