Consequences of customer advocacy

Abstract

The purpose of this research is to provide empirical evidence for a key driver of the close relationship between customers and service providers. Rooted in the market orientation and customer orientation literature this paper contributes to the literature by operationalising ‘customer advocacy’ as proposed by Urban (2004) and by identifying its consequences. Empirical evidence is provided for the fact that if a service company advocates for the best interests of its customers, they will reciprocate with stronger loyalty and spreading positive word-of-mouth about service providers. Structural equation modelling is used to test the proposed hypotheses. Findings suggest that service companies can build customers' trust by adopting the customer advocacy strategy through establishing mutual dialogue with the customers and providing quality services. Finally if customers are satisfied and hold a positive affect towards the service provider, they will advocate the service provider amongst their peers.

Keywords:

• customer advocacy
• affective commitment
• customer loyalty
• trust
• service quality
• structural equation modelling