Different types of commitment in marketing

Authors Avatar

Question 1

Introduction

As many past research have supported the link between customer commitment and a firm’s profitability, the following paper will examine different types of commitment in marketing, how to increase customer’s commitment and loyalty to your product and finally how commitment may be measured.

Different types of commitment in marketing

According to the research, commitment is known as an essential ingredient for successful long-term relationships (Dwyer, Schurr and Oh, 1987). It is also defined as an enduring desire to maintain a value relationship (Moorman, Zaitman and Deshpande, 1992). Meyer and Allen (1991) conceptualized commitment as a three-component construct: an instrumental component resulting from a cost and benefit comparison for maintaining the relationship (Becker, I960), an attitudinal component that emerges when customers feel a psychological attachment or identity (O'Reilly and Chatman, 1986; Anderson and Weitz, 1992), and a temporal dimension indicating that the relationship exists over time (Becker, I960). As a result, in order to reinforce customer’s decision to turn into a long term relationship, economic, social and psychological connections are three important elements to focus and to support customer commitment.

Nowadays, the company has to enhance customer’s commitment in one more dimension, Nath ct al. (1998) cites that due to the internet’s superior capabilities, it should be considered a moderating effects of web site usage to enabler of mutually beneficial relationships with customer. However, they are usually more time sensitive and look for better convenience benefits from shopping through this medium, for the reason of financial institution, company have to provide faster and easier service to the customers as to drive them to use our online service. On the other hand, online service might make some customer feel more comfortable as they can ignore the aggressive service providers, so if the company does well in the online service, they can also increase the commitment to their customer.Moreover, the traditional service encounters are still preferred because the Internet cannot reproduce all of the pretended social elements (Sauer and Burton. 1999).

Join now!

Many researchers preserve that one of the key goals of marketing is to build and sustain strong customer relationships (Bagozzi 1995; DeWulf, Odekerken - Schröder, and Iacobucci 2001). Also, the relationship marketing investment enhances both customer trust and commitment and in turn these relational mediators influence customer behaviors, leading to superior seller performance (Moorman, Zaltman, and Deshpandé, 1992; Morgan and Hunt, 1994; Sirdeshmukh, Singh and Sabol, 2002).

In my opinion, I totally agree the above statement, I think customer satisfaction or not was not mainly differentiated by price and other personal variables, but is the customers perception of ...

This is a preview of the whole essay