Relational Dynamics and Outcomes in Small and Large Service Organizations
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The rapid growth of the service sector and servitization of the manufacturing sector have both contributed to rising competition and have forced managers to look for effective ways to differentiate their services from competitors and competitive edge. Consequently, the value of establishing closer and lasting relationship with customers have come to the fore, and researchers as well as industry practitioners are trying to better understand the best strategies for achieving this goal. This paper evaluates two strategies firms have adopted in trying to build lasting relationship with customers, namely respect and rapport. The purpose of this chapter is to examine the concept of respect and rapport and how they affect customer loyalty. The study draws from existing literature and surveys customers of two service sectors in Asia. The research hypotheses connecting the three dimensions of respect and two dimensions of rapport with customer loyalty were tested using Pearson correlation and multiple regression analysis. These findings lead to research and managerial implications that conclude the chapter.
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