Developing a model of tolerance in client–agency relationships in advertising

Due to a number of relationship factors, clients can behave very differently towards their advertising agencies when exposed to similar levels of service quality. With service quality embedded in relationships, agencies need to gauge the value of their relationships with their clients. Accordingly, we present a model for predicting client tolerance. We determine client tolerance by the extent to which clients respond proportionately to their critical service quality incidents. The model indicates how perceptions of the relationship, in terms of expectations of the future value of exchange, serve to support (weaken) norms of equity and improve (reduce) tolerance. Independent factors associated with equity in the model are tested to explain tolerance. Factors found to discriminate between tolerant and intolerant groups comprise relationship value or strength based on performance attraction, experience, beliefs about relationships, and environmental context. Extensions to the model incorporate agency tolerance and relationship dynamics.