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The purpose of this study is to investigate the roleof customer values in building customer relationships with regard to the urbanfactor. This paper seeks to empirically explain how the urban factor affectscustomer preferences as the differences between customers from urban centresand those from the peripheries are still notable despite globalization andcultural levelling. The article presents a theoretical framework explaining the role ofcustomer value in building customer relationship. In this sense, customer valuefollows the general rules stipulating the business-customer relationship andincludes steps such as trust building, commitment, satisfaction and loyalty.After grounding the theoretical construct, it is tested using a data set of 364customers across Lithuania. Exhaustive CHAID (Chi-squared Automatic InteractionDetector) is used for model testing and re-classification. Theresults from this study report that there are statistically significantdifferences between customers’ preferences in urban centres and in the periphery.The decision made by the customer to stay loyal to a business has a certainlogical dependency. For customers in urban centres, functional value needs tobe supplemented by emotional value. Only such a composition of valuesencourages them to remain loyal to the business. On the other hand, customerloyalty in the periphery is determined by high trust in business, customercommitment and perceived social value. Thevalue of this paper lies in its original theoretical construct where customer valueand customer relationship have an effect on customer loyalty, as well as intesting this construct in relation to the urban factor. Additionally, researchimplications suggest that the findings may be important for business practiceand business studies.

An integration of customer value and customer relationship in urban centres and peripheries