Showing papers on "Relationship marketing published in 2012"

Customer Engagement: Exploring Customer Relationships Beyond Purchase

Abstract: Using qualitative studies involving executives and customers, this study explores the nature and scope of customer engagement (CE), which is a vital component of relationship marketing. We define CE as the intensity of an individual's participation in and connection with an organization's offerings and/or organizational activities, which either the customer or the organization initiate. We argue that it is composed of cognitive, emotional, behavioral, and social elements. Finally, we offer a model of CE, in which the participation and involvement of current or potential customers serve as antecedents of CE, while value, trust, affective commitment, word of mouth, loyalty, and brand community involvement are potential consequences.

Customer engagement, buyer‐seller relationships, and social media

Abstract: Purpose – The advent of the internet and in particular the interactive features of Web 2.0 in recent years have led to an explosion of interest in customer engagement. The opportunities presented by social media to help build close relationships with customers seem to have excited practitioners in a wide variety of industries worldwide. Academic scholarship on customer engagement, however, has lagged practice and its theoretical foundation is relatively underdeveloped and a better understanding of the concept is essential to develop strategies for customer engagement. This paper seeks to address some of these issues.Design/methodology/approach – The paper attempts to enhance understanding of customer engagement by examining practitioner views of customer engagement, linking it to the marketing concept, market orientation, and relationship marketing, modeling the customer engagement cycle, and developing a customer engagement matrix.Findings – The paper develops a model of the customer engagement cycle wit...

From Marketing Mix to Relationship Marketing

Abstract: Discusses the nature and sometimes negative consequences of the dominating marketing paradigm of today, marketing mix management, and furthermore discusses how modern research into, for example, industrial marketing and services marketing as well as customer relationship economics shows that another approach to marketing is required This development is supported by evolving trends in business, such as strategic partnerships, alliances and networks Suggests relationship marketing, based on relationship building and management, as one emerging new marketing paradigm of the future Concludes that the simplicity of the marketing mix paradigm, with its Four P model, has become a straitjacket, fostering toolbox thinking rather than an awareness that marketing is a multi‐faceted social process, and notes that marketing theory and customers are the victims of today′s mainstream marketing thinking By using the notion of a marketing strategy continuum, discusses a number of consequences of a relationship‐type ma

Export marketing strategy implementation, export marketing capabilities, and export venture performance

Abstract: Since exporting is the most popular mechanism by which firms engage with international markets, understanding the drivers of export market performance is key to explaining firms’ international competitiveness. The literature posits that the effective implementation of planned export marketing strategy is a key determinant of the performance of firms operating in international markets. Yet little is known about the specific nature and drivers of export marketing strategy implementation effectiveness. In this study we build on the implementation literature in marketing and strategic management to develop a new conceptualization of export marketing strategy implementation effectiveness. Drawing on dynamic capabilities theory, we empirically examine the export marketing capability antecedents and performance consequences of export marketing strategy implementation effectiveness in the context of manufacturing firms that are exporting to international markets. Results indicate that effective implementation of planned export marketing strategy contributes to export market and financial performance, and that marketing capabilities play an important role in enabling effective marketing strategy implementation in export venture operations.

Social Media in an Alternative Marketing Communication Model

Abstract: While current literature has sufficiently profiled word-of-mouth (WOM) marketing, customer relationship management, brand communities, search engine optimization, viral marketing, guerilla marketing, events-based marketing, and social media each on an isolated, individual basis, there is no comprehensive model that effectively incorporates all of these elements. The first purpose of this paper is to therefore profile the current literature landscape surrounding WOM marketing, alternative marketing communications, and social media as viable components of integrated marketing communications. Additionally, this paper aims to develop an integrated alternative marketing communication conceptual model that can be applied by industrial practitioners to help them achieve their marketing objectives.

Bringing “Social” Into Sales: The Impact of Salespeople’S Social Media Use on Service Behaviors and Value Creation

Abstract: The explosive growth in the use of social media has evoked a “gold rush”–like response from organizations. However, firms in general, and salespeople in particular, are uncertain about the fit between social media tools and their overall sales strategy. To address this issue, we advance a theoretical framework to explain the mechanisms through which salespeople’s use of social media operates to create value, and propose a strategic approach to social media use to achieve competitive goals. We draw on the existing literature on relationship marketing, task–technology fit theory, and sales service behavior to sketch a social media strategy for business-to-business sales organizations with relational selling objectives. The proposed framework describes how social media tools can help salespeople perform service behaviors leading to value creation.

Marketing Performance Measurement Systems: Does Comprehensiveness Really Improve Performance?:

Abstract: Comprehensive performance measurement systems such as the balanced scorecard have received considerable attention in marketing. However, whether and under which circumstances comprehensiveness as a performance measurement system property is desirable and contributes to firm performance is still a subject of debate in research and practice. To address this issue, the authors use dyadic field data from marketing managers and management accounting executives and extend prior work by developing and testing a more complex, contingency-based model. The empirical results confirm the developed framework. In particular, the results show that the relationship of comprehensiveness in a marketing performance measurement system to firm performance is conditional. Marketing alignment and market-based knowledge mediate this relationship, depending on marketing strategy, marketing complexity, and market dynamism. These insights explain mixed findings of previous research and provide important implications for re...

Service Sweethearting: Its Antecedents and Customer Consequences

Abstract: This research is the first to examine service sweethearting, an illicit behavior that costs firms billions of dollars annually in lost revenues. Sweethearting occurs when frontline workers give unauthorized free or discounted goods and services to customer conspirators. The authors gather dyadic data from 171 service employees and 610 of their customers. The results from the employee data reveal that a variety of job, social, and remuneration factors motivate sweethearting behavior and several measurable employee traits suppress its frequency. The results from the customer data indicate that although sweethearting inflates a firm's satisfaction, loyalty, and positive word-of-mouth scores by as much as 9%, satisfaction with the confederate employee fully mediates these effects. Thus, any benefits for customer satisfaction or loyalty initiatives are tied to a frontline worker that the firm would rather not employ. Marketing managers can use this study to recognize job applicants or company settings...

Normalising green behaviours: A new approach to sustainability marketing

Abstract: This paper develops a new approach to sustainability marketing: repositioning activities as normal, or not normal, to encourage the adoption of more sustainable consumer practices. The paper is grounded in theories of social normalisation, conformity, and social practice theory. Previous qualitative work by the authors suggests that some sustainable behaviours are not adopted because they are perceived to be not normal, and that some unsustainable behaviours persist because they are seen as normal. This paper shows how consumer perceptions of the extent to which behaviours are normal or not normal can be identified and used in the design of sustainability marketing strategies. The research involved a survey of 1000 UK respondents' attitudes to 15 specific activities, and identifies marketing strategies for (re)positioning these activities as either normal or not normal, as appropriate. In addition, the paper provides guidance for targeting these normalisation strategies at specific demographic gr...

The emergence of the new service marketing: Nordic school perspectives

Abstract: Purpose - The purpose of this paper is to offer a reflective account of the emergence of new marketing theory as seen through the lens of the Nordic School of Service. Design/methodology/approach - The paper is based on documents and the authors' self-lived history and current involvement (management action research). Findings - Northern European scholars, especially from Finland and Sweden, have felt free to design their own theory, at the same time collaborating internationally. Contributions include an early alert to services and business-to-business (B2B) marketing being neglected; dissatisfaction with service quality; that the service economy is more than the service sector; and the insight that relationship marketing and many-to-many network marketing better represent service reality. A novel service logic abandoning the divisive goods/services, B2B/B2C (business-to-consumer), and supplier/customer categories, based on commonalities and interdependencies is arriving. Nordic School methodology is characterised by induction, case study research, and theory generation, to better address complexity and ambiguity in favour of validity and relevance. In the 2000s, the synthesis provided by service-dominant (S-D) logic, IBM's service science, and network and systems theory have inspired a lively international dialogue. Research limitations/implications - The hegemony of the marketing management of mass-manufactured consumer goods was challenged when services entered the marketing agenda in the 1970s. During the 1980s and 1990s the differences been goods marketing and service marketing were explored and the understanding for relationships, networks and interaction developed. It gradually laid the ground for the integrated goods/services approach that is now the major challenge for service researchers and practitioners alike. Originality/value - It is unfortunate if developments of marketing in the USA are perceived as a universal standard for marketing. By studying contributions from many cultures and nations in other countries the paper enhances the understanding of the diversity of marketing. This article presents such a case from Northern Europe.

Customer satisfaction, trust and commitment as predictors of customer loyalty within an optometric practice environment

Abstract: Optometric businesses need to adopt strategies to enhance loyalty, as customer satisfaction is not enough to ensure loyalty and customer retention. It has been stated that 85% of patients in the optometric industry who defect to other service providers were satisfied with the service received just before defecting. Consequently, to assist optometric practices in South Africa with their customer loyalty strategies, the purpose of the research conducted for this article was to develop an understanding of the influence of the independent variables of customer satisfaction, trust and commitment on customer loyalty within an optometric practice. The methodological approach followed was exploratory and quantitative in nature. The sample consisted of 357 patients who had visited the practice twice or more within the past six years. A structured questionnaire, with a five-point Likert scale, was used. A descriptive and multiple regression analysis approach was used to analyse the results. The main conclusion is that customer satisfaction had the highest correlation with customer loyalty, but the other independent variables also significantly influence customer loyalty within an optometric practice environment. The implication is that optometric practices need to focus on customer satisfaction, trust and commitment in order to improve customer loyalty. Key words : optometric practice, customer loyalty, customer retention, customer satisfaction, customer relationship management

Marketing Strategies for Foreign Expansion of Companies Originating in Small and Open Economies: The Consequences of Strategic Fit and Performance:

Abstract: This study examines the marketing strategies of companies originating in small and open economies as they expand into foreign markets. It distinguishes two major globalization paths (that of born globals and that of globalizing internationals), contrasts them with traditional internationalizers, and describes their characteristics. It then outlines a framework and hypotheses regarding the marketing strategies used in foreign expansion and examines them empirically in the information and communication technology field. The authors examine two important strategic marketing issues: the breadth of product offering and the standardization of marketing strategies across countries. The empirical results show that foreign expansion path, foreign business experience, and external globalization pressure have an impact on the selection of marketing strategies. The study also finds that the fit between these contextual factors and the standardization of marketing strategy has a positive effect on performance...

Rethinking the Relationship Between Social/Nonprofit Marketing and Commercial Marketing

Abstract: Despite the long history and increasing interest in nonprofit and social marketing, the managerial and pedagogical issues that arise in these noncommercial contexts are treated as unique cases in an intellectual environment dominated by commercial issues and applications. Its literature and basic textbooks allot only a few paragraphs or pages to nonprofit and social marketing. This essay posits the radical idea that this implicit taxonomy has the relationship upside down. The author argues that nonprofit and social marketing represent the most complex and difficult contexts in which marketing activities are carried out and that the appropriate classification of commercial applications is (only) one simplified variety of this complexity, principally the sales of products and services.

Understanding the role of social media in bank marketing

Abstract: Purpose – The purpose of this paper is to investigate the role of Web 2.0 and social media in relationship marketing (RM) in banking. The aim is to understand why some banks resist the Web 2.0 trend, how this is aligned with their RM approaches and what the alternative paths for advancing customer relations could be. The paper focuses on the practices of banks in the less‐researched yet dynamically evolving South East European (SEE) region.Design/methodology/approach – A qualitative case study approach was employed for this study. In total, three case studies were constructed, describing practices and RM approaches of retail banks in SEE. Data used for the construct of case studies were collected through in‐depth interviews with top management, documentation and banks’ official web sites.Findings – Primary reasons for refraining from social media included: low customer demand for such form of interaction with banks; concerns over safety of Web 2.0 for banking; and lack of alignment with current RM strateg...

Service fairness and customer satisfaction in internet banking: Exploring the mediating effects of trust and customer value

Abstract: Purpose – The purpose of this paper is to explore and empirically test fairness in predicting online customer satisfaction in the internet banking context. The paper also aims to further explore the mechanism through which fairness influences customer satisfaction online, i.e. identifying the mediators.Design/methodology/approach – A survey is used to validate a research model based on equity theory and relationship marketing theory that incorporates fairness, trust, perceived value and customer satisfaction. A total of 331 surveys were analyzed using Partial Least Square.Findings – In internet banking, fairness that includes distributive fairness, procedural fairness and informational fairness is positively related to customer satisfaction. Trust is identified as the key mediator of fairness to customer satisfaction.Research limitations/implications – In an online context, where human interactions are replaced by graphic user interfaces, fairness still plays an important role in customer satisfaction. Fu...

Toward Team or Player? How Trust, Vicarious Achievement Motive, and Identification Affect Fan Loyalty

Abstract: This study extends literature on the effects of fan identification on fan loyalty, and antecedents that trigger such effects. This study incorporates trust, a key relationship marketing construct, in the sport industry. The relationship between trust and two other critical antecedents of sport fan loyalty, identification and vicarious achievement motive, is examined from the perspectives of both fan-player and fan-team. The results show that antecedents from distinct perspectives influence loyalty differently. Team identification (fan-team level) is the major determinant of fans’ repatronage intention, with trust in the team as the key driver. However, player identification (fan-player level) has an indirect effect, which must go through team identification to repatronage intention. Therefore, sport organizations are recommended to invest a substantial part of their resources on activities that generate long-term effects, such as trust in the team and team identification, rather than on short-term strateg...

Performance implications of market orientation, marketing resources, and marketing capabilities

Abstract: Drawing on the competitive capability theory, this paper examines how market orientation, marketing resources, and marketing capabilities contribute to firm performance. The empirical results show that being market oriented influences the level of marketing resources firms possess and the capability to deploy such resources. The findings show marketing resources and marketing capabilities are significant drivers of firm performance, and their impact is greater when they are complementary to each other.

Impacts of perceived brand relationship orientation on attitudinal loyalty

Abstract: Purpose – This paper aims to contribute to the empirical validation of the relationship model as it applies to the case of major national brands positioned in the frequently purchased packaged goods markets, and propose the perceived brand relationship orientation concept as an additional antecedent of trust, affective commitment and attitudinal loyalty. Yet, for a relationship to exist, the parties need to be mutually considered as potential relational partners. This paper seeks to introduce the concept of perceived brand relationship orientation, which is considered, along with perceived quality, as a significant direct antecedent of relationship quality (trust and affective commitment) and, indirectly, attitudinal loyalty.Design/methodology/approach – The empirical application involves major national brands positioned in frequently purchased packaged goods food categories (ice cream and frozen meals). The conceptualization and measurement of the perceived brand relationship orientation bears on a quali...

Customer Relationship Management: Concept, Strategy, and Tools

Abstract: Preface.- 1 The Role of CRM.- 2 Relationship Marketing.- 3 Strategic CRM.- 4 Implementing the CM Strategy.- 5 CRM Metrics.- 6 Data Mining.- 7 Using Databases.- 8 Software Tools and Dashboards.- 9 Designing Loyalty Programs.- 10 Campaign Management.- 11 CRM and Multichannel Management.- 12 Customer Management in B2B.- 13 CRM and Consumer Behavior.- 14 Application of CRM in B2B and B2B Scenarios.- 15 The Future of CRM.- Index.

The antecedents of online financial service adoption: the impact of physical banking services on Internet banking acceptance

Abstract: The cost-effectiveness of operations on the Web enables financial service firms to employ Web technology to replace or substantially reduce the need for personal interactions in the provision of their services. However, recent cases have shown that the use of Web technology in financial services may not be as promising as expected. This study utilises the constructs derived from transaction cost analysis TCA, the technology acceptance model TAM and relationship marketing literature to develop a framework of the antecedents to using Internet banking. The model explicitly incorporates the impact of the experiences a customer has had with services provided by the physical bank whose Web services the customer is considering using. The results show that the major antecedent variables in TAM and the customers’ specific assets already invested in the focal physical bank have a significant impact on customers’ attitude towards the use and the intention to use a bank's Internet banking services. Our findings suggest that beyond the ease of use and usefulness of information system, companies have to take advantage of customer relationship built up in the offline environment that has the potential to influence customers’ use intention towards Internet service. The study advances the technology acceptance literature in terms of explaining users’ new-service-adoption behaviour by adding the concepts from TCA and customer relationship literature.

The effect of customer relationship management adoption in business‐to‐business markets

Abstract: Purpose – The purpose of this study is to investigate the effects of customer relationship management (CRM) practices on customer satisfaction and firm performance in business‐to‐business (B2B) markets.Design/methodology/approach – A model is developed and empirically tested through survey data obtained from 113 Turkish B2B companies.Findings – The results indicate that CRM adoption has a significant positive effect on both customer satisfaction and organizational performance in B2B settings. CRM adoption is also found to affect organizational marketing performance significantly, but not financial performance. Additionally, the results reveal that enhanced customer satisfaction leads to better organizational performance in the B2B organization. Environmental dynamism and competition was found to have a negative moderating effect on the relationship between customer satisfaction and organizational performance.Originality/value – The paper contributes to existing literature by incorporating customer‐facing ...

Voice of the customer: Customer satisfaction ratio based analysis

Abstract: Voice of the customer (VOC) is a critical analysis procedure that provides precise information regarding customer input requirements for a product/service output. The ability to conduct a voice of the customer analysis, which could be gained through direct and indirect questioning, will enable engineers and other decision makers to successfully understand customer needs, wants, perceptions, and preferences. The information obtained from the customers is then translated into critical targets that will be used to ultimately satisfy the customer requirements. During this research project, different forms of customer input, including qualitative and quantitative data, were transformed to a common data format to develop a correlation between design input requirements and product/service outputs. We have developed a new method for measuring customer satisfaction ratio (CSR) by considering the following: mining both textual and quantitative data, multiple design parameters, mapping output on a scale of 0-1, and a decision template for means of measure. Previous measures of CSR fail to incorporate the cost implication of fixing customer complaints/issues; however, we include this important and unique measure in our research. The implication of this research will reduce Things Gone Wrong (TGW's) and engineering development time and will achieve improvements in JD Power ratings, quality perception, marketing tools, and customer satisfaction.

Is Customer Satisfaction an Indicator of Customer Loyalty

Abstract: Customer satisfaction and loyalty is a well known and established concept in several areas like marketing, consumer research, economic psychology, welfare-economics, and economics. And has long been a topic of high interest in both academia and practice. The aim of the study was to investigate whether customer satisfaction is an indicator of customer loyalty. The findings of the study supported the contention that strong relationship exist between customer satisfaction and loyalty. However, customer satisfaction alone cannot achieve the objective of creating a loyal customer base. Some researchers also argued, that customer satisfaction and loyalty are not directly correlated, particularly in competitive business environments because there is a big difference between satisfaction, which is a passive customer condition, and loyalty, which is an active or proactive relationship with the organization.