Marketing Principle #3 All Competitors React  Managing Relationship-based Sustainable Competitive Advantage Agenda



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MarketingStrategyChapter07-2.4

Contact density
Relationship quality
Contact authority
Turnover in contacts
Service content
Interface difficulty
Customer value
Controls

Model of Interfirm Relationships


Seller performance outcomes
Relationship Breadth:
Number of relational ties with an exchange partner
Relationship Quality:
Nature of relational bonds with an exchange partner
Relationship Composition:
Decision-making capability of the relational contacts at an exchange partner
Key Relational Dimensions

Customer Relationship Develop at Multiple Levels Simultaneously

  • Measures of relationship and loyalty to “selling firm” often commingles firm and the salesperson effects leading to illusionary loyalty

(Palmatier, Scheer, and Steenkamp 2007)
Salesperson-owned loyalty
Selling firm-owned loyalty
Typical Measures Commingles Both Types of Loyalty
  • Relationship with individuals typically have a larger effect on behaviors than relationship with groups
    • Individuals: on line model (e.g., 26% shift)
    • Firms: recall heuristics

Highest Impact Relationship Marketing Activities



Building Relationships: Takeaways

  • RM has a strong impact on performance especially WOM and may be getting more important
  • RM needs to build gratitude/reciprocity norms, trust, and commitment
    • Gratitude helps start relationships
    • Effect on gratitude can be leveraged by delivery (freewill, motive, timing/value)
  • Interfirm RM needs to build breadth and authority
    • Relationship operate at many levels simultaneously
    • Individual > firm, but susceptible to turnover
  • RM strategies
    • Expertise and communication
    • RM investments (social > structural > financial)
    • Dependence, duration, and frequency not effective

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