When Does Commitment Lead to Loyalty?

Abstract

Customer commitment is now regarded as a key variable in marketing relationships. The article investigates the roles played by different forms of commitment in the relationship between customers and their service provider. It was found that when customer commitment is based on shared values and identification, it has a uniformly positive impact on customer loyalty. When customer commitment is based on switching costs and dependence, it has mixed effects on customer loyalty. In addition, it was found that there were significant interactions between these two forms of commitment on customer loyalty. If we are to understand the role of customer commitment, we must have a solid understanding of the nature of commitment present in the relationship. These findings have important implications for the development and management of service relationships because it is not necessarily the case that more customer commitment is better for either the service provider or the customer.