Exploring customer engagement value from relationship benefits

Abstract

Purpose “Relationship benefits” (RBs) is an approach in relationship marketing. The concept highlights that both customer and firm must receive benefits from the relationship to establish and maintain it. This study aims to identify the impacts of three types of RBs on creating four kinds of customer engagement value (CEVs). Design/methodology/approach This study synthesizes previous findings and proposes hypotheses with theoretical supports and reports results from a structural equation model that uses data gathered from 577 Iranian customers across a range of services- based on an extensive review of marketing literature related to RBs. Findings Confidence benefits are the strongest driver of customer lifetime value and customer influence value, while special treatment benefits are the strongest driver of customer knowledge value (CKV) and customer referral value. Social benefits only affect CKV. Research limitations/implications Future research should examine the role of other types of RBs in creating CEV, beyond the original three types of RBs. Originality/value There is no research addressing the impact of delivering RBs on CEV. This study combines RBs and CEV into a single model and demonstrates the roles of different types of RBs in creating CEV for service firms.

Understanding Different Types of Followers’ Engagement and the Transformation of Millennial Followers into Cosmetic Brand Evangelists

“…The concept emphasizes that both the consumer and firm need to gain benefits in order to create and sustain the relationship [ 18 ]. Perceived relationship benefits initiate a continuous and stable relationship that can help increase consumer satisfaction and generate relationship behavioral outcomes, such as positive oral communication [ 20 ], consumer loyalty, increase in revenue, the predictability of sales, cross-sell bundling, increase in customer lifetimes, and customer engagement value [ 18 ]. On the contrary, customers need to gain benefits from a long-term relationship in order to ensure a continuous relationship [ 17 ].…”

“…Customers must see the relationship as valuable enough to stay in it in the long term, and they tend to anticipate additional benefits from these relationships [ 82 ]. The term “relationship marketing” was first introduced by Leonard Berry in 1983 [ 18 ]. One of the presumptions in marketing is that two parties participating in an exchange should gain benefits from the other side.…”

“…Long-term customer relationships generate positive outcomes for business entities. Certain outcomes possibly appear in the form of customer engagement [ 18 ].…”

“…According to past studies, customers’ perceived relationship benefits can increase customer satisfaction and create positive word-of-mouth, and these contribute to attaining the marketing goal of brand communities [ 20 , 21 ]. Nevertheless, most of the current studies have emphasized the relationship benefits with respect to customer–brand relationships in a traditional way, ignoring the prospective relationship benefits gained from customer–other customer relationships on social media platforms [ 18 , 22 ]. However, the study by Andersen [ 23 ] focused on the significance of customer-to-customer relationships in online brand communities and suggested that the next study should analyze the potential benefits to be received by members.…”

Management of Customer Lifetime Value in Organizations

“…Companies should seek advice from those customers who are engaged. Such advice can be an effective way to engage customers with a brand and company (Tourchian et al, 2022).…”