The role of service fairness in the service quality – relationship quality – customer loyalty chain

Abstract

Purpose – The purpose of this paper is to extend the well-established nomological network of service quality-relationship quality-customer loyalty by introducing service fairness – a distinct service evaluation concept. Specifically, the study aims to investigate the impact of service fairness on relationship quality as a complementary to service quality driver, and the direct and indirect effect of service fairness on customer loyalty in the presence of service quality and relationship quality in a no failure/recovery effort service context. Design/methodology/approach – A telephone survey of a random sample of 408 customers of auto repair and maintenance services was implemented using a structured questionnaire with established scales. Data were analyzed with partial least squares path methodology, a structural equation modeling methodology. Findings – Interactional fairness is the most important formative determinant of customers’ overall fairness perception, followed by procedural and distributive fairness. Relationship quality measured as a higher order construct, made of satisfaction; trust; affective and calculative commitment, is the main determinant of customer loyalty. Also, it partially mediates, along with service quality, the relationship between service fairness and customer loyalty and fully mediates the effect of service quality on customer loyalty. Finally, service fairness has the highest overall effect on customer loyalty. Research limitations/implications – The sample is industry-specific and this may affect generalizability of findings. Also, the cross-sectional design adopted does not reflect temporal changes. Practical implications – Interactional fairness is of utmost importance to customers of the investigated industry. So, customers should be fairly treated at every point of contact. Also, service quality is heavily affected by service fairness. Thus, fair service leads to high-perceived service quality. Third, service quality affects customer loyalty only through relationship quality. Only when service quality is coupled by long-term quality relationships, signs of customer loyalty appear. Finally, service fairness influences customer loyalty mainly through service and relationship quality and has the highest overall effect on customer loyalty. So, fairly treating customers is crucial for developing long-term relationships that lead to customer loyalty. Originality/value – The role of service fairness in the service quality-relationship quality-customer loyalty chain is investigated and using a higher order construct for relationship quality.

A mediated model of relationship quality factors affecting behavioural intention at a luxury motor vehicle dealership

“…Relationship quality is viewed as a multidimensional construct (Giovanis et al, 2015) that represents the state of the relationships between customers and organisations, which typically leads to long-term relationships between the parties concerned and results in the subsequent retention of customers (Grönroos, 2001;Hennig-Thurau, 2000;Hennig-Thurau et al, 2002). Moreover, Crosby, Evans and Cowles (1990) view the construct as a reflection of the extent to which organisations satisfy the needs of a customer.…”

“…However, three key factors of relationship quality are typically acknowledged: customer satisfaction, trust and commitment (De Wulf, Odekerken-Schröder and Iacobucci, 2001;De Wulf, Odekerken-Schröder and Van Kenhove, 2003;Giovanis et al, 2015;Lang and Colgate, 2003;Lin and Ding, 2005;Macintosh, 2007;Moliner, Sánchez, Rodríguez and Callarisa, 2007a;Roberts, Varki, and Brodie, 2003). For the purpose of this study, these three factors are considered.…”

“…Competition between organisations in the luxury sector is also increasing with the introduction of new brands (Choo, Moon, Kim and Yoon, 2012) and this is compounded by the fact that customers often trade-up and readily switch between luxury brands (Choo et al, 2012). Customers" needs are everchanging and in a highly competitive business environment it is easy to forfeit customers to competitors, resulting in financial losses for organisations (Giovanis, Athanasopoulou and Tsoukatos, 2015).…”

“…Within the relationship marketing domain, relationship quality assists organisations in understanding relationships with customers and is considered an indicator of the extent to which organisations are able to satisfy the needs of their customers (Ou et al, 2011). Relationship quality is furthermore multidimensional (Giovanis et al, 2015) and it is believed that trust, commitment and customer satisfaction are fundamental constituents of relationship quality (Grönroos, 2001;Hennig-Thurau, 2000;Hennig-Thurau, Gwinner and Gremler, 2002).…”

The Impact of Political based Recruitment’s Dimensions on the Quality of Governmental Services in Palestinian Public Ministries

“…On the other hand, companies which are unable to build a fairness image can hardly secure customer trust and customer loyalty. In addition, [15] had indicated that the prime factor affecting overall satisfaction from a service is the extent to which customers believe they have been fairly treated.…”