Effects of customer equity drivers on customer loyalty in B2B context

Abstract

Purpose -This paper aims to investigate the effects of customer equity drivers on customer loyalty via customer trust in a B2B context. Design/methodology/approach -A self-administered online survey was conducted to collect data from the organizational customers of an on-hold service company in Australia. Structural equation modelling was used to analyse the data. Findings -The study reveals that in a B2B context, value equity and relationship equity have significant influence on customer loyalty through the mediating effect of customer trust. On the other hand, brand equity is found to have no effect on customer trust and loyalty. Practical implications -In order to obtain business customers' loyalty, managers should focus more on value and relationship equity than brand equity. Originality/value -While most of the previous studies on "customer equity" focused on the B2C context, this study focuses on a B2B context. It demonstrates the impact of customer equity drivers on business customers' loyalty.

Synthesizing the effects of experiential quality, excitement, equity, experiential satisfaction on experiential loyalty for the golf industry: The case of Hainan Island

“…Rust et al (2004) indicate that equity can be measured as "the total of the discounted lifetime values summed over all of the organization's current and potential customers" (p. 110). In order to maximize the long-term performance of an organization, marketing managers require pursuing a more accountable marketing investment by continuous monitoring of equity (Ramaseshan, Rabbanee, & Hui, 2013). Hutchinson et al (2009) and Sanyal and Datta (2011) have found that perceived quality has a positive influence on perceived equity.…”

Marketing assets: Relating brand equity and customer equity

“…Alternatively, some authors propose that BE is one of the antecedents of CE (Rust, Zeithaml & Lemon, 2000;Chen & Myagmarsuren, 2011;Hao et al, 2010;Allaway et al, 2011;Holehonnur, Raymond, Hopkins & Fine, 2009;Ramaseshan et al, 2013). Brands are, together with other CE antecedents (namely, value equity and relationship equity) a means of creating, developing and preserving profitable long-term relationships with customers.…”

Cultural Difference of Customer Equity Drivers on Customer Loyalty: A Cross-National Comparison between South Korea and United States

“…While, most of these studies essentially focused on B2C context, similar studying has been investigated in a B2B context to find the effects of customer equity drivers on customer loyalty via customer trust (Ramaseshan, Rabbanee and Tan Hsin Hui, 2013). Furthermore, the relationships among loyalty, satisfaction, and trust in retailing contexts have been studied widely and consistent results have been reported.…”

“…In order to maximize the long-term performance of multinational corporation (MNC), MNC managers should find core factors in specific driver(s) of customer equity and launch suitable programs to enhance it (Ramaseshan, Rabbanee and Tan Hsin Hui, 2013).…”