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Relationship marketing (Defining relationship marketing (Some writers view…

- - - - Product or service enhancements can boost loyalty
    - - Preferential treatment
      - Siscouraged owing to their unprofitability or lack of fit with the desired brand image
- - - - Neither alone is sufficient as consumers might repeatedly purchase something because, for example, no alternative is available, they cannot afford more expensive options or it is convenient
- - - - Customer satisfaction does not guarantee loyalty or customer retention and vice versa
- - - - Encompasses an intention and a desire to continue purchasing from and maintain a relationship with an organisation
      - Is influenced by social bonding
      - A precondition of commitment is trust
    - - The expectation of being able to rely on another party's word and that they will negotiate with honesty and integrity
    - - Being able to understand and see things from the customer’s perspective
      - Required by the seller initially although mutual empathy develops over time.
    - - Helps to build a relationship and effective collaboration
- - - - These form dyads, triads and networks
    - - These are between various groups of stakeholders in the microenvironment; involve varying levels of commitment; and have various contexts, themes or foci – e.g. noncommercial, corporate social responsibility (CSR), technology and brand
    - - These can be personal and social networks; alliances with other companies; and relationships with stakeholders in the macroenvironment.
    - - These are within an organisation (e.g. between centres, departments, functions) and with providers of marketing services (e.g. marketing agencies); the owner(s) and financier(s).
  - - - Someone whose relationship with your organisation may be considered a partnership
    - - Someone who actively recommends your organisation to others
    - - Someone who likes your organisation but supports it passively
    - - Someone who has done business with you repeatedly but is not necessarily positively disposed towards your organisation
    - - Someone who has done business with your organisation on a single occasion
    - - Someone who you think may be willing to do business with your organisation
  - - - Recognition by one party that another party is a potential
        exchange partner
    - - The potential exchange partners consider and conduct a
        trial exchange
    - - The benefits from exchange and the interdependence of the
        exchange partners increase
    - - Loyalty emerges
    - - Withdrawal or disengagement
  - - - Psychological indicators
        
        Customers’ evaluation of the quality of the relationship with, degree of trust in and level of commitment to the seller
      - Behavioural indicators
        
        The form and extent of customers’ search for information and their purchase behaviour
      - Economic indicators
        
        The customers’ contribution to profit and lifetime value
- - - - Exploration
        
        Establishing the conditions through which both parties are willing and able to develop the relationship
      - Endowerment
        
        Bilateral investment intended to bring mutual value-creating opportunities to fruition
      - Neglect
        
        Passive abuse indicating a lack of desire or resources to invest in the relationship
      - Betrayal
        
        Actively undermining fairness and damaging relational governance
      - Recovery
        
        Repairing of norms, rebuilding trust and moving relationship out of damaged state
  - - - ‘an enduring desire to maintain a valued relationship’
    - - ‘confidence in an exchange partner’s reliability and integrity’
    - - ‘relational norms focus on and reflect the history of interactions between partners’
    - - 'the extent to which a partner provides valued resources for which there are few alternative sources of supply’
- - - - It is possible to pursue a blend of transactional and relational strategies
  - - - Higher acquisition costs relative to retention costs
      - High exit barriers
      - Competitive advantage is sustainable
      - Buoyant/expanding market
      - High risk/high salience products or services
      - High emotion involved in exchange
      - Requirement for trust and commitment
      - Perceived need for closeness
      - Satisfaction beneficial to retention
    - - Minimal difference between acquisition and retention costs
      - Low exit barriers
      - Competitive advantage is unsustainable
      - Saturated market
      - Low risk/low salience products or services
      - Low emotion involved in exchange
      - Requirement for trust only
      - No perceived need for closeness
      - Repeat behaviour strategy beneficial
  - - - In contrast to collaborative approaches
      - In some cases result in organisations exploiting consumers for their own ends
    - - They should still practice authentic consumer orientation
      - Not practicing authentic customer orientation undermines consumers’ trust in marketing and the marketing system
    - - Do no harm
        
        Consciously avoiding harmful actions or omissions by embodying high ethical standards and adhering to all applicable laws and regulations in the choices we make
      - Foster trust in the marketing system
        
        This means striving for good faith and fair dealing so as to contribute toward the efficacy of the exchange process as well as avoiding deception in product design, pricing, communication, and delivery of distribution
      - Embrace ethical values
        
        This means building relationships and enhancing consumer confidence in the integrity of marketing by affirming these core values: honesty, responsibility, fairness, respect, transparency and citizenship