Relationship Quality and Purchase Intention and Behavior: The Moderating Impact of Relationship Strength

Presenter : Sharon ChangInstructor : Dr. Teresa HsuNov. 12, 2012

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Citation Cannière, M., Pelsmacker, P., & Geuens, M.

(2010). Relationship Quality and Purchase Intention and Behavior: The Moderating Impact of Relationship Strength. J Bus Psychol, 25, 87-98.

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OutlineIntroduction

Literature Review

Methodology

Result & Conclusion

Reflection

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Introduction

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Introduction

In the business world, research is increasingly focusing on the customer-firm relationship. Marketing shifts away from brands to customers as the focal object of research.

- Background

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IntroductionThe purpose of this study-

To investigate the link between perceived relationship quality, purchase intention and behavior, and the moderating role of relationship strength

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Introduction- Conceptual Framework

The relationship quality-buying behavior chain and the moderating role of relationship strength

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Literature Review

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Literature ReviewRelationship strength is the intensity of the relationship between the customer and the firm, as reflected in the length and the regularity if the customer’s buying history.

(Grayson & Ambler, 1999; Jap & Ganesan, 2000; Kumar et al., 2003; Verhoef et al., 2001)

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Literature Review Loyalty is built up of attitudinal

loyalty, which leads to repeat patronage intentions, which in turn lead to loyal behavior and, finally, to more profits.

(Reinartz & Kumar, 2000)10

Hypothesis 1A positive perception of relationship quality has a positive impact on buying intention.

H1a

A positive buying intention has a positive impact on various aspects of buying intention.

H1b

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Hypothesis 2A stronger relationship has a positive impact on buying intention.

H2a

A stronger relationship has a positive impact on various aspects of buying intention.

H2b

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Hypothesis 3The impact of relationship quality on buying intention is stronger for customers with a stronger relation with the company.

H3a

The impact of buying intention on buying behavior is stronger for customers with a stronger relation with company.

H3b

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Methodology

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Survey data-Gathered from apparel retailers, are in the low-to mid-price range.

Return the questionnaire-★960 questionnaires were received in summer season.★266 questionnaires were received in winter season.

Questionnaire-★2,306 questionnaires were distributed in summer season.★2,500 questionnaires were distributed in winter season.

Procedure

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Total : 1,226 questionnaires Total : 4,806 questionnaires

634 Participants90.1%Female7.7%

less than 30 years old

20.8%Between 51 & 60

30.8%Between 30 & 40

31.5%Between 41 & 50

9.1%Older than 60

9.9%male

Participant1226 questionnaires were received Linkable-634 questionnaires Nonlinkable-575 questionnaires

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Criterion

Variables

Total expenditure

Number of visits with

buying eventNumber of

product types

MeasuresThe three indicators measure partially different aspects of buying behavior.

Measures

Moderating

Variables

Length of relationship with

retailer(1-10 seasons)

Number of seasons with

buying event (1-10)

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Length and buying frequency reinforce each other in this multiplicative definition of relationship strength.

Predictor Variables

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A pretest of the remaining items among 30 customers of the shop under study confirmed the relevance, validity, and reliability of the scales used. Each scale contained three items.

Measures-

Result & Discussion

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Confirmatory Factor Analysis(CFA)

Trust

satisfactionCommitment

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0.91 0.98

0.91

Each of the pairs of relationship quality Constructs were highly correlated.

It is used to test whether measures of a construct are consistent with a researcher's understanding of the nature of that construct (or factor).

Result

Result

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Table 2

The means and standard deviations of the variables used in the analyses is given.

Result

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Means of two regression analyses with purchase intention.

Result A regression analysis as in the

relationship quality-intention section was carried out for each behavioral outcome variable.

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Result

In all three models purchase intention had a significant impact on actual purchase behavior.

ResultHypotheses Supported/

ConfirmedH1aH1bH2aH2bH3a

H3b

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√

√

√

√√

A positive perception of relationship quality has a positive impact on buying intention.

A positive buying intention has a positive impact on various aspects of buying intention.

A stronger relationship has a positive impact on buying intention.

A stronger relationship has a positive impact on various aspects of buying intention.

The impact of relationship quality on buying intention is stronger for customers with a stronger relation with the company.The impact of buying intention on buying behavior is stronger for customers with a stronger relation with company.

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In this study, a strong correlation was found between the various components of relationship quality, which has led us to consider them as one “relationship quality” construct.

Conclusion

Reflection

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ReflectionFurther research should focus upon the development of better survey items that would discriminate these conceptually related, but distinct constructs.

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Thank you