Service Performance—Loyalty Intentions Link in a Business-to-Business Context: The Role of Relational Exchange Outcomes and Customer Characteristics

Abstract

This study evaluates the relationship between service performance and customer loyalty intentions in a business-to-business context. Specifically, the third-party logistics industry is used as a contextual setting for the research. A conceptual model is developed based on literature in social exchange theory and business buying behavior. The model suggests that service performance directly influences both social (i.e., trust) and economic (i.e., value) relationship outcomes and that these outcomes positively influence customer loyalty intentions. However, in contrast to existing business-to-consumer research, mediation analysis supports the hypothesis that the relationship between service performance and customer loyalty intention is fully mediated by relationship outcomes. Further analyses indicate that characteristics specific to business customers— organizational relationship norms and industry competitive intensity—have important moderating influences. Collectively, the findings imply that business-to-business service managers should move beyond simply tracking the performance of their services. Customer perceptions of relationship trust and perceived facilitation of economic outcomes also should be measured, since these are more proximal to loyalty outcomes. Further, service managers should leverage customer knowledge to optimize service delivery. Different service strategies should be implemented based on customers’ relational orientation and industry competitive dynamics. The article concludes with logical directions for future research.

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