Developing and managing effective consumer relationships
| DOI | https://doi.org/10.1108/10610429810209719 |
| Pages | 27-40 |
| Date | 01 February 1998 |
| Published date | 01 February 1998 |
| Author | Randi Priluck Grossman |
| Subject Matter | Marketing |
JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 7 NO. 1 1998, pp. 27-40 © MCB UNIVERSITY PRESS, 1061-0421 27
Introduction
Marketers are using relationship marketing
My bank wants to have a relationship with me. Research shows that when
customers have two or more accounts with a bank, they are more likely to be
brand loyal and may be more inclined to purchase other products from the
same bank. To take advantage of this opportunity and to detract consumer
attention away from its size, Chase has become “The relationship company”
and ad campaigns now tout the new positioning with the slogan “The right
relationship is everything” (Lefton, 1997). Banks are not alone. Chances are
that your new automobile company would like to have a relationship with
you. In 1994, 44,000 Saturn owners were invited to the Saturn plant for a
homecoming. You would not have to haggle over prices at Saturn, they want
to treat you with respect. Saturn dealers hold monthly events, participate in
local charities and even have parties for singles (Aaker, 1996). Jeep has an
annual weekend for owners called Camp Jeep to encourage customer loyalty
(Halliday, 1996). Similarly, if you own a Harley-Davidson a bi-monthly
newsletter will inform you of rallies around the world that you can attend
with your bike (Berry et al., 1994). Even lawyers are getting into the act. A
recent article in the ABA Journal (American Bar Association) entitled “My
lawyer sent me flowers” suggests that lawyers alter their images by dealing
with clients on a human level, delivering large bills in person, giving gifts,
helping clients with non-legal work and communicating with the client
rather than waiting for the client to call (Ricker, 1996). The common
element in the above examples is relationship marketing.
What is relationship marketing?
Relationship marketing has been defined as “a customer-centered
approach whereby a firm seeks long-term business relationships with
prospective and existing customers” (Evans and Laskin, 1994, p. 440). It is
believed to be associated with positive outcomes for firms including: greater
profitability, increased consumer loyalty, opportunities for strategic
advantage, reduced costs of recruiting consumers and more effective firm
planning (Evans and Laskin, 1994). There may also be benefits for
consumers when they develop relationships with firms. Buying from one
firm may simplify purchasing, reduce information collection and processing
and limit risk by increasing psychological comfort (Sheth and Parvatiyar,
1995).
Relationships which consumers have with firms have been characterized as
similar to interpersonal relationships in which the firm courts the consumer
and they enter into a mutually beneficial union similar to a marriage (Dwyer
et al., 1987; Levitt, 1983). Levitt (1983) suggests that a relationship
develops between a firm and a customer after the sale, with the sale
consummating the courtship, which signals the beginning of the marriage.
Dwyer et al. (1987) suggest that the marital relationship is an appropriate
framework for examining buyer-seller relationships because both types
of relationship involve costs and benefits. Although aspects of the
relationship a consumer has with a firm may resemble a marriage, it is less
Developing and managing
effective consumer relationships
Randi Priluck Grossman
An executive summary
for managers and
executives can be found
at the end of this article
Customer centered
approach
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