Made for each other? Psychological contracts
and service brands evaluations
Russel P.J. Kingshott
School of Marketing, Curtin University, Perth, Australia
Sanjaya Singh Gaur
Division of Programs in Business, School of Continuing and Professional Studies, New York University, New York, New York, USA
Piyush Sharma
School of Marketing, Curtin University, Perth, Australia
Sheau Fen Yap
Department of Marketing, Auckland University of Technology, Auckland, New Zealand, and
Yekaterina Kucherenko
EvolutionFX, Auckland, New Zealand
Abstract
Purpose – This paper aims to investigate the individual and combined effects of three types of psychological contracts between customers and
service employees (i.e. transactional, relational and communal), resulting from the service organizations’ relational marketing efforts, on their
customers’ service brand evaluations in terms of their satisfaction, trust and commitment toward the brand.
Design/methodology/approach – This study uses a field-survey of 303 regular customers of beauty salons and hairdressers in Auckland, New Zealand.
All the constructs were measured using adapted versions of well-established scales and data was analyzed using SmartPLS due to the relatively smaller
sample size and the primary research objective being the prediction of the three outcome variables (i.e. satisfaction, trust and commitment).
Findings – Transactional and relational contracts have a negative and positive impact, respectively, upon communal contracts. Communal contracts
mediate the impact of transactional and relational contracts on trust and commitment but not on satisfaction. Trust also mediates the relationship
between satisfaction and commitment.
Research limitations/implications – This paper collected data from female customers of beauty salons and hairdressers in New Zealand, which
may affect the generalizability of the results.
Practical implications – This study provides practical insights into the differences in the roles of psychological contracts between the customers
and service employees, which may help managers in service firms improve their customer relationship outcomes.
Originality/value – This paper extends the relationship and services marketing literature to reveal the individual and combined effects of the three
types of psychological contracts on customer satisfaction, trust and commitment toward their service brand.
Keywords Relationship marketing, Trust, Commitment, Frontline service employees
Paper type Research paper
Introduction
In service settings, relationship marketing (RM) success is
contingent upon understanding and responding to customer
expectations (Bitner, 1995; Grönroos, 2017). While expectation
fulfillment to the satisfaction of the customer underpins the
building of loyal customers (Olsen and Johnson, 2003), the
underlying pretext is that service firms know the specific nature of
their customer’s expectations. Typically, managers have been
able to draw on the Gaps model (Zeithaml et al., 1993) to help
them align the service entities’ understanding of what the
customer expects (i.e. Gap 1). However, as many customer
expectations are also a function of explicit and implicit promises
made by the firm (Zeithaml et al., 1993), this potentially means
service firm may be unaware of some of the promises made to the
customer. To help understand and articulate the range of
potential promises made by one party to another, the literature
has recognized these promises represent terms of psychological
contracts (PCs) that the promisor has made with the recipient.
Typically, studies elsewhere have shown their formation
plays an important role in helping shape overall relationships
(Finch et al., 2015; Funches, 2016; Kingshott et al., 2020;
Kingshott and Pecotich, 2007; Llewellyn, 2001; Malhotra
et al., 2017; Pavlou and Gefen, 2005; Rousseau, 2016) but
those in the services domain showing how PCs affects
relationships with the customer are somewhat scant. As service
relationships comprise the need to fulfill both implicit and
The current issue and full text archive of this journal is available on Emerald
Insight at: https://www.emerald.com/insight/0887-6045.htm
Journal of Services Marketing
© Emerald Publishing Limited [ISSN 0887-6045]
[DOI 10.1108/JSM-01-2020-0002]
Received 3 January 2020
Revised 26 May 2020
Accepted 9 July 2020