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Paper info: A dynamic model of customer loyalty


A dynamic model of customer loyalty


Michele Costabile

Place of Publication

The paper was published at the 16th IMP-conference in Bath, U.K in 2000.


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Competitive and economic advantages stemming from the strengthening of customerrelationships have been widely tested and discussed by practitioners and scholars in therelationship marketing and in the customer satisfaction and postconsumption research fields.Many studies, early developed into the business to business marketing field, have focused onantecedents and consequences of market relationships, identifying cognitive, affective andbehavioural constructs (satisfaction, trust, loyalty and co-operation) that qualify therelationship life cycle, from customer satisfaction up to customer loyalty and partnership.Cognitive and behavioural constructs operating during the relationship life cycle have beenwidely analysed, and thanks to these studies it is possible to define a model of "customerbuying process", as a preliminary step before submitting it to the canonical falsificationprocess.Starting from an overview of the literature, this paper proposes a dynamic model of customerloyalty, in the marketing relationship perspective. The paper aims to identify the antecedentsand the consequences of the evolutionary links between the several relational constructsconnected with customer satisfaction and loyalty.The paper formulates research propositions on the loyalty development process, which willhave to be empirically tested in order to theorise a model of customer buying behaviour,useful for loyalty management purposes, both in business to business and in business toconsumer markets.