Executive summary of “How commitment to fellow customers affects the customer-firm relationship and customer citizenship behavior”

Citation

(2014), "Executive summary of “How commitment to fellow customers affects the customer-firm relationship and customer citizenship behavior”", Journal of Services Marketing, Vol. 28 No. 2. https://doi.org/10.1108/JSM-02-2014-0067

Executive summary of “How commitment to fellow customers affects the customer-firm relationship and customer citizenship behavior”

Article Type: Executive summary and implications for managers and executives From: Journal of Services Marketing, Volume 28, Issue 2

This summary has been provided to allow managers and executives a rapid appreciation of the content of the article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefit of the material present.

Two gyms in the same town compete for customers on price, quality of in-house training and range of up-to-date equipment and both get plenty of members. One, however, just has an edge in loyalty among customers and positive word-of-mouth. The facilities are no better or worse than the competition but, unlike the competition, they have a little coffee bar where members can sit and chat before or after their workout, do a crossword together or just talk. There is usually someone in there they know and it is a friendly environment. Even those too hurried to stop for a hot drink or a conversation will pop their head round the coffee bar door to say hello and maybe throw out an amiable “It’s all right for some. Some of us have things to do!” remark.

It is not just the camaraderie of the coffee bar that encourages friendships among customers. There are special offers to work out with a friend or family member, competitions organized for members, an annual fun run for people of all abilities, and social evenings at local restaurants. When the time comes to renew a membership, the expense of doing so seems less of a consideration for many members than how their social life might be adversely affected if they go elsewhere, leaving their “gym friends” behind.

It is well known that relationships between a service firm and its customers can be dynamic and complex, affected as they are by the relationships between employees and customers and between customers and other customers. Basing their study on a health club, in “How commitment to fellow customers affects the customer-firm relationship and customer citizenship behavior”, Susanne Curth et al. also examine how characteristics of the firm-customer relationship moderate those effects and, more specifically, they focus on the moderating role of a customer’s calculative commitment to the service provider (customers with a high level of calculative commitment maintain a relationship with a service provider because of the high economic switching costs and constraints rather than because of an emotional attachment to the firm).

Customer’s citizenship behavior (CCB) is a positive extra role behavior that is beneficial for the service provider. Fellow customers can be an important target of customer commitment that strengthens the service provider-customer relationship and results in CCB. The study distinguishes between organization directed and customer-directed CCB. The study provides evidence that commitment to the service firm is a key mediator of the effects of commitment to a fellow customer on both firm- and customer-directed CCB.

Service firm managers should provide their customers with possibilities for satisfactory interactions with other customers. Previous research has recommended a “compatibility management” which includes a number of managerial actions that foster positive interactions such as designing the physical service environment to encourage contact between customers, or matching customers with similar interests and desires. In the context of the present research, workout sessions together with other customers, regular customer meetings, or common events for all members of the health club, can be useful in generating interactions that create new or intensify existing interpersonal relationships.

In addition, discounts can be offered to customers who work out in pairs or larger groups. Such offers can be reflected in slogans like “Come together and save” or “Bring a friend with you”. This provides customers with financial incentives to consume with other individuals and may be the starting point for satisfactory interpersonal relationships.

It is likely that the core findings of this study are generalizable to other customer-to-customer driven services, such as tourism, education or health. For example, conversations between university students with potential future students at a university’s welcome day, or regular student festivals, could enhance social networks among students and, thereby, reinforce the emotional bond to the university over time. Similarly, on holiday trips or on language courses, the service personnel could encourage customer-to-customer connections by initiating “conversational ice-breakers” among customers who are unknown to each other. The service provider may thus be recognized as an important platform for the creation and maintenance of valuable social interactions.

The findings indicate that strengthening commitment among customers is a particularly useful strategy when the customer’s relationship with a service provider rests on calculative rather than emotional aspects. The risk of losing customers is inherent in such relationships particularly when attractive competitors enter the market. In addition, high calculative commitment can cause customer opposition which may reduce advocacy intentions toward the firm. These risks can be prevented by providing the customers with opportunities to establish an emotional attachment to other customers, which may ultimately be transferred to the entire service firm.

To read the full article enter 10.1108/JSM-08-2012-0145 into your search engine.

(A précis of the article “How commitment to fellow customers affects the customer-firm relationship and customer citizenship behavior”. Supplied by Marketing Consultants for Emerald.)