Relationship Marketing and Customer-Based Brand Tolerance (CBBT): An Integrative Approach

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 1

Year of Publication : 2020

Authors : Edin Güçlü Sözer

10.14445/23939125/IJEMS-V7I1P116

How to Cite?

Edin Güçlü Sözer, "Relationship Marketing and Customer-Based Brand Tolerance (CBBT): An Integrative Approach," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 1, pp. 118-125, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I1P116

Abstract:

In the contemporary competitive markets, it becomes more and more challenging to retain customers than acquire them. Two important factors required for developing strong customer-brand relationships are customer commitment and trust. However, due to the competitive challenges as well as the dynamic relationship between the customer and the brand, sustaining relationships with customers also requires the establishment of a strong Customer-Based Brand Tolerance (CBBT). This study contributes to the marketing literature by incorporating the CBBT construct into the relationship marketing concept by proposing and testing an integrated model of Commitment-Trust Theory and CBBT. Results confirm that customer commitment positively influences the Performance, Price, and Communication dimensions of CBBT and Brand Loyalty, and all CBBT dimensions, in turn, are effective on Brand Loyalty. Customer Trust, on the other hand, is also effective on the Performance and Communication dimensions of CBBT as well as Brand Loyalty. The results of the study confirm the successful incorporation of the CBBT construct into the relationship marketing concept. Academic and managerial implications, as well as limitations and suggestions for future studies,are provided.

Keywords:

Customer-Based Brand Tolerance (CBBT), Relationship Marketing, Commitment, Trust, Brand Loyalty

References:

[1] Allen, N. J., & Meyer, J. P., The measurement and antecedents of affective, continuance, and normative commitment to the organization. Journal of Occupational Psychology, 63 (1990) 1-18.
[2] Anderson, J. C. &Narus, J.A., A model of distributor firm and manufacturer firm working partnerships. Journal of Marketing, 54(1) (1990)42-58.
[3] Anderson, K. & Clevenger, T., A Summary of Experimental Research in Ethos. Speech Monographs, 30 (1963)59-78.
[4] Ateke, B. W., Asiegbu, I. F. &Nwulu, C. S., Customer complaint handling and relationship quality: Any correlation? Ilorin Journal of Marketing, 2(2) (2015) 16-34. 
[5] Bagozzi, R. P., & Yi, Y.,Assessing Method Variance in Multitrait-Multimethod Matrices: The Case of Self-Reported Effect and Perceptions at Work. Journal of Applied Psychology, 75(1) (1990)547-560.
[6] Ballester, E.D. &Alleman, J. L., Brand Trust in the Context of Consumer Loyalty, European Journal of Marketing, 35(11/12)(2001) 1238-1258.
[7] Beatson, A., Cotte, L. V., & Rudd, J. M., Determining consumer satisfaction and commitment through self-service technology and personal service usage. Journal of Marketing Management, 22(7) (2006) 853–882.
[8] Beerli, A., Martin, J. D. & Quintana, A.,A Model of Customer Loyalty in the Retail Banking Market. European Journal of Marketing, 38 (1) (2004) 253-275.
[9] Behrman, D. N. &Perreault, W. D. Jr., Measuring the performance of industrial salespersons. Journal of Business Research, 10(3) (1982) 355-70.
[10] Berry, L. L., Playing Fair in Retailing. Arthur Anderson Retailing Issue Newsletter (March). 5(1993)2.
[11] Berry, L. L. &Parasuraman, A.,Marketing Services. New York: The Free Press(1991).
[12] Berry. L. L., Relationship Marketing, in Emerging Perspectives on Services Marketing. L. Berry. G.L. Shostack, and G.D. Upah, eds. Chicago: American Marketing Association, (1983) 25-28.
[13] Blau, P. M.,Exchange and power in social life. New York: Wiley(1964).
[14] Bricci, L., Fragata, A. &Antunes, J.,The Effects of Trust, Commitment, and Satisfaction on Customer Loyalty in the distribution sector. Journal of Business Economics and Management, 4(2) (2015) 173-177.
[15] Brodie, R. J., Coviello, N. E., Brookes, R. W. & Little, V.,  Towards a Paradigm Shift in Marketing? An Examination of Current Marketing Practices. Journal of Marketing Management, 13 (1997) 383-406. 
[16] Byrne, B. M., Structural Equation Modelling with AMOS. New York,Routledge Taylor & Francis Group(2010).
[17] Chieng, F. Y. L., & Lee, G. C., Customer-Based Brand Equity: A Literature Review. Journal of Arts Science & Commerce, 2(1) (2011) 33-41. 
[18] Crie, D., &Ladwein, R., Complaint letters and commitment theory: An empirical approach in mail-order selling. Journal of Targeting, Measurement, and Analysis for Marketing, 11(1) (2002) 45-55.
[19] Du Plessis, L., Customer relationship management and its influence on customer loyalty at Liberty Life in South Africa. The University of Johannesburg (2010).
[20] Dwyer, F. R., Schurr, P. H., & Oh, S., Developing Buyer-Seller Relationships. Journal of Marketing, 51(2)(1987) 11-27.
[21] Erciş, A., Ünal, S., Candan, F. B., &Yıldırım, H., The effect of brand satisfaction, trust, and brand commitment on loyalty and repurchase intentions. Social and Behavioural Sciences, 58 (2012) 1395–1404. 
[22] Fornell, C. &Larcker, D., Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1) (1981) 39-50.
[23] Frazier, G. L. & Summers, J. O.,Interfirm influence strategies and their application within distribution channels. Journal of Marketing, 48(3) (1984) 43-55.
[24] Ganesan S., Determinants of long-term orientation in buyer-seller relationships. Journal of Marketing, 58(2) (1994) 1–19.
[25] Gilliland, D. I., & Bello, D. C., Two sides to attitudinal commitment: The effect of calculative and loyalty commitment on enforcement mechanisms in distribution channels. Journal of the Academy of Marketing Science, 30(1)(2002) 24–43.
[26] Gounaris, S., Trust and commitment influences on customer retention: Insights from business-to-business services. Journal of Business Research, 58(2005) 126–140.
[27] Gronroos, C., From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing. Management Decision, 32(2)(1994)4-20.
[28] Gronroos, C., Defining Marketing: A Market-Oriented Approach. European Journal of Marketing, 23(l) (1989) 52-60.
[29] Gummesson, E.,The New Marketing — Enveloping Long-term Interactive Relationships. Long Range Planning, 20(4) (1987) 10-20.
[30] Gustafsson, A., Johnson, M. D., &Roos, I.,The Effects of Customer Satisfaction, Relationship Commitment Dimensions, and Triggers on Customer Retention. Journal of Marketing, 69 (2005) 210-218. 
[31] Hashim, K. F. & Tan, F. B., The mediating role of trust and commitment on members’ continuous knowledge sharing intention: A commitment-trust theory perspective. International Journal of Information management, 35 (2015) 145-151. 
[32] Holdford, D. A., & Wright, S. S., Testing trust-commitment theory in relationships between pharmacy schools and students. American Journal of Pharmaceutical Education, 66 (1997)249-56.
[33] Howard, D. R., &Selin, S. W., A method for establishing consumer price tolerance levels for public recreation services. Journal of Park and Recreation Administration, 5(1987) 48-59.
[34] Hovland, C. E., Janis, I. L. & Kelley, H. H.,Communication and Persuasion. New Haven. CT, Yale University Press(1953). 
[35] Hrebiniak. L. G., Effects of Job Level and Participation on Employee Attitudes and Perceptions of Influence. Academy of Management Journal, 17 (1974) 649-62.
[36] Hui, K. C.,Relationship Marketing: Is It a Paradigm Shift?(2006). Retrieved [31.12.2019], from http://kchui.com/articles/Relationship_Marketing_Paradigm_Shift.pdf.
[37] Ibrahim, H. &Najjar, F.,Relationship bonding tactics, personality traits, relationship quality, and customer loyalty: behavioral sequence in the retail environment’, ICFAI Journal of Services Marketing, 6(4) (2008) 6–37.
[38] Johnston, R.,X Linking complaint management to profit. International Journal of Service Industry Management,12(1) (2003) 60-69.
[39] Jones, M. A. &Mothersbaugh, D. L., Switching Barriers and Repurchase Services. Journal of Retailing, 76(2) (2000) 259-274.
[40] Kabadayı, E. &Aygün, I., Determinants of Brand Loyalty and The Link Between Brand Loyalty and Price Tolerance. Boğaziçi Journal, 21(1-2) (2007) 21-35. 
[41] Kalafatis, S. P. & Miller, H., A re-examination of the commitment-trust theory. Proceedings of the IMP Conference University of Karlsruhe, Germany. IMP(1996).
[42] Keller, K.L.,Strategic Brand Management. 2ndedition. Upper Saddle River, NJ, Prentice-Hall(2003).
[43] Keller, K.L.,Strategic Brand Management: Building, Measuring and Managing Brand Equity. Upper Saddle River NJ: Prentice-Hall(1998). 
[44] Kunkel, J., Donkers, T., Barbu, C., & Ziegler, J.,Trust-Related Effects of Expertise and Similarity Cues in Human-Generated Recommendations. Humanize'18 Conference Proceedings of the 2nd Workshop on Theory-Informed User Modelling for Tailoring and Personalizing Interfaces, At Tokyo, Japan(2018).
[45] Lacey, R., Relationship Drivers of Customer Commitment. Journal of Marketing Theory and Practice, 15(4) (2007) 315-333.
[46] Lemon, K. &Verhoef, P., Understanding Customer Experience throughout the Customer Journey. Journal of Marketing, 80 (2016) 69-96.
[47] Mansfield, P. M. & Warwick, J., The impact of post-complaint satisfaction with the salesperson, retailer, and manufacturer on relationship commitment. AMA Winter Educators' Conference Proceedings, 11(2000).
[48] Marshall, N. W., Commitment, Loyalty and Customer Lifetime Value: Investigating The Relationships Among Key Determinants.Journal of Business & Economics Research, 8(8)(2010) 67-84.
[49] Mbango, P., Examining the effects of customer satisfaction on commitment and repurchase intentions of branded products.Cogent Social Sciences, 4 (2018) 1-17. 
[50] McAlexander, J., Schouten, J., & Koenig, H., Building (2002).
[51] a brand community. Journal of Marketing, 66  38–54.
[52] McDonald, G. W., Structural Exchange and Marital Interaction. Journal of Marriage and the Family  (1981) 825-39.
[53] Moorman, C., Deshpande, R. &Zaltman, G., Factors Affecting Trust in Market Research Relationships. Journal of Marketing, 57 (1993) 81-101.   
[54] Moorman, C..,Zaltman, G., & Deshpande, R., Relationships between Providers and Users of Market Research: The Dynamics of Trust within and between Organizations. Journal of Marketing, 29(8) (1992) 314-328.
[55] Morgan, R. M., & Hunt, S. D.,The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing, 58 (1994)20-38. 
[56] Mukherjee, A. &Nath, P., Role of electronic trust in online retailing,A re-examination of the commitment-trust theory. European Journal of Marketing, 41(9) (2007) 1173 – 1202.
[57] Oleszkiewicz, A. &Lachowicz-Tabaczek, K., Perceived competence and warmth influence respect, liking, and trust in work relations. Polish Psychological Bulletin, 47(4)(2016) 431-435. 
[58] Petty, R. E. & Wegener, D. T.,Attitude Change, Multiple Roles for Persuasion Variables in Gilbert, D. T.; Fiske, S. T., and Lindzey, G., (eds.), The Handbook of Social Psychology, American Psychological Association, Washington DC, 1 (1998) 37-51. 
[59] Price, L .L. &Arnould, E. J., Commercial friendships: service provider-client relationships in context.  Journal of Marketing, 63 (1999)38-56.
[60] Quester, P. and Lim, A .L., Product Involvement /Brand Loyalty: Is There a Link?The Journal of Product and Brand Management, 12(1) (2003) 22-38.
[61] Rauyruen, P. & Miller, K.E., Relationship quality as a predictor of B2B customer loyalty. Journal of Business Research, 60(1) (2007) 21–31.
[62] Reichheld, F.,The Loyalty Effect. Harvard Business School Press. Boston: Bain e Company(1996).
[63] Scanzoni, J., Social Exchange andBehavioral Interdependence in Social Exchange in Developing Relationships, R. L. Burgess and T. L. Huston, eds. New York: Academic Press, Inc(1979).
[64] Schuyt, K.,XAlledaagsetolerantie: Eenonvolmaaktedeugd. In: Ten Hooven M (ed.) De legetolerantie. Over vrijheidenvrijblijvendheid in Nederland. Amsterda, Boom(1996).
[65] Seiders, K., Voss, G. B., Grewal, D., & Godfrey, A. L. Do satisfied customers buy more? Examining moderating influences in a retailing context. Journal Mark, 69(4) (2005) 26–43.
[66] Selnes, F., Antecedents and consequences of trust and satisfaction in buyer-seller relationships. European Journal of Marketing, 32(3/4) (1998) 305-322.
[67] Sheth, J. N., Parvatiyar, A., & Sinha, M., The conceptual foundations of relationship marketing: Review and synthesis. Journal of Economic Sociology, 16(2) (2015) 119–149.
[68] Shukla, P., Banerjee, M., & Singh, J., Customer commitment to luxury brands: Antecedents and consequences. Journal of Business Research, 69 (2016) 323-331.
[69] Shukla, P., Impact of interpersonal influences, brand origin and brand image on luxury purchase intentions: Measuringinter functional interactions and a cross-national comparison. Journal of World Business, 46(2)(2011) 242–252.
[70] Smith, W., & Higgins, M., Reconsidering the Relationship Analogy. Journal of Marketing Management, 16(1) (2000) 81-94. 
[71] Sözer, E.G.,  Customer-Based Brand Tolerance (CBBT): Scale Development and Validation. Business & Management Studies: An International Journal, 7(5)(2019) 2610-2635.
[72] Stauss, B., & Seidel, W., Complaint Management – The Heart of CRM. Thomson Publishing, Mason, OH(2004).
[73] Sullivan, J. L, Piereson, J. & Marcus, G. E.,Political Tolerance and American Democracy. Chicago: University of Chicago Press(1982).
[74] Taleghani, M., Largani, M., S., Gilaninia, S.&Mousavian, S. J., The role of customer complaints management in consumers’ satisfaction for new industrial enterprises of Iran. International Journal of Business Administration, 2(3) (2011) 140-147.
[75] Thomas, J.,Trust in customer relationship: addressing the impediments in research. Proceedings of Asia-Pacific Conference on Advances in Consumer Research, (2009)346–349.
[76] Vuuren, T., Lombard, M. R., &Tonder, E., Customer satisfaction, trust, and commitment as predictors of customer loyalty within an optometric practice environment. Southern African Business Review, 16(3) (2012) 81-96.
[77] Walter A, Holzle K, Ritter T., Relationship functions and customer trust as value creators in relationships: a conceptual model and empirical findings for the creation of customer value. Proceedings of the 18th IMP Conference, Dijon, France(2002).
[78] Wei, Y., McIntyre, F.S., &Soparnot, R., Effects of relationship benefits and relationship proneness on relationship outcomes: a three-country comparison. Journal of Strategic Marketing, 23(5) (2015) 436-456. 
[79] Williamson, O. E.,Markets and Hierarchies: Analysis and Antitrust Implications, New York, Free Press(1975). 
[80] Yoon, J., & Lawler, E. J., The relational cohesion model of organizational commitment” in O. Kyriakidou& M. Özbilgin(Ed.), Relational perspectives in organizational studies: A research companion . UK, Edward and Eldar Publishing Limited Cheltenham(2005)146–162.