• A Dynamic Examination of Customer Relationship in Retailing

Abstract

Although previous literature has suggested that the relationship between a company and its customers should change over time, most empirical studies still examine the theoretical model by using the level of relational constructs measured at a specific time point. Based on commitment-trust theory and relationship dynamics theory, this study proposes the concepts of trust velocity and commitment velocity, and examines how relationship velocity influences customer loyalty. Using the latent growth curve model to analyze the longitudinal data of 326 customers in a retail service context, we find that both trust velocity and commitment velocity positively affect customer loyalty. We also find that investing in the relationship has a positive influence on relationship velocity. Our findings extend the extant knowledge of relationship marketing theories, and provide several important implications for marketing managers.

Keywords: Relationship Dynamics Theory, Trust, Commitment, Relationship Velocity, Latent Growth Curve Model.