Linking a Multi-Component Model of Commitment to Customer Profitability

University of Mannheim Research Paper

21 Pages Posted: 26 Feb 2008

See all articles by Melchior D Bryant

Melchior D Bryant

University of Mannheim

Maik Hammerschmidt

Mannheim Business School - Department of Marketing

Hans H. Bauer

University of Mannheim

Michael Timm

University of Mannheim

Date Written: February 2008

Abstract

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.

Suggested Citation

Bryant, Melchior D and Hammerschmidt, Maik and Bauer, Hans H. and Timm, Michael, Linking a Multi-Component Model of Commitment to Customer Profitability (February 2008). University of Mannheim Research Paper, Available at SSRN: https://ssrn.com/abstract=1098065 or http://dx.doi.org/10.2139/ssrn.1098065

Melchior D Bryant

University of Mannheim ( email )

Germany

Maik Hammerschmidt (Contact Author)

Mannheim Business School - Department of Marketing ( email )

Germany

Hans H. Bauer

University of Mannheim ( email )

Universitaetsbibliothek Mannheim
Zeitschriftenabteilung
Mannheim, 68131
Germany

Michael Timm

University of Mannheim

Universitaetsbibliothek Mannheim
Zeitschriftenabteilung
Mannheim, 68131
Germany

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