Interactions and on‐going relationships are crucial for organizations to create satisfactory value propositions for customers and meet their evolving needs. Understanding the behavioural and temporal aspects of value creation from a customer's perspective is crucial as customer perceived value (CPV) is dynamic and contextual, and evolves over time. This enables firms to develop value laden offerings and bind customers through interdependent relationships. This paper aims to focus on these issues.
Extant literature review on CPV and relationship marketing (RM) reveals the behavioural and temporal aspects of relationship building and the role of CPV in generating desirable relationship outcomes.
A conceptual model explains how components of CPV, episodal value can be transformed into total relationship value mediated by satisfaction, value added services, loyalty, commitment, trust and relationship quality.
The model describes changing customer expectations and how sellers can create value as exchanges mature into relations, but it does not include empirical testing of the model, which would validate the effectiveness of the proposed model.
Meeting customer needs through relation specific investments by suppliers creates value for customers and develops interdependent relationships. Such relationships are long lasting and benefit both parties.
Based on extant literature review and combining emerging paradigms enables theory generation centred on customer's perspective. This not only ensures organization profitability, but also provides higher returns on customer equity.
