Showing papers on "Relationship marketing published in 2008"

Managing the co-creation of value

Abstract: Central to service-dominant (S-D) logic is the proposition that the customer becomes a co-creator of value. This emphasizes the development of customer–supplier relationships through interaction and dialog. However, research to date suggests relatively little is known about how customers engage in the co-creation of value. In this article, the authors: explore the nature of value co-creation in the context of S-D logic; develop a conceptual framework for understanding and managing value co-creation; and utilize field-based research to illustrate practical application of the framework. This process-based framework provides a structure for customer involvement that takes account of key foundational propositions of S-D logic and places the customer explicitly at the same level of importance as the company as co-creators of value. Synthesis of diverse concepts from research on services, customer value and relationship marketing into a new process-based framework for co-creation provide new insights into managing the process of value co-creation.

The Relative Impact of Marketing, Research-and-Development, and Operations Capabilities on Firm Performance

Abstract: The impact of the marketing function on firm performance has been the focus of much recent research in marketing. Thus, the effect of marketing capability on firm performance, compared with that of other capabilities, such as research and development and operations, is an issue of importance to managers. To examine this issue and generate empirical generalizations, the authors conduct a meta-analysis of the firm capability–performance relationship using a mixed-effects model. The results show that, in general, marketing capability has a stronger impact on firm performance than research-and-development and operations capabilities. The results provide guidelines for managers and generate directions for further research.

Benefits, barriers, and bridges to effective supply chain management

Abstract: Purpose – The purpose of this article is to provide academics and practitioners a quantitative and qualitative analysis of the benefits, barriers, and bridges to successful collaboration in strategic supply chains. Design/methodology/approach – A triangulation method consisting of a literature review, a cross‐functional mail survey, and 51 in‐depth case analyses was implemented. Senior managers from purchasing, manufacturing, and logistics were targeted in the mail survey. The break down by channel category interviews is as follows: 14 retailers, 13 finished goods assemblers, 12 first‐tier suppliers, three lower‐tier suppliers, and nine service providers. Findings – Customer satisfaction and service is perceived as more enduring than cost savings. All managers recognize technology, information, and measurement systems as major barriers to successful supply chain collaboration. However, the people issues – such as culture, trust, aversion to change, and willingness to collaborate – are more intractable. People are the key bridge to successful collaborative innovation and should therefore not be overlooked as companies invest in supply chain enablers such as technology, information, and measurement systems. Research limitations/implications – The average mail‐survey response rate was relatively low: 23.5 percent. The case study analyses were not consistent in frequency across channel functions. Although the majority of companies interviewed and surveyed were international, all surveys and interviews were managers based in the US. Practical implications – This study provides new insight into understanding the success and hindering factors of supply chain management. The extensive literature review, the cross‐channel analysis, and case studies provide academics and managers a macro picture of the goals, challenges, and strategies for implementing supply chain management. Originality/value – This paper uses triangulation methodology for examining key issues of supply chain management at multiple levels within the supply chain.

Customer Channel Migration

Abstract: The authors develop a model of customer channel migration and apply it to a retailer that markets over the Web and through catalogs. The model identifies the key phenomena required to analyze customer migration, shows how these phenomena can be modeled, and develops an approach for estimating the model. The methodology is unique in its ability to accommodate heterogeneous customer responses to a large number of distinct marketing communications in a dynamic context. The results indicate that (1) Web purchasing is associated with lower subsequent purchase volumes than when buying from other outlets; (2) marketing efforts are associated with channel usage and purchase incidence, offsetting negative Web experience effects; and (3) negative interactions occur between like communications (catalog × catalog or e-mail × e-mail) and between different types of communications (catalog × e-mail). The authors find that over the four-year period of their data, a Web-oriented “migration” segment emerged, and t...

The Impact of Marketing-Induced Versus Word-of-Mouth Customer Acquisition on Customer Equity Growth

Abstract: Companies can acquire customers through costly but fast-acting marketing investments or through slower but cheaper word-of-mouth processes. Their long-term success depends critically on the contribution of each acquired customer to overall customer equity. The authors propose and test an empirical model that captures these long-term effects. An application to a Web hosting company reveals that marketing-induced customers add more short-term value, but word-of-mouth customers add nearly twice as much long-term value to the firm. The authors illustrate their findings with some dynamic simulations of the long-term impact of different resource allocations for acquisition marketing.

Supply chain collaboration: capabilities for continuous innovation

Abstract: – The purpose of this study is to investigate how collaborative relationships enhance continuous innovation in the supply chain using case studies., – The data were collected from semi‐structured interviews with 23 managers in ten case studies. The main intention was to comprehend how these firms engaged in collaborative relationships and their importance for successful innovation. The study adopted a qualitative approach to investigating these factors., – The findings demonstrate how differing relationships can impact on the operation of firms and their capacities to innovate. The ability to work together with partners has enabled firms to integrate and link operations for increased effectiveness as well as embark on both radical and incremental innovation., – The research into the initiatives and strategies for collaboration was essentially exploratory. A qualitative approach using case studies acknowledged that the responses from managers were difficult to quantify or gauge the extent of these factors., – The findings have shown various methods where firms integrated with customers and suppliers in the supply chain. This was evident in the views of managers across all the firms examined, supporting the importance of collaboration and efficient allocation of resources throughout the supply chain. They were able to set procedures in their dealings with partners, sharing knowledge and processes, and subsequently joint‐planning and investing with them for better operations, systems and processes in the supply chain., – The case studies serve as examples for managers in logistics organisation who are contemplating strategies and issues on collaborative relationships. The study provides important lessons on how such relationships can impact on the operation of firms and their capability to innovate.

Cultivating Trust and Harvesting Value in Virtual Communities

Abstract: Although previous scholars have examined the value of virtual communities to customers, in this study we investigate the role of a firm's efforts in cultivating trust and harvesting value for themselves via the virtual communities that they sponsor. We hypothesize that the perceptions of a firm's efforts to provide quality content, to foster member embeddedness, and to encourage interaction foster favorable customer beliefs about and trust in a virtual community sponsor. Further, we hypothesize that trust motivates customers to behave relationally toward the sponsoring firm by sharing information with, coproducing new products with, and granting loyalty to, the sponsoring firm. Data from 663 customers are analyzed using structural equation modeling techniques. We find that efforts to provide quality content and foster member embeddedness have positive effects on customer beliefs about the sponsor. In fact, fostering member embeddedness has a stronger explanatory effect on customer beliefs than does providing quality content. However, despite the fact that previous studies show that customers value interaction in virtual communities, our findings suggest that firms must do more than encourage interaction among their community members if they hope to create value from their virtual communities.

Extending the service-dominant logic: from customer centricity to balanced centricity

Abstract: This is a contribution to the reorientation of marketing. It aligns the service-dominant logic with other developments in marketing and management. It claims that the marketing concept and customer-centricity are too limited as a foundation for marketing and have not—and cannot—but partially be implemented in practice. It urges marketing scholars and educators to accept the complexity of marketing and develop and teach a network-based stakeholder approach—balanced centricity—epitomized by the concept of many-to-many marketing.

Interfirm Relational Drivers of Customer Value

Abstract: This article integrates social network and exchange theory to develop a model of customer value based on three relational drivers: relationship quality (the caliber of relational ties), contact density (the number of relational ties), and contact authority (the decision-making capability of relational contacts). The results suggest that the value generated from interfirm relationships derives not only from the quality of customer ties (e.g., trust, commitment, norms), as is typically modeled, but also from the number and decision-making capability of interfirm contacts and the interactions among relational drivers. Moderator analysis of customer characteristics suggests that increasing contact density benefits sellers that have customers with high employee turnover rates, whereas building relationships with key decisions makers generates the highest returns among customers that are more difficult to access. The conceptual model of the impact of interfirm relational drivers on customer value recei...

Relationships among experiential marketing, experiential value, and customer satisfaction.

Abstract: Although experience is recognized as a major benefit the hospitality and tourism industry offers, the use of experiential marketing in this industry is not well documented. Therefore, this study aims to examine experiential marketing in regard to hospitality and tourism operations. Ten hypotheses were developed to examine relationships among experiential marketing, experiential value, and customer satisfaction. Self-reported questionnaires were distributed at four Starbucks in different districts in Taipei, Taiwan, in January 2003. Results of the linear structural relation analyses (LISREL 8.5) indicate that both the measurement and structural equation models have good overall model fit. Moreover, the overall outcome suggests that experiential marketing should induce customer satisfaction through emotional and functional values provided by feel perception, think perception, and service quality. Hospitality managers can use the outcome of this study to gain in-depth understanding of customer experiences, d...

Service Loyalty: An Integrative Model and Examination across Service Contexts

Abstract: Marketing academics and practitioners generally agree that customer loyalty is vital to business success. There is less agreement on the factors that determine customer loyalty, particularly in service contexts. Research on the determinants of service loyalty has taken three distinct paths: quality/value/satisfaction, relationship quality, and relational benefits. The authors coalesce these paths to derive a model that links dimensions of customer loyalty (cognitive, affective, intention, and behavioral) with a system of determinants. The model is tested with data from varied services (airlines, banks, beauty salons, hospitals, hotels, mobile telephone) and 3,500 customers in China. Results are consistent across contexts and support a multidimensional view of customer loyalty. Key loyalty determinants are customer satisfaction, commitment, service fairness, service quality, trust, and a construct new to service loyalty models—commercial friendship. The research contributes to the literature by providing a...

Product Innovations, Advertising and Stock Returns

Abstract: Under increased scrutiny from top management and shareholders, marketing managers feel the need to measure and communicate the impact of their actions on shareholder returns. In particular, how do customer value creation (through product innovation) and customer value communication (through marketing investments) affect stock returns? This paper examines conceptually and empirically how product innovations and marketing investments for such product innovations lift stock returns by improving the outlook on future cash flows. We address these questions with a large-scale econometric analysis of product innovation and associated marketing mix in the automobile industry. First, we find that adding such marketing actions to the established finance benchmark model greatly improves the explained variance in stock returns. In particular, investors react favorably to companies that launch pioneering innovations, with higher perceived quality, backed by substantial advertising support, in large and growing categories. Finally, we quantify and compare the stock return benefits of several managerial control variables.Our results highlight the stock market benefits of pioneering innovations. Compared to minor updates, pioneering innovations obtain a seven times higher impact on stock returns, and their advertising support is nine times more effective as well. Perceived quality of the new-car introduction improves the firm's stock returns while customer liking does not have a statistically significant effect. Promotional incentives have a negative effect on stock returns, suggesting that price promotions may be interpreted as a signal of demand weakness. Managers may combine these return estimates with internal data on project costs to help decide the appropriate mix of product innovation and marketing investment.

Putting One-to-One Marketing to Work: Personalization, Customization and Choice

Abstract: One-to-one marketing advocates tailoring of one or more aspects of the firm's marketing mix to the individual customer (Peppers and Rogers 1997; Peppers, Rogers and Dorf 1999; Shaffer and Zhang 2002). One-to-one marketing represents an extreme form of segmentation, with a target segment of size one. There are two forms of one-to-one marketing: personalization and customization. Personalization is when the firm decides, usually based on previously collected customer data, what marketing mix is suitable for the individual. A good example is Amazon.com's personalized book and music recommendations (Nunes and Kambil 2001). The e-commerce arena is replete with other instances of personalization. Nytimes.com allows readers to get personalized news articles of interest, MLS.ca in Canada screens houses for buyers depending on their preferences for location, size and features. Customization is when the customer proactively specifies one or more elements of his or her marketing mix. Dell computer allows customers to customize the computer they order. The MyYahoo feature at Yahoo.com allows users to specify elements of their home page such as the weather forecast, reports on their favorite stocks, or priorities given to local sports news. The purpose of this paper is to summarize key challenges and knowledge gaps in understanding the choices that both firms and customers make in a personalization/customization environment. We start with a summary of personalization and customization in practice, and then draw on research in economics, statistical, and consumer behavior to identify what we know and do not know. We conclude with a summary of key research opportunities.

A new higher education marketing mix: the 7Ps for MBA marketing

Abstract: Purpose – The purpose of this paper is to present a new marketing mix based on MBA students' attitudes and opinions towards the marketing initiatives of business schools in South Africa. The post‐graduate business education market is, and increasingly, getting more aggressive in their efforts to attract students on to their flagship degree, the MBA. The traditional marketing tools historically grouped into 4Ps (product, price, place and promotion), 5Ps (adding people) and 7Ps (adding physical facilities and processes) may be wanting in this market.Design/methodology/approach – The approach taken was a quantitative survey of students registered at state subsidized universities in South Africa.Findings – The factor analysed data showed seven quite distinct underlying factors in the marketing activities of these business schools, some covering the same elements of the traditional marketing mix: people, promotion, and price. There were, however, four different elements: programme, prominence, prospectus, and ...

Destination Marketing: An Integrated Marketing Communication Approach

Abstract: Travellers are spoilt by choice of available holiday destinations. In today’s fiercely competitive tourism markets, destination competitiveness demands an effective marketing organisation. Two themes underpin Destination Marketing. The first is the challenges associated with promoting multi-attributed destinations in dynamic and heterogeneous markets, and the second is the divide between tourism ‘practitioners’ and academics. Written by a former ‘practitioner’, Destination Marketing bridges industry and academia by synthesising a wealth of academic literature of practical value to DMOs. Key learning outcomes are to enhance students’ understanding of the fundamental issues relating to: • the multi-dimensional nature of destination competitiveness • rationale for the establishment of DMOs • structure, roles, goals and functions of DMOs • the shift in thinking towards destination management • key opportunities, challenges and constraints facing DMOs • complexities of marketing multi-attributed destinations as tourism brands • philosophy of integrated marketing communications • design, implementation and monitoring of effective destination marketing communication strategies • the potential for visitor relationship management • necessity of disaster response planning • destination marketing performance metrics About the Author Dr Steven Pike (PhD) spent 17 years in the tourism industry, working in destination marketing organisations. He is currently Senior Lecturer in the School of Advertising, Marketing and Public relations at Queensland University of Technology in Brisbane, Australia.

Configurations of Marketing and Sales: A Taxonomy

Abstract: Little is known about the interface between separate marketing units and sales units. This article develops a multidimensional model of the marketing and sales interface. The model integrates a broad range of conceptual domains, including information sharing, structural linkages, power, orientations, and knowledge of marketing and sales. The authors empirically explore the conceptual model through a cross-industry study of 337 European Union–based companies. They identify five empirical archetypes of the marketing and sales interface. The taxonomy shows that the role and characteristics of marketing and sales vary a great deal. This finding challenges existing stereotypes about marketing and sales. Finally, the article explores organizational outcomes of the five configurations. The findings suggest that the most successful configurations are characterized by strong structural linkages between marketing and sales and a high extent of market knowledge in marketing.

The Impact of Value Congruence on Consumer-Service Brand Relationships

Abstract: By integrating results from literature pertaining to social psychology, organizational behavior, and relationship marketing, the authors develop and test a model that explains how value congruence affects the key components of consumer-brand relationship quality and outcomes, including satisfaction, trust, affective commitment, and loyalty. Using structural equation modeling, they test the model with data from a survey of 1,037 consumers of clothing stores and banks in the Netherlands. The results show that value congruence has significant direct, positive effects on satisfaction, trust, affective commitment, and loyalty. Furthermore, value congruence indirectly influences loyalty through satisfaction, trust, and affective commitment. The authors discuss the implications of these findings for marketing theory and practice.

Achieving relationship marketing effectiveness in business-to-business exchanges

Abstract: Relationship marketing research and practice operate according to the paradigm that firms should invest in relationship marketing to build better relationships, which will generate improved financial performance. However, findings that relationship marketing efforts vary in their effectiveness across customers and may even be detrimental to performance challenge this belief. This article, therefore, offers a theoretical model that addresses three key issues: 1) what factors determine a customer’s need for relational governance (relationship orientation); 2) what mediating mechanism captures the negative effects of relationship marketing on performance (exchange inefficiency); and 3) how does a customer’s relationship orientation determine the effectiveness of relationship marketing, thus allowing for effective segmentation. The authors demonstrate in an empirical study that the trust in the salesperson and exchange inefficiency both mediate the effect of relationship marketing on seller financial outcomes. In addition, customers’ relationship orientation moderates the impact of relationship marketing on both trust and exchange inefficiency.

High Touch Through High Tech: The Impact of Salesperson Technology Usage on Sales Performance via Mediating Mechanisms

Abstract: Sales technology has been touted as a primary tool for enhancing customer relationship management. However, empirical research is sparse concerning the use of information technology (IT) and its effects on the relationship between salespersons and customers. Using an interdisciplinary research approach, we extend task-technology-fit (TTF) theory by examining the mechanisms through which use of IT by the sales force influences salesperson performance. We test a model that incorporates salespersons' customer service, attention to personal details, adaptability, and knowledge---key marketing constructs that could mediate IT's impact on salesperson performance. Results in a pharmaceutical sales setting indicate that IT use can improve customer service and salespersons' adaptability, leading to improved sales performance.

Identification and analysis of moderator variables: investigating the customer satisfaction-loyalty link

Abstract: Purpose – Research on the relationship between customer satisfaction and customer loyalty has advanced to a stage that requires a more thorough examination of moderator variables. Limited research shows how moderators influence the relationship between customer satisfaction and customer loyalty in a service context; this article aims to present empirical evidence of the conditions in which the satisfaction-loyalty relationship becomes stronger or weaker. Design/methodology/approach – Using a sample of more than 700 customers of DIY retailers and multi-group structural equation modelling, the authors examine moderating effects of several firm-related variables, variables that result from firm/employee-customer interactions and individual-level variables (i.e. loyalty cards, critical incidents, customer age, gender, income, expertise). Findings – The empirical results suggest that not all of the moderators considered influence the satisfaction-loyalty link. Specifically, critical incidents and income are important moderators of the relationship between customer satisfaction and customer loyalty. Practical implications – Several of the moderator variables considered in this study are manageable variables. Originality/value – This study should prove valuable to academic researchers as well as service and retailing managers. It systematically analyses the moderating effect of firm-related and individual-level variables on the relationship between customer satisfaction and loyalty. It shows the differential effect of different types of moderator variables on the satisfaction-loyalty link.

Going Beyond Green: The “Why and How” of Integrating Sustainability Into the Marketing Curriculum:

Abstract: Teaching sustainable marketing practices requires that curricula advocate a “triple bottom line” approach to personal and marketing decision making, emphasizing requirements for a sustainable lifestyle, company, economy, and society. These requirements include environmental/ecological stewardship (maintenance and renewal of “natural capital”), social stewardship (equitable distribution of resources, human, and community well-being), and economic stewardship (valuing financial continuity over profit). In this article, the authors suggest how marketing educators might incorporate these sustainability principles into marketing pedagogy. Toward that end, the authors (a) offer a formal definition of the term sustainability, (b) examine the current role of sustainability in marketing strategy at the firm level, (c) present a brief history of academic literature relevant to this topic and review current initiatives at academic institutions, (d) offer resources for integrating sustainability into marketing curric...

Marketing for Higher Education: A Relationship Marketing Approach

Abstract: Retaining students is becoming increasingly important for institutions offering higher education. Thus, ideas from relationship marketing (RM) should be of great interest to university and college officials entrusted with student enrollment and retention. The RM approach means that great importance is attached to the creation of student value. The value proposition to students should match their needs. The creation of value should be regarded as an ongoing process over the lifetime of the relationship. Student surveys should be carried out and analyzed thoroughly in order to identify key success factors for student value and student loyalty. This study is based on a research model in which loyalty is the ultimate variable. Path coefficients of direct and indirect drivers of loyalty are estimated by way of a structural equation modeling approach, and implications for decision makers and further research are discussed.

The notion of internal market orientation and employee job satisfaction: some preliminary evidence

Abstract: Purpose – The purpose of this paper is to examine the impact of Internal Market Orientation (IMO) on the application of internal marketing practices and employee job satisfaction.Design/methodology/approach – Data were secured through personal interviews with hotel managers and employees from 20 different five‐star hotels. Hierarchical regression analysis is used to examine the hypotheses put forward in the study.Findings – Job satisfaction is positively related with the practice of internal marketing. However, IMO is also a significant variable in explaining employee job‐satisfaction while moderating the relationship between internal marketing and job satisfaction.Research limitations/implications – Drawing the analogy from the market‐orientation research stream, this study reveals the importance of developing an internal‐market orientation before internal marketing practices can be truly effective.Practical implications – Service providers seeking differentiation through customer service and delight hav...

A cross‐cultural examination of relationship strength in B2B services

Abstract: Purpose – The purpose of this paper is to specify and test factors surrounding relationship strength between buyers and suppliers in a global, business‐to‐business (B2B) services context In so doing, the paper helps extend relationship marketing theories to this under‐researched domainDesign/methodology/approach – A literature review, along with results of field interviews and surveys, provide a conceptual framework for the relationship strength formation process in the context of multi‐cultures The research then tests a model of hypothesized relationships using structural equation modelingFindings – The paper confirms the influence of perceived value, switching costs and relationship quality (satisfaction, trust and affective commitment) on relationship strength As predicted, relationship quality mediates the influence that perceived value has on relationship strength Switching costs further mediate the influence that relationship quality has on relationship strength which, in turn, influences subs

Tourism Marketing in an Era of Paradigm Shift

Abstract: The present article synthesizes the latest discussion on the future paradigm of marketing. Three alternative marketing perspectives are discussed: relationship marketing, the network approach, and the service-dominant logic. Additionally, their relevance to the field of tourism marketing is highlighted. It is revealed that tourism marketing researchers have started to echo the new marketing thoughts, although in-depth conceptual exploration is still lacking. Finally, the implications of these new marketing conceptualizations on tourism research, practices, and teaching are discussed, and it is concluded that the present tourism marketing research could be improved by putting more emphasis on strategy research and conceptual thinking.