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Building Loyal Relationships Between Customers and Providers

Abstract The increasingly competitive tourism industry has led to a paradigm shift in marketing philosophy from a focus on discrete transactions to one of long-term relationships. This paper proposes a conceptual model of the antecedents of customer loyalty; a construct central to relationship marketing. The model proposed draws from Resource Theory, and the notions of reciprocity and customer equity. According to the proposed model, when customers and providers invest specific profiles of resources in each other, the customers tend to develop a bond with the customer and become dedicated to maintaining a stable relationship. The model is used to discuss the mixed results of current loyalty programs and to outline future research efforts.