In this paper, we examine the effect of relationship perceptions and relationship marketing instruments on customer share development. We also study the interaction effect of these instruments with behavioral loyalty and relationship perceptions. This study is executed among a sample of customers of a financial service provider. Our results show that commitment positively affects changes in customer share, while loyalty program membership and direct mailings also have a positive effect. We also find that satisfaction has a smaller effect among members of the loyalty program, while our results also reveal some preliminary evidence to support the notion that loyalty programs are less effective among behavioral loyal customers.

customer loyalty, customer relationship management, marketing instruments marketing models, marketing research
Statistical Decision Theory; Operations Research (jel C44), Business Administration and Business Economics; Marketing; Accounting (jel M), Marketing (jel M31)
Erasmus Research Institute of Management
hdl.handle.net/1765/174
ERIM Report Series Research in Management
Copyright 2002, P.C. Verhoef, 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. (2002). The Joint Effect of Relationship Perceptions, Loyalty Program and Direct Mailing on Customer Share Development (No. ERS-2002-27-MKT). ERIM Report Series Research in Management. Erasmus Research Institute of Management. Retrieved from http://hdl.handle.net/1765/174