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Moderating effects of service separation on customer relationships with service firms

Moderating effects of service separation on customer relationships with service firms The purpose of this paper is to examine the impact of service separation on the ability of service firms to build and maintain customer relationships, by exploring the differences in the strength of interrelationships among key relational constructs between separated and unseparated service delivery modes.Design/methodology/approachA field survey was conducted with retail banking customers in Saudi Arabia (n=592) using a structured self-administered questionnaire consisting of well-established scales. Data were analyzed using AMOS 24.FindingsService separation negatively moderates (weakens) the ability of the service firms to leverage their social benefits, relational trust and affective commitment to increase customer loyalty and to strengthen overall customer relationships.Research limitations/implicationsThis study uses retail banking customers in Saudi Arabia to test the impact of service separation in their relationship with the bank; hence, its findings may not be generalizable to other types of services and cultural settings.Practical implicationsService firms using online and mobile technologies should be aware that trust and commitment remain key to building customer loyalty. Hence, the trade-off between the benefits of these technologies and their negative impact on customer relationship needs to be factored into managerial decision making.Originality/valueThe paper highlights the importance of maintaining face-to-face interactions with service customers to create robust relationships that yield loyalty, despite the growing popularity of online and mobile technologies. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Service Theory and Practice Emerald Publishing

Moderating effects of service separation on customer relationships with service firms

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References (139)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2055-6225
DOI
10.1108/jstp-09-2017-0149
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to examine the impact of service separation on the ability of service firms to build and maintain customer relationships, by exploring the differences in the strength of interrelationships among key relational constructs between separated and unseparated service delivery modes.Design/methodology/approachA field survey was conducted with retail banking customers in Saudi Arabia (n=592) using a structured self-administered questionnaire consisting of well-established scales. Data were analyzed using AMOS 24.FindingsService separation negatively moderates (weakens) the ability of the service firms to leverage their social benefits, relational trust and affective commitment to increase customer loyalty and to strengthen overall customer relationships.Research limitations/implicationsThis study uses retail banking customers in Saudi Arabia to test the impact of service separation in their relationship with the bank; hence, its findings may not be generalizable to other types of services and cultural settings.Practical implicationsService firms using online and mobile technologies should be aware that trust and commitment remain key to building customer loyalty. Hence, the trade-off between the benefits of these technologies and their negative impact on customer relationship needs to be factored into managerial decision making.Originality/valueThe paper highlights the importance of maintaining face-to-face interactions with service customers to create robust relationships that yield loyalty, despite the growing popularity of online and mobile technologies.

Journal

Journal of Service Theory and Practice – Emerald Publishing

Published: Apr 23, 2019

Keywords: Customer loyalty; Affective commitment; Service separation; Relational trust; Social benefits

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