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.