African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4154

Full Length Research Paper

Moderating effects in relationship marketing: The roles of customer expertise and price orientation

Chih-Yuan Chen1, Chih-Chang Chen1, Yung-Shuan Chen1* and Shyh-Chyi Wey2
1Department of Business Administration, National Yunlin University of Science and Technology, Yunlin, Taiwan. 2Department of Applied Foreign Language, National Yunlin University of Science and Technology, Yunlin, Taiwan.  
Email: [email protected], [email protected]

  •  Accepted: 15 June 2011
  •  Published: 30 September 2011

Abstract

This study explains a relationship marketing model in which relationship investment (RI) influences the relationship quality (RQ), which generates customer loyalty (CL) in the life insurance industry and explores the model’s moderating effects. This study uses structural equation modeling (SEM) to examine the moderating effects and proposes that the customer’s price orientation moderates the relationship between RQ and CL. Empirical findings provide further support for the relationship marketing model in that, the more resources, effort, and time the salesperson devotes to the relationship, the greater the RQ the customers perceive. The paper also discusses managerial implications and suggestions for future research.

 

Key words: Relationship marketing, relationship quality, price orientation, customer loyalty, life insurance.