We examine the effect of relational constructs, such as satisfaction, trust and commitment on relationship performance (that is, positive word-of-mouth communication and the margin provided by each customer) of customers of an insurance company. A central issue concerns the effect of duration on the associations between relational constructs and relationship performance. Our empirical results provide strong evidence of duration dependent effects of satisfaction and trust, but we find only weak evidence of such effects on performance.

Insurance industry, Performance, Relationship duration, Relationship marketing
Statistical Decision Theory; Operations Research (jel C44), Business Administration and Business Economics; Marketing; Accounting (jel M), Marketing (jel M31)
Erasmus Research Institute of Management
ERIM Report Series Research in Management
Copyright 2000, P.C. Verhoef, P.H.B.F. Franses, J.C. Hoekstra, This report in the ERIM Report Series Research in Management is intended as a means to communicate the results of recent research to academic colleagues and other interested parties. All reports are considered as preliminary and subject to possibly major revisions. This applies equally to opinions expressed, theories developed, and data used. Therefore, comments and suggestions are welcome and should be directed to the authors.
Erasmus Research Institute of Management

Verhoef, P.C, Franses, Ph.H.B.F, & Hoekstra, J.C. (2000). The Effect of Relational Constructs on Relationship Performance (No. ERS-2000-08-MKT). ERIM Report Series Research in Management. Erasmus Research Institute of Management. Retrieved from http://hdl.handle.net/1765/17