Customers’ relationship maintenance and loyalty intentions after a brand transgression: a moderated mediation approach

ABSTRACT

The study seeks to establish the role of relationship marketing orientation of banks and customer attributions of the transgression in customers’ continuance intentions and loyalty towards the bank after a brand transgression. A moderated mediation model showing relationships between relationship marketing orientation, customer commitment and customer loyalty intentions after a real-life transgression was formulated. In a survey conducted among 340 bank customers in India, results suggest positive and significant roles of relationship marketing orientation on relationship continuation intentions and customer loyalty, after a transgression. The strengths of these intentions varied according to the customers’ perceptions of the bank’s active role in the transgression. However, contrary to expectations, customers who perceived a more active role of the bank in the transgression, showed stronger intentions of continuing their relationship with the bank.

KEYWORDS:

• Bank transgression
• relationship marketing orientation
• attribution theory
• customer commitment

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1. Press Trust of India.

2. Price Waterhouse Coopers.