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Fixed-term contracts : a relevant tool in customer relationship strategies
[Le contrat d’engagement de durée : un dispositif pertinent dans une stratégie relationnelle]

Author

Listed:
  • Eric Julienne

    (LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - EESC-GEM Grenoble Ecole de Management - UEVE - Université d'Évry-Val-d'Essonne - TEM - Télécom Ecole de Management, UEVE - Université d'Évry-Val-d'Essonne)

Abstract

Fixed-term contracts are designed to control customers' behavioral loyalty, but they are not without risk. On the one hand, customers may be reluctant to engage in the long term. On the other hand, being locked into a contract is likely to exacerbate the deterioration of relationship quality when an incident occurs. The experiment in this research aims to better understand these phenomena. It indicates that there is customer resistance to long term contractual relationships. This should encourage brands to segment customers according to their tendency to resist to long term contracts. In addition, the study shows that, contrary to our expectations, fixed-term contracts are not inherently harmful to relationship quality.

Suggested Citation

  • Eric Julienne, 2015. "Fixed-term contracts : a relevant tool in customer relationship strategies [Le contrat d’engagement de durée : un dispositif pertinent dans une stratégie relationnelle]," Grenoble Ecole de Management (Post-Print) hal-02310423, HAL.
    • Handle: RePEc:hal:gemptp:hal-02310423
    DOI: 10.7193/DM.078.113.129
    as

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