The relational practice between services provider and customers: a comparison between a theoretical model and a rival model

Abstract

This work discusses the strategy of customer retention by means of relationship marketing practice in the service environment. It is proposed a Theoretical Model along with its hypotheses, which is compared to a Rival Model, identified from the perception of executives of a Business Group with outstanding performance in the services sector in Brazil. The constructs of customer Satisfaction, Value, Services Provider’s Reputation and Trust are regarded as being antecedents of customer retention. Data analysis was implemented by multivariate statistical techniques, and the Structural Equations Modeling. The results indicate that the Theoretical Model presents a better fit for the Rival Model, but it needs a more mature theoretical and empirical system. The work provides relevant evidences, showing that the value perceived by customers is a construct antecedent of trust in services provider, and this relationship is mediated by the services provider’s reputation; that the services provider’s reputation is important in the relational context studied; and that the customer retention is positively influenced by the trust placed in the services provider.

Key words: customer retention, services, structural equation modeling.