Summary The Role of Customer Gratitude in Relationship Marketing

Palmatier, R.W., Jarvis, C.B., Bechkoff, J.R. & Kardes, F.R. (2009). The Role of Customer Gratitude in Relationship Marketing. Journal of Marketing, 73(5), 1-18.

Abstract: Although most relationship marketing theories have in the past emphasized the relevance of commitment and trust in seeking to influence performance outcomes, gratitude has been identified as yet another critical mediating mechanism on this front. By utilizing data from two studies, the authors in this case “demonstrate that gratitude also mediates the influence of a seller’s relationship marketing investments on performance outcomes.”

Introduction: According to the authors, most marketing experts are in agreement that in marketing, the relevance of sustaining good relations with customers cannot be overstated. It is however important to note that as Palmatier (as cited in Palmatier, Jarvis, Bechkoff, and Kardes, 2009) points out, on the basis of a meta-analysis founded on thousands of relationships, “RM investments have a direct effect on seller objective performance outcomes that is actually greater than the effect mediated by trust and commitment.” For this reason, a need exists to evaluate and study the rest of the mediating mechanisms which according to Palmatier, Dant, and Grewal (as cited in Palmatier, Jarvis, Bechkoff, and Kardes, 2009) could include, but they are not limited to gratitude, exchange effectiveness, and reciprocity. As it has also been pointed out by Emmons and McCullough; and Morales (as cited in Palmatier, Jarvis, Bechkoff, and Kardes, 2009), the authors of this particular study “propose that gratitude, the emotional appreciation for benefits received, accompanied by a desire to reciprocate is an important construct for understanding RM effectiveness.”

Conceptual Background of Gratitude: The authors note, from the onset, that reciprocal behaviors are largely founded on the emotional aspect of one of the most prominent human interactions’ social components, i.e. gratitude. It is also this social component that, as Gouldner (as cited in Palmatier, Jarvis, Bechkoff, and Kardes, 2009) points out, motivates human beings to honor reciprocal obligations. Gratitude has two key components, i.e. the behavioral component and the affective component – with the former having to do with the creation of a long-term reciprocity cycle as a consequence of feelings of gratitude; and the latter being a rather short-term occurrence whereby persons are under some sort of pressure to ‘give back.’ The authors point out that both components ought to be understood in an attempt to grasp the role gratitude plays in RM. It is important to note that very few studies have been conducted in an attempt to highlight the role gratitude plays in informing the behavior of consumers. Even fewer studies take into consideration the resident emotional process. It is for this reason that the authors “propose that viewing feelings of gratitude as reciprocity’s “emotional core” (Emmons 2004, p. 12) offers a theoretical richness…” that could otherwise be missed if the behavioral outcomes of customers are assessed “without consideration of the psychological process involved.”

Table 1: In a tabular format, the authors condense their review of literature on the subject matter to derive meaningful ‘theoretical positioning of constructs.’ They find out that in addition to the number of studies connecting the reciprocal motives of customers with gratitude feelings being very few, the task or reciprocity or gratitude has not been tested empirically, or even subjected to the relevant measurements and assessments. From the tabular review, it is therefore clear that as the authors note, “gratitude may provide an explanation of the direct effect of relationship investments on seller performance in the extant commitment–trust RM model.”

Hypotheses: The authors, in essence, “hypothesize and test the role of gratitude (both affective and behavioral aspects) as a missing mediator for the effects of RM on performance outcomes, parallel to trust and commitment.” According to the authors, once the RM undertakings of the seller are recognized by the buyer, the emotional systems of the customer are engaged. This effectively triggers the customer’s gratitude feelings and enhances the said customer’s intentions to ‘give back’ or what the authors in this case refer to as “intentions to repay the seller.” As Dahl, Honea, and Manchanda; and Morales (as cited in Palmatier, Jarvis, Bechkoff, and Kardes, 2009) point out, customers could act out the said intentions by adapting their purchase habits. Customers could engage in a wide range of behaviors in an attempt to express gratitude. These, according to the authors include, but that are not limited to, not constantly demanding lower prices, and purchasing other items as well as services from the seller. Towards this end, the authors advance three hypotheses. These are:

H1: Relationship marketing investments positively affect customers’ (a) feelings of gratitude and (b) gratitude-based reciprocal behaviors.

H2: Customers’ feelings of gratitude positively affect customers’ purchase intentions.

H3: Customers’ gratitude-based reciprocal behaviors positively affect seller performance outcomes.

The authors also observe that in the course of their relations, sellers and customers become involved in several reciprocation cycles, from where customers continue to build their confidence on the seller’s likelihood to continue acting in a certain way. On this, the authors hypothesize that:

H4: Customers’ (a) feelings of gratitude and (b) gratitude based reciprocal behaviors positively affect customer trust.

Lastly, the authors are of the opinion that a person’s level of gratefulness for the receipt of an item is often in direct proportion to their need for the said item. In that regard, therefore, a recipient’s gratitude is highest when the item received is greatly desired to satisfy an existing need. Towards this end, the authors hypothesize that:

H5: Gratitude for an RM investment increases as the customer’s perception of (a) the seller’s free will, (b) the benevolence of the seller’s motives for the investment, and (c) the risk to the seller in making the investment increases and (d) as the customer’s need for the benefit received increases.

Figure 1: Attempts to bring to the fore what role gratitude plays in relationship management. In this diagrammatical representation, the authors assess and examine how relationship management impacts performance and the role of gratitude in the entire mix which entails other factors such as commitment and trust.

Study 1

Overview: This first study, a laboratory experiment, makes use of a lab experiment in the context of B2C to set aside the impacts of gratitude feelings on the buying intentions of customers in the short-run. In seeking to assess the study’s results, the authors utilize both ANOVA and SEM. This mixed methodology approach, as the authors point out, lend support to their “investigation of both affective and behavioral aspects of gratitude, while recognizing the temporal differences between emotional and behavioral effects.”

Procedure for study 1: A total of 155 students took part in this experiment. Participants were randomly assigned 1 of a total of 8 scenario conditions which in essence sought to manipulate the perceptions of the participants with regard to stated hypotheses.

Measurement in study 1: In seeking to highlight the studied constructs, participants were in this case asked to respond “to a series of multi-item Likert measures on a seven-point scale, ranging from “strongly disagree” (1) to ‘strongly agree’ (7).”

Results of study 1: With regard to:

H1a – customer feelings of gratitude are positively impacted upon by investments in relationship management

H2 - support for this hypothesis is lent on the basis of the positive impact gratitude feelings amongst customers have on intentions to make a purchase

H4a – support is also lent to this particular hypothesis due to the fact that trust is affected positively by the gratitude feelings of customers

Table 2: Table 2 highlights the descriptive statistics and correlations of both studies. The square of correlations is in this case exceeded by the extracted average variance in study 1. In that regard, therefore, discriminant validity can be confirmed. Convergent validity is supported in study 2.

Table 3: Table 3 presents the hypothesis tests results for both the laboratory experiment and the dyadic longitudinal field survey. Also listed herein are the estimates of the structural path model. The parameters indicate that both the first and the second study’s structural models fit can be accepted.

Discussion of study: According to the authors, this particular study find out that gratitude feelings mediate the relationship management outlay’s impact on trust. The study, however, fails to “support a direct effect of RM investments on customer trust.” The authors also find out that the gratitude of customers is further enhanced by both their enhanced needs and the perceived benevolent acts of the seller.

Study 2

Procedure of study 2: The second study, a dyadic longitudinal field survey, involved rep firms offering for sale various products and services (industrial) and their customers in North America. Customer surveys conducted in this case were matched with each rep firm’s sales data.

Measurement in study 2: In this particular study, the authors conducted a CFA so as to conduct an evaluation of the construct’s psychometric properties.

Results of study 2: The field study results match the experimental study results. Essentially, H1b is supported in that reciprocal behaviors that are based on gratitude and relationship management investment exhibit positive relations. H3a and H3b are also supported in that sales growth, sales revenue, as well as wallet share are positively influenced by the reciprocal behaviors of customers that are based on gratitude. H4b is supported on the basis of customer trust being positively impacted upon by gratitude-based conduct of customers.

Discussion of study 2: In basic terms, the laboratory finding’s external validity is confirmed by Study 2 field survey. For this reason, as the authors point out, the findings of Study 1 are echoed by Study 2 results. In their own words, the authors observe that “the field study shows that gratitude-based reciprocal behaviors drive company performance outcomes, specifically, sales revenue, share of wallet, and sales growth.”

General discussion and implications: It is important to note that although quite a number of marketing studies have indicated that the reciprocation principle or process is of great relevance in relationship management, very few studies have attempted to integrate reciprocity into models of relationship management. The present study, as the authors note, “empirically demonstrates that both the affective and behavioral aspects of gratitude are important mechanisms for understanding how and why RM influences seller performance.”