Understanding loyalty bonds and their impact on relationship strength: a service firm perspective

Purpose – Based on previous research in services, marketing, organizational behavior and psychology, this paper aims to identify four types of loyalty bonds that an individual can form with a firm as well as a select set of firm and situational variables which likely result in the formation of each bond. It then aims to examine the influence of each bond on the relationship strength between a customer and a service provider. Design/methodology/approach – Using a mail survey, female respondents over the age of 25 assessed shopping situations in two service‐provider settings – a grocery store and a beauty salon. Scenarios manipulated aspects of the service experience based on firm and situational variables. Findings – This study confirms the existence of four primary types of loyalty bonds – utilitarian, affective, symbolic, and obligatory. Firm and situational variables maximally impact each type of loyalty bond. The bonds predict relationship strength with the service provider. Research limitations/implications – Complex relationships are apparent between the different types of bonds. Further research is needed to understand how firm and situational variables interact in different service settings. Practical implications – The authors' research shows that customers may form different types of loyalty bonds with firms, some that are controllable by the firm and some which are less controllable. Results provide a starting point for tactical decision making regarding which bonds service providers would like to target in the development of their relationship marketing programs. Originality/value – The authors contribute to the services marketing literature by examining when specific loyalty bonds are created and how these bonds impact relationship strength.