Research Article

The Impact of Price Discount, Product Complementarity and Relational Investment on Customer Loyalty: Empirical Evidence from China’s Telecommunications Industry

Jing Jiang, Ting-Jui Chou and Xiaobo Tao

This study attempts to examine the impact of bundling on customer loyalty from a relational perspective. Based on the investment model, we propose an integrated model incorporating price discount, product complementarity and relational investment in the bundling-loyalty process. The model is tested with the consumer dataset provided by China Telecom. By controlling for age, gender, commitment to values and prior spending records, the findings confirms a moderated mediation model in that either price discount or product complementarity elicits an indirect and positive impact on customer loyalty via relational investment. However, with higher levels of complementarity of bundle components, the effect of price discounts on customer loyalty are attenuated. Theoretical contributions and managerial implications are also discussed.

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Jing Jiang, Ting-Jui Chou and Xiaobo Tao, 2011. The Impact of Price Discount, Product Complementarity and Relational Investment on Customer Loyalty: Empirical Evidence from China’s Telecommunications Industry. Asian Journal of Marketing, 5: 1-16.

DOI: 10.3923/ajm.2011.1.16

URL: https://scialert.net/abstract/?doi=ajm.2011.1.16

Asian Journal of Marketing

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Authors

Jing Jiang

Ting-Jui Chou

Xiaobo Tao

Keywords

Research Article

The Impact of Price Discount, Product Complementarity and Relational Investment on Customer Loyalty: Empirical Evidence from China’s Telecommunications Industry

How to cite this article

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