Showing papers on "Relationship marketing published in 2007"
TL;DR: In this paper, the authors investigated the specific role of different experiential features in the success achieved by some well-known products and suggested an interpretative model to support the marketing manager in generating the proper stimuli to activate the various components of the customer experience.
1,601 citations
TL;DR: In this article, the authors propose a model of co-production with which they investigate the links between coproduction and customer loyalty and the factors likely to increase the level of coproduction in a financial services context, with support from an investigation in the medical services context.
847 citations
TL;DR: In this article, the authors established a theoretical basis for evaluating a strategic increase in customers' perceptions of service/product quality, specifically in terms of an increase in relationship quality and customer loyalty in a B2B environment.
Abstract: – The purpose of this study is to establish a theoretical basis for evaluating a strategic increase in customers' perceptions of service/product quality – specifically in terms of an increase in relationship quality and customer loyalty in a B2B environment – and to test this theoretical basis empirically., – Drawing on the relationship‐marketing literature, the authors empirically test a model of business loyalty in a sample of 234 advertising agencies' clients., – Using the Gronroos conceptualisation, a clear pattern of service‐quality dimensions is established and several important findings are reported – including empirical verification of the mediating role of overall relationship satisfaction in the formation of loyalty attributes. The effects of trust and commitment are also verified., – Studies that model attitudinal as well as behavioural relationship outcomes have strong precedence in the relationship marketing area. Although in this study the “intentions” approach is followed rather than a behavioural one, the measurement of the real behaviour of industrial clients proves to be very difficult from a practical point‐of‐view., – In this service continuum, managers need to clearly define relationship development strategies, service provision policies and develop homogeneous service provision. Towards this direction, it is essential that firms communicate the service and product quality standards to partners so that differences in service provision can be avoided., – The study integrates the concepts of service/product quality, relationship satisfaction, trust, and commitment in a business‐loyalty model, demonstrating the benefits of investing in relationships based on trust and commitment.
728 citations
TL;DR: In this article, the authors investigated the relationship between customer satisfaction and share of wallet and found that the initial satisfaction level and the conditional percentile of change in satisfaction significantly correspond to changes in share of the wallet and the moderating effects of customer age, income, education, expertise and length of relationship.
Abstract: Customer loyalty is an important strategic objective for all managers. Research has investigated the relationship between customer satisfaction and loyalty in various contexts. However, these predominantly cross-sectional studies have focused on customer retention as the primary measure of loyalty. There has been little investigation into the impact on share of wallet. Using data from the Canadian banking industry, this research aims to (1) provide the first longitudinal examination of the impact of changes in customer satisfaction on changes in share of wallet and (2) determine the moderating effects of customer age, income, education, expertise, and length of relationship. Data from 4319 households using 12,249 observations over a five-year period indicate a positive relationship between changes in satisfaction and share of wallet. In particular, the initial satisfaction level and the conditional percentile of change in satisfaction significantly correspond to changes in share of wallet. Two va...
611 citations
TL;DR: Results revealed that, at the individual level, managers' TFL was positively related to employee service performance, which, in turn, positively predicted customers' expressed intention to maintain a long-term service relationship with the service employee and manager-reported number of the employee's long- term customers measured 9 months later.
Abstract: This longitudinal field study integrates the theories of transformational leadership (TFL) and relationship marketing to examine how TFL influences employee service performance and customer relationship outcomes by transforming both (at the micro level) the service employees' attitudes and (at the macro level) the work unit's service climate. Results revealed that, at the individual level, managers' TFL was positively related to employee service performance, which, in turn, positively predicted customers' expressed intention to maintain a long-term service relationship with the service employee and manager-reported number of the employee's long-term customers measured 9 months later. In addition, the relationship between TFL and employee service performance was partially mediated by employee self-efficacy. Furthermore, store-level TFL was positively associated with store-level service climate, and service climate further enhanced the relationship between individual-level TFL and employee service performance.
559 citations
TL;DR: In this article, a study of 362 buyer-salesperson dyads using triadic data (from buyer, salesperson, and sales manager) examined both a customer's overall loyalty to the selling firm and the customer's loyalty vested specifically in his or her salesperson.
Abstract: In a study of 362 buyer–salesperson dyads using triadic data (from buyer, salesperson, and sales manager), the authors examine both a customer's overall loyalty to the selling firm and the customer's loyalty vested specifically in his or her salesperson. They find that only salesperson-owned loyalty, a newly identified construct, directly affects the more tangible seller financial outcomes of sales growth and selling effectiveness, whereas both salesperson-owned loyalty and loyalty to the selling firm increase the customer's willingness to pay a price premium. A longitudinal study verifies that the positive effect of salesperson-owned loyalty on sales growth persists over time. However, because salesperson-owned loyalty simultaneously increases the seller's risk of losing business if the salesperson defects to a competitor, managers need to manage effectively the benefit–risk trade-off. Increasing relationship-enhancing activities and value received by the customer builds both salesperson-owned l...
527 citations
TL;DR: In this paper, the authors examined the long-term impact of a loyalty program on consumers' usage levels and their exclusive loyalty to the firm using longitudinal data from a convenience store franchise, and found that heavy buyers were most likely to claim their qualified rewards, but the program did not prompt them to change their purchase behavior.
Abstract: Despite the prevalent use of loyalty programs, there is limited evidence on the long-term effects of such programs, and their effectiveness is not well established The current research examines the long-term impact of a loyalty program on consumers' usage levels and their exclusive loyalty to the firm Using longitudinal data from a convenience store franchise, the study shows that consumers who were heavy buyers at the beginning of a loyalty program were most likely to claim their qualified rewards, but the program did not prompt them to change their purchase behavior In contrast, consumers whose initial patronage levels were low or moderate gradually purchased more and became more loyal to the firm For light buyers, the loyalty program broadened their relationship with the firm into other business areas The findings suggest a need to consider consumer idiosyncrasies when studying loyalty programs and illustrate consumers' cocreation of value in the marketing process
517 citations
TL;DR: In this paper, a conceptual foundation for demand chain management is proposed, which involves managing the integration between demand and supply processes; managing the structure between the integrated processes and customer segments; and managing the working relationships between marketing and supply chain management.
462 citations
TL;DR: In this paper, the impact of relationship marketing strategy on customer loyalty was examined and the authors concluded that trust, commitment, communication and conflict handling have a significant effect and predict a good proportion of the variance in customer loyalty.
Abstract: Purpose – To examine the impact of relationship marketing strategy on customer loyalty.Design/methodology/approach – A questionnaire derived from previous studies and the relevant literature was completed by 220 bank customers in Malaysia. Multiple regression analysis assessed the impact on customer loyalty of four key constructs of relationship marketing (trust, commitment, communication and conflict handling).Findings – The four variables have a significant effect and predict a good proportion of the variance in customer loyalty. Moreover, they are significantly related to one another.Research limitations/implications – The relationships investigated in this study deserve further research. Because the data analysed were collected from one sector of the service industry in one country, more studies are required before general conclusions can be drawn.Practical implications – It is reasonable to conclude, on this evidence, that customer loyalty can be created, reinforced and retained by marketing plans ai...
447 citations
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TL;DR: In this article, a longitudinal analysis of large-scale secondary data from multiple sources was conducted to investigate the effect of customer satisfaction on advertising and promotion efficiency and human capital performance, and the authors investigated the moderating influence of market concentration on both relationships.
Abstract: Although there is significant evidence that customer satisfaction is an important driver of firm profitability, extant literature has largely neglected two intermediate outcomes of customer satisfaction, namely, a firm’s advertising and promotion efficiency and its human capital performance. On the basis of longitudinal analyses of large-scale secondary data from multiple sources, the authors find that customer satisfaction boosts the efficiency of future advertising and promotion investments. This finding can be explained by the possibility that customer satisfaction generates free word-of-mouth advertising and saves subsequent marketing costs. In addition, customer satisfaction has a positive influence on a company’s excellence in human capital (employee talent and manager superiority). This finding is highly novel, indicating that human resources managers should have a strong interest in customer satisfaction as well. Finally, the authors investigate the moderating influence of market concentration on both relationships. The uncovered results have important implications for marketers in their dialogue with financial executives and human resources managers.
434 citations
TL;DR: In this article, the authors re-examine the commitment-trust theory (CTT) of relationship marketing in the online retailing context and identify how CTT can be adapted in a digitized business environment.
Abstract: Purpose – Trust and commitment are the central tenets in building successful long‐term relationships in the online retailing context. In the absence of physical interaction between the buyer and the seller, how websites can gain the trust of the buyers and deliver on the promises made have become central issues in online customer relationship management. This paper aims to re‐examine the commitment‐trust theory (CTT) of relationship marketing in the online retailing context. It seeks to theorize the antecedents and consequences of commitment and trust in the online context and identify how CTT can be adapted in a digitized business environment.Design/methodology/approach – Modified constructs and their measures are developed to understand the antecedents and the outcomes of commitment and trust. Survey data from British online customers (n=651) are used to test CTT hypotheses with structural equation modelling.Findings – The study suggests a significant modification to the traditional CTT model in the onl...
TL;DR: This paper explored the underlying mechanism between Western relationship marketing and Chinese guanxi by examining the construct equivalence of the two concepts and discussed the managerial implications for international marketers who wish to succeed in the Chinese business market.
TL;DR: In this paper, the authors examine different customer satisfaction and loyalty metrics and test their relationship to customer retention, recommendation and share of wallet using micro (customer) level data and find that recommend intention alone will not suffice as a single predictor of customers' future loyalty behavior.
Abstract: Purpose – The purpose of this research is to examine different customer satisfaction and loyalty metrics and test their relationship to customer retention, recommendation and share of wallet using micro (customer) level data.Design/methodology/approach – The data for this study come from a two‐year longitudinal Internet panel of over 8,000 US customers of firms in one of three industries (retail banking, mass‐merchant retail, and Internet service providers (ISPs)). Correlation analysis, CHAID, and three types of regression analyses (best‐subsets, ordinal logistic, and latent class ordinal logistic regression) were used to test the hypotheses.Findings – Contrary to Reichheld's assertions, the results indicate that recommend intention alone will not suffice as a single predictor of customers' future loyalty behavior. Use of a multiple indicator instead of a single predictor model performs better in predicting customer recommendations and retention.Research limitations/implications – The limitation of the pa...
TL;DR: The distinctive difference between the 1985 and the 2004 American Marketing Association definitions of marketing is the lack of exchange as discussed by the authors, and a focus on creating and delivering value through customer relationships replaces the historical focus on the exchange paradigm.
Abstract: The distinctive difference between the 1985 and the 2004 American Marketing Association definitions of marketing is the lack of exchange. In the new definition, a focus on creating and delivering value through customer relationships replaces the historical focus on the exchange paradigm. The authors welcome this change and discuss its implications, the limits of the exchange paradigm, the merits of value creation, and the future paradigm for marketing.
TL;DR: In this paper, a role theory framework and data collected from a survey of 685 direct-selling agents was used to investigate whether a conflict between friendship and instrumentality can undermine some of the business outcomes that friendship might otherwise foster, and they found that this conflict is more severe for friendships that become business relationships than for business relationships that become friendships.
Abstract: Although combining friendship and business in the same relationship can be beneficial, it can also create conflict. A source of this conflict is incompatible relational expectations. True friends are expected to be unmotivated by benefits that can be used beyond the relationship (e.g., money, status), whereas business partners are, by definition, at least partly motivated by these more “instrumental” concerns. Using a role theory framework and data collected from a survey of 685 direct-selling agents, this article reports evidence that a conflict between friendship and instrumentality can undermine some of the business outcomes that friendship might otherwise foster. It also suggests that this conflict is more severe for friendships that become business relationships than for business relationships that become friendships. Study conclusions do not suggest that friendship is entirely “bad” for business and, instead, propose that friendship's influence can be both positive and negative.
TL;DR: The paper demonstrates how CRM, if used properly, could enhance a company's ability to achieve the ultimate goal of retaining customers and gain strategic advantage over its competitors.
Abstract: Purpose – Customer relationship management (CRM) is an information system that tracks customers' interactions with the firm and allows employees to instantly pull up information about the customers such as past sales, service records, outstanding records and unresolved problem calls. This paper aims to put forward strategies for successful implementation of CRM and discusses barriers to CRM in e‐business and m‐business.Design/methodology/approach – The paper combines narrative with argument and analysis.Findings – CRM stores all information about its customers in a database and uses this data to coordinate sales, marketing, and customer service departments so as to work together smoothly to best serve their customers' needs.Originality/value – The paper demonstrates how CRM, if used properly, could enhance a company's ability to achieve the ultimate goal of retaining customers and gain strategic advantage over its competitors.
TL;DR: In this paper, the authors present a redefined value chain strategy that entails a closed-loop system for industries in the US, where the return process is viewed as an opportunity to give this returns pile a new lease of life.
Abstract: Conventional wisdom in value chain strategy assumes a one-directional flow of primary activities, starting from inbound logistics to operations, outbound logistics, marketing and sales, and finally to service. Our recent study, extensive discussions with executives, and on-site visits suggest that this wisdom may not be complete for certain industries or products. Customers on average return about 6% of everything they buy. Companies need to view this as an opportunity to give this returns pile a new lease of life. Yet many companies are not used to thinking that the things they expel such as products, waste, and resources actually have value. In fact, few retailers and suppliers capture the wealth of information that is locked inside a box that has been returned to the warehouse. Elevating the returns process to a new marketing opportunity builds a loyal customer base and also attracts new ones. In this paper, we present a redefined value chain strategy that entails a closed-loop system for industries in...
01 Dec 2007-Competitiveness Review: An International Business Journal Incorporating Journal of Global Competitiveness
TL;DR: In this article, it is suggested that e-business is made up of many elements, such as business intelligence, supply chain management, customer relationship management, and enterprise resource planning, all of which existed in electronic form prior to the web but to a limited degree of penetration and below the level of sophistication that is prevailing today.
Abstract: Purpose – This paper aims to provide a link between the concepts of internationalization and internetalization, since both have become an e‐business.Design/methodology/approach – This study extends a model developed by Buttriss and Wilkinson which offers a starting‐point for classifying elements and identifying interactions in the internationalization process in global marketing. The objective has been achieved through the comparison between the Buttriss and Wilkinson model and a suggested model by the researcher.Findings – The adoption of internationalization provides excellent opportunities in international marketing activities. It is suggested that e‐business is made up of many elements, such as business intelligence, supply chain management, customer relationship management, and enterprise resource planning. All of these existed in electronic form prior to the web but to a limited degree of penetration and below the level of sophistication that is prevailing today.Originality/value – This paper fulfil...
TL;DR: In this article, the preferential treatment of customers holds the potential to contribute to important relational outcomes valued by firms, such as relationship commitment, increased purchases, share of customer, word of mouth, and customer feedback.
Abstract: Despite its often controversial and philosophically divisive nature, preferential treatment of customers holds the potential to contribute to important relational outcomes valued by firms. In this study, sampled customers (n = 2,461) of a national upscale department store chain representing recipients of three different levels of preferential treatment are tested. While controlling for individual customer characteristics, higher levels of preferential treatment are shown to positively influence relationship commitment, increased purchases, share of customer, word of mouth, and customer feedback. This study fills a major services marketing research gap by assessing the favorable effects of higher levels of preferential treatment as a relationship marketing strategy.
TL;DR: In this article, the authors specify and test factors surrounding trusting relationships between buyers and suppliers in a global, business-to-business services context, and confirm the influence of trust building behaviors (social interaction, open communications, customer orientation) and service outcomes (technical, functional and economic quality) on trust formation.
Abstract: Purpose – The purpose of this paper is to specify and test factors surrounding trusting relationships between buyers and suppliers in a global, business‐to‐business services context. In so doing, the paper aims to help to extend relationship marketing theories to this under‐researched domain.Design/methodology/approach – A literature review and results of qualitative interviews in the paper provide a conceptual framework for the trust formation process and relational outcomes of trust. The research then tests a model of hypothesized relationships using structural equation modeling.Findings – The paper confirms the influence of trust building behaviors (social interaction, open communications, customer orientation) and service outcomes (technical, functional and economic quality) on trust formation. Trust is shown to have a positive influence on key relational outcomes, loyalty commitment and share of purchases.Research limitations/implications – The sample consists of buyers of aviation component repair s...
TL;DR: This article examined the effect of relationship marketing on a buyer's concurrent person-to-firm relationship with a selling firm and his/her interpersonal relationship with the salesperson, finding that relationship quality with both salesperson and selling firm positively affect seller financial outcomes.
TL;DR: In this paper, the authors argue that customers are not buying goods or services but value propositions to be of service to them, and that value is actualized in the customer usage process rather than in the supplier value chain.
Abstract: Since the 1970s, services marketing has grown into a major subdiscipline of marketing. It is constantly claimed – but is refuted in the article – that services are now the dominant economic activity in developed countries and keeps growing while the two traditional goods sectors, manufacturing and agriculture, are declining. An unsolved problem that has been swept under the carpet is the fact that goods and services always appear together. An international debate on the content of services marketing and marketing in general is in progress, especially fuelled by the service-dominant logic suggested by Vargo and Lusch (2004a). This new logic is a synthesis of knowledge and ideas that have been brewing over many decades. Among its tenets are that customers are not buying goods or services but value propositions to be of service to them, that customers are co-creators, and that value is actualized in the customer usage process rather than in the supplier value chain. The purpose of the article is to help break a deadlock of taken-for-granted “truths” in marketing, stimulate the emergence of more valid and relevant marketing theory and even uncover the inner secrets of marketing, its genome. In fulfilling this purpose the author points to the need to rethink several marketing-related issues, among them the economic sectors; alleged differences between goods and services; where and when marketing occurs; the interdependence between quality, productivity and profits; the roles of supplier and customer; the importance of customer-to-customer interaction (C2C); the high tech/high touch balance; the marketing mix; and relational and interactive approaches to marketing. Finally, the article questions the relevance of the marketing concept and customer centricity, advocating the need to apply “balanced centricity” and a stakeholder and network approach, epitomised by the author’s concept many-to-many marketing.
TL;DR: In this paper, the authors explore how the service-dominant (S•D) logic of marketing proposed by Vargo and Lusch impacts on business-to-business branding concepts and practice.
Abstract: Purpose – This paper aims to explore how the service‐dominant (S‐D) logic of marketing proposed by Vargo and Lusch impacts on business‐to‐business branding concepts and practice.Design/methodology/approach – Vargo and Lusch argue that service interaction comes from goods‐in‐use as well as from interactions between a buyer and a supplier. Their key concepts are examined and the branding literature critically compared.Findings – Goods become service appliances. Buyer judgments about the value‐in‐use of goods extends the time‐logic of marketing. The exchange concept is no longer transaction bound. Service‐ability (the capability to serve) becomes the essence of a firm's value propositions. Service experience becomes paramount in developing and sustaining the life of a brand.Research limitations/implications – S‐D logic highlights the need for rigour and clarity in the use of the term “brand”. It also opens up for consideration a variety of previously unexplored contact points in the customer service cycle, e...
TL;DR: In this article, the authors provide an ethical foundation for relationship marketing using a virtue ethics approach using three stages (establishing, sustaining and reinforcing) that are paired with specific virtues (trust, commitment and diligence).
Abstract: Purpose – The purpose of this paper is to provide an ethical foundation for relationship marketing using a virtue ethics approach.Design/methodology/approach – The approach is a conceptual one providing a background on relationship marketing from both American and European perspectives. Earlier studies published in EJM on relationship marketing are featured in a table.Findings – The proposed ethical relationship marketing approach has three stages (establishing, sustaining and reinforcing) that are paired with specific virtues (trust, commitment and diligence). These and other facilitating virtues are shown in a figure.Researchlimitations/implications – The model and its components have yet to be tested empirically. Some strategies for undertaking such research are discussed.Practical implications – Several European and American companies that currently practice ethical relationship marketing are discussed.Originality/value – Although relationship marketing has been studied for a number of years by many s...
TL;DR: In this paper, the authors proposed relationship-forging tasks that are critical to the link between sales technologies use and key aspects of salesperson performance (i.e., a salesperson's relationship-building performance with customers and administrative performance).
Abstract: Firms invest billions of dollars in sales technologies (STs; e.g., customer relationship management, sales automation tools) to improve sales force effectiveness and efficiency. However, the results expected from ST investments are often not achieved. This article proposes relationship-forging tasks that are critical to the link between ST use and key aspects of salesperson performance (i.e., a salesperson's relationship-building performance with customers and administrative performance). The authors evaluate relationship-forging tasks in the context of a model that considers the antecedents and consequences of three different uses of ST: accessing, analyzing, and communicating information. In general, the results of a field study, which is analyzed using block-recursive structural equation modeling, support the relationship-forging theory and show that relationship-forging tasks predict 57% of the variance in a salesperson's relationship-building performance with customers. The findings also sup...
TL;DR: In this article, a survey of 119 buyer organizations reveals that three of the four identified properties of tie strength (reciprocal services, mutual confiding and emotional intensity) are positively related to buyer commitment to the selling organization.
TL;DR: In this paper, the authors propose a model of antecedents to superior customer value creation elaborating on literature that deals with marketing capabilities and marketing-sales relationship, and they hypothesize that a firm's long-term strategic orientation, effective marketing and sales relationship, the use of a direct sales force and customer-oriented salespeople positively affect superior product value creation and market performance.
TL;DR: In this article, the authors investigate the impact of relational benefits on customer satisfaction in retail banking and present a causal model that identifies a connection between the relational benefits achieved through a stable and long-term relationship with a given bank and customer satisfaction with retail banking.
Abstract: Purpose – The purpose of this paper is to investigate the impact of relational benefits on customer satisfaction in retail banking. This paper presents a causal model that identifies a connection between the relational benefits achieved through a stable and long‐term relationship with a given bank and customer satisfaction with retail banking.Design/methodology/approach – Based on a theoretical framework regarding the relationship between relational benefits and customer satisfaction, an empirical study using a sample of 204 bank customers was conducted, and the theoretical model is tested. Multi‐item indicators from prior studies were employed to measure the constructs of interest, and the proposed relationships were tested using structural equations modeling methods.Findings – The results show that confidence benefits have a direct, positive effect on the satisfaction of customers with their bank. However, special treatment benefits and social benefits did not have any significant effects on satisfactio...
TL;DR: In this paper, the authors examine the differential effects of perceived service quality, trust, and loyalty on repurchase intentions, and specify loyalty as a key mediating variable in the consumer-trust repurchase intention relationship and directly confront the thesis that loyalty is a more powerful determinant of long-term relationships than trust.
Abstract: Purpose – The growing importance of relationship marketing has increased interest in the role of consumer trust and loyalty in establishing, developing, and maintaining successful relational exchanges. The aim of this study is first, to examine the differential effects of perceived service quality, trust, and loyalty on repurchase intentions, second, to specify loyalty as a key mediating variable in the consumer‐trust repurchase intentions relationship, and finally, to directly confront the thesis that loyalty is a more powerful determinant of long‐term relationships than trust.Design/methodology/approach – To test the proposed model in the context of professional services, the authors use data collected from 1,125 customers of a global financial services firm.Findings – The results highlight customers' willingness to recommend the firm to relatives or friends to be the key driver of customer commitment to the organization.Research limitations/implications – Although this single‐industry approach may esta...
TL;DR: The case history of a leading player in the UK and international “sportkiting” market focuses on product innovation and customer community development as discussed by the authors, and the case company's innovative product development strategy provides the catalyst for co-creation of a customer experience.
Abstract: Purpose – This paper aims to provide insights into the development and management of a customer community, informing product innovation and engaging customers in co‐creation of a consumption experience.Design/methodology/approach – A review of the state of current knowledge about co‐production, co‐creation and customer communities is followed by discussion of the case study methodology. The case history of a leading player in the UK and international “sportkiting” market focuses on product innovation and customer‐community development. Discussion reflects in more detail on the lessons from the case for application of the principles in practice.Findings – The case company's innovative product development strategy provides the catalyst for co‐creation of a customer experience. Its marketing actions extend beyond product development and innovation to actively co‐creating experiences with customers, fostering a sense of community among users, facilitating communication within that community, acting on the fee...