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To cite this document: Jrgen Kai-Uwe Brock, Josephine Yu Zhou, (2012),"Customer intimacy", Journal of Business & Industrial
Marketing, Vol. 27 Iss: 5 pp. 370 - 383
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Customer intimacy
Jurgen Kai-Uwe Brock
Department of Marketing, University of Strathclyde, Glasgow, UK, and
Josephine Yu Zhou
International University of Applied Sciences Bad Honnef Bonn, Bad Reichenhall, Germany
Abstract
Purpose The term customer intimacy has been used both in academia and business, albeit lacking clear definition and empirical validation. The
authors in this paper aim to develop a measure of customer intimacy in business-to-business contexts and to assess its reliability and validity, as well as
its relevance, within a nomological relationship marketing network.
Design/methodology/approach A multi-method (qualitative/exploratory and quantitative/confirmatory structural modelling), multi-staged (test,
re-test) research approach is used and applied in the UK and Germany.
Findings The results show that customer intimacy is a second order construct reflected by the three formative dimensions of mutual understanding,
closeness, and value perception. The results also show that customer intimacy is a relevant relationship indicator, distinct from the central relationship
indicators of trust and commitment. It impacts relationship commitment levels, customer induced word-of-mouth, repurchase intentions, information
disclosure, customer availability, and leads to an advisor status with the customer. Moreover, customer intimacy mediates relationship marketings
central trust commitment link.
Research limitations/implications The main limitations that should be addressed by future studies are: reliance on the key informant technique on
one side of the supplier-buyer dyad; cross-sectional design.
Practical implications This study shows that achieving and managing customer intimacy is a relevant managerial goal and task for firms and shows
managers how it can be measured and managed.
Originality/value. This study, for the first time, presents a measure for customer intimacy and assesses its quality and impact empirically. The
measure will be of significant value in making customer-centric, relationship management approaches more accountable.
Keywords Customer intimacy, Relationship marketing, Trust, Commitment, Business-to-business marketing, Customer orientation, United Kingdom,
Germany
Paper type Research paper
1. Introduction
Four out of ten CEOs believe that customer intimacy will provide the greatest
opportunity for revenue growth . . . (IBM, 2004, p. 20).
The current issue and full text archive of this journal is available at
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370
Customer intimacy
2. Perspectives on intimacy
Customer intimacy
H2a.
H2b.
H2c.
H2d.
H2e.
H4.
H5.
H6.
Customer intimacy
5. Results
5.1 Phase 1: exploratory interviews with experts and
customers
Overall, the thematic categories (Miles and Huberman, 1994)
that emerged supported and helped to further elaborate our
working definition of customer intimacy, especially by
specifying its dimensions. Table I lists some exemplary
statements.
All three dimensions of customer intimacy synthesized from
the literature featured in the recorded statements, lending
support to our initial, rather expansive working definition. It
also shows that the purely affect-based conceptualization of
intimacy by Yim and colleagues (2008) reflects only a partial
aspect of what customer intimacy might actually be.
The perception of the two dimensions value and closeness
revealed some specific insights. The dimension value, as
exemplified for example by the quote of Peter, should not only
refer to economic value, but also other aspects of value such
as emotional value. This substantiates previous arguments
stating that affective value is also an important aspect of value
perception (Woodall, 2003). Thus, value takes a more holistic
meaning and its subsequent operationalization needed to
reflect this. Details concerning the dimension closeness
turned out to be rather controversial. Although it featured
in quite a few statements, various interviewees considered it
vital that the relationship be of a personal or even private
nature to be considered close. Others explicitly, and
unprompted, opposed such a view, as can be seen in
Michaels quote. As a consequence of the mixed picture that
emerged, we included an item that represents the existence of
personal relationships, but left that part of the definition of
customer intimacy unchanged. With regards to the overall
nature of closeness a more consistent picture emerged.
Respondents viewed it as a representation of numerous direct
and personal contacts between the supplier and the customer,
at different levels, and with a sense of commonality or as
Robert puts is a friendly/friendship type. The remaining
dimension, mutual understanding, was seen very similar by all
respondents. They stressed the importance of understanding
to reflect more than mere customer knowledge (e.g. see
comments by Steve and Robert in Table I) and they all listed a
variety of attributes they considered vital for mutual
understanding to be of key relevance. Reflecting those
insights we kept the working definition of customer intimacy
unchanged and detailed its dimensions (see Appendix 2,
Table AII).
The second goal of research phase one was to generate
indicators of customer intimacy by asking interviewees what
they would consider to be indications of customer intimacy.
The interviews led to an initial set of 57 indicators for
customer intimacy and its dimensions, which was further
amended by potentially fitting indicators from the literature.
Each indicator was subsequently rated by a group of
academics and practitioners in terms of construct fit,
dimension fit, and clarity in wording. Only indicators that
Customer intimacy
Sample
Statement
Thematic category
Carl
Consultant
Closeness value
Marian
Manager
Mike
Manager
Steve
Academic
Peter
Academic
Paul
Academic
Michael
Customer
Robert
Customer
Customer intimacy is a term that refers to a close relationship, in which both parties to
the relationship take value out of it
. . . being capable to understand the customers problems and able to select the right
values for the customer
An especially intensive, personal customer relationship beyond the business
relationship . . .
Customer intimacy is about understanding the customer, not just knowing the customer
. . . It is about understanding what a customer really wants . . . This is often different to
what a customer says . . .
Customer intimacy is an on-going business relationship characterized by mutually
perceived economic value, customer perceived emotional value and customer perceived
associative value
State of being in a very private, personal relationship, which involves more than the
dyad
Customer intimacy refers to a good relationship and partnership with a customer based
on mutual understanding and closeness . . . a personal relationship is not so important
Customer intimacy . . . is hard to define by words. You feel it. It is a relationship
characterized by a less official nature, more a friendly/friendship type, less distant. It is
about customer needs understanding, knowing and thinking like the customer . . . It is a
desirable state
Understanding value
Closeness
Understanding
Value
Closeness
Understanding closeness
Closeness understanding
Customer intimacy
Customer intimacy
Construct/items *, dimensions
Trust
Item 1
Item 2
Item 3
Item 4
Item 5
Item 6
Commitment
Item 1
Item 2
Item 3
Item 4
Repurchase intention
Item 1
Item 2
Customer intimacy
Mutual understanding
(test: R2 0.56; re-test: R2 0.56)
Closeness
(rest: R2 0.50; re-test: R2 0.50)
Value perception
(test: R2 0.67; re-test: R2 0.79)
Composite reliability
Test
Re-test
(n 5 141)
(n 5 100)
0.924
0.884
0.875
0.877
AVE
0.904
0.848
Test
(n 5 141)
Re-test
(n 5 100)
0.669
0.613
0.657
0.868
0.777
0.902
0.703
Test
(n 5 141)
Loadings
Re-test
(n 5 100)
Loadings
0.803
0.805
0.892
0.819
0.778
0.789
(26.169)
(21.984)
(59.065)
(25.846)
(22.242)
(19.821)
0.777
0.673
0.828
0.775
0.814
0.846
(17.655)
(9.115)
(25.678)
(14.754)
(22.614)
(26.471)
0.830
0.803
0.698
0.899
(23.552)
(19.231)
(11.231)
(56.681)
0.894
0.842
0.517
0.755
(36.466)
(19.193)
(4.843)
(11.940)
0.860
0.899
(20.999)
(31.528)
0.863
0.886
(17.855)
(34.125)
0.817
(22.574)
0.775
(17.686)
0.845
(25.039)
0.897
(39.876)
0.853
(45.991)
0.932
(71.465)
0.590
0.767
0.755
Sample
Dimension
Test
Mutual understanding
Closeness
Value perception
Mutual understanding
Closeness
Value perception
Re-test
Correlations to dimension
loadings
MU
CL
VP
MU
CL
VP
MU
CL
VP
0.817
0.632
0.514
0.775
0.493
0.606
0.845
0.535
0.853
0.897
0.787
0.932
Customer intimacy
Construct
Hypothesis
Test
Trust
Commitment
Customer intimacy
Trust
Commitment
Customer intimacy
H2a supported
H2b supported
Re-test
0.669
0.387
0.517
0.613
0.488
0.488
Tr.
Co.
C.i.
Tr.
Co.
C.i.
H2a supported
H2b supported
C.i.
0.657
0.410
0.703
0.590
0.423
0.755
Path
Hypothesis
4.7605
0.280
0.606
0.405
0.246
0.423
(5.844)
0.513
(5.809)
0.388
(5.891)
0.282
(3.038)
0.639
0.583
(13.106)
(10.949)
Sobel test:
( p 0.000)
(4.022)
(13.226)
(5.464)
(2.539)
377
0.664
0.623
3.0602
0.177
0.511
0.623
0.210
(11.740)
(8.899)
Sobel test:
( p 0.002)
(2.450)
(6.341)
(10.326)
(2.112)
2c
2d
Supported
Supported
2e
3
4
5
6
7
(ex post)
8
(ex post)
Supported
Supported
Supported
Supported
Supported
Supported
Supported
Customer intimacy
6. Discussion
Academics and practitioners alike promote the focus on
relational rather than transactional economic exchanges. One
relationship attribute characteristic of a relational rather than
transactional exchange is customer intimacy. Although its idea
featured implicitly since relationship marketing emerged in
the 1980s (e.g. Dwyer et al., 1987) and explicitly since Treacy
and Wiersema (1993) coined the term over 15 years ago, no
rigorous conceptualization and empirical assessment exists to
date. This research extends the relationship marketing
literature by conceptualizing, measuring, and assessing
customer intimacy. Several of our findings offer important
theoretical and managerial implications.
6.1 Contributions to theory
With regards to theoretical contributions we see four key
implications of our findings.
First and foremost, the results of this study support the
notion that customer intimacy is important and a distinct
relationship attribute. It positively impacts relationship
commitment levels, behavioural loyalty/ repurchase
intentions, customer availability, advisor status, and,
customer induced WOM. As such, we add a new and
relevant relationship marketing construct to the literature,
thereby addressing Palmatiers recent call (Palmatier et al.,
2008) for additional relationship attributes that can account
for relationship marketings effect on performance beyond
established measures such as commitment and trust.
Second, the findings suggest that the group of key relational
mediators as synthesized by Palmatier and colleagues
(Palmatier et al., 2006) is itself composed of at least one
intra-group mediator. Customer intimacy mediates the trust
commitment path. This is an interesting observation that not
only details relationship marketing theory and its central
trust-commitment path further, but it also might help to
explain some findings of the past. For example, Doney and
Cannon (1997) found that trust often operates as an order
qualifier not an order winner. Trust levels failed to direct
impact current supplier choice in their study. Given the found
role of customer intimacy in this study we surmise that the
trust supplier choice link might be mediated by customer
Customer intimacy
Notes
1 The exploratory, unrotated factor analysis of all survey
variables did not reveal one general factor (10 factors with
eigenvalues over 1). Comparison of the standardized
parameter estimates in a constrained full-information
structural model (Podsakoff et al., 2003) when common
method variance was and was not controlled for revealed
that construct relationships were unaffected.
2 E.g. six factors with eigenvalues larger than one were
extracted with nearly half of the items exhibiting high
cross-loadings on at least two factors.
3 The dimensions in a type III second order construct
should correlate significantly, because they collectively
reflect the higher order factor. Only if the dimensions
cause the higher order factor i.e. a type II or IV
construct according to the Jarvis, Mackenzie, and
Podsakoff 2003 taxonomy is a correlation across the
dimensions not required. Yet too strong a correlation
between the dimensions constitutes a conceptual
violation, because this would signal uni-dimensionality
and a multidimensional construct conceptualization
should be abandoned. To the best of our knowledge no
cut-off points for interdimensional correlations have been
established. We suspect correlations in the range of 0.4 to
0.8 (12 percent-64 percent explained variance) to be
indicative of dimensions reflecting a second order factor.
4 We also conducted a separate confirmatory factor analysis
with the three focal constructs customer intimacy, trust,
and commitment using the PLS-derived latent variable
scores for the three customer intimacy dimensions as
manifest variables. The model was estimated using the
maximum likelihood method. The results indicated
acceptable model fit considering the small sample size
with less than 200 cases (e.g., Bentler and Yuan, 1999):
x2 1.93;
GFI 0.88;
AGFI 0.82;
Normed
CFI 0.94; RMSEA 0.08; NFI 0.89; IFI 0.95;
TLI 0.93.
5 We analyzed all hypothesized outcome variables of
customer intimacy also at the level of its constituting
dimensions for both the original and the re-test sample.
Only in one of the ten tests did a dimensional assessment
lead to a significant increase in the explained variance of
the outcome variable (F-value 10.769, p.: 0.000; for
WOM). Since this increase occurred only in the original
sample and could not be repeated in the re-test sample we
conclude that the conceptualization and assessment of
customer intimacy as a multi-dimensional, second order
level is well justified.
Customer intimacy
References
Customer intimacy
Further reading
Desiraju, R. and Moorthy, S. (1997), Managing a
distribution channel under asymmetric information with
performance requirements, Management Science, Vol. 43
No. 12, pp. 1628-44.
Grayson, K. (2007), Friendship versus business in marketing
relationships, Journal of Marketing, Vol. 71 No. 4,
pp. 121-39.
Gremler, D.D. and Gwinner, K.P. (2000), Customeremployee rapport in service relationships, Journal of
Service Research, Vol. 3 No. 1, pp. 82-104.
Levitt, T. (1983), After the sale is over . . ., Harvard Business
Review, September-October, pp. 87-93.
Moorman, C., Zaltman, G. and Deshpande, R. (1992),
Relationships between providers and users of market
research, Journal of Marketing Research, Vol. 29 No. 3,
pp. 314-28.
Rindfleisch, A. and Moorman, C. (2001), The acquisition
and utilization of information in new product alliances,
Journal of Marketing, Vol. 65 No. 2, pp. 1-18.
381
Customer intimacy
Appendix 1
Table AI 5 Overview of construct items
Constructs, individual items, (source)
WOM (Word-of-mouth)c
Customer knowledged
Availabilityd
Advisor statusd
Share informationd
Customer intimacyd
Mutual understanding (items 1-4);
(t 5 test, rt 5 retest)
Notes: aSeven-point Likert scale; bSeven-point semantic differentials scale; c11-point scale; d Seven-point phrase completion scale
382
Customer intimacy
Appendix 2
Table AII 6 Definitions of customer intimacy dimensions
Mutual understanding
Closeness
Value perception
A customers perception of comprehending each other the sellers and the buyers firm on various attributes
relevant to the business relationship
A customers perception of the firm having extensive person-to-person contact with a supplier, at different
functional levels, characterized by open personal and working relationships
A customers perception of the firm deriving value from the relationship with the supplier, whereas value is
understood as rational, economic, as well as, emotional, felt advantages arising out of the relationship
383