The impact of interpersonal relationships on customer satisfaction and loyalty to the service provider

Abstract

The focus on ongoing customer relationships is the most distinctive aspect of relationship marketing. To date we still have a poor understanding of the role played by interpersonal-related factors in gaining and developing customer loyalty. This paper explores the impact of interpersonal relationships (both with a firm employee and with another customer) on customer satisfaction and loyalty towards the firm. Based on a review of different streams of research, the paper develops and empirically tests an original multi-level and multi-subject model. The findings show that customer-to-employee and customer-to-customer relationships contribute differently to the development of customer loyalty. Finally, the paper discusses managerial implications and directions for future research.