Role of involvement and commitment in sustaining firm-customer relationships: an empirical investigation Online publication date: Thu, 30-Jan-2014
by Sanjai K. Parahoo
International Journal of Procurement Management (IJPM), Vol. 6, No. 4, 2013
Abstract: This study investigated two customer characteristics (involvement and commitment) deemed to support the establishment of sustainable firm-customer relationships within customer loyalty programs (CLP). A conceptual model of loyalty, involving five latent variables and generic with regard to industry and nationality of respondents, was developed and empirically examined using data collected from 445 members of global loyalty programs. The fit of both the measurement and structural models were good confirming that both involvement and commitment provided stability and sustainability to the firm-customer relationships in CLP. In order to enhance involvement and commitment, it is recommended that firms implementing CLP leverage collaborative procurement practices based on e-business technologies to efficiently procure aspirational services in low season. The firms may then offer these high perceived value services as rewards to their members thereby enhancing the CLP relationship.
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