How core, technical and social components of business relationship value drive customer satisfaction and loyalty in high tech B2B market

Abstract

Purpose This paper aims to investigate to what extent core, technical and social components of relationship value influence customer satisfaction and loyalty in the high technology business to business (B2B) markets. Design/methodology/approach Seven attributes of a high-technology buyer-seller relationship are identified representing the core, technical and social nature of relationship value. A conceptual model is proposed in which customer satisfaction mediates between the relationship value components and the two aspects of customer loyalty – attitudinal and behavioural. The empirical study is conducted in India employing 127 high technology customers. Structural equation modelling and path analysis is used to test the hypothesized linkages and examine the impact of different components. Findings Technical and social components of value influence customer satisfaction to a greater extent than the core components. Whilst behavioural loyalty is more driven by core components, attitudinal loyalty is more influenced by the social component. Satisfaction mediates the links between relationship value components and the two aspects of loyalty. Research limitations/implications Future research could test the modelled linkages in different countries and using larger samples and investigate the supplier perspective. Practical implications The paper provides useful implications for high tech product suppliers to improve their relationship with their customers. Suppliers must develop collaborative product/technology development projects and explore opportunities for personal relationships/rapport building with their customers, whilst delivering a quality product at a competitive price. Originality/value To the best of the authors’ knowledge, the paper is the first in B2B literature to provide an insight of how the different components of relationship value vary in influencing satisfaction and loyalty in a high technology B2B buyer-seller relationship.