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European Journal of Marketing

How commitment both enables and undermines marketing relationships


Gordon Fullerton

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Gordon Fullerton, (2005),"How commitment both enables and undermines marketing relationships",
European Journal of Marketing, Vol. 39 Iss 11/12 pp. 1372 - 1388
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EJM
39,11/12

How commitment both enables


and undermines marketing
relationships

1372
Received November 2004

The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0309-0566.htm

Gordon Fullerton
Sobey School of Business, Saint Marys University, Halifax, Canada
Abstract

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Purpose The relationship marketing literature puts forward that customer commitment is central
to the development of marketing relationships. The purpose of this paper is to investigate the extent to
which two components of customer commitment (affective commitment and continuance commitment)
both enhance and undermine customer loyalty.
Design/methodology/approach A theoretical model was developed to determine the extent to
which the components of commitment both served as mediators of and interacted with one another in
the relationship between service quality and switching and advocacy intentions. This model was
examined in a survey of customers in three service settings; financial services, retail-grocery services
and telecommunications services.
Findings Commitment serves as a partial mediator of the service quality-loyalty relationship. It
was also found that affective commitment made a negative impact on switching intentions and a
positive impact on advocacy intentions in all three service settings. Continuance commitment had
mixed effects on switching intentions and made a negative impact on advocacy intentions.. At the
same time there was an interactive effect between the two components of commitment such that
continuance commitment depressed the positive effects of affective commitment on both dependent
variables.
Originality/value While the positive impact of identification based affective commitment is well
understood in the marketing literature, the role of continuance commitment is not so well appreciated.
This study reinforces the weakness of a relationship based on continuance commitment. In addition,
few studies prior to this one have demonstrated the interactive effects between the two components of
commitment.
Keywords Relationship marketing, Customer loyalty, Services, Canada
Paper type Research paper

European Journal of Marketing


Vol. 39 No. 11/12, 2005
pp. 1372-1388
q Emerald Group Publishing Limited
0309-0566
DOI 10.1108/03090560510623307

Introduction
The notion that service firms must be concerned with the development and
management of relationships with their customers is not new (Sheth and Parvatiyar,
2002). It has been thought that services industries were natural settings for relationship
marketing because the intangible nature of services and the inseparability of the
service from the service provider were conducive to the development of relational
exchange (Berry, 1995; Bitner, 1995). In recent years, a significant body of literature has
been produced on the nature of service relationships (Bansal et al., 2004; Fullerton,
2003; Garbarino and Johnson, 1999; Gruen et al., 2000: Harrison-Walker, 2001). For the
most part, these recent studies have been built upon the commitment as mediator
The author would like to thank the Editors, the anonymous reviewers and Roland Rust for their
comments on previous versions of this paper.

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hypothesis (Morgan and Hunt, 1994). The central position of this hypothesis is that
customer commitment is a key mediator of the relationship between the customers
evaluations of a firms performance and the customers intentions regarding the future
relationship with the firm (Morgan and Hunt, 1994). This hypothesis has received
significant empirical support in recent years in both business-to-business and
business-to-consumer environments (Bansal et al., 2004; Garbarino and Johnson, 1999;
Gruen et al., 2000; Pritchard et al., 1999).
Marketing scholars have also recognized that commitment has multiple
components and they have borrowed from the organizational behaviour literature,
bringing significant insight on the nature of organizational commitment to the study of
customer commitment (Bansal et al., 2004; Fullerton, 2003; Gundlach et al., 1995; Gruen
et al., 2000; Harrison-Walker, 2001). Given that customer commitment has multiple
components, it is important to recognize that the components of customer commitment
may not have the same effect on customer loyalty. While there is ample support for the
position that customer commitment facilitates the development of marketing
relationships, there is also ample evidence that customers sometimes feel trapped in
marketing relationships. This basic research question examined in this paper is
whether or not customer commitment in service relationships always leads to increases
in customer loyalty. In particular, it is important to consider the extent to which the
specific components of customer commitment enhance and potentially detract from
customer loyalty.
First, the paper will discuss the nature of both the service quality and commitment
constructs because a good understanding of these constructs is crucial to the
development of good theory about the workings of service relationships. Service
quality is a key construct of investigation in the services marketing literature and it is
perhaps the most important antecedent of customer loyalty in services industries (Fisk
et al., 1993 Zeithaml, 2000). This discussion of service quality will be followed up with a
discussion of customer commitment. While there are many constructs of interest in the
area of relationship marketing, customer commitment has emerged as perhaps the
most important construct of interest in explaining important relational dependent
variables (Bansal et al., 2004; Morgan and Hunt, 1994). This review of the central
constructs in both services and relationship marketing will be used to map out an
integrated conceptual model of the role that customer commitment plays in service
marketing relationships. At this point the paper will outline the methodology used to
test this theoretical model. Next, the paper will report the results of these
investigations. The paper will close with a discussion of the theoretical and managerial
implications of the findings.
The nature of service quality
Service quality is one of the most investigated constructs in the history of marketing
scholarship and it is clearly the most investigated construct in the field of services
marketing (Iacobucci, 1998). Service quality is an overall evaluation of the perceived
level of service performance (Parasuraman et al., 1988). There has been considerable
discussion in the literature about the proper operationalization of the service quality
construct (Brady and Cronin, 2001; Carman, 1990; Cronin and Taylor, 1992;
Parasuraman et al., 1988). This continues to be an ongoing debate but it is clear that
service quality is a complex construct, determined by a number service related

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antecedent evaluations including responsiveness to waits (Hui and Tse, 1996; Taylor,
1994), the interaction with service personnel (Brady and Cronin, 2001), the empathy of
service personnel (Parasuraman et al., 1988), responsiveness to service failures
(Keaveney, 1995; Parasuraman et al., 1988), the service environment and atmospherics
(Brady and Cronin, 2001; Parasuraman et al. 1988) and the reliability of the service
(Parasuraman et al., 1988).
Overall service quality has been regarded as being similar to an attitude because it
was thought to be an overall evaluation of the service based on its perceived goodness
(Iacobucci, 1998). Attitudes are summary evaluations of objects on a positive to
negative continuum, which direct intentions and behaviour (Petty et al., 1997). Service
quality is frequently conceptualized and measured as an overall, evaluative
attitude-like construct (Brady and Cronin, 2001; Taylor, 1994; Taylor and Baker,
1994), regardless of the number of distinct antecedent evaluations formally leading to
the overall evaluation. Even though the service quality as attitude proposition has not
been subjected to much empirical and conceptual debate, the conventional wisdom is
that the overall evaluative nature of service quality makes it an attitude or attitude-like
construct (Cronin and Taylor, 1992). Given this conceptualization, service-marketing
scholars have logically attempted to draw a link between service quality evaluations
and relevant behavioural intentions and/or behaviours. For the most part, service
quality has been regarded as a construct that makes a positive impact on customer
loyalty (Zeithaml, 2000).
The nature of commitment
Commitment is a force of psychological attachment (OReilly and Chatman, 1986).
Commitment is viewed as a central construct in the relationship marketing literature
(Morgan and Hunt, 1994) and there are various views about the nature of the construct.
Many of these definitions assume that commitment is an attitudinal construct
(Gilliland and Bello, 2002). This enables researchers in the area to focus on the
relationship between customer commitment attitude and a number of relational
intentions and/or behaviours. Commitment has been viewed as an implicit or explicit
pledge of continuity between relational partners (Dwyer et al., 1987). It has also been
defined as mutuality and the forsaking of alternatives (Gundlach et al., 1995). Others
have defined commitment as an enduring desire to maintain a valuable relationship
(Moorman et al., 1992). Accordingly, marketing scholars should regard customer
commitment as a psychological force linking the consumer to the selling organization.
These definitions mirror those in the organizational behaviour literature where
commitment is viewed as a construct that links the employee to the employing
organization (Allen and Meyer, 1990; Mathieu and Zajac, 1990; OReilly and Chatman,
1986). This is relevant because a number of marketing scholars have directly borrowed
from the organizational commitment literature to inform our understanding of the
nature of customer commitment (Fullerton, 2003; Gilliland and Bello, 2002; Gruen et al.,
2000; Gundlach et al., 1995; Harrison-Walker, 2001; Morgan and Hunt, 1994). The
dominant position in the organizational behaviour literature is that commitment
contains at least an affective component and a continuance component (Allen and
Meyer, 1990; OReilly and Chatman, 1986).
The position that customer commitment has both an affective and continuance
component has support in the marketing literature (Bansal et al., 2004; Fullerton,

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2003; Gilliland and Bello, 2002; Gruen et al., 2000; Harrison-Walker, 2001). For the
most part, commitment in marketing scholarship has been operationalized as
affective commitment (Fullerton, 2003). In their important study on the roles of trust
and commitment in marketing relationships, Morgan and Hunt (1994) substantially
operationalized commitment as affective commitment by adapting their measure of
commitment from the Allen and Meyer (1990) affective commitment scale. Affective
commitment in marketing relationships has its base in shared values, trust,
benevolence, and relationalism (Fullerton, 2003; Garbarino and Johnson, 1999;
Gilliland and Bello, 2002; Gruen et al., 2000; Morgan and Hunt, 1994). Affective
commitment exists when the individual consumer identifies with and is attached to
their relational partner (Fullerton, 2003; Gruen et al., 2000). Overall, consumers
should be viewed as being affectively committed to a service provider when they
like their service provider, regardless of the type of the service that is being
consumed.
Continuance commitment in marketing relationships is rooted in switching costs,
sacrifice, lack of choice and dependence (Bendapudi and Berry, 1997; Dwyer et al., 1987;
Fullerton, 2003; Gilliland and Bello, 2002; Gundlach et al., 1995; Heide and John, 1992).
In part, continuance commitment has its base in Beckers (1960) theory of side-bets
where the consumer is bound to a relational partner because of the potential that
extra-relational benefits would be lost in the event of a switch. At the same time,
scarcity of alternatives is also an important causal antecedent of the psychological
state of continuance commitment (McGee and Ford, 1987). Continuance commitment
may well explain why consumers sometimes feel trapped in marketing relationships
when they cannot easily exit the relationship (Fournier et al., 1998). The nature of
continuance commitment is that customers can be committed to the relationship
because they feel that ending the relationship involves an economic or social sacrifice
or because they have no choice but to maintain the current relationship. The
psychological state of continuance commitment represents what has been termed by
some as the dark-side of relationship marketing (Fournier et al., 1998).
An Integrated model of commitment in service relationships
Both the services marketing literature and the relationship marketing literature seek to
explain many of the same dependent variables. Customer retention and advocacy,
which have been identified as important behavioural consequences of service quality
(Zeithaml et al., 1996), also fit within the domain of constructs outlined by Morgan and
Hunt (1994) as the consequences of commitment in marketing relationships.
Researchers who have examined service relationships are frequently interested in
explaining customer retention or service switching (Bansal et al., 2004; Gruen et al.,
2000; Garbarino and Johnson, 1999; Fullerton, 2003). Advocacy, or the act of being a
reference customer, has also been an important dependent variable in service
relationship research (Fullerton, 2003; Harrison-Walker, 2001). As a central,
key-mediating construct in relationship marketing, commitment explains the
relationship between a number of background evaluative variables and constructs
(relationship benefits, communication and trust) and a number of behavioural
dependent variables (Morgan and Hunt, 1994). Figure 1 outlines an integrated
structural model of the role that commitment plays in the relationship between service
quality and both switching intentions and advocacy intentions.

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In the study of service relationships, service quality is a natural independent


variable because of the dominant position that it holds in the services marketing
literature (Iacobucci, 1998). Customer retention (Bansal and Taylor, 1999; Cronin and
Taylor, 1992; Fullerton and Taylor, 2002; Gottlieb et al., 1994; Keaveney, 1995; Olsen
and Johnson, 2003; Rust et al., 1995; Zeithaml et al., 1996) and advocacy (Anderson,
1998; Fullerton and Taylor, 2002; Zeithaml et al., 1996) have been well-investigated
loyalty-related behavioural consequences of service quality. For both behavioural
consequences, researchers have found that service quality makes a positive impact.
The service quality literature has put forward that consumers respond to favourable
service quality evaluations by continuing to purchase services from that provider
(Parasuraman et al., 1988). At the same time, customers who are pleased with the level
of quality delivered by a service provider are willing to recommend that organization
to other customers (Anderson, 1998; Zeithaml et al., 1996). These findings are entirely
consistent with the service quality as attitude proposition in that the service quality
evaluation/attitude brings forward intentions regarding future behaviour with respect
to the service provider (Bansal and Taylor, 1999; Cronin and Taylor, 1992; Fullerton
and Taylor, 2002; Zeithaml et al., 1996).
H1. Service quality is negatively related to switching intentions.
H2. Service quality is positively related to advocacy intentions.
In addition the overall service quality construct subsumes the constructs of reliability
and responsiveness in a multidimensional perspective of service quality (Brady and
Cronin, 2001; Parasuraman et al., 1988). These variables are conceptually quite similar
to relational constructs such as trust and shared values which Morgan and Hunt (1994)
identified as proximal antecedents of commitment. These cognitive evaluations of
performance over time can be expected to build affective attachment because
customers tend to like relational partners that provide benefits to them. In building an
integrated model of service relationships, overall service quality can be viewed as an
immediate antecedent of customer affective commitment in service relationships. This
proposition has received some empirical support in the services marketing and
relationship marketing literature (Gruen et al., 2000).
H3. Service quality is positively related to affective customer commitment.
Consumers experience continuance commitment when they are dependent on a
relational partner (Fullerton, 2003; Gruen et al., 2000). Dependence is caused by a

Figure 1.
Service relationships:
integrated model

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number of conditions, including side-bets, scarcity of alternatives and contracts


(Anderson and Weitz, 1992; Fullerton, 2003). A customer could be locked into doing
business with a service provider, regardless of the level of perceived benefits received
(Barnes, 1997). In this situation, the consumer may perceive that few alternatives exist
outside the current relationship. This applies whether there is a real scarcity of
alternatives imposed by monopoly-market conditions (Barnes, 1997), contracts
(Anderson and Weitz, 1992) or merely perceived as a condition in the external
environment. Regardless, when consumers perceive few alternatives outside the
existing relationship they feel dependent on their partner. Perceived scarcity of
alternatives outside the existing relationship gives rise to continuance commitment.
H4. Scarcity of alternatives is positively related to continuance customer
commitment.
In a relationship, consumers can experience both continuance and affective
commitment to varying levels at any one point in time (Gilliland and Bello, 2002;
Fullerton, 2003). High levels of customer commitment are not necessarily desirable,
from the perspective of the service provider as the relationship between commitment
and customer retention and advocacy may depend upon the component of commitment
highlighted in the relationship (Fullerton, 2003; Gilliland and Bello, 2002). The
organizational behaviour literature can help us tease out these complex relationships
as marketing scholars have borrowed from the significant body of literature on
employment relationships to inform our understanding of consumer-organization
relationships (Fullerton, 2003; Gilliland and Bello, 2002; Gruen et al., 2000;
Harrison-Walker, 2001; Morgan and Hunt, 1994).
In employment relationships affective commitment has been shown to be strongly
and positively related to employee retention in organizations (Allen and Meyer, 1990;
Mathieu and Zajac, 1990; Mayer and Schoorman, 1992; OReilly and Chatman, 1986).
The link between affective commitment and customer retention is a well-researched
topic in relationship marketing. Affective commitment has been shown to make a
uniformly positive impact on customer retention (Fullerton, 2003; Garbarino and
Johnson, 1999; Gruen et al., 2000; Morgan and Hunt, 1994; Pritchard et al., 1999). Others
(Price and Arnould, 1999) have recognized that positive affect lies at the heart of many
customer-service provider relationships where the consumer exhibits frequent
repurchase patronage.
H5. Affective customer commitment is negatively related to switching intentions.
In the organizational behaviour literature, affective commitment has been shown to be
strongly and positively related to employee organizational citizenship behaviours,
including advocacy (Allen and Meyer, 1990; Mathieu and Zajac, 1990). It is reasonable to
expect that consumers who feel a psychological connection with their service provider
will act as favourable reference customers for the organization (Price and Arnould,
1999). Other researchers in marketing have identified a strong positive relationship
between affective commitment and advocacy and customer citizenship behaviours in
service industries (Fullerton, 2003; Gruen et al., 2000; Harrison-Walker, 2001). When
customers identify with a relational partner and have pleasant feelings about the
relationship they will gladly recommend that partner to people that they care about.
H6. Affective customer commitment is positively related to advocacy.

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Dependence based commitment is also a well-studied phenomenon in relationship


marketing. Customers sometimes remain in a relationship because they find it difficult
to get out of the relationship. For the most part, researchers have identified a positive
relationship between continuance-type commitment and customer retention (Fournier
et al., 1998; Fullerton, 2003; Grayson and Ambler, 1999). Bansal and Taylor (1999)
found that consumer perceptions about the ease of switching were positively related to
switching intentions in financial services. Anderson and Weitz (1992) found that
pledges, contracts and investments (important indicators of continuance commitment)
caused consumers to maintain a relationship. These findings mirror those in the
organizational commitment literature where continuance commitment is positively,
but weakly related to employee retention (Allen and Meyer, 1990; Mathieu and Zajac,
1990). The reason for this is that the consumer may be forced to stay in a relationship
built on continuance commitment but they will look to get out of the relationship when
given an opportunity.
H7. Continuance customer commitment is negatively related to switching
intentions.
In employment relationships, continuance commitment makes a negative impact on
the probability of employees engaging in pro-social behaviours in the workplace (Allen
and Meyer, 1990; Mathieu and Zajac, 1990). Few studies have examined the effect of
continuance commitment on advocacy and positive word of mouth behaviour in a
marketing relationship (Gruen et al., 2000; Fullerton, 2003; Harrison-Walker, 2001).
Consumers who are committed to a service provider by continuance may feel trapped
in the marketing relationship (Fournier et al., 1998). They may react against these
feelings of entrapment by spreading negative word of mouth communications against
their captors or at the very least, failing to act as advocates on behalf of their relational
partner (Fullerton, 2003; Harrison-Walker, 2001).
H8. Continuance customer commitment is negatively related to advocacy
intentions.
Affective commitment and continuance commitments are not orthogonal constructs
and individuals may feel both psychological states at any point in time (Allen and
Meyer, 1990). Continuance commitment has been shown to undermine the positive
effects of affective commitment in marketing relationships. Fullerton (2003) found that
continuance commitment moderated the relationship between affective commitment
and both customer retention and advocacy. The nature of this interactive effect was
such that the relationship between affective commitment and both customer retention
and advocacy became less positive as customers experienced higher levels of
continuance commitment (Fullerton, 2003). The conceptual rationale for this position is
that consumer feelings about being stuck in the relationship come to over-ride any
positive feelings emerging from identification and attachment. Even if consumers like
a relational partner, they may hope to get out of a relationship if they feel partly
trapped in that relationship. Others who have examined the effects of variables that are
conceptually similar to affective and continuance commitment in organizational
buyer-sell relationships have found evidence that the constructs interact in their effects
on relational dependent variables (Izquierdo and Cillan, 2004; Joshi and Arnold, 1997).

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These processes have been investigated in the organizational behaviour literature


as well. For example, Meyer and Herscovitch (2001) found that continuance
commitment reduced the positive impact on affective commitment to the organization
on important work-place behaviours. Similarly, Somers and Birnbaum (2000) provided
some basic support for the position that there is a moderating relationship between
affective and continuance commitment on employee behaviours in the workplace. For
the most part, we would expect that continuance commitment in a marketing
relationship would negatively impact the positive effects of affective customer
commitment on both switching and advocacy intentions.
H9. There is an interaction between affective and continuance customer
commitment such that the negative relationship between affective customer
commitment and switching intentions becomes less negative at higher levels
of continuance customer commitment.
H10. There is an interaction between affective and continuance customer
commitment such that the positive relationship between affective customer
commitment and advocacy intentions becomes less positive at higher levels of
continuance customer commitment.
Methodology and measures
The hypotheses were tested using a closed-ended survey in three service settings;
banking services, telecommunications services and grocery retail services. These
service settings were selected in part because of ease in data collection because they are
widely consumed. In addition, they differ in terms of their service attributes including
degree of tangibility and the degree to which credence is in a core feature of the service.
Thus there is good potential to generalize the findings across service industries.
Participants were asked to reflect upon their relationship with their bank,
telecommunications service provider and grocery store. The data in the banking
survey was collected by personal interview from consumers who were randomly
approached after leaving a particular branch at a particular Canadian bank located in a
large Canadian city. The data in the telecommunications survey was collected by mall
intercept in a large Canadian city over two days. The data in the grocery retail survey
was collected by store exit-survey over three days in a large Canadian city. The refusal
rate for the mall-intercept survey and the store exit-survey was approximately 40 per
cent. The refusal rate was approximately 60 per cent in the bank-exit interview. The
higher refusal rate in the bank setting may have been a partial result of the interview
being conducted on the street (rather than indoors as was the case in the other service
settings). These processes resulted in 220 completed surveys in the banking service
setting, 206 for telecommunications services and 208 in retail grocery services.
Overall service quality was measured with three items previously employed by
Taylor and Baker (1994). Affective and continuance commitment were each measured
with three items drawn from the Allen and Meyer (1990) organizational commitment
scale. While the full Allen and Meyer (1990) affective and continuance commitment
scales each consist of eight items, other marketing scholars (Fullerton, 2003; Bansal
et al., 2004) have used a three-item subset of each scale to operationalize these constructs
in a marketing context. Switching and advocacy intentions were each measured with
three behavioural intention items adapted from Zeithaml et al. (1996). Alternative

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scarcity was measured by two items developed by Fullerton (2005). In the banking,
telecommunications and grocery retail settings, all items (except one of the service
quality items) were measured on a nine-point Likert scale. One service quality item was
measured on a nine-point semantic differential scale. This was consistent with the way
that the scale was used by Taylor and Baker (1994) with no detrimental effect on the
reliability of the scale. While this survey was not pre-tested, all survey items had been
used in previous studies. A complete listing of the items employed in this study and
reports the scale reliabilities in each service setting can be found in Table I. All scales
possessed acceptable reliability in each service setting by surpassing the 0.80 criterion
established by Nunnally and Bernstein (1994). The measurement and structural models
were tested using AMOS 3.2 (Arbuckle, 1996). All models were estimated from the
covariance matrix with maximum likelihood estimation. In specifying the affective
commitment by continuance commitment interaction term, the methods prescribed by
Ping (1995) were used in this study. In the examination of interaction effects with
cross-sectional survey data it was necessary to mean centre all data before proceeding
with regression or SEM approaches to data analysis (Aitken and West, 1991).
Results
The measurement model offered an acceptable fit to the data in the banking services
setting (x2 159:5df104, p, .01; CFI 0:99; RMSEA 0:05; GFI 0:92, AGFI 0:89),
the telecommunications services setting (x2 151df104, p, .01; CFI 0:99;
RMSEA 0:05; GFI 0:92, AGFI 0:88) and the retail grocery service setting
(x2 154:5df104, p, .01; CFI 0:99; RMSEA 0:05; GFI 0:92, AGFI 0:88). The
specific items employed in this study, item factor-loadings, squared multiple correlations
for the items and scale reliabilities for each service setting are shown in Table I.
Convergent validity is established because all factor loadings are highly significant and
also have item squared multiple correlations (SMCs) of greater that 0.6 (Bagozzi and Yi,
1988). Discrminant validity was assessed according to the methods outlined by Fornell
and Larcker (1981). Strong discriminant validity was demonstrated because the squared
correlation between a pair of constructs was less than the average variance extracted
(AVE) of each construct (Fornell and Larcker, 1981). Table II shows a matrix of latent
variable correlations, with AVE shown on the diagonal, for each service setting.
The integrated model put forward in the conceptual development offered a very
promising fit to the data in all three service settings. This theoretical model had a good
fit to the data in the financial service (x2 189df123, p, .01; CFI 0:99; RMSEA 0:05;
GFI 0:92, AGFI 0:88), grocery retail service (x2 235df123, p, .01;CFI 0:97;
RMSEA 0:07; GFI 0:89, AGFI 0:85) and telecommunications service settings
(x2 202:2df123, p, .01 ; CFI 0:99; RMSEA 0:05; GFI 0:91, AGFI 0:87).
Table III summarizes the path coefficients for all paths hypothesized in the model.
In examining this hypothesized model in more detail, all ten hypotheses received
some support. H1 was supported as service quality was negatively and significantly
related to switching intentions in all three service settings examined in this study. This
finding was consistent with a considerable body of literature in the area of services
switching (Bansal and Taylor, 1999; Zeithaml et al., 1996). There was also strong
support for H2 as service quality was significantly and positively related to advocacy
intentions in all three service settings, a finding that was also consistent with a wide
body of literature on the relationship between service quality and advocacy (Anderson,

Grocery CFA
Loadings SMC

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Service quality
(a 0.96 grocery; a 0.96 banking;
a 0.97 telephone)
I believe the general quality of Xs services
high
Overall, I consider Xs service to be
excellent
The quality of Xs service is: (1 poor;
9 excellent)
Affective commitment
(a 0.97 grocery; a 0.97 banking;
a 0.98 telephone)
I feel emotionally attached to X
X has a great deal of personal meaning for
me
I feel a strong sense of identification with X
Continuance commitment
(a 0.98 grocery; a 0.98 banking;
a 0.96 telephone)
It would be very hard for me to switch
away from X right now even if I wanted to
My life would be disrupted if I switched
away from X
It would be too costly to switch from X
right now
Advocacy intentions
(a 0.98 grocery; a 0.98 banking;
a 0.98 telephone)
Say positive things about X to other people
Recommend X to someone who seeks your
advice
Encourage friends and relatives to do
business with X
Switching intentions
(a 0.98 grocery; a 0.97 banking;
a 0.99 telephone)
Do less business with X in the next year
Take some of your business to one of Xs
competitors
Switch to a competitor of X
Alternative scarcity
(a 0.97 grocery; a 0.98 banking;
a 0.95 telephone)
Aside from X there are few choices in this
market
I have too few options to switch from X

Banking CFA
Loadings SMC

Telephone CFA
Loadings SMC

0.97

0.93

0.95

0.91

0.92

0.85

0.96

0.92

0.95

0.91

0.98

0.96

0.91

0.83

0.92

0.85

0.96

0.92

0.97

0.93

0.98

0.96

0.96

0.93

0.97
0.96

0.94
0.91

0.98
0.97

0.95
0.94

0.98
0.96

0.96
0.92

0.94

0.88

0.96

0.93

0.96

0.92

0.98

0.96

0.98

0.95

0.97

0.95

0.98

0.97

0.96

0.93

0.97

0.94

0.96

0.93

0.96

0.92

0.97

0.94

0.98

0.97

0.98

0.96

0.98

0.97

0.98

0.96

0.98

0.96

0.98

0.96

0.96

0.93

0.96

0.93

0.98

0.96

0.98
0.96

0.96
0.93

0.97
0.94

0.95
0.88

0.99
0.97

0.98
0.94

0.96
0.97

0.93
0.94

0.97
0.99

0.94
0.97

0.97
0.94

0.93
0.88

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Table I.
Items, factor loadings and
squared multiple
correlations

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1382

Table II.
Latent variable
correlation matrix and
average variance
extracted (AVE)

Table III.
Integrated model:
parameter estimates, fit
statistics and variance
explained

Grocery retail services


Service quality (SQ)
Affective commitment (AC)
Continuance commitment (CC)
Switching intentions (SI)
Advocacy intentions (AI)
Alternative scarcity (AS)
Banking services
Service quality (SQ)
Affective commitment (AC)
Continuance commitment (CC)
Switching intentions (SI)
Advocacy intentions (AI)
Alternative scarcity (AS)
Telephone services
Service quality (SQ)
Affective commitment (AC)
Continuance commitment (CC)
Switching intentions (SI)
Advocacy intentions (AI)
Alternative scarcity (AS)

SQ

AC

CC

SI

AI

AS

0.89
0.75
20.45
20.70
0.82
20.39

0.93
2 0.54
2 0.75
0.86
0.41

0.94
0.44
2 0.68
0.87

0.94
20.79
0.34

0.95
20.57

0.93

0.89
0.47
20.13
20.68
0.62
20.08

0.96
2 0.11
2 0.87
0.75
2 0.08

0.94
0.05
2 0.38
0.86

0.92
20.74
20.01

0.95
20.27

0.95

0.91
0.74
0.14
20.73
0.73
0.28

0.94
0.12
2 0.78
0.86
0.23

0.94
2 0.22
0.03
0.87

0.96
20.80
20.29

0.96
0.12

0.90

Service quality-switching (H1)


Service quality-advocacy (H2)
Service quality-affective commitment (H3)
Alternative scarcity-continuance
commitment (H4)
Affective-switching (H5)
Affective-advocacy (H6)
Continuance-switching (H7)
Continuance-advocacy (H8)
Affective *continuance-switching (H9)
Affective *continuance-advocacy (H10)
x2
df
GFI
AGFI
RMSEA
CFI
R 2 affective (%)
R 2 continuance (%)
R 2 switching (%)
R 2 advocacy (%)
Notes: *p , 0.05; * *p , 0.01; * * *p , 0.001

Banking

Telephone

Grocery

20.35 * * *
0.32 * * *
0.47 * * *

2 0.31 * * *
0.22 * * *
0.74 * * *

2 0.30 * * *
0.38 * * *
0.75 * * *

0.86 * * *
20.71 * * *
0.58 * * *
20.08 * *
20.28 * * *
0.04ns
20.04ns
189
123
0.92
0.88
0.05
0.99
23
74
86
72

0.87 * * *
2 0.55 * * *
0.71 * * *
2 0.08 * *
2 0.10 * *
0.26 * * *
2 0.12 * * *
202
123
0.91
0.87
0.05
0.99
57
76
74
78

0.88 * * *
2 0.52 * * *
0.46 * * *
0.08 *
2 0.31 * * *
0.14 * * *
2 0.08 * * *
236
123
0.89
0.85
0.07
0.97
60
77
63
86

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1998; Zeithaml et al., 1996). The hypothesis (H3) that service quality was positively
related to affective commitment was supported in all three service settings. The
hypothesis that continuance commitment is rooted in scarcity of alternatives (H4)
received support in all three service settings as scarcity of alternatives was
significantly and positively related to continuance commitment.
In examining the effects of customer commitment, there was strong support for the
hypothesis that affective commitment was negatively related to switching intentions
(H5) in all three service settings. Affective commitment was also strongly and
positively related to advocacy intentions (H6) in all service settings examined in this
study, supporting the hypothesis. These findings are consistent with many other
studies in the area of relationship marketing suggesting that the consequences of
affective commitment are uniformly positive (Fullerton, 2003). In terms of the
consequences of continuance commitment there was mixed support for the hypothesis
that continuance commitment leads to customer retention (H7). In two service settings
(banking and telecommunications) continuance commitment was significantly and
negatively related to switching intentions. These findings were consistent with the
hypothesis. In the grocery retail service setting, continuance commitment was
significantly and positively related to switching intentions. This was in contrary to
expectations. The hypothesis that continuance commitment is negatively related to
advocacy intentions (H8) received support in all three service settings. Overall, the
findings suggest that continuance commitment has at best a weak effect on customer
retention but has a decidedly negative impact on word-of-mouth communications.
In terms of the hypotheses regarding the interactive effects of affective and
continuance commitment, both hypothesis received some support. The hypothesis that
there was an interaction between affective and continuance commitment on switching
intentions (H9) was supported in two (telecommunications and grocery retail) service
settings. In both service settings where there was a significant affective-continuance
interaction on switching intentions, it was in the direction hypothesized. The
hypothesis that there was an interaction between affective and continuance
commitment on advocacy intentions (H10) was supported in two
(telecommunications and retail grocery) service settings. In addition, these
significant interactions were in the hypothesized direction. Overall, there was good
support for the position that the degree of continuance commitment present in a
relationship changes the nature of the relationship between affective commitment and
both switching and advocacy intentions.
Theoretical and managerial implications
This study confirms some basic views in the area of relationship marketing. Consistent
with many other studies, affective commitment supports the development of
relationships because the construct was found to be significantly and negatively
related to switching intentions and significantly and positively related to advocacy
intentions. In addition, the results of this study are consistent with the general view
that affective-type commitment plays a significant mediating role in service
relationships. While affective commitment did not completely mediate the effects of
service quality on the two loyalty-related dependent variables examined in this study,
it played a significant partial mediating role. The implication of this finding is that
marketing scholars and practitioners have to focus attention on both the evaluative

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forces (service quality) and the relational forces (customer commitment) that drive
crucial customer behaviours.
The results of this study are also somewhat consistent with other studies that have
examined the simple effects of continuance commitment. At best, continuance
commitment has a weakly negative effect on switching intentions. It is clear that
continuance commitment has a much smaller effect on switching intentions than
affective commitment (see Table III). This is also consistent with other studies that
have concluded that continuance commitment has a weaker effect than affective
commitment on customer retention (Bansal et al., 2004; Gruen et al., 2000; Fullerton,
2003). On the other hand, it was found that continuance commitment may heighten
switching intentions in a marketing relationship as there was a positive relationship
between continuance commitment and switching intentions in the grocery service
setting. The conceptual rationale for this finding may be rooted in reactance theory
(Brehm et al., 1966). There may be some situations where consumers react against their
partners when they feel trapped and express a desire to get out of the relationship as
soon as possible when they have the opportunity to exit the relationship (Fournier et al.,
1998; Fullerton, 2003). In the case of grocery retailing, there are relatively few economic
or psychological switching costs and continuance commitment may be a function
primarily of convenience or perceptions that all retailers are essentially the same. Thus,
they can feel a state of continuance commitment, yet be easily able to switch retailers.
The study is also clearly consistent with other works that have demonstrated that
continuance commitment has a decidedly negative effect on advocacy (Fullerton, 2003;
Harrison-Walker, 2001). Customers who feel trapped in their service relationships will
be very unlikely to act as reference customers on behalf of their relational partners.
This is important because organizations in competitive markets are increasingly
reliant on their existing customer base as a source of new customers (Reichheld, 2003).
This study is one of a small number of studies that have examined potential
interactive effects between the two dominant forms of commitment in marketing
relationships. This is not a well-investigated and understood issue in the area of
relationship marketing. Bansal et al. (2004) hypothesized, but did not find any significant
interaction between affective and continuance commitment on switching intentions in a
study of automotive repair services. While these authors examined only one service
setting, they did acknowledge that interaction effects are sometimes difficult to test with
cross-sectional survey data. (Bansal et al., 2004). Fullerton (2003) in a longitudinal,
experimental design found a significant interaction between affective and continuance
commitment on both switching intentions and advocacy intentions. The findings in the
current study demonstrate that continuance commitment may depress the positive
effects of affective commitment to the service provider. While evidence supporting the
existence of an affective commitment-continuance commitment interaction is not entirely
conclusive, there is a good basis for the conclusion that continuance commitment
undermines the positive effect of affective commitment because significant interactions
were found in two of three service settings examined in this study.
Overall, these findings lend considerable support to the view that commitment is
central to the development of marketing relationships (Morgan and Hunt, 1994). In
particular, the study supports the position that affective commitment is key to the
development and maintenance of effective marketing relationships. Marketing managers
and CRM specialists must look for ways to build identification, attachment and trust in

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their marketing efforts. It is difficult for marketers to manufacture these conditions out of
thin air because they take time to develop and can only be developed if the organization
seeks to deliver value to its customers through its relationship management efforts
(Rigby et al., 2002). For example, many retail grocery chains are devoting considerable
resources to the development of the retail brand because they have recognized that the
psychological connection that the customer has with the brand is a significant driver of
their patronage intentions, perhaps even a stronger driver than their evaluations of the
stores prices, service and selection (Fullerton, 2005).
On the other hand, these findings may also explain the dissolution of relationships
rooted in continuance commitment once the conditions that create the state of
continuance commitment are removed. Customers who feel bound to their partners
may respond to these feelings with a desire for exit. In addition, these findings also
suggest that continuance commitment undermines the positive role of affective
commitment. While it may seem absurd to develop and manage a relationship
primarily on continuance commitment, many organizations use the mechanisms that
give rise to the psychological state of continuance commitment in creating
relationships. Cellular telephone service providers, membership club programmes
and government services are three prime examples of relationship management efforts
where continuance commitment is frequently at the core. These organizations may
experience some benefits of initial customer retention, but only so long as the
conditions that create continuance commitment are in force. At the same time,
marketers must recognize that their relationship management efforts could build both
affective and continuance commitment. For example, financial service providers in
their efforts to deliver services uniquely suited to attractive customers and enhance
affective commitment may also be creating switching costs that enhance continuance
commitment. In this event, the relationship may not be as strong as the marketer
thinks because of the affective commitment-continuance commitment interaction.
The implication of these findings is that commitment can both enhance and erode
marketing relationships. Affective commitment is the foundation on which
relationships are built. Continuance commitment erodes relationships in three key
ways. First, it has either a weak effect on customer retention, or quite possibly a
detrimental effect on customer retention in some situations. Second, it has a negative
effect on advocacy and customer word of mouth behaviour which is being recognized
as an increasingly important side-effect of effective relationships (Reichheld, 2003).
Third, due to its interactive effect, it erodes the affective commitment based foundation
of marketing relationships. Thus, the extent to which commitment is central to the
development of marketing relationships, depends entirely upon the component of
commitment on which the relationship is being built in the relationship. More
commitment is not necessarily better in a marketing relationship. In the absence of a
concerted effort to develop affective commitment and minimize conditions which give
rise to continuance commitment through its relationship management efforts,
organizations will find that their efforts will be minimally effective at best and entirely
ineffectual at worst.
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