Linking a Multi-Component Model of Commitment to Customer Profitability
University of Mannheim Research Paper
21 Pages Posted: 26 Feb 2008
Date Written: February 2008
Although researchers have begun to recognize commitment as a multi-component construct, they missed examining profitability-related effects. We contribute to this research field by succeeding in linking a four-component model - consisting of affective, calculative, locked-in, and normative commitment - to customer profitability and, thereby, demonstrating differential impacts of the commitment constructs. Thus, commitment-related investments can be a double-edged sword. Findings reveal a moderating effect of relationship age on each commitment construct. While the impact of affective and locked-in commitment declines over time, calculative commitment becomes the dominant driver of profitability in long-term relationships. Finally, we identify instruments to boost value-enhancing customer behaviour.
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