The relationship between loyalty and satisfaction with the service on a B2B market

Authors

  • Auður Hermannsdóttir
  • Svanhildur Ásta Kristjánsdóttir

DOI:

https://doi.org/10.24122/tve.a.2012.9.1.1

Keywords:

Customer loyalty, customer satisfaction, business to business, B2B.

Abstract

Research has shown a positive correlation between customers’ loyalty and business success in various fields. Customer loyalty is of concern to managers and because of the influence that loyalty has it should be managers’ mission to increase the number of loyal customers. But it can be difficult to realize how to increase loyalty of individual customer and thereby increase the number of loyal customers. It is known that customer’s satisfaction is prerequisite to customer’s loyalty, and the relationship between satisfaction and loyalty has been studied thoroughly in B2C, but much less is know about this relationship on the B2B market. The purpose of the research was to study the strength of the corrolation between customers’ satisfaction and customers’ loyalty in the B2B market for printing service. The research subject was an established Icelandic company with a broad range of customers. A questionnaire was sent to the company’s customers over the Internet where their satisfaction and loyalty was measured. The findings show that the corrolation between satisfaction and loyalty is positive, but week. Week positive correlation was also found between satisfaction and repurchase intentions, very week negative correlation between satisfaction and negative word of mouth and average positive correlation between satisfaction and WOM referrals. The findings give reson to belive that in the market for printing service the price elasticity of demand does not vary between satisfied and unsatisfied customers. According to the findings, managers who intend to reach loyalty among their customers and the benefits gained from loyalty, should emphasis great satisfaction of customers with the service quality.

Author Biographies

  • Auður Hermannsdóttir
    University of Iceland
  • Svanhildur Ásta Kristjánsdóttir
    University of Iceland

Published

2012-06-15

Issue

Section

Peer reviewed articles