Antecedents and consequences of relationship intention: Implications for transaction and relationship marketing

The terms relationship marketing (RM) and loyalty have been extensively promoted in marketing literature. Advocates of RM and loyalty have argued that RM leads to loyalty and loyalty leads to profitability. However, currently available evidence questions these arguments. We propose a term relationship intention. Relationship intention is willingness of a customer to develop a relationship with a firm while buying a product or a service attributed to a firm, a brand, and a channel. We build a multi-item scale for measuring relationship intention. We propose a framework, wherein we argue that the relationship intention is influenced by the customers' perceived firm equity, perceived brand equity, and perceived channel equity. We propose the consequences of relationship intention as being low cost to serve, price premium, word-of-mouth promotion, and company advertisement. We also argue that relationship intention moderates the association between lifetime duration and profitability. Finally, we discuss the managerial implications of relationship intention in terms of transaction and RM. (C) 2003 Elsevier Inc. All rights reserved.