How Relationship Age Moderates Loyalty Formation: The Increasing Effect of Relational Equity on Customer Loyalty

In this article, the authors focus on the concept of relational equity, that is, the customer perception of distributive justice within a continuous customer-provider relationship. The authors investigate the influences of relational equity on attitudinal loyalty and behavioral loyalty. Moreover, they test the hypothesis that relationship age moderates the impact of relational equity on loyalty, adopting a cross-sectional design and data from a sample of Italian customers of mobile phone services (N = 461). Relational equity is recognized as a significant determinant of customer loyalty over and above satisfaction and trust effects, and its influence increases along with relationship age. From a managerial point of view, results suggest that loyalty programs should be tailored according to the age of the relationship. Moreover, particular care should be devoted to monitoring perceived relational equity, especially in longer-term relationships.