The Role of Customer Loyalty to the Salesperson in Generating Premium Revenue for Retailers

Abstract

The findings of this research underscore the relative importance of loyalty to the salesperson, when compared with retailer trust and satisfaction, on outcomes such as loyalty to the retailer and a consumer’s willingness to pay price premiums. This research also demonstrates that loyalty to the salesperson has a diminished effect on both outcomes when the merchandise is perceived as being high quality. The findings suggest that managers need to be aware of potential contingency factors that may affect relationships within the service profit chain. Moreover, the results reveal that consumers make holistic evaluations of services and consider both the physical goods and service provided by employees when determining their loyalty to the retailer.