Showing papers on "Relationship marketing published in 1998"

Customer Evaluations of Service Complaint Experiences: Implications for Relationship Marketing:

Abstract: Many companies consider investments in complaint handling as means of increasing customer commitment and building customer loyalty. Firms are not well informed, however, on how to deal successfully...

A Dynamic Model of the Duration of the Customer's Relationship with a Continuous Service Provider: The Role of Satisfaction

Abstract: Many service organizations have embraced relationship marketing with its focus on maximizing customer lifetime value. Recently, there has been considerable controversy about whether there is a link between customer satisfaction and retention. This research question is important to researchers who are attempting to understand how customers' assessments of services influence their subsequent behavior. However, it is equally vital to managers who require a better understanding of the relationship between satisfaction and the duration of the provider-customer relationship to identify specific actions that can increase retention and profitability in the long run. Since there is very little empirical evidence regarding this research question, this study develops and estimates a dynamic model of the duration of provider-customer relationship that focuses on the role of customer satisfaction. This article models the duration of the customer's relationship with an organization that delivers a continuously provided service, such as utilities, financial services, and telecommunications. In the model, the duration of the provider-customer relationship is postulated to depend on the customer's subjective expected value of the relationship, which he/she updates according to an anchoring and adjustment process. It is hypothesized that cumulative satisfaction serves as an anchor that is updated with new information obtained during service experiences. The model is estimated as a left-truncated, proportional hazards regression with cross-sectional and time series data describing cellular customers perceptions and behavior over a 22-month period. The results indicate that customer satisfaction ratings elicited prior to any decision to cancel or stay loyal to the provider are positively related to the duration of the relationship. The strength of the relationship between duration times and satisfaction levels depends on the length of customers' prior experience with the organization. Customers who have many months' experience with the organization weigh prior cumulative satisfaction more heavily and new information relatively less heavily. The duration of the service provider-customer relationship also depends on whether customers experienced service transactions or failures. The effects of perceived losses arising from transactions or service failures on duration times are directly weighed by prior satisfaction, creating contrast and assimilation effects. How can service organizations develop longer relationships with customers? Since customers weigh prior cumulative satisfaction heavily, organizations should focus on customers in the early stages of the relationship-if customers' experiences are not satisfactory, the relationship is likely to be very short. There is considerable heterogeneity across customers because some customers have a higher utility for the service than others. However, certain types of service encounters are potential relationship "landmines" because customers are highly sensitive to the costs/losses arising from interactions with service organizations and insensitive to the benefits/gains. Thus, incidence and quality of service encounters can be early indicators of whether an organization's relationship with a customer is flourishing or in jeopardy. Unfortunately, organizations with good prior service levels will suffer more when customers perceive that they have suffered a loss arising from a service encounter-due to the existence of contrast effects. However, experienced customers are less sensitive to such losses because they tend to weigh prior satisfaction levels heavily. By modeling the duration of the provider-customer relationship, it is possible to predict the revenue impact of service improvements in the same manner as other resource allocation decisions. The calculations in this article show that changes in customer satisfaction can have important financial implications for the organization because lifetime revenues from an individual customer depend on the duration of his/her relationship, as well as the dollar amount of his/her purchases across billing cycles. Satisfaction levels explain a substantial portion of explained variance in the durations of service provider-customer relationships across customers, comparable to the effect of price. Consequently, it is a popular misconception that organizations that focus on customer satisfaction are failing to manage customer retention. Rather, this article suggests that service organizations should be proactive and learn from customers before they defect by understanding their current satisfaction levels. Managers and researchers may have underestimated the importance of the link between customer satisfaction and retention because the relationship between satisfaction and duration times is very complex and difficult to detect without advanced statistical techniques.

A Communication-Based Marketing Model for Managing Relationships:

Abstract: The authors propose a communication-based model of relationship marketing and discuss how communication (rather than persuasion) is the foundation of the “new” customer-focused marketing efforts. T...

Antecedents and consequences of trust and satisfaction in buyer‐seller relationships

Abstract: The perspective of marketing has changed from regarding marketing as a series of independent transactions to a dynamic process of establishing, maintaining and enhancing relationships. In an emerging theory of relationship marketing, both trust and satisfaction are core concepts in understanding the dynamics of how relationships evolve. Although the literature has thoroughly examined both trust and satisfaction, the interrelationship between them, including their consequences and antecedents, has not yet been addressed properly. We propose that the development of buyer‐seller relationships can be understood as a sequence of decisions buyers make regarding whether they should enter a relationship, continue a relationship, or enhance the scope of a relationship. These are different kinds of decisions where satisfaction and trust are likely to play different roles in risk reductions depending on the nature of the decision to be made. In a study of institutional buyers of a food producer we find that satisfaction and trust are complementary in the sense that trust is a key variable when decisions are related to enhancement in scope of the relationship, whereas satisfaction is a key variable when the issue is relationship continuity.

Word of mouth: understanding and managing referral marketing

Abstract: Marketing practitioners and theorists routinely cite the power of the personal referral on customer behaviour. However, relatively few companies have tried to harness the power of word of mouth (WOM). Scholars have been pondering WOM over 2400 years, although modern marketing research into WOM started only relatively recently, in the post-war 1940s. WOM can be characterized by valence, focus, timing, solicitation and degree of management intervention. Most recent WOM research has been conducted from a customer-to-customer perspective, even though WOM is found in other contexts such as influence, employee and recruitment markets. Marketing research into WOM has attempted to answer two questions. What are the antecedents of WOM? What are the consequences of WOM? This paper integrates that research into a contingency model and attempts to identify researchable gaps in our knowledge.

Preventing the premature death of relationship marketing.

Abstract: Relationship marketing is in vogue. And why not? The new, increasingly efficient ways that companies have of understanding and responding to customers' needs and preferences seemingly allow them to build more meaningful connections with consumers than ever before. These connections promise to benefit the bottom line by reducing costs and increasing revenue. Unfortunately, a close look suggests that the relationships between companies and customers are troubled ones, at best. Companies may delight in learning more about their customers and in being able to provide features and services to please every possible palate. But customers delight in neither. In fact, customer satisfaction rates in the United States are at an all-time low, while complaints, boycotts, and other expressions of consumer discontent are on the rise. This mounting wave of unhappiness has yet to reach the bottom line. Sooner or later, however, corporate performance will suffer unless relationship marketing becomes what it is supposed to be--the epitome of customer orientation. Ironically, the very things that marketers are doing to build relationships with customers are often the things that are destroying those relationships. Relationship marketing is powerful in theory but troubled in practice. To prevent its premature death, marketers need to take the time to figure out how and why they are undermining their own best efforts, as well as how they can get things back on track.

The Role of Relationship Quality in the Stratification of Vendors as Perceived by Customers

Abstract: Companies implement preferred supplier programs to reduce their vendor relationships to a reasonable few. Consequently, vendors who do not effectively manage their customer-based relationships are strong candidates for deletion from a customer’s list of long-term suppliers. The emergence of preferred supplier programs suggests that businesses are beginning to formally recognize and reward differences between their qualified vendors. Vendor stratification is proposed as a framework for understanding the evolution of preferred vendor programs. With the growing interest in relationship marketing, a study was conducted to empirically examine the extent to which businesses use relationship quality perceptions to differentiate their qualified vendors. The findings support the notion that relationship quality is a higher-order construct that can be used as a basis for developing vendor stratification systems. The article concludes with a discussion of the managerial and research implications of the study findings.

Marketing service relationships: the role of commitment

Abstract: As with all relationships, it is commonly agreed on that partners in business must have a high degree of commitment towards their relationship. If commitment is lacking, the relationship will soon come to an end. Affective commitment, that is commitment based on attraction between partners, is to be preferred over calculative commitment. The latter form of commitment is based on constant weighing of the benefits of a relationship with a partner against the costs of that relationship. Relationships based solely on calculative commitment are also most likely not to last for an extended time. This paper identifies theoretical antecedents and consequences of commitment in relationships in a services context. The results of an empirical study reveal that affective commitment is related to trust in the partner’s honesty and benevolence, quality of the outcome of the service process, and customer satisfaction with the service being delivered. The quality of the service process has an indirect effect on affective commitment, as it is related to satisfaction. Furthermore, it is shown that affectively committed customers have a much stronger intention to stay in a relationship with a service provider than calculatively committed customers.

Sports Marketing: A Strategic Perspective

Abstract: Brief Contents Preface PART I: Contingency Framework For Strategic Sports Marketing Chapter 1 Emergence of Sports Marketing Chapter 2 Contingency Framework for Strategic Sports Marketing PART II: Planning For Market Selection Decisions Chapter 3 Research Tools for Understanding Sports Consumers Chapter 4 Understanding Participants as Consumers Chapter 5 Understanding Spectators as Consumers Chapter 6 Segmentation, Targeting, and Positioning PART III: Planning The Sports Marketing Mix Chapter 7 Sports Product Concepts Chapter 8 Managing Sports Products Chapter 9 Promotion Concepts Chapter 10 Promotion Mix Elements Chapter 11 Sponsorship Programs Chapter 12 Pricing Concepts and Strategies PART IV: Implementing And Controlling The Strategic Sports Marketing Process Chapter 13 Implementing and Controlling the Strategic Sports Marketing Process Appendix A:Career Opportunities in Sports Marketing Appendix B:Sports Marketing Sites of Interest on the Internet Glossary Photo Credits Index

Developing a better measure of market orientation

Abstract: While academics have been attempting to establish empirical support for the marketing concept, managers have been facing a complementary challenge to implement this cornerstone of marketing theory. Both groups appear to have had limited success. Part of the problem may lie in a failure to establish a generalisable model of market orientation. There is also a lack of a parsimonious measure which managers can use to pinpoint organisational short‐comings. This study addresses both those problems by replicating and extending the market orientation research of both Jaworski and Kohli and Narver and Slater using a large multi‐industry sample of New Zealand companies. The result is a parsimonious and managerially useful 20‐item scale for measuring the market orientation of New Zealand companies. It is likely this scale could be generalisable to other country‐market contexts. The findings also indicate that the successful implementation of the marketing concept should produce improved customer and organisational benefits, particularly if performance is measured in terms of improved profitability, brand awareness, customer satisfaction and customer loyalty.

Marketing Strategy and Competitive Positioning

Abstract: Marketing Strategy and Competitive Positioning deals with the process of developing and implementing a marketing strategy. The third edition focuses on competitive positioning at the heart of marketing strategy and includes in-depth discussion of the processes used in marketing to achieve competitive advantage.

Productivity, quality and relationship marketing in service operations

Abstract: The purpose of this article is to draw the reader’s attention to service productivity and its connection to service quality and eventually to profits. In service operations the customer plays an active role in influencing productivity and quality. Furthermore, contemporary companies are networks, not delimited hierarchies, and the productivity and quality issues affect all members of a network, not just the provider and the customer. This is clear from the new developments in relationship marketing and imaginary (virtual) organizations. In order to assess the financial outcome, the concept of return on relationships is introduced based on the notions of intellectual capital and the balanced scorecard. The article ends with challenging questions as well as recommendations for practising managers.

Marketing Organization: An Integrative Framework of Dimensions and Determinants:

Abstract: While there is increasing interest in topics related to organization of the marketing function, there is relatively little research that relates marketing organization to the business unit’s environment. This paper, based on interviews in U.S. and German firms, explores how the organization and role of marketing varies across business contexts. After reviewing prior research and describing the methodology, we present a conceptual framework relating aspects of marketing organization to the business environment. We then draw on our field observations and prior research to describe variations and develop illustrative propositions for three organizational dimensions: (a) the structural location of marketing and sales groups, (b) the cross-functional dispersion of marketing activities, and (c) the relative power of the marketing sub-unit. We conclude with theoretical and managerial implications.

Service failure and loyalty: an exploratory empirical study of airline customers

Abstract: There has been considerable analysis of buyer‐seller relationship development within the services sector. While a lot of attention has been given to the processes by which relationships are developed, the subject of relationship deterioration is less well researched. Examines the impacts of service failure on the quality of relationships between airlines and their customers who have suffered service failure. In particular, the effects on customers’ trust and commitment to the relationship are studied, the latter being assessed in terms of their willingness to recommend the airline they use to others. Reports on a study of airline customers in the south‐eastern USA which suggests that the impact of a given level of service failure is dependent on the duration to date of a customer’s relationship with the airline they use. However, a non‐linear correlation was found, suggesting that customers experience stages of being initially open‐minded about service failure, followed by lower tolerance of failure, which gradually gives way to a closer relationship which is more resistant to service failure

Relationship dissolution model: antecedents of relationship commitment and the likelihood of dissolving a relationship

Abstract: A relationship dissolution model is developed that depicts some of the key antecedents of relationship commitment as revealed in the context of the dissolution of a buyer‐seller relationship. Despite the importance of the dissolution of marketing relationships, there has been little research on this topic. The level of commitment determines intentions to remain in the relationship. However, it is difficult to measure true commitment in a relationship until that relationship ends. In addition to adding to our knowledge about the dissolution of marketing relationships, this paper will also provide a new conceptual representation of the relationship commitment construct.

The effect of internal marketing on organisational commitment among retail bank managers

Abstract: This paper examines internal processes associated with delivering customer satisfaction focusing particularly on the relationship between the nature and extent of internal marketing and its outcome in terms of the level of organisational commitment on the part of employees. The concepts of internal marketing and organisational commitment are discussed, suitable measures are identified and research is conducted among managers of a retail bank. The findings confirm a significant relationship between internal marketing and organisational commitment. The relationship of internal marketing is most significant with the affective dimension of organisational commitment. Limitations of the research are noted and directions for future research are indicated.

Trust, ethics and relationship satisfaction

Abstract: The development of effective customer relationships is increasingly recognised as an important component of marketing strategies, particularly in the case of service industries. Developing and maintaining satisfactory customer relationships can help to reduce perceived risk, reduce transactions costs, increase customer loyalty and customer retention and thus impact on organisational performance. From the customer’s perspective, the determinants of relationship satisfaction are thought to include factors such as customer orientation, trust, length of relationship, expertise and ethics. Provides further evidence on the cognitive antecedents of relationship satisfaction based on evidence from the financial services sector.

Business Marketing: Connecting Strategy, Relationships, and Learning

Abstract: Part I: Business Markets and Business Marketing Chapter 1 Introduction to Business Marketing Chapter 2 The Character of Business Marketing Chapter 3 The Purchasing Function Chapter 4 Organizational Buyer Behavior Part II: Foundations for Creating Value Chapter 5 Market Opportunities: Current & Potential Customers Chapter 6 Marketing Strategy Chapter 7 Weaving Marketing into the Fabric of the FirmPart III: Business Marketing Programming Chapter 8 Developing and Managing Products: What Do Customers Want? Chapter 9 Business Marketing Channels: Partnerships for Customer Service Chapter 10 Creating Customer Dialogue Chapter 11 Communicating with the Market: Advertising, Public Relations, & Trade Shows Chapter 12 The One-To-One Media Chapter 13 Sales and Sales Management Chapter 14 Pricing & Negotiating for Value Part IV: Managing Programs and Customers Chapter 15 Evaluating Marketing Efforts Chapter 16 Customer Retention and MaximizationCases 1. Bama Pie, Ltd 2. BGH-Motorola 3. Calox (A) (B) 4. Daynor Chemical Company 5. ExhibitsPlus 6. Fleury Equipment de Batiment 7. JC Decaux 8. Jewelmart.com 9. Li & Fung Limited 10. Little Tikes Commercial Play Systems 11. Majsperk (A) (B) (C) 12. Metropol Base -- Fort Security Group 13. Northcrest Salmon 14. Outdoor Sporting Products, Inc. 15. Pfizer, Inc. Animal Health Products (A) (B) 16. SPC Products 17. Texas Instruments 18. Whole Tree Energy 19. Wind Technology 20. Xerox

Relationship marketing effectiveness: The role of involvement

Abstract: The term relationship marketing has been used to describe a wide range of marketing tactics. In this article, three dimensions that may be used to categorize these tactics are identified: personalization, individualization, and continuity. Research is presented demonstrating that the effectiveness of each type of tactic is influenced by buyer involvement in the product category, although the nature of this influence differs by country and gender. This suggests that managers contemplating relationship marketing programs should consider buyer involvement levels, and that researchers studying relationship marketing effectiveness should control for this variable. © 1998 John Wiley & Sons, Inc.

A relationship marketing approach to guanxi

Abstract: In recent years there has been a growing interest in Asian business practices, in particular the use of social networks in China for business purposes. Because of its relational nature, some have identified guanxi with a traditional form of relationship marketing. We use the recent developments in relationship marketing theory to analyse guanxi. We find that understanding and managing guanxi is useful in the development of partnerships under the current economic situation in China, but does not support the other two basic strategic essentials of relationship marketing: service and process management. Additionally, we detect relevant changes in the structural conditions of China that make guanxi necessary in the access to the Chinese market.

Narrative analysis of a marketing relationship: The consumer's perspective

Abstract: This article uses narrative analysis to study a marketing relationship elicited hy means of a phenomenological interview. The focal point is the consumer's perspective, and the single incident of a marketing encounter is treated as a core event in relationship marketing. The narrative is derived hy means of a phenomenological interview, which provides an in-depth account of a relationship that ends in brand switching. The consumer's role is studied by means of narrative analysis, which exposes the consumer's script for the relationship. Marketing implications are discussed in terms of the importance of the single encounter, consumer role enactment in a relationship, and the consumer's desire for relationships based on emotional satisfaction. © 1998 John Wiley & Sons, Inc.

Relationship marketing: a high‐involvement product attribute approach

Abstract: This study investigates consumers’ affective attachments toward products, based on generalizable and managerially relevant product attributes. Two surveys of 123 consumers found that high‐involvement, high‐meaning products tend to share ten common attributes. The managerial implications of each attribute are discussed, including specific ways that brand managers and new product development teams can engineer relationships between brands and customers.

An exploration of customer exit in retail banking

Abstract: States that if the marketing community is to adopt the prescriptions of the relationship marketing school of thought, more knowledge and understanding of relationships is required. The base of knowledge is growing and there is now greater appreciation of the processes germane to healthy relationships, such as trust, satisfaction and commitment. Much less attention has been paid to the negative aspects such as relationship breakdown and ending. This paper addresses the neglected area of the ending of customer‐bank relationships or customer exit. Interviews were conducted with bank customers who had recently used the exit option. Content analysis of the customers’ stories was used to generate a model of the customer exit process. As reported here, the research took the perspective of the customer. This shows that customers end bank relationships after an involving process of problem(s), effort, emotion and evaluation. A discussion of the findings concludes that banks need to develop relationship management systems and skills.

Marketing and competitive performance: an empirical study

Abstract: Hypothesises that high performance companies have a defined mission which includes specification of their target markets and broad goals. Competitive advantage is founded on customer satisfaction, which in turn is built on a market‐led strategy, effective systems and committed and empowered staff. All these building blocks are influenced by a changing and increasingly competitive international environment. Influential government reports on industrial competitiveness have ignored the contribution of marketing. This is partly because academics themselves have not shown the link between marketing effectiveness and business performance. Explores the contribution of marketing within a broader model of the determinants of competitiveness using an empirical study.

Prospective customer selection using customer and market reference data

Abstract: Prospective customers may be selected for target making with respect to a particular product and market without the need to conduct designed marketing campaigns. A computer implemented process applies data mining techniques to databases containing records representing customer and overall market populations for the purpose of selecting market segments and prospective customers for targeted marketing.

Relationship marketing for competitive advantage : winning and keeping customers

Abstract: Introduction The development of relationship marketing Establishing a customer-oriented culture for relationship marketing Implementing relationship marketing Index