- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
How to Measure Relationship Value in Principal-Retailer Context
NAJIB, Mukhamad
SOEHADI, Agus W.
Abstract
Purpose: This study aims to review existing research on the definition, conceptualization, and measurement of relationship values to guide future research. This study specifically measures the relationship value between principals and retailers, which is still not widely discussed in previous research. Besides, to broaden our knowledge of the value-based determinants of competitive advantage, satisfaction, and retailer loyalty in business-to-business relationships. Research design, data, and methodology: This research assessed three alternative models of the relationship value construct's dimension structure and then tested for reliability, validity, and confirmatory factor analysis. The research sample is 185 retailers-data analysis using Structural Equation Modeling (SEM). Results: The results showed that product-based values and relationship-based values positively influenced competitive customer advantage, satisfaction, and loyalty. Conclusions: Relationship value construct can be measured and consist of five dimensions: product quality, delivery performance, customer orientation, service support, and personal interaction. They are key factors that maintain the relationship between principal and retailers. This study indicates that principals must invest more time and effort in building valuable relationships with their retailers. Finally, the value of relationships is a determinant of retailer performance: satisfaction and loyalty.
- keywords
- Relationship Value, Retailer, Satisfaction, Loyalty
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