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Relationship Marketing: a New Approach to Marketing in the Third Millennium
Abstract
Because of strong competition, fragmentation of markets, short life cycles of products and increasing customer awareness and complexity, the necessity of relationship marketing approach is felt more than ever. Relationship marketing involves creating, maintaining, and enhancing strong relationships with customers and other stakeholders. A relationship orientation implies that the focus of marketing is on retaining customers by maintaining and strengthening win-win relationships over time. Relationship marketing is more about maintaining existing customers than to attract new customers and it is just in contrast to the transactional marketing. This article first describes the concept of relationship marketing and views it from two American and European perspective. The reason for emergence of relationship marketing and its historical roots is presented and finally the most important relationship marketing models which are presented by various experts has been analyzed. Organizations and companies, using relationship marketing approach can gain competitive advantages and increase customer satisfaction and loyalty. Since customer retention, loyalty and satisfaction are crucial to survive business, so today using an approach that better achieves these goals is highly regarded. Relationship marketing as a new approach has proven in theory and practice that it is one of the most successful approaches.
... This research uses two grouped theories and their sequential logical reasoning. The first is the social influence theory (Kacen & Lee, 2002;Kelman, 1958;Viswanathan et al., 2017) and relationship marketing theory (Gilaninia et al., 2011;Shahin Sharifi & Rahim Esfidani, 2014). This social influence theory explains that individuals use an MSA to assess their identification, internalization, and commitment. ...
... This social influence theory explains that individuals use an MSA to assess their identification, internalization, and commitment. Furthermore, firms should continue developing and maintaining customers' intimacy in long-term relationships (Gilaninia et al., 2011;Shahin Sharifi & Rahim Esfidani, 2014;Wongkitrungrueng et al., 2020). Therefore, individuals create their commitments with updated information from an MSA. ...
... MRT focuses on managing and improving customers' loyalty in a long-term intimate relationship (Gilaninia et al., 2011;Shahin Sharifi & Rahim Esfidani, 2014;Wongkitrungrueng et al., 2020). Furthermore, Shahin Sharifi and Rahim Esfidani (2014) showed that longterm intimacy between a firm and its customers could reduce cognitive distortion and dissonance. ...
Plain language summary
Purpose—This study investigates how users changed their cognitive processes to develop loyal behavior from their involvement. Furthermore, this study investigates the users’ cognitive staging changes to enhance their commitment to using an MSA. Method—This study employed two research methods. The first was a survey, and the other a quasi-experiment. This study used two approaches to investigate the users’ commitment: general and multidimensional commitments. Finally, this study was conducted sequentially on the three models in a mutually exclusive test. Conclusion—This study accomplished its three research objectives. The first was to present evidence that the existence and occurrence of customer commitment play a critical role in determining users’ loyalty. It means that customer satisfaction and trust affect their commitment first. Then, customer commitment influences their loyalty after they increase their commitment. Secondly, this research presented evidence that two types of customer commitment supported the causality between satisfaction, trust and loyalty. General and multidimensional commitment have a role in determining customers’ loyalty. This study inferred that although the types are different, they explain that their cognition influences customers’ loyalty, manifested in commitment. Implication—This research implies that an effective loyalty program makes social media users experience emotional bonding and commitment. This commitment improved when the users received rewards from the service providers. The users got enjoyment, entertainment, visual appeal, and social affiliation to reflect experiential values. Theoretically, this research implied that the loyalty program literature comprehended the e-commerce users’ commitment through a multidimensional approach with users’ identification and internalization of the loyalty program had to be loyal. Limitation—The measurements of general and multidimensional commitments possibly relate to the users’ personalities and cultures, creating doubt. Users’ personalities could influence the users’ commitment due to the varying levels of openness, introversion, masculinity, and other factors. Meanwhile, culture probably influences the users’ commitment because of variations in customs, mores, vogues, manners, and other communities adhere to. Moreover, this study did not control for the users’ income levels. The income per capita could affect the motivation for commitment.
... Morgan and Hunt (1994) asserted that relationship marketing is vital to building and managing successful rapport with various stakeholders. This idea is also supported by Gilaninia;Almani;Pournaserani & Mousavian (2011). ...
... Morgan and Hunt (1994) asserted that relationship marketing is vital to building and managing successful rapport with various stakeholders. This idea is also supported by Gilaninia;Almani;Pournaserani & Mousavian (2011). ...
... Morgan and Hunt (1994) asserted that relationship marketing is vital to building and managing successful rapport with various stakeholders. This idea is also supported by Gilaninia;Almani;Pournaserani & Mousavian (2011). ...
The context of this study is Bangladesh's food retailing sector. The main purpose of this study is to investigate the relationship between Customer Relationship Marketing (CRM) and customer retention. The core aim of Relationship Marketing is to build long lasting mutually bonded relationships with customers and various other important stakeholders. The concept has attracted considerable attention among scholars in recent decades and has appeared in service marketing literature as a new marketing paradigm. The concept is critical to the success of any organisation as it has been an accepted phenomenon that maintains that existing customers are far easier to retain than is the process of acquiring new customers. In order to stay in business and cope with the challenging business dynamism, organisations are continuously searching for reliable and serviceable strategies to be employed in order to increase customer retention. However, there is a lack of consensus among researchers on the core antecedents of relationship marketing that can be used to achieve the above aims, especially while the concept is new in the context of organised retailing sectors in Bangladesh. In response, the study developed a conceptual framework of customer retention strategy which incorporates bonds, service quality and relational quality into one relationship model. The model establishes eleven hypotheses. A sample of 202 grocery food retail customers were selected in a random sample from four selected superstores. The results support hypothesized relationships built on the model. The findings indicate that service quality, trust, bond and customer satisfactions are vital for creating positive customer loyalty which in turn creates customer retention. © 2019 JBRMR: Journal of Business and Retail Management Research.
... With the relationship marketing philosophy advocating building and maintaining mutually beneficial long-term relationships with customers (Morgan & Hunt, 1994), it is not surprising that firms increasingly pursue this approach as they realize the importance of retaining customers in increasingly competitive markets (Kumar, 2014). Building long-term relationships with customers hold a number of benefits to firms, including increased customer spending and spreading positive word-ofmouth (Hoffman & Bateson, 2011;Odekerken-Schröder, De Wulf, & Schumacher, 2003); increased customer satisfaction (Gilaninia, Almani, Pournaserani, & Javad, 2011); and enhanced customer life-time value (Gamble, Stone, Woodcock, & Foss, 2006) that leads to increased profitability (Hoffman & Bateson, 2011). These benefits culminate in a greater competitive advantage to the firm (Gilaninia et al., 2011). ...
... Building long-term relationships with customers hold a number of benefits to firms, including increased customer spending and spreading positive word-ofmouth (Hoffman & Bateson, 2011;Odekerken-Schröder, De Wulf, & Schumacher, 2003); increased customer satisfaction (Gilaninia, Almani, Pournaserani, & Javad, 2011); and enhanced customer life-time value (Gamble, Stone, Woodcock, & Foss, 2006) that leads to increased profitability (Hoffman & Bateson, 2011). These benefits culminate in a greater competitive advantage to the firm (Gilaninia et al., 2011). ...
... Despite these benefits, firms should selectively target customers to build longterm relationships with as not all customers want to enter in or remain in a relationship with firms (Gilaninia et al., 2011;Parish & Holloway, 2010). It is thus wise to focus relationship marketing strategies on customers with relationship intentions as they are more willing to reciprocate relationship building efforts (Conze, Bieger, Laesser, & Riklin, 2010;Kumar et al., 2003;Raciti, Ward, & Dagger, 2013). ...
Despite the benefits of following a relationship marketing approach, firms should use caution when targeting customers with relationship marketing strategies as not all customers want to enter into long-term relationships. Targeting customers based on the length of customer-firm association could also be flawed as the success of doing so is disputed. This study explored relationship intention under cell phone customers in two emerging markets, namely the Philippines and South Africa. Findings show that relationship marketing strategies should only be focused on customers displaying high relationship intentions rather than, erroneously, investing in relationships with customers based on association length.
... Commitment motivates partners to co-operate in order to preserve the relationship investments (Morgan & Hunt, 1994). Commitment is an "intention to continue a course of action or an activity or a desire to maintain a relationship" (Amin, Almani, Pournaserani & Mousavian, 2011). It furthermore implies that partners forgo short-term alternatives in favour of long-term benefits associated with current partners. ...
... Conflict refers to the level of disagreement between both parties acting in an exchange which can be perceived in a relationship. It reduces the possibility of creating and maintaining a longterm relationship (Amin et. al, 2011). It is the organisation's ability to minimise the negative consequences of manifested and potential conflicts. Conflict-handling includes the organisation's ability to avoid potential conflicts, to solve manifested conflicts before they create problems, and to discuss solutions when problems arise. How conflicts are handled will influen ...
The primary objective of this article is to compare the influence of trust, commitment, and conflict-handling on customer loyalty through the intervening role of Customer Relationship Management (CRM) in the life and non-life insurance sector of South Africa. Primary data was gathered using a questionnaire. The sample consisted of 254 life insurance and 400 non-life insurance customers in South Africa. Multiple regression analysis was used to test the hypotheses. For the life insurance component of the study, trust, commitment and conflict-handling exerted a statistically significant positive influence on CRM. CRM also positively influenced customer loyalty. For the non-life insurance component of the study, no significant relationship exists between trust and CRM. A significant positive relationship does exist between conflict-handling and CRM, while a significant negative relationship exists between commitment and CRM. Therefore, life and non-life insurance providers should retain and develop loyal customers by being trustworthy (giving and keeping promises, providing quality services and illustrating a respect for customers), committed (enhanced segmentation of the customer base and increased customer surveys), and, lastly, by resolving conflicts in a timely and acceptable manner, limiting the difficulties and disappointment experienced by the customer.
... However, the biggest drawback to following a relationship marketing approach is that not all customers desire to enter into relationships with service providers (Gilaninia et al., 2011;Odekerken-Schröder et al., 2003). Service providers thus stand a greater chance of success by focusing their relationship marketing strategies on those customers with relationship intentions, as they will be more likely to build long-term relationships (Conze et al., 2010;Kumar et al., 2003;Leahy, 2011;Raciti et al., 2013). ...
... The reason for this is that the successful implementation of either of these strategies could result in increased customer satisfaction (Kaura et al., 2012;Liu et al., 2015;Stefano et al., 2015), an increase in positive word-of-mouth communication (Foscht et al., 2009;Liu and Lee, 2016), and an increased intention to repurchase and customer loyalty (Kaura et al., 2012;Liu et al., 2015;Liu and Lee, 2016;Terpstra and Verbeeten, 2014). However, because not all customers want to build longterm relationships with service providers (Gilaninia et al., 2011;Odekerken-Schröder et al., 2003), it is essential to focus relationship marketing strategies on those customers with relationship intentions, as they will be more likely to build long-term relationships (Conze et al., 2010;Kumar et al., 2003;Leahy, 2011;Raciti et al., 2013). ...
Offering superior service quality or building long-term customer relationships could offer effective strategies to create a competitive advantage. However, since not all customers desire to enter into relationships with service providers, it may be more profitable to focus relationship marketing strategies on customers with relationship intentions. The purpose of this study was to establish whether there is a relationship between relationship intention and service quality, as combining these approaches could result in formulating a greater competitive strategy than using either one of these strategies in isolation. Data were collected from 368 South African respondents. The results indicated positive relationships between respondents' relationship intentions and service quality expectations and perceptions. It was also established that respondents with moderate and low relationship intentions were significantly less satisfied with the service levels they receive compared with their expectations, whereas no difference was found for those with higher relationship intentions.
... However, the biggest drawback to following a relationship marketing approach is that not all customers desire to enter into relationships with service providers (Gilaninia et al., 2011;Odekerken-Schröder et al., 2003). Service providers thus stand a greater chance of success by focusing their relationship marketing strategies on those customers with relationship intentions, as they will be more likely to build long-term relationships (Conze et al., 2010;Kumar et al., 2003;Leahy, 2011;Raciti et al., 2013). ...
... The reason for this is that the successful implementation of either of these strategies could result in increased customer satisfaction (Kaura et al., 2012;Liu et al., 2015;Stefano et al., 2015), an increase in positive word-of-mouth communication (Foscht et al., 2009;Liu and Lee, 2016), and an increased intention to repurchase and customer loyalty (Kaura et al., 2012;Liu et al., 2015;Liu and Lee, 2016;Terpstra and Verbeeten, 2014). However, because not all customers want to build longterm relationships with service providers (Gilaninia et al., 2011;Odekerken-Schröder et al., 2003), it is essential to focus relationship marketing strategies on those customers with relationship intentions, as they will be more likely to build long-term relationships (Conze et al., 2010;Kumar et al., 2003;Leahy, 2011;Raciti et al., 2013). ...
... Relationship marketing and loyalty programs are key strategies for companies facing increasing competition (Beck et al., 2015). Relationship marketing is an approach to marketing that focuses on the development and maintenance of long-term relationships with consumers, in contrast with the transactional exchanges (Gilaninia et al., 2011). Loyalty programs are business practices more and more pursued by companies in order to enhance customer loyalty (Kumar, 2005;Meyer-Waarden, 2007;Meyer-Waarden and Benavent, 2006). ...
... Relationship marketing is an approach to marketing that focuses on the development and maintenance of long-term relationships with consumers, in contrast with the transactional exchanges (Gilaninia et al., 2011). Sharifi and Esfidani (2014) indicate that relationship marketing reduces cognitive dissonance by the consumer in the postpurchase stage and, thereby, increases customer satisfaction and loyalty, with a mediating role of trust. ...
... Ghana may be seen as an indigenous country, but in the Ghanaian banking sector, that does not seem to stand as more foreign owned banks go head-to-head with a few local banks statistically. Gilaninia et al (2011) defines relationship marketing as a kind of marketing that aims at developing and managing long-term and trustworthy relationships with customers, suppliers and all others acting in the market. It is a form of marketing that is client-based in terms of customer retention and satisfaction rather than individual transactions. ...
The purpose of this study is to examine Relationship Marketing and its Effect on Customer Loyalty. Therefore, the study aims at providing a better understanding of employees’ thoughts and attitudes towards relationship marketing in reference to the bank.
This can contribute to the tailoring of a suitable relationship marketing system that provides concrete guidelines and practical steps that can be used to improve the system in UMB Koforidua, Ghana. In this era, organizations are taking steps to successfully address the negative view of marketing, and relationship marketing seems like a great key. The study adopted a descriptive research design. The population of interest consists of 41 staff members of Universal Merchant Bank, Koforidua branch. A Census Study was undertaken to interview the total population. Data was collected using structured questionnaires. The data was analysed using the Statistical Package for Social Sciences (SPSS) into frequency distribution and percentages. The data was presented using tables. The findings on the different approaches of relationship marketing in maintaining relationship with customers showed that customers appreciate the systems, but will still want more to be done, and this opinion is also backed by the staffs of the bank.
Conclusions and recommendations have been highlighted in the chapter 5 as they depict the effects on all major aspects of the study. Customer services are properly rendered to customers in a good manner, and a good manner of communication is maintained when trying to solve a
problem no matter the tension.
... The benefits in question are the benefits obtained by the seller and the benefits obtained by the consumer. This is similar to the opinion of Gilaninia et al. (2011), namely, sales or marketing is a process where the seller satisfies all the needs and desires of the buyer in order to achieve benefits for both the seller and the buyer that are sustainable and profitable for both parties. This is what makes several culinary entrepreneurs both in the city of Makassar and in Gowa Regency dare to spend more budget with the aim of promoting sales products and building branding. ...
This study aims to determine and analyze promotional strategies in building branding and product sales in the Rumah Catering culinary business located in Gowa Regency, South Sulawesi Province. The research method used is descriptive qualitative with data collection through in-depth interviews, observation and document study. The results showed that there are four promotional strategies out of five promotional strategies used or implemented by Rumah Catering, namely direct marketing, advertising, personal selling and sales promotion. Meanwhile, publicity/public relations has not been implemented by Rumah Catering. The main inhibiting factors affecting the implementation of all promotional strategies are the insufficient number of marketing personnel and limited budget and location coverage. In addition, the supporting factors that contribute to the success of promotional strategies at Rumah Catering are advertising and promotion, consumer readiness to buy products and the presence of competitors. This study provides input and recommendations for Rumah Catering culinary businesses to consider developing a more optimal promotional strategy in overcoming obstacles and utilizing existing supporting factors.
... Thus, most research works published in respect to marketing strategy and consumer loyalty were done in other countries. They are theoretical or conceptual (Saarijiavy, 2012), indicating a valid or positive correlation between marketing strategy and consumer loyalty (Macintosh, 1997) Trust (Ndubisi, 2004), conflict handling (Gilaninia, 2011), communication or sharing of secrets. Beyond this, there are few empirical findings on the effects of retailers marketing strategy on consumer loyalty in a developing economy like Nigeria. ...
... Success and survival in today's business landscape demand adaptation to the evolving marketing paradigm. In today's fiercely competitive environment, businesses are driven to fortify their customer relationships (Gilaninia et al., 2011). Establishing relationships with customers provides valuable marketing intelligence, enhancing strategic marketing planning (Ndubisi, 2007). ...
Intense competition in automotive sector compels companies to fortify and strategically position their corporate brand in customers' minds. Consequently, cultivating robust and enduring relationship quality with customers has become imperative. The objective of this study was to investigate the mediating role of relationship quality on the relationship between the corporate brand and repurchase intention in the automotive sector. Grounded in the resource-based view theory, the assumption is that relationship quality serves as a mediator between the corporate brand and repurchase intention. The proposed conceptual framework includes variables three of relationship quality is hypothesized to mediate the relationship between the corporate brand and repurchase intention. Data were collected via a survey method using a personally administered questionnaire received from 322 customers of automotive companies in Sudan. The responses were obtained and analyzed through quantitative method using SPSS. The results showed that the three components of relationship quality including trust, satisfaction and commitment mediated the relationship between the corporate brand and repurchase intention. Each relationship quality component exhibits distinct mediation patterns. These results contributed a unique addition to academic knowledge and offer valuable insights for decision-makers in the marketing field.
... Also the results showed that market orientation has a positive effect on organization performance through the role of establishment total quality management. 3. Shahram Gilaninia ( 2011) in study with title » The effect levels of total quality management on performance of insurance companies in Iran » has paid to reviews the effect of dimension different levels of total quality management on performance of insurance companies according to model David Garvin in insurance industry. The results showed that the effect of dimension different levels of total quality management on performance of insurance companies in Iran is different. ...
It is critical that the managers understand and design strategies to obtain a greater performance. Market orientation (MO) has emerged as a significant antecedent of performance. The current situation is one of the best tools for a dynamic organization whose purpose is to operate in a competitive environment, known as total quality management. TQM as a management paradigm has been accepted by many organizations around the world. TQM is an organization that attempts to make the structures, procedures, customs, behavior and even their infrastructure in order to maintain customer satisfaction, coupled with the emphasis on compatibility, quality improvement and organizational competitiveness improvement. So , this research aims to add systematic view to quality subject by examine the intermediation role of market organizations performance. Current research seeks to examine the effects of total quality management on performance(service quality) will intermediation of market orientation. After gathering information by questionnaire from managers, experts 8 senior , we use SPSS&AMOS for analyzing of data. Introduction Today's quality improvement has high importance in parts of industry, production, hygiene, treatment and education and service. In general one organization has emerged based on public and social needs. Organizations in order to obtain their purpose must have relationship with other parts. This issue is very important that managers design strategies which through its improve organization performance (Pearce 2003). On the other develop institutions and various industrial organizations and commercial and increase intense of competition between them caused to organizations to survive do not short of none practical. Today's high competition and speed of changing global economy has forced organization use of creative and innovative management methods. Total quality management were used as a managerial attitudinal in many organizations. Accepting this concept caused to develop of concepts related to quality. In this study, tries to be identified add systematic view to data quality subject and simultaneously effects of this two management approaches on organizational performance by examine the intermediation role of market organizations performance. (Dess Et al. 1999)
... According to Boso et al. (2019), due to the excessive offer in the market, companies have developed aggressive and seductive marketing strategies to persuade consumers, whereas the incentive to purchase was so aggressive that individuals develop constant consumption needs. The scarcity of income by part of families led financial institutions to create credit lines, thus, financing consumption quickly, easily and effectively (Gilaninia et al., 2011;Zwanka & Buff, 2021). ...
The actual pandemic crisis caused substantial changes; on the economies around the world, the routines of individuals, the methods of working and consumption needs. The present research aims to determine how consumers have changed their consumption habits and which factors most influenced their behavioral patterns during the COVID-19 pandemic. Through the use of quantitative methodology, an online questionnaire was performed, intending to collect information regarding consumers behavior. Comparatively to the phase preceding the pandemic, the results obtained show that, amongst the seven variables under analysis, the available income to satisfy consumption needs and the innovation of goods and services were the constructs that consumers consider most relevant when meeting their needs during the pandemic phase, The present research contributes to the development and clarification of scientific knowledge, and provides insights to companies and policy makers about consumer behavior during the COVID-19 pandemic. Indeed, through a multidimensional statistical analysis, we found significant consumption changes conditioned by consumers' income level and the supply of innovative products and services. By knowing the behavior of consumption, it is possible to determine socioeconomic development strategies to avoid a significant rupture in the economy.
International Journal of Marketing, Communication and New Media
... The American Marketing Association (AMA) defines relationship marketing as "the kind of marketing that its goal is developing and managing long-term and trustworthy relationships with customers, suppliers and all others acting in the market" (Gilaninia et al., 2011). Customers are seen as the main feature during the company planning methods or procedures in relationship marketing (Sharifi & Esfidani, 2014). ...
The purpose of this study is to critically examine the effect of relationship marketing (such as trust, commitment, communication effectiveness, and conflict handling) on customer loyalty in the telecommunication service delivery sector. The data for this study were gathered through a questionnaire. In addition, a survey of two hundred and twenty-five (225) customers of telecommunication services in Nigeria supports the investigation. The Statistical Package for Social Sciences (SPSS) version 22 was employed to analyze the data gathered. The findings of this study show that trust, commitment, communication effectiveness, and conflict handling directly affect customer loyalty. In addition, all four variables directly influence customer loyalty. Hinging on the study’s discoveries, the paper suggested that organizations should strategically implement relationship marketing as this will help build and increase loyal customers. This study contributes to the body of knowledge in this field, which adds significant value. Moreover, the study provides valuable details on the telecommunication sector, possibly new to many readers.
AcknowledgmentThe authors wish to appreciate the management of Covenant University for the full sponsorship of this publication in this journal.
... Różnice polegają więc na tym, co koncepcje akcentują jako cel pierwszoplanowy, a co jako wtórny spośród dwóch wzajemnie na siebie oddziałujących -relacje czy wartości. W ten sposób można mówić o jednym (zintegrowanym) paradygmacie marketingu -wartościowo-relacyjnym (Pfarrer, Pollock, & Rindova, 2006;Gilaninia, Almani, Pournaserani, & Mousavian, 2011). ...
Cel i tezy: celem artykułu jest zbadanie, czy i ewentualnie pod jakimi warunkami obecnie priorytetowy cel praktyki public relations – wizerunek – może służyć założeniom teorii PR mieszczącym się w stwierdzeniu „PR funkcją zarządzania organizacją”. Teza wyjściowa zakłada, że wizerunek jako komunikacyjne medium/przekaźnik i jednocześnie przekaz muszą charakteryzować bardzo określone cechy, tak aby PR mógł być wykorzystany jako funkcja w zarządzaniu organizacją. Koncepcja/metody badań: wiedza i studia literaturowe uwzględniające pozycje polskie i obcojęzyczne, w tym własne – z obszaru PR, komunikowania oraz zarządzania. Ze względu na typ kontaktów przydatny był – z zakresu teorii komunikowania – dorobek dotyczący komunikowania publicznego i instytucjonalnego, a z możliwych komunikacyjnych aspektów interpretacji tematu – aspekt instrumentalny. Wyniki i wnioski: wnioski są zawarte w dwóch hipotezach artykułu: (1) wizerunek/reputacja może służyć realizacji przez PR funkcji zarządzania organizacją pod warunkiem zasadniczego podniesienia wartości informacyjnej, w tym nacechowania wartościami wymaganymi przez teorię zarządzania strategicznego; (2) wymagałoby to zasadniczej reorientacji praktyki PR w zakresie podstawowego celu oraz profesjonalizacji zarządzania wizerunkiem. Wartość poznawcza/oryginalność: opracowanie ukazuje nowy problem naukowy, w zakresie zarówno celu, jak i hipotez. Identyfikuje zjawiska, mechanizmy i procesy kształtujące informacyjną wartość wizerunku/reputacji, analizuje kierunki potrzebnej reorientacji praktyki PR oraz najważniejsze korzyści, jakie w procesach zarządzania może dawać wykorzystanie wizerunki/reputacji. W swym głównym przesłaniu refleksyjnie nawiązuje do dwóch najbardziej znaczących paradygmatów w teorii public relations – teorii doskonałego public relations (gdy badamy, w jakim stopniu wizerunek w swym komunikacyjnym wyrazie może być użyty w doskonaleniu zarządzania organizacją, a przez to we wzroście efektywności organizacji) oraz relacyjnego public relations (gdy proponujemy zmianę celu wizerunkowego na relacyjny jako sposób podniesienia potencjału informacyjnego wizerunku/reputacji, a także gdy identyfikujemy bezpośrednie strategiczne korzyści z dobrych relacji z otoczeniem). Co więcej, wskazany problem badawczy jest konkretnym przykładem interdyscyplinarności nauki o komunikowaniu (jako dyscypliny z pogranicza m.in. nauk ekonomicznych, a w tych ramach zarządzania, marketingu i public relations).
... The management of some of these hotels not considering the concept of relationship marketing capable of creating, maintaining, and enhancing customers' satisfaction will boost customers' loyalty. Satisfaction and loyalty are products of relationship marketing, which is all about developing and managing long-term and trustworthy relationships with all parties involved in exchanging value for value (Gilaninia, Almani, Pournaserani & Mousalan, 2011). Gummesson (2008) states that relationship marketing builds a mutual and satisfactory long-term relationship with crucial constituents to gain and maintain their business. ...
Today, it is observed that there is stiff competition in the Nigerian hospitality industry. As a result of this, hoteliers expect to initiate and adopt appropriate strategies to solicit and retain guest loyalty. Therefore, the study assessed the mediating effect of customers' satisfaction on the linkage between relationship marketing and customer loyalty, focusing on some selected hotels in Oyo State. This study adopted a descriptive survey design, and the study was carried out in Ibadan, the capital city of Oyo state. The study population comprised all the customers (resident guests) who patronize hotels in the Ibadan metropolis, using convenience sampling technique to select ten (10) hotels ranging from one to five-star hotels. A total of two hundred and fifty-eight (258) structured questionnaires were distributed based on the sample size drawn. A returned rate of one hundred and eighty-two (182) questionnaires was recorded, representing 70.5% of the sample size drawn. The results obtained from the analysis show that there is a significant and also positive linkage between relationship marketing and customers' loyalty (r = 0.488). Also, customer satisfaction has a full mediating effect on an association between relationship marketing and customer loyalty. Following the analysis results, the study concluded that relationship marketing and customers' loyalty are positively and significantly related. Equally, customer satisfaction has a full mediating effect on the linkage between relationship marketing and customer loyalty in the hotel industry. The study, therefore, recommends that hotel management should always ensure a functional link between relationship marketing practices and customers' loyalty. Also, hoteliers should always conduct customer satisfaction evaluation exercises from time to time for appropriate managerial intervention.
... As such, online retailers have to adopt ways to build a stronger relationship with their consumers to retain them. This conforms with Gilaninia et al. (2011), who posited that the increased competition in the market had forced businesses to create a stronger relationship with their customers. When online retailers build a stronger relationship with their customers, it is likely to influence their repurchase decisions. ...
In an increasingly competitive market, retaining customers is essential for both e-retailers and online shopping platforms. This study focuses on relationship quality as it pertains to repurchase intentions in Ghana. The mediating role of price level is addressed. The results show that customer trust, customer commitment, and customer satisfaction affect price level. Customer trust and satisfaction affect repurchase intention, but customer commitment does not affect repurchase intention. Also, price level mediates the relationship between relationship quality and repurchase intention. Implications of these findings are discussed.
... Yet most researchers such as Gilaninia, AskariRankouh andFarokhi (2013), Epetimehin, (2010), Mohamad, Othman, Jabar and Abdul-Majid, (2014) Chuchuen and Chanvarasuth (2011), investigated the nature of the relationship between customer relationship marketing and organizational financial performance in terms of profit, market share, Return on Investment (ROI), Return on Equity (ROE) e.t.c without giving considerable attention to customers' satisfaction which is the key factor in determining the performance of banking industry. According to Gilaninia (2011), complete awareness of customers' needs and desires is required for close relations establishing with the customers; therefore, it is necessary to conduct a research that identifies the specific components of customer relationship marketing that increases customers' satisfaction. Hence, this study tends to examine the effect of customer relationship marketing on customer satisfaction in Fist bank of Nigeria Plc. ...
Marketing in the banking industry has witnessed a paradigm shift in orientations from transaction marketing to relationship marketing. Today, banks are working in extremely competitive and rapidly dynamic work environment which has necessitated the focus on responding to customers’ needs satisfactorily. This study examined the effect of customer relationship marketing on customer satisfaction of the Nigerian banking industry, with reference to First Bank of Nigeria. The study adopted a descriptive survey research design and a well organized structured 5 Point likert scale questionnaire was distributed among two hundred (200) selected customers of First Bank of Nigeria using accidental sampling technique. The result of the study using regression analysis show that customer relationship marketing has significant effect on customer satisfaction since 84.6% of variance recorded in customer satisfaction is traceable to the practice of customer relationship marketing (R2 = 0.846, p < 0.05).The study also discovered that trust, commitment and communication have positive effects on customer satisfaction. Based on these findings, the study therefore recommended that there is a need for banks to develop a good customer relationship with their customers by periodically training employees on building enduring customer relationship.
... Such customers have been shown to be more receptive to relationship building efforts by organisations and hence more loyal (Farrelly and Quester 2003;Palmitier et al. 2006). The cost of serving one loyal customer is 5 to 6 times lower than the cost of attracting and serving one new customer (Ndubisi 2003;Ndubisi and Wah, 2005;Gilaninia et al. 2011). A five-year trend analysis had shown a 60% growth in company's profit by a mere 5% increase in CL (Reicheld 1993). ...
The study identified the types of relationship marketing (RM) practices, determined the components of RM that fostered customer loyalty (CL) and evaluated the influence of the RM components on CL in community pharmacies. It was a cross-sectional survey of community pharmacies, pharmacists, non-pharmacist staff and customers. Random sampling was employed to select 40 community pharmacies, while purposive sampling was used to select four staff from each of the community pharmacies (160). Accidental sampling was used to select 510 customers of the pharmacies. Data were obtained with the questionnaire and analysed using appropriate descriptive and inferential statistics. Social RM practices yielded optimal results. The RM components that were determined were trust (TR), commitment (CMT), competence (CP), communication (CM), conflict handling (CH) and accessibility, which accounted for 55.4% of the total variance that occurred in CL. All the components of RM had positive but significant influence on CL with varying magnitudes. The study revealed that the types of RM practices in community pharmacies were the giving of loyalty gifts to customers, personalised telephone CMs, calling customers by name and special greeting codes. Also, special discounts and credits were offered to certain customers in order to build relationships. All the RM components positively influenced CL. Easy A to the pharmacies and pharmacists proved to be most influential in building loyalty followed by CM. The study concluded that RM practices in community pharmacies hold a lot of promise for community pharmacies to sustain their existing customers.
... Further studies discovered that, retained customers are very crucial business property for organizations and this asset cannot be duplicated by competitors. Therefore, there must be strong integration among customer related strategies (acquisition, retention and add-ons) through relationship marketing strategies (Gilaninia et al. 2011;Smith & Chang, 2010;Blattberg et al., 2001;Renart, 2001;Bonnemaizon et al., 2007). It is believed that service providers who practice relationship marketing efficiently gain competitive advantage over competitors and, are able to retain customers (Uppal, 2010;Bhattacharya, 2011). ...
The study examines the effect of sales promotion and relationship marketing on customers' retention in the telecommunication industry in Accra, Ghana. Convenience sampling technique was used to gather data form a sample of 150 customers of telecommunication firms in Accra, Ghana, using structured interview guide and data analyses carried out using SPSS version 22. The findings of the study showed bonuses as the most favourably, sweepstakes and contest as favorable, price discounts as less favorable and sample as the least favorable sales promotion method(s) used by telecommunication firms in Accra, Ghana, to retain customers. Also, the study revealed a moderate but significant relationship between sales promotion and customers' retention. Based on these findings, it was recommended that the use of bonuses, sweepstakes and contest as methods of sales promotion should be encouraged since its potency in influencing retention is high whist reducing the use of price discount and avoiding the use of sample since its retention capability is not realized in the industry. Additionally, the study recommends telecommunication firms in Accra, Ghana, to continue the use of sales promotion in order to keep retaining customers but caution its abuse since it has the propensity of brand damage.
... Conceptually, it was assumed in this study that the application of RM components such as trust/confidence, communication, responsiveness, tangibility, complaints handling and empathy ( (Deng, Wei and Zhang, 2010;Anabila, Narteh and Tweneboah-Kodua, 2012;Rezvani et al., 2011;Kassim and Abdulla, 2010;Pournaserani, and Mousavian, 2011) serve as independent variables and could lead to service quality, customer satisfaction and retention as dependent variables for a business to achieve competitiveness and growth. This could make RM theoretically appealing for hair salons. ...
This paper is based on research on growing competition within hair salons. The study found evidence of such competition and identified relationship marketing (RM) as a tool to support competitive strategy. Hair salons are regarded as emerging small, medium and micro enterprises (SMMEs)-a status achieved due to participation in competitive social-economic activities. This paper presents a RM model compatible with the requirements of emerging SMMEs. It is hoped that this model will promote hair salons' competitive strategy, thus contributing to South African socioeconomic mantra. There is a perceived lack of relationship marketing by SMMEs, particularly for emerging SMMEs like the hair salons. This perception amplifies the importance of strategic tools to support competitive strategy for successful competition. A survey data collection method was used to collect quantitative and qualitative data from 145 respondents, randomly selected owner/managers of hair salons and customers. These responses were supported with personal interviews to improve generalizability. The evidence of lack of awareness and the importance of RM activities was found. This finding supports the need for RM model presentation and hair salon competitiveness and emphasises the requirements for hair salons as emerging SMMEs.
... Building relationships are how you relate to and communicate with people. Relationships with others have been used from time immemorial to cope with the complexity of everyday life with the development of globalization, international communication and competitive markets in telecom service are also affected [11]. Among telecom at the global level, relationship marketing is taken into consideration as the ideal way to create and maintain long-term relationships with clients /customers; because deliverable services in telecom is relatively same and for most telecom, to differentiate services towards competition is difficult. ...
Businesses are living in a world of stiff competition. To be successful in this competition, considering customer relationship is a requisite, and organizations need to concentrate more on applying relationship marketing variables. The objective of the study is to assess the effects of relationship marketing towards enhancing organizational performance. The researchers made use of exploratory research design to make an in-depth investigation of the problem and to develop a working hypothesis from an operational aspect. Customers and employees of Ethio-telecom, Kobo branch were the target population of the study. A five point Likert-Type questionnaire and structured interview were administered to collect the pertinent data among selected Staffs of Ethio-telecom; kobo branch. Stratified sampling technique was used to identify the sample respondents from the sampling frame and the data were analyzed by using SPSS version 20 software. The result of the study shows that commitment has highest effect on performance followed by conflict handling (β=0.287,p=0.01), communication(β=0.229, P=0.01) and trust (0.154, p=0.05) respectively. The need to augment the level of loyalty to customers, developing a cooperative behavior to clients, hire employees who are likely to become linked to the organization, rendering a flexible service packages, providing sufficient and trustworthy services and demonstrate knowledge and expertise and confer continuous and uninterrupted services are among the possible recommendations forwarded on the basis of the finding of the study.
... Brand relationship quality has been known as the influential factor for repurchase intention. A strong competition which exists nowadays has made companies to create a stronger relationship with customers (Gilaninia, 2011). Brand relationship quality has an important role when studying the relationships that exist between customers and companies (Yang et al., 2010). ...
There are many ways to make a loyal customer. The company must make sure that the customers have the intention to repurchase its products or services. There are many drivers of customer repurchase intention, such as brand equity and brand relationship quality. This research examines the effects of brand equity and brand relationship quality on repurchase intention of the customers of this Muslim wear brand. It also examines whether brand relationship quality mediates the relationship between brand equity and repurchase intention. The test was conducted using path analysis of 134 respondents. Results show that there is a positive and significant effect of brand equity and brand relationship quality on repurchase intention. Brand relationship quality partially mediates the effect of brand equity on repurchase intention. © 2019, International Journal of Scientific and Technology Research. All rights reserved.
... There is no easy way out anymore, unless firms innovatively create value through a relationship quality concept. According to Gilaninia, Almani, Pournaserani, and Mousavian (2011), intense competition has urged businesses to foster stronger relationships with customers. The physical contact between a manufacturer's brand and 2. Establish the relationship between trust and commitment in building marketing relationships; 3. Establish the relationship between customer commitment and repurchase intentions; 4. Examine the mediation role of commitment between trust and customer repurchase intentions. ...
Globally, the hospitality industry ranks as one of the most competitive business sectors, with competing organizations relying on a cocktail of strategies such as relationship marketing to stay relevant, and attract and retain customers. This article examines how relationship marketing impacts trust, commitment, and repurchase intension of customers in the Ghanaian hospitality industry. The data collection questionnaire was administered to 167 randomly selected customers at a four-star hotel in the Accra metropolis. The data analysis used structural equation modeling to ascertain the significance of the relationship that exists between trust, commitment, and customer repurchase intension regarding the relationship marketing practices of hoteliers in Ghana. The findings show a positive and significant relationship between trust, commitment, and repurchase intension. The study also revealed that commitment partially mediates the association between trust and repurchase intension. This implies that both trust and commitment are necessary to attain repurchase and, eventually, loyalty.
... .In addition to entrepreneurial marketing, the customer relation can strengthen the company competitive advantage (Alrubaiee and Nahla, 2008). The customer relation marketing is an activity providing customer needs and satisfaction, by this, the customers can be more loyal to strengthen the company"s competency in the competition (Gilaninia et al., 2011). The results of other finding showing that trust as part of the customer relation marketing is a fundamental and important component in the business world. ...
Small and Medium Enterprises (SME) serve a strategic role in national economic development. So, it is necessary to do any strategic efforts and breakthroughs to promote product innovation to reach a competitive advantage. This study aims to test and describe the role of product innovation based on entrepreneurial marketing and customer relationship marketing, to improve competitiveness. This study is done in export-oriented SMEs in Bali based on the Exporter Data in 2014 from the Trade and Industry Office Bali Province. The study sample is set up to be 85 business units and selected using a disproportionate sampling method. The data is obtained by survey and overall feasible to be used and analyzed using Structural Equation Modelling with software SmartPLS.
The study results show that entrepreneurial marketing and customer relationship marketing are the important basics to create product innovation. Success in improving competitive advantage is determined directly by the entrepreneurial marketing and indirectly through product innovation. Entrepreneurial marketing turns out indirect effect found order competitive advantage through the mediation of product innovation. The results of this study provide evidence, entrepreneurial marketing and strategic role in customer relationship marketing strengthens product innovation so that ultimately result in an increased competitive advantage for SMEs.
Keywords: Entrepreneurial marketing, customer relationship, product innovation, competitive advantage.
... .In addition to entrepreneurial marketing, the customer relation can strengthen the company competitive advantage (Alrubaiee and Nahla, 2008). The customer relation marketing is an activity providing customer needs and satisfaction, by this, the customers can be more loyal to strengthen the company"s competency in the competition (Gilaninia et al., 2011). The results of other finding showing that trust as part of the customer relation marketing is a fundamental and important component in the business world. ...
Small and Medium Enterprises (SME) serve a strategic role in national economic development. So, it is necessary to do any strategic efforts and breakthrough to promote product innovation to reach the competitive advantage. This study aims to test and describe on the role of product innovation based on the entrepreneurial marketing and customer relationship marketing, to improve competitiveness. This study is done in export-oriented SMEs in Bali based on the Exporter Data in 2014 from the Trade and Industry Office Bali Province. The study sample is set up to be 85 business units, and selected using disproportionate sampling method. The data is obtained by survey and overall feasible to be used and analyzed using Structural Equation Modelling with software Smart-PLS. The study results show that the entrepreneurial marketing and customer relationship marketing are the important basics to create product innovation. Success in improving competitive advantage is determined directly by the entrepreneurial marketing and indirectly through product innovation. Entrepreneurial marketing turns out indirect effect found order competitive advantage through the mediation of product innovation. The results of this study provide evidence, entrepreneurial marketing and strategic role in customer relationship marketing strengthens product innovation, so that ultimately result in increased competitive advantage for SMEs
... More recently, Gilaninia, Almani, Pournaserani, & Javad (2011) define relationship marketing as the creation, preservation and strengthening of relationships with customers and other stakeholders. This relationship has implications for marketing, since it must focus on retaining customers through the maintenance and intensification of relations based on the principle of win-win (Agariya & Singh, 2011). ...
This chapter reports on the use of social media marketing by pre-adults, setting off from a case study of pre-adults of different courses at a Portuguese higher education school. Data were collected through a questionnaire available online and analyzed with descriptive statistical techniques. Based on the pointed outlines, the aim is to evaluate longitudinally the types of social media used by pre-adults, the contexts in which they use each social media type, their opinions about the intentions of social media marketing and the influences of social media marketing on their brand knowledge, attitude and behaviour. Tendencies around concepts, tools and levels of attraction by the audiences, with focus on relationship marketing in the 2.0 era are revisited. Furthermore, the chapter presents the perception of pre-adults about social media marketing, and contributes with critical information that might help cast light over recent theories and practices of social media marketing.
... RMO can help the organization to understand better their customer needs and wants. Relationship marketing strategy (RMS), apart from its ability to help understand customers' needs, can also lead to customer loyalty and cost reduction [4] [5]. ...
... RMO can help the organization to understand better their customer needs and wants. Relationship marketing strategy (RMS), apart from its ability to help understand customers' needs, can also lead to customer loyalty and cost reduction [4] [5]. ...
The purpose of this study is to analyze the important of relationship marketing in the hotel
industry performance regarding Permai Hotel that represents a three-star hotel. The research
involved 108 employees of Permai Hotel from a variety of departments. A simple random
sampling was used and the data are analyzed using reliability analysis, descriptive frequency
analysis, Pearson’s correlation analysis, and regression analysis. The result shows that there is
a moderate and positive relationship between communication, shared value, empathy and
reciprocity with organizational performances. Although the association between the variables
is moderately positive, it indicates that the independent variable influences the organization’s
performance is significant. It is also discovered that the most influential components of
relationship marketing orientation that affect organizational performance is reciprocity.
... Relationship orientation is not new but approaches from the past to deal with marketing [13]. An approach of marketing is relationship orientation is aimed at developing and managing longterm and trustworthy relationships with suppliers, customers and every actor in the business market [14]. Except ability of understanding the customers' desires, the marketing strategy can also lead towards cost reduction and customer loyalty [3]. ...
The Hotel industry of Pakistan is thriving for excellence in the arena of competitiveness. Management of hotels is striving hard to improve the service standard to satisfy the needs of customer and subsequently build and maintain long term relationship with them. This study endeavors to investigate the influence of the relationship orientation on “Reputation” and “Service standard” and the interrelation between “Reputation” and “Service standard”. Convenience sampling method was used. The data has been collected through survey questionnaires from 300 respondents. Statistical Package for the social sciences (SPSS) software was used to examine the hypothesized relationships in the research model. The findings revealed that the Relationship orientation and Mutual disclosure positively affect the hotel Reputation and Service standard, the hotel’s functional image perception; the hotel’s physical equipment, decor and environment; and the hotel’s response to customers, all are mutually related and emphasized in our variables that are significantly related to each other, therefore; they are useful for hotel management to achieve long term growth in the hotel industry of Pakistan.
... So we examine the effect of interactive marketing substructures namely (Complaint resolution process, relationship commitment, Information quality, Service quality, trust, service personalization efforts and familiarity) on consumer's satisfaction and their loyalty in banking service industry in Punjab Pakistan. Due to this some better way to understand customer company relationship and gain more loyal customer (Gilaninia et al., 2011). Some studies of the marketing managing back ground had perceived an important emphasis on together services perspective (Zeithaml, 2000) and the relationship marketing (Sheth and Parvatiyar, 2002). ...
This study explores impact of interactive marketing impact on consumer satisfaction and loyalty. So for no specific research has been conducted to identify the process of customer loyalty in banking sector in this perspective. Customer loyalty has great importance and agonizes among connoisseur, academician and professionals in ample industries. Interactive marketing combination of relationship marketing and service marketing. This study generally focused on following dimensions commitment, trust, familiarity, quality of employees, service quality and service personalization efforts as key predictor of customer satisfaction and loyalty. Data was collected by using by pretested questionnaire through personal interviews. A representative sample of one hundred and sixty consumers was selected by using convenience sampling technique. Interactive marketing has positive significant influence customer satisfaction and customer loyalty. The customer satisfaction fully mediates the relationship between interactive marketing and customer loyalty.
... In another perspective, relationship marketing is viewed as the delivery of long-term value to customers as measured by the customer satisfaction level (Grönroos 1994; Murphy et al. 2005). Meanwhile, researchers have tried to identify factors that involve in the relationship marketing and customer service (Beetles and Harris 2010; Chattananon and Trimetsoontorn 2009; Gilaninia et al. 2011; Kavali et al. 1999). In other literatures, customer relationship and customer service are treated in much closer context to market orientation perspectives (Heffernan et al, 2008; Mohammad et al. 2011; Patsioura et al. 2009; Wouters 2004). ...
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One of the contributions of TQM is the consideration of customers as integral part of the business. Meanwhile, modern marketing practices call for greater focus on relationship marketing. Although research shows that TQM plays a mediating role in marketing, clear mediating role has not been established. This research tries to investigate the areas where TQM plays the mediating role in relationship marketing. To achieve this, an inductive exploratory research is done by taking 10 different companies that have applied TQM for customer service operations. The result shows that TQM is used to address different customer base needs in equal and satisfactory manner by developing appropriate strategies aligned to the different customer needs. The main mediating role played by TQM was the consideration of different customer spans in revolutionizing traditional marketing approaches to more customized and differentiated relationship marketing strategies. TQM is applied to strategically incorporate different customer needs into one marketing spectrum by strategizing the relationship marketing platform.
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... There is lack of consensus about the position of satisfaction in relationship marketing models and no agreed constructs that make up the relationship marketing models in different industries as shown by the findings of Papassapa and Miller 2007;Rayruen and Miller 2007;Skermeas and Robson 2008;Barry et al., 2008;Palmatier et al., 2006;Ulaga and Eggert 2006, in which satisfaction, trust and commitment are all simply put as dimensions of higher order. This supported with by the research outcomes on Relationship Marketing (RM) by Theron & Terblanche (2009), Athanasopoulou, (2009), Gilaninia et al., (2011), Gounaris, (2005), and Gummesson, (1994 among others as outlined above, who argue that despite the existence of Relationship Marketing as first coined by Berry (1983), there exist no agreement on uniform dimensions/variables that constitute Relationship Marketing management. This article aims to provide some insight into the position of satisfaction and determine what other constructs apart from trust and commitment can cause a customer to be satisfied and what outcomes of satisfaction specifically for the cement industry customers. ...
Close relationships between cement manufacturers and their customers in business-to-business markets are becoming a necessity in today’s competitive markets. The literature search reveals that, three constructs of relationship marketing (trust, commitment and satisfaction) are the most studied and well known. This study contributes to the body of knowledge by adding two constructs (supplier competencies and communication) as vital causes to customer satisfaction and the outcome being customer loyalty and cooperation. The study produced a framework of dimensions of relationship marketing in the South African Cement Industry and its hoped will help marketing managers in the industry and related sectors in coming up with relationship marketing strategies that can go a long way in helping them retain, attract, satisfy, and achieve long-term profitable relationships for both the supplier and the customer. A judgemental sample of major cement customers (362) throughout South Africa’s nine provinces were contacted using face-to-face interview technique with self-administered questionnaires. The results support the conceptual model presented; supplier competencies, trust, commitment and communication have a positive association with satisfaction; and satisfaction, in turn, relates positively to all the two outcomes of cooperation and loyalty. It is recommended that a cement manufacturer must invest in strategies that enhance trust, communication, commitment and supplier competencies in order to satisfy its customers who will in turn contribute to customer cooperation and loyalty.
... In order to build trust based relationships between buyers and sellers, the parties should have good communication and believe in each other (Kucukkancabas et al., 2009). A study by Gilaninia et al. (2011) on banking industry revealed a positive association between trust and customer loyalty. ii. ...
This study aims to investigate the effect of relationship marketing components (trust, bonding, shared values, communication, empathy and reciprocity) on marketing effectiveness (ME) in Malaysian star-rated hotels. The data are based on findings gathered from 65 self-administered questionnaires distributed to middle level managers of three-to five star-rated hotels in the East Coast of Peninsular Malaysia. A partial least squares approach was used to analyze the data and test the hypotheses. The results of the measurement model confirm that the six dimensions of relationship marketing possess are an adequate reliability and have internal consistency as well as convergent validity. The results of structural model show that among key components of relationship marketing, trust, bonding and shared value have positive influences on ME, while communication, empathy and reciprocity do not. The findings of this study provided insights to hoteliers with regard to the importance of deploying and implementing relationship marketing practices as an effort to improve ME performance in the hospitality sector.
Due to market saturation and increased competition on the one hand and a high level of customer awareness on the other, there has been a major change in marketing philosophy from the traditional concept of marketing that focuses on the product to the concept of relationship marketing that focuses on the customer, where a new function emerged based on the principles of this concept and the development of information and communications technology, known as customer relationship management, and it relies largely on a measure of the customer's lifetime value when segmenting consumers depending on their profitability, based on a ceramic tile manufacturing company's sales database, which comprises 160 customers and 5 245 purchases, we aim to test the efficiency of RFM model combined with data mining techniques represented by clustering algorithms in segmenting customers based on their lifetime value and allocating marketing resources, in addition, we will test the effect of a group of factors on customers lifetime value, the results showed that using RFM model to estimate customer lifetime value allows for the development of marketing strategies effectively. On the other hand, loyalty tools, exchange characteristics, and relationship characteristics affect the lifetime value of the customer. There are also statistically significant differences in the average customer lifetime value depending on the type of purchaser.
The study provides important research and managerial implications that marketing managers can use the RFM model to segment customers based on their lifetime value and develop the appropriate marketing mix for each individual or group of customers. The results of the study also give researchers and managers an idea of the factors that control customer lifetime value, and It recommends further research.
p class="MsoNormal" style="margin-top: 12pt; text-indent: 0cm; text-align: justify;"> The business world is a competitive place, and enterprises must cultivate sustainable relationships with their clients to gain customer loyalty. Concepts of relationship marketing (RM) are becoming vital in the service industry. Different RM strategies are used to attract customers, but some of these strategies do not achieve customer loyalty as easily as predicted due to customers’ changing behaviour patterns. This paper investigates the impact of RM strategies on customer loyalty through relationship qualities (customer satisfaction and trust) by concentrating on the high-end hairdressing sector in Auckland. Additionally, this research investigates the expectations of customers of high-end hair salons formed by RM strategies, which influence their satisfaction, trust, and customer loyalty to their service provider. The results indicate that brand image shows a significant relevance to trust, satisfaction, and customer loyalty claiming that brand image is an essential element of RM. Additionally, this investigations revels that, hair salons in Auckland are looking forward to ascertaining a sustainable relationship with their clients through a spectrum of strategies such as positive brand image, good service quality, reasonable price, and good value deals to earn optimistic relationship quality, which will ultimately escalate to customer loyalty. Findings of this research will be useful in supporting hair salons to gain a greater understanding of their customers by adopting effective RM strategies. </p
This study aims to determine the effect of relationship marketing practices in food service businesses on customer loyalty. In the study, focus group interviews were conducted with seven senior sales and marketing professionals representing food service businesses. Content analysis was applied to the data obtained from the interview and categorized according to the themes. As a result of the analysis of the focus group interview data, the effect of relationship marketing practices on customer loyalty in the food service industry has four main themes: (1) customer relationship management; (2) a customer-oriented approach; (3) creating loyal customers; and (4) creating marketing strategies, with eight sub-themes. The themes revealed the importance of communicating and interacting with customers, determining and meeting their expectations, creating stakeholder awareness, and developing sales strategies focused on customer satisfaction. Overall, relationship marketing practices, which are the strategy used to establish lasting relationships by developing an environment of mutual trust, sincerity, and loyalty, where interactive communication with customers is ensured, have a positive effect on the customer loyalty of businesses that provide food service.
Keywords Customer loyalty, Customer oriented approach, Food service industries, Gastronomy, Relationship marketing
This study aims to evaluate the impact of 5Cs of relationship marketing on customer satisfaction, especially in service-providing businesses. The questionnaire mode in google forms (online survey) was conducted to collect data. The sample of 400 customers of commercial banks in Sri Lanka was drawn using a convenient sampling technique. Descriptive statistics, correlation, and multiple regression analysis were used to analyze the data with the support of the SPSS 22.0 version. According to the findings, there is a strong positive relationship between 5Cs of Relationship Marketing and Customer satisfaction in the financial service sector. Hence, the 5Cs of relationship marketing are a key driver of customer satisfaction in the financial sector in Sri Lanka. Therefore, the 5Cs; Connective Quality, Conflict Management, Competence, Commitment, and Conviction, are highly applicable as part of relationship marketing strategy. Hence, this study recommends to financial service providers improve the 5Cs of relationship marketing further to have more effective and efficient management in serving their customers and improving customer satisfaction.
Cel i teza Celem artykułu jest wykazanie, że wizerunek i reputacja mogą być owocnie wykorzystane w zarządzaniu w charakterze strategicznego zasobu organizacji i jej specyficznych atutów i walorów w konkurencji, ale pod następującymi warunkami: mają mieć wysoką jakość informacyjną i dostarczać takich wartości jak wiarygodność, zaufanie, odpowiedzialność, lojalność, niezawodność oraz zapewniać organizacji względnie trwałą unikalność. Od obecnej praktyki PR wymagało by to: a) odejścia praktyki PR od traktowania wizerunku jako priorytetowego, strategicznego celu, jedynej miary skuteczności i efektywności PR i zastąpienie go – w możliwym zakresie – kategorią reputacji, definiowaną tak, jak ją używa od dość dawna biznes w systemach rangowania podmiotów gospodarczych, czyli reputacją korporacyjną, b) nadania zdecydowanego priorytetu kształtowaniu optymalnych relacji z otoczeniem jako celu odpowiadającego nie tylko współczesnym paradygmatom PR, ale też koncepcjom społecznej odpowiedzialności podmiotów gospodarczych i zasadom tworzenia ich rozwojowych strategii, c) profesjonalizacji zarządzania wizerunkiem oraz włączeniu służb PR w proces strategicznego zarządzanie organizacją. Metoda - wiedza i studia literaturowe z zakresu public relations, nauk o zarządzaniu i ekonomicznych oraz marketingu, w tym zawarta we własnym piśmiennictwie z tych dziedzin. Wartość poznawcza/oryginalność Opracowanie jest oryginalną koncepcją sformułowania (nowego) problemu badawczego i jego całościowego ujęcia. Identyfikuje kilkanaście najważniejszych korzyści jakie w procesach zarządzania strategicznego, tzw. problemowego oraz marketingowego może mieć bezpośrednie i pośrednie wykorzystanie wizerunku i reputacji (o ww. cechach) . Wpływ pośredni oparty jest na dwóch przesłankach: 1.wizerunek i reputacja wpływają na jakość relacji organizacji z jej interesariuszami, a te poza wartością autoteliczną, mają bardzo konkretną pragmatyczną oraz 2. profesjonalne zarządzanie wizerunkiem i reputacją to źródło całego szeregu informacji analitycznych użytecznego w tworzeniu strategicznych planów; informacje te pochodzą zarówno z etapu analizy stanu wyjściowego niezbędnej do budowy profesjonalnego programu wizerunkowego/reputacyjnego, jak też z etapu jego realizacji przez dwukierunkowe, dialogowe, symetryczne komunikowanie.
Bluetooth beacon technology (BBT) is expected to enhance the evolution of proximity marketing by fostering customers’ reception of relationship marketing programs. Unfortunately, this evolution has not progressed as anticipated due to deficient comprehension of consumer cognition, evaluation, and receptiveness behaviors. Drawing on mainly Equity theory and the theory of Reasoned Action, this research proposes a three-level framework to investigate the focal forces and underlying processes related to consumer receptiveness of proximity BBT-based relationship programs. The data are collected in Taipei, Taiwan. The findings suggest the inhibiting and promoting roles of permission-triggered privacy concerns and social presence, respectively, in explaining variations in the consumer receptiveness of relationship programs. Moreover, innovation security, which includes perceived risk and technology anxiety, as well as frugality are confirmed to contribute to the increase in privacy concerns. Also, social presence is proven to mitigate the effect of innovation security on privacy concerns.
This study aimed to investigate both direct and indirect effects of the dimensions of
relationship marketing investments named financial, social and structural on relational worth via customer gratitude and delight. Data were collected from 403 airlines customers in Egypt using an online survey, which was designed on the search engine Google drive.
The SPSS is used to process the primary data. Path analysis was employed to measure
the direct and indirect relationships between more than two variables depend on AMOS.
The research results showed that there is a direct positive significant effect of financial
relationship marketing investment on relational worth. The study findings confirmed social
and structural relationship marketing investments significantly have an impact on customer gratitude and delight which positively influenced relational worth.
Finally, the findings indicated that customer gratitude and delight mediated the
relationship between social and structural relationship marketing investments and relational worth.
Relationship building plays a crucial role in business success because of the saturated nature of the market. Thus, there has been stronger competition because many businesses offer similar products for sale on an online shopping platform. This has given online consumers a wide range of alternatives when shopping online. This present study aimed to investigate the influence of relationship quality on purchase intention among Ghanaian consumers in an online shopping platform while moderated by social support. A convenience sampling method was employed to collect 304 responses from the respondents via web-survey. Partial least square structural equation modeling (PLS-SEM) was used to assess the structural model. The findings reveal that customer trust and customer satisfaction did not significantly influence purchase intention. Furthermore, Customer commitment and social support had a significant and positive influence on purchase intention. Also, social support moderated the relationship between customer trust and purchase intention but had no moderation effect on the relationship between customer satisfaction and purchase intention and customer commitment and purchase intention. This article ends with theoretical and practical implications.
Untuk menjaga eksistensi hotel di tengah dampak buruk persaingan dalam industri perhotelan, loyalitas tamu sangat diperlukan. Menurunnya jumlah tamu mancanegara yang loyal terhadap Alam Kulkul Boutique Resort Bali mengindikasikan adanya masalah yang harus dicari strategi untuk mengatasinya. Melalui servicescape yang bertema natural and traditional of Bali diharapkan dapat mempertahankan dan meningkatkan loyalitas tamu mancanegara di Alam Kulkul Boutique Resort Bali. Penelitian ini bertujuan untuk mengetahui servicescape yang ada di Alam Kulkul Boutique Resort Bali, loyalitas tamu mancanegara dan pengaruh servicescape terhadap loyalitas tamu mancanegara. Dalam penelitian ini, variabel bebas (X) yang digunakan yaitu servicescape yang terdiri dari ambient conditions, spatial layout and functionality, dan signs, symbols and artifacts. Variabel terikat (Y) yaitu loyalitas. Penelitian ini dilakukan selama lima bulan yakni bulan Desember 2011 sampai dengan bulan Mei 2012 dengan menggunakan teknik sampling stratified random sampling dan analisis jalur sebagai teknis analisis datanya. Kuesioner diberikan kepada 100 tamu mancanegara yang menginap di Alam Kulkul Boutique Resort Bali. Hasil penelitian menunjukkan servicescape di Alam Kulkul Boutique Resort Bali berada di kategori tinggi. Spatial layout and functionality sebagai salah satu bagian dari servicescape mendapatkan respon paling baik dan skor nilai paling tinggi. Loyalitas tamu mancanegara di Alam Kulkul Boutique Resort Bali juga berada pada kategori tinggi. Tamu mancanegara di Alam Kulkul Boutique Resort Bali memiliki tingkat behavioral yang lebih tinggi dibandingkan tingkat attitudinal sehingga mayoritas tamu mancanegara memiliki karakteristik spurious loyalty. Servicescape berpengaruh terhadap loyalitas tamu mancanegara. Pengaruh terbesar servicescape terhadap loyalitas tamu mancanegara diperoleh melalui spatial layout and functionality dan pengaruh terkecil diperoleh melalui signs, symbols and artifacts. Saran kepada Alam Kulkul Boutique Resort Bali yaitu agar dapat meningkatkan implementasi signs, symbols and artifacts dan melakukan upaya untuk meningkatkan loyalitas tamu mancanegara terutama faktor-faktor pada tingkat attitudinal tamu mancanegara.
It is not surprising that service providers are increasingly attempting to establish customer loyalty as competition intensifies in service industries. Building long-term relationships and satisfying customer expectations could be an effective strategy to follow according to research that suggests strong relationships between customer relationships, customer satisfaction and customer loyalty. However, some researchers suggest that service providers should direct their marketing efforts only towards customers who have relationship intentions. It is thus essential for service providers to consider customers’ relationship intentions and satisfaction when drafting strategies aimed at building customer loyalty. The purpose of this study was to determine the extent to which relationship intention and satisfaction predict customer loyalty within the wholesale and retail training sectors. Data were gathered from 185 wholesale and retail skills development decision-makers located across South Africa, who were involved in the selection of their organisations’ training providers. Using hierarchical multiple regression analysis, the fi ndings indicate that relationship intention and satisfaction significantly predict customer loyalty towards wholesale and retail training providers. Wholesale and retail training providers thus need to understand that establishing customer loyalty depends on their ability to develop strong relationships with customers who are receptive to relationship marketing efforts, and to ensure that these customers’ needs are met.
The aim of this study is to investigate the influence of two-way communication and conflict handling on perceived customer loyalty in the South African banking environment. The study was quantitative and descriptive in nature. Primary data was gathered using a closed-ended questionnaire. The sample consisted of 285 respondents. The statistical analysis that was used in the study included descriptive statistics and multiple regression analysis to test the hypotheses. Both, two-way communication and conflict handling, exerted a positive relationship on customer loyalty. It is, therefore, imperative for South African banks to listen to their customers, provide accurate information and ensure conflicting situations are resolved effectively.
Relationship marketing (RM) concept seems to be best understood and embraced more by big business, while amongst myriad of small businesses it seems less prominent. This paper explores the need for RM as a determinant to hair salon's competitiveness and growth. Hair industry in SA is declared a multi-billion dollar industry, their stagnation prompted this study. This paper contends that relationship building with customers has a profound effect on the inclination of a customer to return to the business. With the key variables of the relationship marketing model as the main determinants are namely service quality, customer satisfaction and customer retention. Increased practice of RM within this industry will enable owners to embrace entrepreneurial activities imperative for competitiveness, value creation and sustainability.
Customer satisfaction has become relevant in the South African cement industry as it leads to customer loyalty and cooperation. In the current climate, to ensure long-term profitability, cement suppliers need to adopt strategies to ensure customer satisfaction. This study’s literature search has revealed that there is limited published research, particularly in South Africa, which deals with customer satisfaction determinants in the cement industry. The major objective of the study was to test if trust and communication influence customer satisfaction in the context of business-to-business relationship marketing in the South African cement manufacturing industry. The methodology involved a survey and was quantitative in nature. Data were collected from 362 major business-to-business cement customers throughout South Africa’s nine provinces using the face-to-face interview technique using a seven-point Likert scale structured self-administered questionnaires. The data collected in the empirical study were analysed using descriptive, correlation and regression analysis. The empirical results of this study suggest that, in order to maintain customer satisfaction, a cement supplier has to invest in ways of enhancing customer trust and communication. As a result this study makes both theoretical and practical contribution in the field of relationship marketing
Customer loyalty has become more relevant in the cement industry since the unbundling of the cartel system in 1994, the entrance of new competitors into the market and the effect of globalization. This study’s literature review reveals that there is limited published research in the Cement Industry, particularly in South Africa, which deals with customer loyalty management. The major objective of the study was to test satisfaction as a mediator between causes and outcome, the causes being trust and communication and the outcome being customer loyalty. The methodological approach followed was a survey and quantitative in nature. Data were collected from 362 major business-to-business cement customers throughout South Africa’s nine provinces using the face-to-face interview technique with self-administered questionnaires. The data collected in the empirical study were analysed using the structural equations modelling (SEM). The results show that in order to maintain customer loyalty, a cement supplier has to focus on strategies to build relationships on the basis of creating customer satisfaction and/or exceeding customer needs and wants. They also need to invest in enhancing customer trust and communication. Another important finding is that trust and communication have no direct effect on loyalty. Customer satisfaction is therefore the most important mediator as it leads to customer loyalty. Customer loyalty is crucial for business success in terms of repeat purchase, referrals (word-of-mouth marketing), retention and long-term profitability. There exists evidence from literature of an outcry for a need for future studies to examine causes and outcomes of satisfaction to specific industries. This study contributes to theory and practice by closing that gap, by providing a framework of causes and outcomes of satisfaction specifically aimed at the cement industry. Another contribution of this study is its examination of the sequential logic of causes and outcomes of satisfaction in business-to-business relationships in the cement industry. This study hopes to make a practical contribution in helping marketing managers of cement companies to come up with marketing strategies of ensuring customer loyalty
Relationship marketing is widely regarded as effective in developing competitive advantage. But views on exactly what activities constitute relationship marketing may differ in various cultural settings. In-depth interviews with account managers in commercial banks in Hong Kong yielded a list of activities considered critical to building relationships. In a following survey, account managers in Asian banks rated the importance of the various social activities higher than did account managers in Western banks, although all respondents were ethnic Chinese. The Western banks rated business activities more important than did the Asian banks. Factor analysis shows that managers in Western banks perceive dimensions of business activities consistent with recent thinking about relationship marketing. Respondents in the Asian banks do not view social activities and business activities to be distinct, nor do they distinguish strongly differentiated dimensions of business activity elements.
Purpose
The purpose of this paper is to review the academic literature on relationship marketing (RM), conduct a content analysis of the same for the purpose of classification and provides a comprehensive bibliography.
Design/methodology/approach
A range of online databases were searched to review the literature on RM. Only, 209 papers had RM as the primary research topic. The full text of each paper was taken as the unit of analysis. The classification of all the units into mutually exclusive categories was done by two independent researchers.
Findings
The content analysis led to classification of literature into five mutually exclusive categories viz. objectives, defining constructs, instruments, industrial applications and issues. The contribution of research papers has been on the rise across the time frame and there has been a sharp rise in RM research publication in the recent years. The study revealed many other useful findings.
Research limitations/implications
The findings can be generalized only to the population of selected online databases for the given time period but not to the larger universe of RM literature. The study identifies various untapped areas for further research in terms of industry, country of study, research methods, type of study, etc.
Practical implications
The paper provides a roster of field projects accompanied by a comprehensive bibliography that will be useful to both academics and practitioners for studying existing research as well as for contemplating future research.
Originality/value
This is the only paper that provides a literature review and bibliography of RM literature for the period 1994‐2006.
In the light of the redefinition of 'marketing' by the AMA in service/relational terms, and a recent review of the current vector of research in marketing (Littler and Tynan 2005), it seems an appropriate time to provide a substantial review of the past, present and likely future of what has become known as Relationship Marketing, together with an extensive list of key RM literature. This paper will take a reader through the origin, development and current state of RM research, with notes on the future of the research and practice of RM. The paper concludes that RM is here to stay, whether or not it is recognised as the dominant logic/paradigm of marketing.
Although a large body of research theoretically asserts a positive association between relationship marketing orientation (RMO) and business performance, a valid measure of RMO has not yet been proposed and systematic analysis of its effect on business performance has thus far not been possible. This paper addresses some conceptual and measurement issues related to the study of RMO and its impact on business performance in a service context. It first reviews the concept of RMO and its important dimensions. Next, a measurement scale with acceptable reliability and validity is developed to capture the dimensions of RMO. In turn, analysis of data shows that RMO is positively and significantly associated with sales growth, customer retention, market share, ROI, and overall performance. The implications of these findings are discussed and the limitations of the study as well as future research directions are addressed.
Purpose
The purpose of this article is to challenge the applicability of the traditional micro‐economic framework for analysing marketing situations and actions in the contemporary marketing environment. To assess the validity and value of relationship marketing as an alternative paradigm. To identify fruitful directions for further research.
Design/methodology/approach
The literature of relationships and relationship marketing was systematically reviewed and thoroughly analysed, and a conceptual framework built from the findings.
Findings
Three key schools of thought are identified, examined and discussed, and their main components explained and examined. Various perspectives on exchange relationships are discussed. Two specific tools for implementation of relationship marketing are evaluated. With a clear conceptual frame of reference thus established, the second part proposes a number of fruitful directions for further research. These include a bibliometric study to assess whether or not a consistent theory of relationship marketing exists, and a rigorous identification of contextual factors determining different marketing styles.
Research limitations/implications
The second part of the paper explicitly discusses research directions to take the new paradigm forward, in theory and in practice.
Practical implications
The combination of a more rigorous conceptual framework and a clear research agenda holds the promise of significant progress in the practical implementation of a young sub‐discipline.
Originality/value
The paper presents a distinctively wide‐ranging and thorough overview of the subject of value to both academic researchers and marketing practitioners.
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 domain.
Design/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 modeling.
Findings
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 substitution scarcity. No support, however, was offered for the proposed moderating influence that national culture (as measured by a buyer's country masculinity and individualism) has on quality/strength linkages and value/strength linkages.
Research limitations/implications
The sample of buyers in 42 countries includes a higher share of buyers from individualist than collective countries. Consequently, a more balanced cultural sample may have supported the otherwise rejected proposition that culture has a moderating impact on relationship building.
Practical implications
The study provides managerially relevant (“actionable”) results which may help buyers execute customer retention strategies that lead to higher customer profitability.
Originality/value
This study adds to the limited literature on building B2B service relationships in a global context. The paper seeks to provide a balanced account of the social and economic aspects of relationship strength formation.
Purpose
This paper provides a general review of relationship marketing, its application to a business‐to‐business context and examines reasons for its failure.
Design/methodology/approach
Reporting on the literature and two separate research investigations undertaken by the authors, research suggests there are few companies that succeed in developing relationship‐marketing programs that produce significant benefits to both parties. Discussion of theoretical aspects on relationship marketing is followed by examination of evidence from research.
Findings
A series of potential failure points are identified and commented on in relation to the authors own research findings. This includes an analysis of how successful face‐to‐face interactions can be used to build relationships.
Originality/value
This article synthesizes and critically evaluates the role of relationship marketing in business and poses the key question on partnership development that many business managers are struggling with today: why bother? Throughout, the authors have made suggestions for relationship marketing managers on how relationship performance may be improved at strategic management and operational levels.
Purpose
The authors propose to reply to the comment by Mario Rese on the article “The explanatory foundations of relationship marketing theory.”
Design/methodology/approach
This paper provides a critical analysis.
Findings
The comment of Rese has misspecified the major problems facing those firms adopting relationship marketing‐based strategies.
Practical implications
In order to find the answers as to why some relationship marketing efforts are successful and others are not, marketing managers must look at more than one research tradition.
Originality/value
This paper clarifies the eight types of factors that influence relationship marketing‐based strategy success.
Purpose – The purpose of this paper is to verify whether relationship marketing is a new paradigm that has replaced transactional marketing. Design/methodology/approach – A literature and empirical study indicated that relationship marketing is neither an invention of the late twentieth century, nor prevailing in practice. This suggested that rather than a complete paradigm shift, relationship marketing and transactional marketing are complementary. Through interviewing five Scandinavian companies about their marketing priorities, their mix of transactional and relationship marketing approaches was studied. Findings – The paper finds that no company exclusively used the relationship marketing approach. Some were merely utilizing the traditional marketing concept of 4Ps; others were blending a relationship and transactional marketing mix. Research limitations/implications – This is a limited study, which calls for further validating. Practical implications – The Kotlerism of the 4Ps is still dominating. Relationship concepts are utilized to some extent. A relationship strategy can be used as a supporting approach. Thus, there is need to blend relationship and transactional marketing mixes. Originality/value – The paper argues that the relationship marketing is not a paradigm shift; focus should be on relationship management, not marketing. The paper also shows the complementarities of relationship management and transactional marketing.
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 aimed at building trust, demonstrating commitment to service, communicating with customers in a timely, reliable and proactive fashion, and handling conflict efficiently. Originality/value – Reinforces and refines the body of knowledge relating to customer loyalty in service industries.
This paper presents an empirical study of UK consumers' perceptions and experiences of their relationships with commercial firms. The study considers how the relational strategies pursued by organizations have led to a deterioration of consumers trust. Three main areas of concern are: the relational rhetoric employed by firms; the motives behind customer care and loyalty programs; and the use of marketing techniques considered to be intrusive and unacceptable. Consequently, relationship marketing (RM) strategies may have the unintended consequence of making consumers more distrustful of organizations than before such strategies were adopted.
By definition, firms engaged in relationship marketing favor one another, which can be desirable because it promotes advantageous strategic and competitive positioning. However, antitrust legislation mandates that firms avoid favored treatment of trading partners if it adversely affects competition or excessively affects the free flow of goods and services to consumers—potentially an unintended consequence of relationship marketing. Therefore, a firm's commitment to the marketing concept may diminish if strengthening channel relations reduce competition and possibly customer benefits. To anticipate future antitrust problems induced by relationship marketing, public policy makers and scholars should scrutinize new-market-dominating mergers, business-to-business online exchanges, tying agreements, and price discrimination.
Relationship marketing—establishing, developing, and maintaining successful relational exchanges—constitutes a major shift in marketing theory and practice. After conceptualizing relationship marketing and discussing its ten forms, the authors (1) theorize that successful relationship marketing requires relationship commitment and trust, (2) model relationship commitment and trust as key mediating variables, (3) test this key mediating variable model using data from automobile tire retailers, and (4) compare their model with a rival that does not allow relationship commitment and trust to function as mediating variables. Given the favorable test results for the key mediating variable model, suggestions for further explicating and testing it are offered.
Complex, highly intangible services such as life insurance consist largely of credence properties. Insurance providers engage in relationship-building activities that emphasize buyer-seller interaction and communication. Economists contend consumers are prone to make quality generalizations based on the strength of these relationships, perhaps to the detriment of price competition. The authors report contrary results suggesting that, though relationship marketing adds value to the service package, it is not a substitute for having a strong, up-to-date core service.
More and more firms are recognizing the advantages of web-enhanced brand communities as a lever for relationship-marketing communication. Brand communities not only provide companies with an additional communication channel, but also allow the possibility of establishing linkages to devoted users. So far, brand community has only been discussed in relation to B2C marketing. However, the effect of using web-enhanced brand communities in a business-to-business (B2B) context may be even greater, inasmuch as professional users have a strong and long-standing interest in exchanging product-related information. Based on the Coloplast case study, this contribution outlines a conceptual model for linking web-enhanced brand community activities and relationship building in B2B markets.
Purpose – The purpose of this paper is to demonstrate the contribution of qualitative methods and techniques in extending the understanding of relationship marketing theory. Design/methodology/approach – The study investigated six Australian sporting organisations using multiple data collection methods including semi-structured interviews with several senior executives within each organisation, secondary and historical data sources and participant observation. The application of triangulation and multiple case studies is discussed in relation to their contribution toward a greater understanding of relationship marketing practice in the professional sport industry, as well as the barriers to the adoption of this strategy. Findings – Using triangulation and a multiple case study approach provided a richness of information which, upon analysis within and across cases, revealed a number of commonalities and some limited diversity. Using this approach maximised the depth of information and increased the transferability of the findings to allow for the development of a conceptual model, which advances relationship-marketing theory. Originality/value – Triangulation has not been used extensively in case study research nor has a multiple case study approach been commonly applied to the sport industry. This paper deconstructs the methods and their subsequent contribution to the findings of this study.
Purpose
The purpose of this paper is to evaluate the applicability of the stakeholder relationship marketing model, a new marketing model, to Chinese businesses.
Design/methodology/approach
Within the stakeholder relationship marketing model holistic marketing performance is reflected in the delivery of long‐term economic, social, and environmental value to customer, employee, supplier, community, and shareholder stakeholders of a business in order to enhance sustainable financial performance. Stakeholder relationship marketing performance is measured in a stakeholder performance appraisal. The applicability of the Western stakeholder relationship marketing model in the Chinese context is tested by undertaking stakeholder performance appraisals on two Chinese businesses.
Findings
Results show that the performance of the two Chinese businesses is in line with the 57 Western businesses in the Future Research Group stakeholder performance appraisal benchmark database, and that the stakeholder relationship marketing model is applicable to the Chinese context both philosophically and practically.
Research limitations/implications
The results can be considered as an indicative evaluation of stakeholder relationship marketing in China as a foundation for definitive validation from planned research on more Chinese businesses.
Practical implications
The stakeholder performance appraisal provides Chinese businesses with a perceptual overview of holistic marketing performance and concomitant business financial performance from stakeholders. These data enable Chinese businesses, like their Western counterparts, to plan stakeholder relationship marketing strategies to enhance marketing performance and to predict future financial performance.
Originality/value
This study extends the newly developed stakeholder relationship marketing model from a Western context to the Chinese context and demonstrates the congruence between Western and Chinese holistic business philosophy.
Investigates the characteristics of the regular customer cards of four major Finnish retail organizations in the daily product sector with respect to the basic characteristics of (customer) relationship marketing. The purpose is to study whether, and to what degree, relationship marketing is the right framework in this regard for today’s retailing in Finland, and how this “new paradigm” can be applied in future to improve the effectiveness of the regular customer cards. Regular customer cards are found to correspond to relationship marketing mainly on its lowest level, and thus at a level where the benefits of relationship marketing are lowest as well. Alternatively, the regular customer systems and programmes are not yet developed enough to take advantage fully of the possibilities of relationship marketing. There is a lot of potential to improve regular customer systems and cards towards more relationship-based marketing in the daily product sector in retailing by customization, augmentation, and internal marketing.
Purpose
Relationship marketing is now commonly acknowledged as an alternative marketing paradigm. However, despite the use of the relationship metaphor in marketing contexts for many years, recently there have been criticisms of this cross‐fertilization of theory into consumer marketing contexts. The objectives of this paper are twofold. First, it attempts to explore and elucidate how consumers' assessments of the extent of intimacy between themselves and their service providers affect their interpretation of relational ties. A second aim is that it will generate insights into consumer attitudes towards relationship marketing.
Design/methodology/approach
Taking an exploratory approach and using qualitative methods to allow for depth of research, this paper uses 30 semi‐structured interviews with consumers to investigate the role of intimacy in service relationships.
Findings
The findings reveal five forms of intimacy; no relationship, social intimacy, physical intimacy, emotional/psychological intimacy and sexual intimacy.
Research limitations/implications
This is a qualitative study, now that some insight of the relevance of intimacy in relationship marketing has been gained, testing a model of the framework using quantitative analysis in order to make wider assertions would be beneficial.
Practical implications
This paper demonstrates that organizations need to be able to facilitate multiple approaches to customers. They need to be able to allow customers to engage with them, should the customers wish to do so but also allow the customers to opt out of relational interactions.
Originality/value
Scant research has explored the role of intimacy in service relationships; this study addresses that gap in the literature.
This paper explains relationship marketing (RM) and discusses the benefits to customers and firms applying RM. Nine dimensions central to making RM successful are assessed. These are: trust, commitment, social bonding, empathy, experiences, fulfilment of promise, customer satisfaction, internal relationship marketing, and communication. The researcher then describes three personal experiences of eating out in three different restaurants and discusses good RM techniques applied deliberately or otherwise by these establishments.
Both practitioners and academics understand that consumer loyalty and satisfaction are linked inextricably. They also understand that this relation is asymmetric. Although loyal consumers are most typically satisfied, satisfaction does not universally translate into loyalty. To explain the satisfaction-loyalty conundrum, the author investigates what aspect of the consumer satisfaction response has implications for loyalty and what portion of the loyalty response is due to this satisfaction component. The analysis concludes that satisfaction is a necessary step in loyalty formation but becomes less significant as loyalty begins to set through other mechanisms. These mechanisms, omitted from consideration in current models, include the roles of personal determinism ("fortitude") and social bonding at the institutional and personal level. When these additional factors are brought into account, ultimate loyalty emerges as a combination of perceived product superiority, personal fortitude, social bonding, and their synergistic effects. As each fails to be attained or is unattainable by individual firms that serve consumer markets, the potential for loyalty erodes. A disquieting conclusion from this analysis is that loyalty cannot be achieved or pursued as a reasonable goal by many providers because of the nature of the product category or consumer disinterest. For some firms, satisfaction is the only feasible float for which they should strive; thus, satisfaction remains a worthy pursuit among the consumer marketing community. The disparity between the pursuit of satisfaction versus loyalty, as well as the fundamental content of the loyalty response, poses several investigative directions for the next wave of postconsumption research.
Purpose
The purpose of this paper is to present an effectiveness conceptual framework to evaluate the overall performance of corporate advertising web sites towards the multiple advertising, promotional and relationship marketing objectives of their establishment. Specifically, communication, feedback and customer support policies are examined in order to identify their contribution in creating or influencing advertising “effects”.
Design/methodology/approach
Data from a questionnaire‐based survey of 160 undergraduate and postgraduate students within the department of applied informatics are used to accomplish greater understanding of their perceptions and requirements towards the factors in question.
Findings
Findings reveal significant dimensions of the participants' behaviour based on their actions, activities, preferences and intentions. Also, the outcomes show a great impact of the relationship marketing qualitative factors in question on specific advertising effectiveness indicators.
Research limitations/implications
The stimulus materials are limited to two corporate advertising web sites. Further testing to a wider sample of advertising stimulus of different product categories is required.
Practical implications
Effectiveness measures provide to practitioners a factual demonstration of consumers' use and intended use regarding functions and features incorporated by corporate advertising web sites and enable the optimisation of their execution.
Originality/value
The paper introduces a new conceptual framework to support the contribution and significance of relationship marketing factors on the overall performance of corporate advertising web sites. This should be a useful approach for both academic researcher and practitioners.
Purpose
The purpose of this paper is to explore the impact of relationship marketing in a Thai context by gathering both quantitative and qualitative data.
Design/methodology/approach
This research adopts a multi method approach. A preliminary model is developed from existing literature, and then tested with data collected from a mail survey completed by 166 salespeople in 30 steel pipe firms in Thailand. Finally, to better understand the quantitative results from a different perspective, in‐depth interviews with 15 sales managers are undertaken and the model further refined.
Findings
The quantitative findings indicate that from the perspective of industrial sales people, the key success factor of relationship marketing is trust. However, the results of the in‐depth interviews with sales managers did not support the views of the salespeople. The sales managers endorse four variables: bonding, empathy, reciprocity, and trust, as affecting the success of relationship marketing. Further, company image, information exchange, and time are identified as key factors that contribute to the building of these variables, which in turn contribute to performance.
Research limitations/implications
The data are gathered from one industry in one country only, hence future research could extend these findings to other industries and countries to test their general application.
Practical implications
The key implications of these findings for marketing managers include support for the use of relationship marketing programs at a strategic level as well as suggestions for successful implementation of these programs. These findings suggest that the existence of needs analysis and response adaptation characteristics in salespeople have a strong, significant, and positive association with buyer‐seller relationship development.
Originality/value
This paper contributes to relationship marketing research because a scarcity of empirical research still exists in this field, particularly in emerging markets such as Thailand.
Purpose
The purpose of this paper is to consider customer expectation, perceived service performance and customer satisfaction as issues of total quality management (TQM) in relationship marketing, and examines how these relate to students' anticipated loyalty to college after graduation.
Design/methodology/approach
It is a survey research. Participants are 467 college students of 18 years and above, in the USA. Standardized instruments are used for data collection.
Findings
Standard multiple regression analyses results show that customer satisfaction, expectation and perceived service performance jointly predict anticipated loyalty. The predictor variables correlate among themselves. Among seven services studied, academic and recreational/social services are the most important predictors of students' anticipated loyalty.
Research limitations/implications
School administrators should closely assess students' expectations on academic and recreational/social services with the aim of improving school services. This could encourage students' loyalty to the school after graduation. This paper is conducted among undergraduate students only, and from just one institution; these limit the generalizability of the paper.
Practical implications
Customer expectations, perceived service performance and students' satisfaction serve as issues of TQM in school organisations.
Originality/value
Students are customers of school services, and research on TQM could be extended to the school setting.
Purpose
While a vast number of studies have pointed out the keys of relationship marketing practices in consumer markets, little attention has been paid to the value the organization can get from such strategies. The literature provides relatively little support for the effectiveness of relationship marketing programs. The purpose of this research is to produce some evidence of the association between customer relationship marketing strategies and the market and economic performance of the firm.
Design/methodology/approach
The proposed hypotheses are tested in the case of car repair and maintenance services, as a case where long‐term relationships are frequent. The hypotheses were evaluated using a path analysis, which associates relationship marketing activities with market performance (customers' perceptions, market position and loyalty) and market performance with economic performance.
Findings
The findings suggest that the effect of attraction and loyalty programs is greater on market performance than on economic performance. Furthermore, the results show that attracting customers through a good service quality and reaching a good position in the market have greater impact on economic results than loyalty.
Practical implications
As a managerial implication, the authors suggest that service providers should put their efforts on improving quality rather than on promotion, advertising or economic bonus to customers.
Originality/value
This article realizes the importance of product and service quality rather than promotions, advertising or economic bonuses in retaining customer loyalty.
Purpose
To measure marketing performance in a holistic sense.
Design/methodology/approach
To augment the prevailing customer relationship marketing paradigm, a holistic stakeholder relationship marketing paradigm is proposed in which holistic marketing performance is reflected in the delivery of long‐term economic, social, and environmental value to customer, employee, supplier, community, and shareholder stakeholders of a business in order to enhance sustainable financial performance. Present stakeholder attitudes are measured in a stakeholder performance appraisal within a stakeholder relationship marketing model, as timely, early warning signals of future stakeholder behaviour and concomitant future business performance.
Findings
Stakeholder performance appraisal results to date indicate that a holistic stakeholder relationship marketing orientation that incorporates triple bottom line philosophy significantly enhances business financial performance beyond that achieved by a customer relationship marketing orientation.
Research limitations/implications
The stakeholder performance appraisal has been applied to only 33 businesses to date providing scope for wider application of this measurement system to demonstrate its practical usefulness in measuring holistic marketing performance and future financial performance.
Practical implications
The stakeholder performance appraisal provides a perceptual overview of holistic marketing performance and concomitant business financial performance from stakeholders in terms of quantitative ratings of economic, social and environmental performance, and qualitative strengths, weaknesses, opportunities and threats. These data enable a business to plan stakeholder relationship marketing strategies to enhance performance and to predict future financial performance.
Originality/value
The stakeholder relationship marketing model and the stakeholder performance appraisal are new, unique, managerially useful additions to existing stakeholder models and metrics.
Purpose
– In today's business world customers of all industry sectors are becoming more informed as to the level of choice and competition for their custom. This has led to the requirement for businesses to develop and maintain marketing strategies that will increase their competitiveness within their respective sector. Relationship marketing (RM) is a marketing theory, which has benefited businesses in many other sectors, though the concepts may be fairly new in the facilities management (FM) sector. This study is concerned with the review of the fundamental principles of RM, and its benefits for the FM sector. The purpose of this paper is to test whether the FM sector in the UK is aware of the RM theory, and is implementing this theory in its day‐to‐day practices. Research aims are to: investigate the level of understanding present in the FM industry with regards to RM; and to ascertain the benefits that could be available for the industry if an RM orientation is to be employed.
Design/methodology/approach
– Following the literature review, a questionnaire is distributed to the members of the British Institute of Facilities Management in the North of England.
Findings
– The survey identifies the FM industry's capability of using many RM strategies, however, the industry does not classify its customers at present, in order to deliver more targeted services.
Originality/value
– The study reveals that the FM sector understands RM and that RM is a concept that the industry would benefit from.
Purpose – The purpose of this paper is to explore the sales and marketing interface and to identify some of the elements that may influence collaboration between sales and marketing and provide a framework demonstrating how these elements may interrelate. Design/methodology/approach – This paper explores the sales and marketing relationship through qualitative research using one-to-one, tripartite interviews with senior executives and sales and marketing managers of three, UK-based business-to-business organizations. Findings – The paper indicates that there are two types of factor that affect collaboration between sales and marketing. Those that are out of the control of sales and marketing staff – management attitudes to coordination, interdepartmental culture and structure and orientation, and four that are internal to the interface – inter-functional conflict, communications, market intelligence and learning. The paper also identifies that senior managers play a critical role in influencing this interface. Research limitations/implications – Improving collaboration in the sales and marketing interface should be a focus for senior managers. The paper is limited by the number of cases. Practical implications – The factors identified may be used by organizations to improve collaboration between sales and marketing. Originality/value – The identification of factors that may improve collaboration between sales and marketing, and provide a conceptual framework for further study. The paper increases the understanding of the sales and marketing interface by identifying two additional factors that may influence the interface – learning and market intelligence, and demonstrates how the various factors may interrelate to create improved collaboration.
Purpose – This paper aims to investigate the role of gender in the association of relationship marketing underpinnings (namely trust, commitment, communication, and conflict handling) with customer loyalty. Design/methodology/approach – Data for the research were collected through a survey of customers of banks in Malaysia. Hierarchical Multiple Regression Analysis (HMRA) was used to estimate the moderation effect of gender in the RM-customer loyalty relationship. Findings – The results show that the four underpinnings of relationship marketing are directly associated with customer loyalty. Significant gender difference exists in the trust-loyalty relationship. Women are significantly more loyal than men at higher levels of trust in the bank. Gender does not moderate the relationship between commitment, communication, conflict handling and loyalty. Research limitations/implications – The research focuses on banking services; further research in other sectors may be necessary before generalization can be made on the entire service industry. In this study, gender plays an important role in customer loyalty. Female customers tend to be more loyal than male customers when the bank is highly trustworthy. Practical implications – Banks should increasingly demonstrate that they are trustworthy in order to keep customers loyal, more so female customers. They should also be committed to service, communicate effectively and handle conflicts well. Originality/value – Although there are studies on relationship marketing and customer loyalty, research on gender roles is very limited. By contributing to the body of knowledge in this area, this research adds significant value. Moreover, the study presents valuable information on the market behaviour of customers in Malaysia, which may be unfamiliar to many readers.
Purpose
The purpose of this paper is to examine to what extent small to medium‐sized enterprises (SMEs) gather customer information and act on it keeping in mind the profitability of the business operations. A customer relationship oriented marketing process is suggested. This process includes customer information gathering, customer segmentation, creating value by differentiation and managing customer profitability. Special attention is paid to whether industry, size and customer markets affect the extent to which these tasks are performed.
Design/methodology/approach
The data were collected mainly through an online questionnaire from SMEs in three industries operating in North Karelia, Finland. Principal component analysis was used and, thereafter, the variables loaded on each of the factors were combined to composite measures. These composite measures were used as dependent variables in the analysis of variance exploring the differences between the SMEs.
Findings
The results show great differences in the activity of different marketing tasks, e.g. following how the customer relationships develop and pursuing profitable customers are performed often, whereas such tasks as segmentation and differentiation in terms of marketing communication are carried out less frequently. Based on the results, it can be argued that customer relationship oriented marketing practices differ between SMEs. The SMEs that are micro‐sized, operated in the industry of other personal services and in consumer markets seemed to put less effort on marketing practices than did the other studied enterprises.
Practical implications
It is shown in this paper that marketing activities frequently do not get enough attention especially in the smallest SMEs. In these enterprises, the role of the owner‐manager is significant and consequently more attention should be paid to enhancing their marketing capabilities.
Originality/value
The paper offers deeper insight into the little researched area of SME marketing and, especially, into the differences in marketing practices within SMEs.
Purpose
This research seeks to empirically evaluate the influence of the underpinnings of relationship marketing on the perceived quality of bank‐customer relationship, and on customer satisfaction in the Malaysian banking sector.
Design/methodology/approach
A field survey of bank customers in Malaysia was conducted using a questionnaire. The data were factor‐analysed to determine the key dimensions of RM. The resulting dimensions were applied in the subsequent discriminant analyses conducted to determine which factors discriminate between customers on the basis of perceived bank‐customer relationship quality and customer satisfaction.
Findings
The results show that five key dimensions, namely: competence, communication, conflict handling, trust, and relationship quality, discriminate between customers in terms of perceived relationship quality and customer satisfaction. Moreover, overall bank‐customer relationship quality discriminates between satisfied customers and those who are not.
Research limitations/implications
This study was conducted in a bank setting, and may not be generalised in other industries. It has also not considered the impact of the relationship management underpinnings on customer loyalty. However, by employing these constructs, and replicating this study in other industries, researchers would be able to unveil the factors that discriminate between loyal customers and those who are not, and also produce more generic results.
Practical implications
Findings suggest that banks can create customer satisfaction by exhibiting trustworthy behaviour, showing genuine commitment to service, communicating information to customers efficiently and accurately, delivering services competently, handling potential and manifest conflicts skilfully, and improving overall customer relationship quality.
Originality/value
Interest in the subjects of relationship marketing and customer satisfaction has been growing among marketing researchers and practitioners. This study adds value by unveiling the key antecedents of relationship quality and customer satisfaction (using the relationship management approach) that can be used in customer relationship management. Customer relationship management itself enables organisations to leverage on privileged information gained through closeness to customers.
Several theorists advocate the application of relationship marketing concepts to the not-for-profit organisation (NPO) sector. The authors build on these contributions to adapt and extend the Morgan and Hunt [J. Mark. 58 (1994) 20] commitment–trust model to the NPO sector. The proposed model is applied to the relationship between an NPO and its organisational funders and is empirically tested. The empirical work is based on responses from 41 NPO funders. A partial least squares (PLS) analysis is used to identify the significant factors in the proposed model.Major contributions to the model of relationship marketing include (1) replacing the relationship benefit construct with two new constructs—material benefits and nonmaterial benefits; (2) extending the communication construct to include items that reflect the two-way nature of the dyad between the funders and the NPO; (3) demonstrating the significance of nonmaterial benefits as a mediator of the link between trust and commitment; (4) highlighting the lack of significance of material benefits and termination costs as drivers of commitment. The model provides fundraisers in the NPO sector with a framework to understand and improve their relationships with organisational funders.
The authors attempt to explain the relationships among relational bonds, customer value, and customer loyalty in three different consumer groups (stayers, dissatisfied switchers, and satisfied switchers) in the retail banking industry. Data were obtained from a sample of 613 Taiwanese bank customers. The findings are threefold. First, for stayers, three types of bonds (financial, social, and structural) improve customer utilitarian and hedonic values, thus leading to enhancement of customer loyalty. Second, for dissatisfied switchers, only the structural bond has a significant impact on customer's utilitarian value, which significantly improves customer loyalty. Third, for satisfied switchers, the social bond significantly affects the hedonic value, whereas the structural bond significantly affects the utilitarian value. Furthermore, both utilitarian and hedonic values have significant effects on customer loyalty. The authors discuss the managerial implications and directions for further research.
Purpose
The purpose of this paper is to establish the influence that relationship variables have on construction supply chains. The objective is to show where thoughtful use of relationship marketing (RM) techniques can benefit construction supply chains.
Design/methodology/approach
A questionnaire developed from a focus group outcome and literature concerning RM was used to extract information about commitment, trust and satisfaction in upstream and downstream construction supply chain relationships. A cohort of 898 construction industry managers developed from several comprehensive sample frames responded to the questionnaire. Data was analysed using exploratory and non‐parametric confirmatory statistical techniques, including Spearman's ρ non‐parametric correlation matrix, Kruskal‐Wallis test, Mann‐Whitney U test and principal axis factor analysis.
Findings
The results indicate that construction actors differentiate between relationship and traditional marketing factors in their supply chain activities. It is shown they engender specific RM techniques in their construction project environment.
Practical implications
RM has the potential to provide organisations with significant supply chain benefits, particularly long‐term value to clients. Benefit may manifest from commitment, trust and satisfaction. These three variables are all fundamental to supply chain activities.
Originality/value
The paper uses a RM knowledge base to develop an increased understanding of supply chain benefit variables. The value of the paper is that it enables construction stakeholders with the tools to develop long‐term relationships in their heterogeneous construction environment.
Purpose
The purpose of this study is to investigate the relationship marketing (RM) strategy of a retail bank and examine whether – after its implementation – customer relationships were strengthened through perceived improvements in the banking relationship and consequent loyalty towards the bank.
Design/methodology/approach
A survey was conducted on two profitability segments, of which the more profitable segment had been directly exposed to a customer oriented RM strategy, whereas the less profitable segment had been subjected to more sales oriented marketing communications.
Findings
No significant differences were found between the segments on customers' evaluations of the service relationship or their loyalty toward the bank. Furthermore, regression analysis revealed that relationship satisfaction was less important as a determinant of loyalty in the more profitable segment.
Research limitations/implications
This study was conducted as a case study of one specific branch of a bank group in Finland, which limits the external validity of its results. It was not possible to ascertain if, or to what extent, customers of the more profitable segment had received the intended RM treatment. Other limitations are also discussed.
Practical implications
Customer orientation is desirable within retail banking and more studies are needed on the differential drivers of loyalty across customer profitability segments. By identifying the aspects of a banking relationship that are more highly valued among more profitable customers than among less profitable customers, bank managers would be able to more effectively devise appropriate strategies for different segments.
Originality/value
The study contributes to the RM literature and marketing of financial services by providing empirical evidence of the effects of RM activities on customer relationship perceptions in different profitability segments.
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 scholars, the ethical basis of it has not been thoroughly examined in any previous work.
relationship marketing
- M T Ashtiani
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relational marketing : a new style of marketing
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Using triangulation and multiple case studies to advance relationship marketing theory
- C Stavros
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marketing theory" Qualitative Market Research: An International Journal, 12(3): 307-320.
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