Abstract:
Customer value has been recognized in marketing literature for the last three decades as vital to marketing organizations; however, factors that contribute to customer perceived value have not been adequately addressed. The purpose of this study was to investigate the moderating effect of customer involvement on the relationship between relational marketing strategies and customer‘s
perceived value. The study was guided by four specific objectives: establish the relationship between financial bonds and customer value; establish the relationship between social bonds and customer value; establish the relationship between structural bonds and customer value and assess the moderating effect of customer involvement on the relationship between relational marketing strategies and customer value. Social exchange theory and social control theory
grounded the study. Target population of the study comprised 43 commercial banks operating in Nairobi, Kenya. The respondents were commercial banks retail customers. Stratified random sampling was employed to determine the sample size. The study employed explanatory research design. A questionnaire was used to collect data from 300 respondents. Data was analyzed by use of descriptive and inferential statistics; specifically regression and moderated regressions
were used to test the hypotheses. The results revealed that financial bonds significantly influence perceived customer value. Social bonds were also found to significantly influence perceived customer value. Structural bonds however, were found not to be significantly associated with perceived customer value. Customer involvement was found to be a positive moderator in the relationship between financial bonds and perceived customer value. Likewise customer involvement was also found to positively moderate the relationship between social bonds and
perceived customer value. Furthermore customer involvement was found to positively moderate the relationship between structural bonds and perceived customer value. The study recommends that commercial banks should identify critical financial and social bonds which can help in creating sustainable perceived customer value. The study further recommends that commercial
banks should involve customers in deciding relational marketing strategies beneficial to both parties. This study provides new theoretical insight into factors influencing customer perceived value by incorporating customer involvement as a moderator in the relationship between relational marketing strategies and customer perceived value. The study suggests that future researchers can investigate the phenomenon of customer value in a different industry.
