Abstract
1- Introduction
2- Literature review
3- Research design
4- Analysis and results
5- Discussion of findings
6- Implications
7- Limitations and future research directions
Reference
Abstract
Purpose - This paper aims to determine the dimensions of service quality of advertising agencies and their effects on relationship quality between an advertising agency and their clients through the social and economic exchange.
Design/methodology/approach - The intention was to target firms which use the services of an advertising or marketing solutions agency; hence, participants were recruited from a business database service providing details for key decision makers in Australia and New Zealand. An online survey was used in this study.
Findings - Creative competence, project management processes and project outcome influenced relationship quality through value and interpersonal relationships. However, only creativity had a significant direct relationship with relationship quality.
Practical implications - Although creativity plays a major role in relationship development, agencies must have efficient and effective project management processes in place to ensure successful project completion within timeline and budget to be able to maintain ongoing relationships with their clients.
Originality/value - The research draws upon literature from three key disciplines, service quality, relationship marketing and project management, to address the gaps in the current literature related to customer relationship management in the B2B client–agency context.
Introduction
The client–advertising agency relationship is an area where relationship management is highly relevant and easily applicable because of the ongoing and highly interactive nature of the service provision (Keegan et al., 2017). The advertising industry is facing challenges making an investigation of the precursors to client loyalty in the current context timely. In addition, the advertising industry has reached maturity with low barriers to entry for new entrants (Levin et al., 2016). Agencies are operating in a fragmented and challenging media environment with clients seeking maximum return on the investment. This, in turn, has led many advertising agencies to reconsider their business models as well as service offerings. Previous research undertaken to investigate the client– advertising agency relationship can be categorised into two groups. The first group consists of studies focussed on the key drivers of relationship performance such as satisfaction, the value of the exchange and structural factors associated with longevity (Turnbull and Wheeler, 2016). The second group focuses on dissatisfaction and factors that precipitate switching behaviour and reasons for termination of relationships (Vafeas et al., 2016). However, Caceres and Paparoidamis (2007) claim that the determinants of relational exchange in the business environment remain unclear. There has been renewed interest in this topic among academic marketing researchers (Nyilasy et al., 2013). Service providers are primarily evaluated on two aspects of performance: the technical benefits or core services which they provide and processes, or how the service was delivered. In the advertising industry, the core service relates to creative and strategic thinking, whilst the processes can be classified as project management, especially when one adopts Turner’s (1996) definition of project management as “the art and science of turning a vision into reality” (p. 6).