Factors determining client loyalty to advertising agencies

The advertising agency-client relationship is an important element in maintaining client loyalty. In this regard, the study attempts to explain why a number of clients maintain loyal relationships with their advertising agencies. Loyalty in advertising agency-client relationship is generally determ...

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Main Authors: Bojei, Jamil, Lee, Phaik Ling
Format: Article
Language:English
Published: Universiti Putra Malaysia Press 2000
Online Access:http://psasir.upm.edu.my/id/eprint/3281/
http://psasir.upm.edu.my/id/eprint/3281/1/Factors_Detennining_Client_Loyalty_to_Advertising_Agencies.pdf
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author Bojei, Jamil
Lee, Phaik Ling
author_facet Bojei, Jamil
Lee, Phaik Ling
author_sort Bojei, Jamil
building UPM Institutional Repository
collection Online Access
description The advertising agency-client relationship is an important element in maintaining client loyalty. In this regard, the study attempts to explain why a number of clients maintain loyal relationships with their advertising agencies. Loyalty in advertising agency-client relationship is generally determined by such factors as the business environment in which they operate, organizational structure, well developed general policies, compatible interpersonal characteristics, actual account performance, positive attitudes towards suppliers and effective processes involving suppliers. For the study, both telephone interviews and self-administrated questionnaires were used to collect the data. The respondents consisted of personnel within client organizations who are knowledgeable about advertising practices. A final sample of 133 respondents was obtained from the Klang Valley area to represent the advertising industry. The data was analysed using Univariate Descriptive Analysis and Factor Analysis. Descriptive Analysis gave the overall picture about the study. For the factor analysis, 16 factors were extracted that illustrate the advertising agency-client relationship contributing 72.05% of the variance explained, with Cronbach alpha of 0.909 (90.9%), showing the items used were highly reliable. The 16 factors obtained have a good explanatory power with respect to agency-client loyalty which includes performance oriented partnership, client control and agency leadership, formally structured organization, client centereness and market stability, agency management competency,centralized authority, mutuality of interest, compatibility, conflict resolution and co-operation, creativity, interdependence,co-ordination and specialization, low competition and technological change, matured product, continuity and conformity of norms, absence of erratic changes in strategies and objectives, and strong commitment.
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spelling upm-32812015-09-10T08:55:02Z http://psasir.upm.edu.my/id/eprint/3281/ Factors determining client loyalty to advertising agencies Bojei, Jamil Lee, Phaik Ling The advertising agency-client relationship is an important element in maintaining client loyalty. In this regard, the study attempts to explain why a number of clients maintain loyal relationships with their advertising agencies. Loyalty in advertising agency-client relationship is generally determined by such factors as the business environment in which they operate, organizational structure, well developed general policies, compatible interpersonal characteristics, actual account performance, positive attitudes towards suppliers and effective processes involving suppliers. For the study, both telephone interviews and self-administrated questionnaires were used to collect the data. The respondents consisted of personnel within client organizations who are knowledgeable about advertising practices. A final sample of 133 respondents was obtained from the Klang Valley area to represent the advertising industry. The data was analysed using Univariate Descriptive Analysis and Factor Analysis. Descriptive Analysis gave the overall picture about the study. For the factor analysis, 16 factors were extracted that illustrate the advertising agency-client relationship contributing 72.05% of the variance explained, with Cronbach alpha of 0.909 (90.9%), showing the items used were highly reliable. The 16 factors obtained have a good explanatory power with respect to agency-client loyalty which includes performance oriented partnership, client control and agency leadership, formally structured organization, client centereness and market stability, agency management competency,centralized authority, mutuality of interest, compatibility, conflict resolution and co-operation, creativity, interdependence,co-ordination and specialization, low competition and technological change, matured product, continuity and conformity of norms, absence of erratic changes in strategies and objectives, and strong commitment. Universiti Putra Malaysia Press 2000-03 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/3281/1/Factors_Detennining_Client_Loyalty_to_Advertising_Agencies.pdf Bojei, Jamil and Lee, Phaik Ling (2000) Factors determining client loyalty to advertising agencies. Pertanika Journal of Social Sciences & Humanities, 8 (1). pp. 27-43. ISSN 0128-7702; ESSN: 2231-8534 http://www.pertanika.upm.edu.my/view_archives.php?journal=JSSH-8-1-3
spellingShingle Bojei, Jamil
Lee, Phaik Ling
Factors determining client loyalty to advertising agencies
title Factors determining client loyalty to advertising agencies
title_full Factors determining client loyalty to advertising agencies
title_fullStr Factors determining client loyalty to advertising agencies
title_full_unstemmed Factors determining client loyalty to advertising agencies
title_short Factors determining client loyalty to advertising agencies
title_sort factors determining client loyalty to advertising agencies
url http://psasir.upm.edu.my/id/eprint/3281/
http://psasir.upm.edu.my/id/eprint/3281/
http://psasir.upm.edu.my/id/eprint/3281/1/Factors_Detennining_Client_Loyalty_to_Advertising_Agencies.pdf