Relationship quality: a critical literature review and research agenda

Abstract

Purpose -In today's highly competitive environment losing customers is very costly. Customer retention and loyalty have become possible through the development of long-term, mutually beneficial relationships with customers. This paper seeks to critically review the literature on relationship quality (RQ) and to suggest avenues for further research. Design/methodology/approach -Data were collected with impartial cross-referencing of papers published in all major journals in the marketing area. Papers are presented in tabulated form based on six rigorously cross-checked categories of information. Findings -Most RQ research centres on business-to-business (b-to-b) markets and products use survey data, look at relationships from the customer perspective and analyse either the US or European markets. Also, results differ in various contexts and there is no universally accepted framework for RQ. By analysing the different variables used in previous studies, a general conceptual framework is provided for the study of RQ.Research limitations/implications -The characteristics of RQ research that were identified from the review indicate that future research should focus on service and retail settings; validate existing conceptual frameworks across countries and contexts; do more seller and dyad studies; use more qualitative approaches to capture the subtle differences between contexts; analyse RQ in different relationship development stages, and look at new types of relationships between parties that may not be individuals or businesses or may not assume the traditional roles of buyer and seller. Practical implications -The framework developed here provides firms with a guide to the factors that may affect the quality of their relationships with customers and helps them in developing effective relationship marketing strategies. Originality/value -The paper provides a comprehensive review of the RQ literature that has not been done before and develops a general framework that can be applied in all contexts and will guide future studies in the area. Overall, the study helps researchers identify the critical issues and concepts related to RQ and shapes future research in the field.

Franchisor-Franchisee Relationship Quality: Time of Relationship and Performance

“…Relationship quality is a crucial concept in the development of long-term and mutually beneficial relationships (Athanasopoulou, 2009), and, for some authors, represents the strength and magnitude of a relationship (Dant et al, 2013;Monroy & Alzola, 2005).…”

“…Therefore, transactional quality "guarantees a satisfactory business start-up, constituting the first step in the development of a long-term relationship" (Monroy & Alzola, 2005, p. 598) Relationship quality, according to mainstream academic research, is considered an overall assessment of relationship strength, and treated as a global or higher-order construct that reflects a combination of multiple first-order factors (Palmatier, 2008), which capture different but related facets of a relationship (Palmatier, Dant, Grewal, & Evans, 2006). Relationship quality's most cited dimensions in academic research are trust, commitment, and satisfaction (Athanasopoulou, 2009;Palmatier et al, 2006).…”

“…Time, as a variable, is included in numerous studies as relationship duration, and the role of time in relationships can be analyzed from more than one vantage point (Athanasopoulou, 2009). Indeed, the concept of relationship dynamics is explained by a multitude of theories adapted from sociology, as to explain relationship development in inter-organizational contexts (Ring & Ven, 1994).…”

“…In numerous studies, the concept of time is considered as the relationship duration (Athanasopoulou, 2009), and most theories focus on the relationship between organizational buyers and sellers (Dwyer et al, 1987) or on the behavior of the individual representing each organization (Ring & Ven, 1994). Literature in relationship marketing, under the traditional lifecycle theory (Blut et al, 2011;Dant & Nasr, 1998;Dwyer et al, 1987), sees relationships in franchises following an ascendant curve, in which relationship quality and performance strengthen over time and relationship variables are potentially affected by relationship duration (Jap & Anderson, 2007).…”

“…Considering a broader conceptualization of performance in franchising, this study also investigates the influence of time of relationship upon financial indicators of performance (Venkatraman & Ramanujam, 1986), such as sales growth and profitability (Venkatraman & Ramanujam, 1987). Although financial performance has been acknowledged as a consequence of relationship quality (Athanasopoulou, 2009) (Banker, Potter, & Srinivasan, 2005). Huntley (2006) finds evidence of the link between relationship quality and profitable outcomes in B2B relationships; however, this issue is still relatively unexplored in the franchise context.…”