Standardized vs. customized firm-initiated interactions: Their effect on customer gratitude and performance in a B2B context

Abstract

This study examines preferential treatment and its effect on customer gratitude and customer outcomes in the B2B context. Drawing on social exchange theory, the paper investigates to what extent different categories of firm-initiated interactions (standardized and customized) have an impact on customer gratitude and relationship strength, and on other transactional and non-transactional customer outcomes (profitability and word-of-mouth). A dynamic panel data estimation was developed based on a random sample of 2,175 customers from 2013 to 2017 provided by a multinational B2B insurance company. The results indicate that standardized interactions, as opposed to customized interactions, have no influence on customer gratitude, profitability, or word-of-mouth. Moreover, customer gratitude affects relationship strength, which in turn affects profitability and word-of-mouth. These findings emphasize the importance of determining the effect of different types of firm–customer interactions on transactional and non-transactional behaviors. This is crucial for practitioners because it enables them to adjust commercial resources more efficiently.