Cited by 555Customer Service Quality and LoyaltyConsumer Behavior in Brand Consumption and IdentificationConsumer Market Behavior and Pricing

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Customer Loyalty to Whom? Managing the Benefits and Risks of Salesperson-Owned Loyalty

Palmatier, Robert W., Scheer, Lisa K., Steenkamp, Jan-Benedict E.M.·2007·Journal of Marketing Research

DOI 10.1509/jmkr.44.2.185

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Abstract

In a study of 362 buyer–salesperson dyads using triadic data (from buyer, salesperson, and sales manager), the authors examine both a customer's overall loyalty to the selling firm and the customer's loyalty vested specifically in his or her salesperson. They find that only salesperson-owned loyalty, a newly identified construct, directly affects the more tangible seller financial outcomes of sales growth and selling effectiveness, whereas both salesperson-owned loyalty and loyalty to the selling firm increase the customer's willingness to pay a price premium. A longitudinal study verifies that the positive effect of salesperson-owned loyalty on sales growth persists over time. However, because salesperson-owned loyalty simultaneously increases the seller's risk of losing business if the salesperson defects to a competitor, managers need to manage effectively the benefit–risk trade-off. Increasing relationship-enhancing activities and value received by the customer builds both salesperson-owned loyalty and loyalty to the selling firm. The loyalty-building impact of relationship-enhancing activities is moderated by selling-firm consistency and by the selling firm's and salesperson's loyalty-capturing strategies.

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Lee, L. W. Y., Tang, Y., Yip, L. S. C., & Sharma, P. (2017) · Journal of Business Research · doi:10.1016/j.jbusres.2017.07.017 · Cited by 110
“This echoes the phenomenon of sales-loyalty (Palmatier et al., 2007) being an even more important consideration for sales management strategies in emerging markets such as China.”
Background
Introducing branded communities in sport for building strong brand relations in social media
Popp, B., & Woratschek, H. (2015) · Sport Management Review · doi:10.1016/j.smr.2015.06.001 · Cited by 115
“Thus, in our research setting, we differentiate between two different “owners” of loyalty (Palmatier, Scheer, & Steenkamp, 2007).”
Background
The outcome of company and account manager relationship quality on loyalty, relationship value and performance
Alejandro, T. B., Souza, D. V., Boles, J. S., Ribeiro, Á. H. P., & Monteiro, P. R. R. (2011) · Industrial Marketing Management · doi:10.1016/j.indmarman.2010.09.008 · Cited by 104
“Consistency occurs for example, when the contact person or salespeople's attitudes tends to be similar to the assessments made of the organization as a whole (Iacobucci & Ostrom, 1996).”
BackgroundInfluential
Workplace isolation: salespeople and supervisors in USA
Mulki, J. P., & Jaramillo, F. (2011) · The International Journal of Human Resource Management · doi:10.1080/09585192.2011.555133 · Cited by 115
“Voluntary turnover can also reduce revenue since organizations lose some customers who follow salespeople to their new organization (Palmatier, Scheer and Steenkamp 2007 ).”
Background
The impact of employees’ perceived CSR on customer orientation: an integrated perspective of generalized exchange and social identity theory
Hu, B., Liu, J., & Zhang, X. (2020) · International Journal of Contemporary Hospitality Management · doi:10.1108/ijchm-10-2019-0822 · Cited by 108
How organizational and employee‐customer identification, and customer orientation affect job engagement
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Brand Advocacy and Sales Effort by Retail Salespeople: Antecedents and Influence of Identification with Manufacturers’ Brands
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Sport event innovativeness: Conceptualization, measurement, and its impact on consumer behavior
Yoshida, M., James, J. D., & Cronin, J. J. (2012) · Sport Management Review · doi:10.1016/j.smr.2012.03.003 · Cited by 91
How psychological resourcefulness increases salesperson's sales performance and the satisfaction of their customers: Exploring the mediating role of customer-oriented behaviors
Lussier, B., & Hartmann, N. N. (2016) · Industrial Marketing Management · doi:10.1016/j.indmarman.2016.08.009 · Cited by 99
THE FLEXIBILITY OF LOGISTICS SERVICE PROVIDERS AND ITS IMPACT ON CUSTOMER LOYALTY: AN EMPIRICAL STUDY
Hartmann, E., & de Grahl, A. (2011) · Journal of Supply Chain Management · doi:10.1111/j.1745-493x.2011.03228.x · Cited by 94
The impact of sales encounters on brand loyalty
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The Flexibility of Logistics Service Providers and its Impact on Customer Loyalty – An Empirical Study
Hartmann, E., & de Grahl, A. (2011) · Gabler Verlag eBooks · doi:10.1007/978-3-8349-7084-8_2 · Cited by 88
A model of negotiation issue–based tactics in business-to-business sales negotiations
Geiger, I. (2017) · Industrial Marketing Management · doi:10.1016/j.indmarman.2017.02.003 · Cited by 87
Boundary spanner relational behavior and inter-organizational control in supply chain relationships
Dekker, H. C., Donada, C., Mothe, C., & Nogatchewsky, G. (2018) · Industrial Marketing Management · doi:10.1016/j.indmarman.2018.11.010 · Cited by 89
Can the Media Richness of a Privacy Disclosure Enhance Outcome? A Multifaceted View of Trust in Rich Media Environments
Aljukhadar, M., Sénécal, S., & Ouellette, D. (2010) · International Journal of Electronic Commerce · doi:10.2753/jec1086-4415140404 · Cited by 96
“In addition, consumers are stated to be affected more by an interpersonal relationship with the firm representatives than by a direct relationship with the firm [52].”
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Managing brand associations to drive customers’ trust and loyalty in Vietnamese banking
Phan, K. N., & Ghantous, N. (2013) · International Journal of Bank Marketing · doi:10.1108/ijbm-04-2013-0038 · Cited by 100
The road to customer loyalty paved with service customization
Bock, D. E., Mangus, S. M., & Folse, J. A. G. (2016) · Journal of Business Research · doi:10.1016/j.jbusres.2016.06.002 · Cited by 85
Influencing COBRAs: the effects of brand equity on the consumer’s propensity to engage with brand-related content on social media
Schivinski, B., Muntinga, D. G., Pontes, H. M., & Łukasik, P. (2019) · Journal of Strategic Marketing · doi:10.1080/0965254x.2019.1572641 · Cited by 105
The mediating effects of customers’ intimacy perceptions on the trust-commitment relationship
Ponder, N., Holloway, B. B., & Hansen, J. D. (2016) · Journal of Services Marketing · doi:10.1108/jsm-04-2014-0117 · Cited by 94
Do loyal customers really pay more for services?
Umashankar, N., Bhagwat, Y., & Kumar, V. (2016) · Journal of the Academy of Marketing Science · doi:10.1007/s11747-016-0491-8 · Cited by 83
On the importance of complaint handling design: a multi-level analysis of the impact in specific complaint situations
Homburg, C., Fürst, A., & Koschate, N. (2009) · Journal of the Academy of Marketing Science · doi:10.1007/s11747-009-0172-y · Cited by 88
“This approach is in line with recommendations in the methodology literature (Aiken and West 1993; Cohen et al. 2003 )a nd is comparable to similar approaches, such as multi-group causal analysis, of previous marketing studies (e.g., Licata et al. 2003; Palmatier et al. 2007 ).”
Result
Service loyalty: accounting for social capital
Jones, T., & Taylor, S. F. (2012) · Journal of Services Marketing · doi:10.1108/08876041211199733 · Cited by 87
“The link between customer loyalty to the service employee and customer loyalty to the service firm has been well established in previous work (Palmatier et al., 2007) and there is an unquestionable link between firm loyalty and firm value.”
Background

Authors: Palmatier, R. W., Scheer, L. K., & Steenkamp, J.-B. E. M.
Affiliations: University of Cincinnati (US)
University of Missouri (US)
University of North Carolina at Chapel Hill (US)
Corresponding author: Palmatier, Robert W.
Scheer, Lisa K.
Steenkamp, Jan-Benedict E.M.
ORCID: Palmatier, Robert W.
Scheer, Lisa K.
Steenkamp, Jan-Benedict E.M.
Venue: Journal of Marketing Research
Publisher: SAGE Publications
Published: 2007-05
Volume: 44
Issue: 2
Pages: 185-199
ISSN: 0022-2437 (ISSN-L)
1547-7193
DOI: 10.1509/jmkr.44.2.185
OpenAlex: W2099463741
Cited by: 555
References: 42
Citations by year: 2026: 9 · 2025: 16 · 2024: 16 · 2023: 25 · 2022: 31 · 2021: 31 · 2020: 29 · 2019: 34 · 2018: 38 · 2017: 36 · 2016: 43 · 2015: 40 · 2014: 41 · 2013: 33 · 2012: 32
FWCI: 44.17
Type: journal article
Language: en
Open access: closed
Licence: journals.sagepub.com/page/policies/text-and-data-mining-license (tdm)
Locations: Journal of Marketing Research (publishedVersion)
Topics: Social Sciences › Business, Management and Accounting › Marketing › Customer Service Quality and Loyalty
Social Sciences › Business, Management and Accounting › Marketing › Consumer Behavior in Brand Consumption and Identification
Social Sciences › Business, Management and Accounting › Marketing › Consumer Market Behavior and Pricing
Keywords: customer loyalty, sales growth, price premium, risk-benefit trade-off

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Customer Loyalty to Whom? Managing the Benefits and Risks of Salesperson-Owned Loyalty

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