The role relationship benefits have on customer equity in the business-to-business environment

Abstract

This study aims to extend previous research studies investigating drivers of customer equity in a business-to-business environment. The study also aims to address the role of relationship benefits on customer equity in a business-tobusiness environment beyond psychological, functional and social benefits. Furthermore the study focuses on the importance of building relationships influencing customer equity in organisations operating in a business-to-business environment. The study is based on two phases. Phase one consisted of face-to-face interviews with experienced professional individuals from three different industries. These industries covered financial services, utility services and property development within a South African demographic. The data gathered from these interviews was combined with literature to understand the drivers of customer equity and the role that relationship benefits play on customer equity. Data was also gathered from a 146 questionnaires and statistically processed. Significant findings made in the study reflect the importance of customer equity within business-to-business environments. Further focusing on the importance for organisations to build long-term relationships with their customers. this will finally explain the significant impact that relationship benefits have on customer equity beyond psychological, functional and social benefits for organisations in business-to-business environments. The study recognises that the individual customers and the organisation on its own will both benefit from developed customer equity, highlighting the fact that not one driver of customer equity is exclusive to the next. Contributions made for academic purposes include hypothesised variable on customer equity, with the main aim on relationships. This study will be beneficial for various departments in organisations that interact with customers and want to improve their customer relations, specifically organisations operating in a business-to-business environment.