The behavioral sequence of information education services industry in Taiwan: relationship bonding tactics, relationship quality and behavioral loyalty

Abstract

Purpose The purpose of the paper is to summarize existing evidence about the behavioral sequence of relationship marketing at the individual customer level, and to offer a conceptual model of the impact of particular behaviors that signal whether customers remain with or defect from the company.

Design/methodology/approach Based on the SEM tool of Lisrel (Linear Structure Relation), this study develops and empirically tests a model examining the relations among relationship bonding tactics, perceived relationship investments, customer satisfaction, trust, commitment and customer behavioral loyalty, as relationship duration was used as a controllable variable in a relationship marketing system.

Findings Based on a sample collected from PC school, the largest information services institute in Taiwan, the results show that all three kinds of relationship bonding tactic do have significant influence on perceived relationship investment except for financial ones. Besides, the results show that customer satisfaction is very important in reinforcing customers' trust, commitment and repurchase intentions within the relationship marketing system. Finally, relationship duration does have a positive influence on both customer satisfaction and customer behavioral loyalty.

Practical implications According to this research, managers should effectively segment their customers into several groups and use different marketing programs for customers of various characteristics, so as to get effective and efficient results.

Originality/value The research suggests that managers of information education services institutes should be serious about targeting investment dollars to improve customer satisfaction, and know why customers buy what they are selling.