Effects of customer equity drivers on customer loyalty in B2B context

TLDR

Previous research on customer equity has largely focused on B2C settings, whereas this study examines the B2B context. The study investigates how customer equity drivers influence customer loyalty through customer trust in a B2B environment. Data were collected via a self‑administered online survey of Australian organizational customers and analyzed using structural equation modeling. Value and relationship equity significantly boost B2B customer loyalty through trust, while brand equity has no effect, suggesting managers should prioritize value and relationship equity.

Abstract

Purpose This paper aims to investigate the effects of customer equity drivers on customer loyalty via customer trust in a B2B context. Design/methodology/approach A self‐administered online survey was conducted to collect data from the organizational customers of an on‐hold service company in Australia. Structural equation modelling was used to analyse the data. Findings The study reveals that in a B2B context, value equity and relationship equity have significant influence on customer loyalty through the mediating effect of customer trust. On the other hand, brand equity is found to have no effect on customer trust and loyalty. Practical implications In order to obtain business customers' loyalty, managers should focus more on value and relationship equity than brand equity. Originality/value While most of the previous studies on “customer equity” focused on the B2C context, this study focuses on a B2B context. It demonstrates the impact of customer equity drivers on business customers' loyalty.