Wong and Zhou (2006:91) argue that customers commit to a relationship with a service provider when they perceive the relationship will add value. In other words, when customers receive more value and satisfaction from the relationship, they will commit to the service provider. Consequently, committed customers will reciprocate the relationship based on the benefits they have received in the past. Customers may seek to enter into a relationship with the service provider for various reasons. When there is high perception of risk, a relationship can help to reduce risk when customers feel their status may be enhanced, or when customers feel their social needs can be facilitated by entering into a relationship with their service provider (Buttle, 2004:26-27). Additionally, Zillifro and Morais (2004:162) suggest that when customers value their relationship with the service provider, they are willing to make sacrifices towards the relationship to maintain the long-term benefits. These sacrifices include relinquishing discounts, and the convenience or accessibility of increased product alternatives offered by competitors. However, to commit to a single service provider requires vulnerability, since customers are making an investment without knowing if they will receive fair rewards.
In order for a customer to build a long-lasting relationship with the service provider, the psychological and behavioural dimension is required. The psychological dimension refers to the level of emotional attachment that the customer has towards the service provider, as well as his or her present attitude towards and trust in the service provider. It also includes the level of preference for the existing service provider, and a desire to continue the relationship on a long-term basis (Sharma, Young & Wilkinson, 2004:65). For a customer to commit to a long-term relationship with the service provider, an instant situation is not ideal. It is a process which develops over a period of time. This process is characterised by five general phases. The following phases of building long- term relationships with customers have been identified: (1) awareness; (2) exploration; (3) expansion; (4) trust; and (5) relationship (Wetzels, Ruyter & Birgelen, 1998:407).
4.3.1 Awareness
Awareness occurs when a customer starts to take notice of the products and services of the service provider (Wetzels et al., 1998:407. Potential partners are conscious of each other. Exchange partners may strive to increase their attractiveness in this stage (Carsons, 2006:15). Cant et al. (2002:223-224) stipulate that customers cannot buy a product unless they are aware of its existence. Service providers can create brand awareness through promotional strategies such as attractive price discount signs, shelf positioning billboards and advertisements. A high level of the service awareness is important to influence decision-making.
4.3.2 Exploration
Buttle (2004:14) explains that exploration involves investigation and testing during which the service provider and the customer explore each other’s capabilities and performance. A customer will engage in trial purchasing, and if he is not satisfied with the service provider, he will be most likely to terminate the relationship with as little costs as possible. However, if satisfied with the service provider, the relationship will continue to the next phase, which is expansion. The exploration phase is characterised by attraction, communication, bargaining and the development of norm and shared values.
4.3.3 Expansion
Expansion occurs when the benefits received from the relationship increase, and therefore in increasing customer interdependency towards the cellphone service provider, more exchange takes place and trust begins to develop (Wetzels et al., 1998:407). Customers in this phase develop feelings, likes and dislikes about the service provider. Exchange partners’ feelings towards each other are strong and positive. Termination of a relationship is often not easy, because resources have already been invested into the relationship (Carson, 2006:18).
4.3.4 Trust
The customer develops a trust towards the service provider, and if he is satisfied with the relationship, it can result in a customer taking more in order to maintain the existing relationship (Wetzels et al., 1998:408). Trust is the building block of a successful relationship. When a customer develops trust towards the service provider, he expects the service provider to keep his promises. As a result, customers will gain more confidence towards the service provider’s ability to keep promises in the future (Palmatier, 2008:77). Additionally, Gounaris (2005:129) further states that when customers are satisfied with the service provider’s past performance, they are more likely to trust the service provider. This means they can trust the service provider for future performance. The service provider’s reputation and investment into the relationship play a major role in influencing the development of trust.
4.3.5 Commitment
The last phase involves the process where the customer forms a bond with the service provider. They are both willing to commit to the relationship (Wetzels, 1998:408). The customer and service provider develop a mutual understanding of roles and goals. Commitment will arise from shared values, and the belief that it will be difficult to replace an existing partner. Commitment motivates exchange partners to cooperate in order to protect the relationship. However, not all relationships reach the commitment phase. The customer may terminate a relationship for various reasons such as repeated service failures and a change in product requirements (Buttle, 2004:14-15). It is therefore important to explore the components of building long-term relationships with customers in order to have a broader understanding of the nature of customer commitment.