Towards an Integrative Framework of Relationship Quality in a Retail Setting: Evidence from an Emerging Economy

Abstract

Research question: This study aims to propose and empirically examine a relationship quality model in a grocery retail setting in Serbia. Motivation: Whereas relationship quality has been extensively studied in B2B settings and in developed economies, far less research attention has been devoted to the formation and effects of relationship quality in B2C exchange relations in developing economies. This especially holds true for Eastern Eupean emerging economies and the present research aims to fill this gap. Idea: Building upon previous research in service settings, this study proposes customer orientation as an antecedent to relationship quality, comprising relationship satisfaction, customer trust and commitment to a retailer, and attitudinal and behavioural loyalty as consequences of relationship quality. Data: The study has been performed on a convenience sample of 453 grocery retail customers in Serbia, by means of structured questionnaire. Tools: Upon supporting constructs’ validity, structural equation modelling (SEM) has been applied to examine the proposed relationships. Findings: The results of the study indicate significant direct impact of employees’ customer orientation on trust and relationship satisfaction. Commitment to a retailer and relationship satisfaction emerged as direct antecedents to attitudinal and behavioural loyalty, whereas trust emerged as an indirect determinant of loyalty constructs. In terms of total effect, relationship satisfaction emerged as the most influential determinant of both facets of customer loyalty. Contribution: The findings of the study which indicate significant indirect contribution of front-line employees’ customer orientation to attitudinal and behavioural loyalty of customers provide valuable insights for HR management of retail enterprises. In addition, by addressing relationship quality construct and its antecedents and effects in a B2C setting in thus far largely under-studied context, such as an emerging European economy, this study’s findings add to the growing body of knowledge on Relationship Marketing.