Service Quality and its contribution to Price Premium though Service Loyalty: a B2B Perspective

Manchester Business School
Publication Type:
Conference Proceeding
Proceedings of the 23rd IMP Conference: Exploiting the b2b knowledge network: New perspectives and core concepts, 2007, pp. 1 - 8
Issue Date:
Full metadata record
A steady stream of sales revenue for a service provider can be achieved through having superior market performance outcomes such a high price premium. Among the variables underlying customer relationships is the perceptions of quality received. However for relationships to be mutually profitable the customer s willingness to pay must be taken into account (Ravald and Gronroos (1996). This indicator of market performance outcomes is directly related to service loyalty (Aaker 1991, 1996; Chaudhuri and Holbrook 2001). Achieving and maintaining a high price premium through attracting and retaining a loyal customer base is particularly significant in a business-to-business market. Nevertheless, there are opposing viewpoints in that loyal customers are not always seen as profitable despite arguments that loyalty makes customers less price sensitive.
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