Relationship Marketing Framework Research Articles

Modeling of relationships between producer and consumer: The impact of advanced production equipment

Subject. The article discusses the influence of advanced production equipment on modeling the relationship between manufacturer and consumer. Objectives. The aim is to assess the impact of the organization's existing production facilities, created on the basis of modern machine tools, on the possibility of building mutually beneficial relations between the manufacturer and the buyer of products. Methods. The research rests on methods of economic and mathematical modeling, in particular, the game theory tools. Results. We formulated a meaningful model of idealized interaction between the parties in the process of concluding a contract for production and purchase of goods, offered a model of positional game of the parties with complete information, in which the participants consistently make decisions with understanding the opponent's previous actions. The analysis of the constructed model enabled to determine the situation of balance between the parties and demonstrate a decrease in consumer's influence on the results of the interaction, due to flexibility and adaptability of production capabilities of the manufacturing organization. Conclusions. The findings demonstrate the influence of aspect associated with the involvement of modern production equipment on the consumer's willingness to establish mutually beneficial relationships with the manufacturing organization. This provides a basis for subsequent implementation of partnership within the framework of relationship marketing.

Investigating the Effect of Institution Reputation on Student Loyalty’s Dimensions in the Framework of Relationship Marketing in Higher Education

The intensifying competition among higher education institutions has prompted the adoption of relationship marketing as a strategy to attract and retain students. In this approach, students are viewed as customers, and their satisfaction and loyalty are key factors in a university’s success and profitability. Therefore, creating value for students is essential in this competitive environment. Relationship marketing emphasizes building long-term relationships and interactions with students through effective communication. To identify the essential factors of creating value for students and their loyalty, a questionnaire was distributed among 230 students of Kharazmi and Shahid Beheshti Universities. Further, the antecedents of loyalty were estimated further by using structural equation modeling and AMOS software. This study offers a novel approach by examining two dimensions of student loyalty-recommended and patronage-to provide a more comprehensive understanding of loyalty toward higher education institutions. According to hypotheses, results indicate that the students’ perception of the reputation of the higher education institution has a positive and meaningful relationship with dimensions of loyalty, and students’ perception of the reputation were only affected by the facility variable, and there is no significant relationship with service quality and social activities. The findings provide insights into effective relationship-marketing strategies that higher education institutions can adopt to enhance their reputation and foster greater student loyalty, encouraging both dimensions of loyalty. Universities can promote positive perceptions of institutional reputation and cultivate loyal attitudinal and behavioral tendencies among students by following this approach.

FORMATION OF THE COMPETITIVE ADVANTAGES OF THE ENTERPRISE ON THE BASIS OF MARKETING OF VALUES

The study is devoted to the study of competitiveness in the modern conditions of the dynamically developing market. The relationship between competitiveness and marketing is substantiated. Systematization of existing views and approaches to determining competitiveness has been carried out. The main characteristics that act as a key parameter, a factor that determines the level of competitiveness of the economic system of one or another level are highlighted. The use of the methodology of system analysis allows to overcome the contradictions that have arisen in the analysis of competitive advantages. The task of increasing competitiveness can be successfully solved only with the coordination of purposeful and effective actions of the state and domestic business. The theoretical and methodological provisions of the company's competitiveness have been specified, taking into account the principles of the value approach within the framework of relationship marketing, including: the content of the company's competitiveness has been revealed as a comparative characteristic that reflects its ability to create value together with the consumer based on the integration of the consumer's experience of using the product (service) and key competence organizations; a model of interaction between the company and the consumer has been developed, which ensures an increase in the company's competitiveness due to the development of consumer loyalty in the process of joint value creation. The need and importance of the formation of a value approach to the competitiveness of the enterprise as a comparative characteristic reflecting its ability to create value together with the consumer is substantiated, as well as the development of an interaction model, clarifying the theoretical and methodological provisions of the competitiveness of the enterprise taking into account the principles of the value approach. The results of the theoretical and methodological studies carried out by research and production enterprises and organizations in the development of approaches to ensuring the competitiveness of the company, creating consumer value, and developing relations between the company and the consumer. The process of evolution from understanding value creation in terms of product or service orientation, which is the dominant logic in marketing and strategy, and moving towards considering value co-creation in terms of the receiving experience opens up striking new possibilities for researchers. This new approach also allows us to challenge deeply held beliefs about some marketing issues.

De-Linking From Western Epistemologies: UsingGuanxi-Type Relationships to Attract and Retain Hotel Guests in the Middle East

ABSTRACTRelationships are widely recognized as key to business success in the form of both informal interpersonal networks and formal organizational relationships. While Chinese personal networks (guanxi) have attracted scholars’ interest, the concept has not been fully investigated or understood in other contexts, especially the Middle East, where personal networks fulfill some of the same roles. The underlying socio-cultural formulae of the distinctive cultural dimensions that influence relationship formation in the Middle East also remain under-explored. This research therefore investigates the dimensions ofguanxi-type relationships in the Middle East and introduces a new model integrating these relationships into the existing relationship marketing framework, enabling firms to harness personal networks for organizational gain, in turn generating customer satisfaction and retention. Using empirical data from a survey of 637 hotel guests in 17 countries – drawn from a unique target population of guests introduced to Middle Eastern hotels via personal relationships – we show howguanxi-type relationships influence organizational relationships and improve satisfaction and retention. Our significant contributions to theory and practice include extending a holistic understanding ofguanxi, enhancing knowledge of its dimensions in the Middle East, and providing managers with clear evidence for a hybrid system ofguanxi-type and organizational relationships.

Toward a Theoretical Framework of Relationship Marketing in the Business Context

Purpose – This paper addresses the issues related to the practice of relationship marketing at the organizational level. Considering the influence of various factors, this study offers a theoretical framework necessary to create, maintain, and enhance the business relationship. Design/methodology/approach – The research is based on a systematic review of existing literature, including journal articles, subject-specific professional websites, and textbooks on relationship marketing. Literature reviews relating to the Nordic School, Industrial Marketing and Purchasing (IMP) Group Approach, and the North American School are included. Findings – The relationship marketing approach has evolved since the pre-industrial era, and more organizations are embracing this marketing stance in the current, post-industrial era. A theoretical framework that consists of influential variables for creating, maintaining, and enhancing relationships is proposed to explore this multidimensional construct. Information on proper conditions is synthesized to help marketers identify an appropriate environment for implementing this approach in the business context. Limitations – Given the increasing complexity of relationship marketing and the increasing need to understand this approach, the proposed theoretical framework could be useful for improving the understanding of multi-dimensional aspects of relationship marketing. Consequently, directions for future research in relationship marketing are identified. Originality/value – This study provides a coherent picture of relationship marketing viewed through the proposed theoretical framework, based on a systematic literature review. Specifi cally, it is probably a first instance in which a paper sought to address the practice of relationship marketing by including tripartite areas – namely, creating, maintaining, and enhancing relationships in a Business to Business (B2B) setting, which is scattered across various disciplines.

Social Media as a Relationship Marketing Tool in Professional Sport: A Netnographical Exploration

This study, guided by the relationship marketing theoretical framework, adopted an observational netnography method to investigate professional sport teams’ use of Twitter as a relationship marketing tool. Specifically, the study focused on the three core components of the theoretical framework of relationship marketing: communication, interaction, and value. The observational netnography is based on data gathered from the official Twitter account of 20 professional sport teams in the four major North American leagues over a seven-month period. Results outline seven emergent communication types, six interaction practices, and ten values (co)created by the teams or/and fans. Theoretical and practical implications, as well as impetus for future research, are identified.

Social Media Usage in Nonprofit Wrestling Organizations: A Cross-Platform Analysis

ABSTRACTThis case study examined the social media use of USA Wrestling during the 2014 National Collegiate Athletic Association Division I Wrestling Championships in the United States. We performed a cross-platform content analysis of the organization’s Facebook, Twitter, YouTube, and Instagram accounts during the 3 days of the event using a relationship-marketing framework. In addition, we conducted qualitative interviews with employees involved with the National Governing Body’s social media implementation. Results indicated predominant use of Twitter and YouTube, with 375 posts occurring during the 3-day event as compared with 8 posts on Facebook and Instagram, cumulatively. Such an approach contradicted interviewees’ responses on the popularity of Facebook. Overall, the organization placed particular emphasis on information-sharing posts across the 4 platforms pertaining to wrestling and athletes during the event. We discuss the theoretical and practical implications for wrestling-related organizations.

Academic Pinstitution: Higher Education's Use of Pinterest for Relationship Marketing

Colleges and universities have increasingly looked toward social media as a means of engaging with stakeholders. Using the relationship marketing framework as a lens, this study explores how institutions are employing the social media platform Pinterest. Content analysis of the types of college and university pins being used and their relationship to the number of user repins suggests that the tool is not being employed in a manner consistent with user expectations. Our findings suggest that some colleges and universities need to reevaluate their social media plan to acknowledge the different audiences, uses, and functionality of specific social media platforms. Limitations and future directions for research are discussed.

Understanding Relationship Marketing and Loyalty Program Effectiveness in Global Markets

Relationship marketing (RM) and loyalty programs (LPs) are key differentiation strategies for firms facing increasing global competition. Accordingly, global interest in RM and LPs has surged, though researchers examining these marketing activities typically apply U.S.-centric frameworks to international research contexts. To understand how RM and LPs may be influenced by factors that distinguish global markets, this review offers a comprehensive framework of both RM and LP mechanisms and considers how cultural and developmental contingency factors may alter the effects of these mechanisms on seller performance. The results from this review produce eight propositions about where specific RM and LP strategies should be most effective. By considering these mechanisms jointly, the authors also simultaneously delineate RM and LP theories and broaden the scope of global research in both domains.

Does relationship marketing matter in online retailing? A meta-analytic approach

Building on the meta-analytic model suggested by Palmatier et al. Journal of Marketing, 70, 136–153, (2006), this study extends the relationship marketing framework to the domain of online retailing to identify what strategies help build relationships with online customers. Specifically, this meta-analytic study identifies key antecedents and consequences of relationship marketing in online retailing. The study also examines the relationship between the four mediators—trust, commitment, relationship quality, and relationship satisfaction— and the antecedents and consequences of relationship marketing. Similarity and seller expertise were found to have the strongest impact on relational mediators, and word of mouth was the most critical outcome of relationship marketing efforts. The model proffered in this study will motivate hypotheses to be examined by future researchers. The model also helps managers to identify the key drivers of relationship marketing in online retailing.

The changing importance of affective trust and cognitive trust across the relationship lifecycle: A study of business-to-business relationships

The purpose of this paper is to examine affective trust and cognitive trust and their effects on business relationship outcomes. Within a relationship marketing framework, the influence of affective trust and cognitive trust on the success of business relationships at the early and mature phases of the relationship lifecycle is examined. Both affective and cognitive forms of trust are demonstrated to be multidimensional constructs that indirectly influence relationship performance via the mediating variables commitment and liking.The development and use of five elements of trust to explain relationship performance extends existing understanding of relationship marketing. By combining five elements of trust (three cognitive and two affective) and testing them in two different relationship lifecycle phases, insights are generated into how a relationship can succeed. The model tested in this paper highlights the importance of affective trust in the early phase and cognitive trust in the mature phase of the relationship lifecycle. Further, the mediating roles of commitment and liking between trust and relationship performance are also developed. Hence, the research increases understanding of how relationships evolve, in particular the role of affective trust and cognitive trust in influencing relationship performance.The context of this research is business-to-business relationships in small and medium enterprises. A survey of 458 businesses people is used to evaluate both the early and mature relationship lifecycle phases. The data are analysed with structural equation modelling where the basic structural model testing is extended with multigroup analysis.

Relationship marketing research (1983-2012): an academic review and classification

The term Relationship Marketing (RM) was first coined by Berry in 1983, he stressed upon developing close and long–term relationship with customers. Further the literature enriched by scholars in the area of relationship marketing, have one common base of cooperative relationship between customers and firm. This paper attempts to create the much broader classification of RM to provide an insight into RM literature. The present work not only identifies the key indicators in RM but also postulates valuable contributions of conceptual framework for RM over the time horizon since 1983. For the above purpose, seven online databases were searched on RM literature. The study extracted an exhaustive list of literatures on several dimensions and conceptual framework which would be ultimately facilitating the academicians, researchers and industry practitioners in identifying existing studies on relationship marketing. So that scholars can move ahead by extracting new dimensions of relationship marketing on this bibliographic study.

Giving behaviors in Indonesia: motives and marketing implications for Islamic charities

Purpose – The purpose of this paper is to examine the motives and giving behaviours of donors towards Islamic charities in Indonesia by using various demographic, socio-economic, psychographic and motivational/situational characteristics. Based on these analyses, relevant marketing implications are also discussed. The study hopes to enrich Islamic marketing literature and contribute further to the understanding of marketing within the context of the Islamic voluntary sector. Design/methodology/approach – This empirical paper primarily employs a quantitative approach in analysing the giving behaviours. The primary data is gathered through a survey conducted in January 2011 involving 300 Indonesian Muslim donors. The results are analysed with descriptive and correlation statistics. Findings – First, the analysis highlights that the main causes for charitable giving are to help the poor/needy and support religious causes. Second, most of the donors provide funds through “informal” Islamic charities. Third, most of the individual donors are young, educated and possess strong humanitarian concerns. Interestingly, although there is a positive correlation between income and donation, individuals who donate more are not the rich but the middle-income earners. Finally, there is evidence to indicate that donors may increase donations even during economic crisis. Practical implications – Understanding donor's characteristics and behaviours are essential in designing and implementing an effective marketing framework, which is expected to retain and manage long-term supportive relationships with the donors. Relationship marketing framework and branding strategy are also worth considered for this purpose. Originality/value – Few studies analyse Islamic charities in the modern marketing perspective, especially in Indonesia. This study, therefore, fills the gap in the research area.

Key Account Management Orientation and Its Implications: A Conceptual and Empirical Examination

ABSTRACT Purpose: The purpose of this study is to propose a conceptualization and empirical validation of Key Account Management Orientation (KAMO), a multidimensional construct integrating attitude- and behavior-related set of values toward key account management (KAM) and to explore potential influences on different aspects of KAM effectiveness. Design/Methodology/Approach: A series of in-depth interviews were conducted for the development of KAMO. Once this was achieved, the main quantitative study was conducted by collecting data from 304 suppliers from different sectors. Findings: Findings suggest that KAMO influences financial as well as nonfinancial performance. Findings also confirm the mediating role of relationship quality and relational capabilities in this relationship. Research Limitations/Implications: The dimensions that comprise KAMO may not be just antecedents but also consequences of an effective KAM program. Future longitudinal studies will allow deepening our understanding of the relationships between the variables. Practical Implications: Suppliers who adopt KAMO as part of their philosophy are likely to achieve superior business performance both financial and nonfinancial. Suppliers should shift from the traditional sales management approach toward KAM to a more relationship-oriented philosophy if they seek to enjoy full benefits from a KAM relationship. Originality/Value: This is the first study to provide a comprehensive and empirically valid measure of a supplier's KAMO. The study sets the management of KAM relationships within a broader relationship marketing framework.

The relationship-service-profit chain: conceptual framework and propositions

This conceptual paper proposes an expanded relationship-service-profit chain as a business success model based on blending human resource management and marketing within the relationship marketing framework. The major contribution of the paper is the extension of thought and usage of the service-profit chain through the super-imposition of a relationship building approach to the provision of service. The proposed model draws on the original service-profit chain, which is further enhanced through the addition of a relationship marketing orientation guiding business culture and combining internal marketing and human resource management activities to best implement an updated service-profit chain. The enhanced relationship-service-profit chain model is introduced as a plausible explanation for previous problems encountered in the service-profit chain literature and also to provide a point of reference for future research into the association between internal service operations and external operations and sustained superior customer outcomes. Future research directions are provided.

Managing the Franchisor–Franchisee Relationship: A Relationship Marketing Perspective

Since the emergence of the relationship marketing paradigm, researchers have increasingly considered why some efforts at relationship marketing are more successful than others. This article explores this subject within the context of a particular form of relational exchange—the franchisor–franchisee relationship. Though the importance of good franchisor–franchisee relations have long been recognized as critical to the success of franchise systems, little attention has been given as to how this can be achieved. This article, by applying a relationship marketing framework, seeks to provide new insights into those factors that influence relationship quality and considers how relationships may evolve over time. The case analysis suggests that the quality of the franchise relationship is impacted by a number of factors but that effective communication is critical in ensuring shared values and, therefore, a relationship characterized by trust and commitment. Leadership also emerges as being very important in shaping the relationship.

An entended, community focused, experiential framework for relationship marketing

The application of the principles of relationship marketing in business-to-consumer markets has been a major development of the past two decades. Amidst mounting cynicism about some of the practices of relationship marketing, this paper returns to underlying principles and assesses their continuing validity in the context of a changing marketing environment. Web 2.0 technologies have facilitated consumer-to-consumer consumption relationships. Increasing wealth has led segments of consumers to value hedonistic, experiential aspects of consumption. An extended framework for relationship marketing is proposed, which incorporates the effects of peer-to-peer relationships and hedonistic experience. The management implications of moving towards a broadened definition of relationship marketing are noted.

Phase-type distribution of customer relationship with Markovian response and marketing expenditure decision on the customer lifetime value

In recent years, more and more companies have adopted relationship marketing (RM). At the core of RM is the development and maintenance of long-term relationships with valuable customers. In RM, the customer lifetime value (CLV) is the discounted profit streams of a customer across the entire customer life cycle. The CLV plays a key role in customer acquisition and retention decisions. In this paper, we present a general mathematical framework for RM, and introduce a Markov chain model which is appropriate in modeling RM because of its flexibility and probabilistic nature. We also develop the life distribution of the customer relationship, which is a phase-type distribution since it is the distribution of the first arrival stopping state. And we obtain the expectation of the CLV, which is an important statistic for good decision-making. Finally, we illustrate how to find the optimal remarketing policy numerically. The framework developed for RM systems in this paper should be seen as a practical approach to RM where one can directly apply the results of phase-type distribution and expectation of CLV to marketing decisions.

A Business Marketing Strategy Applied to Student Retention: A Higher Education Initiative

Relationship marketing, a concept that focuses on attracting, maintaining, and building business relationships, has enhanced the profitability of businesses. The core of the relationship marketing approach in business is that resources are directed toward strengthening ties to existing customers on the proven premise that maintaining existing customers is less costly than is attracting new ones. Relationship marketing models have been developed in a wide range of settings and evidence exists suggesting that it is a successful approach. This article explores the concept of adapting the business relationship marketing framework to the challenges of college student retention. The student retention and relationships marketing literatures are reviewed and parallels are drawn. The relationship marketing model presents a different way of viewing student retention, provides a different perspective on retention strategies, and provides an economic justification for implementing retention programs. Retaining students in post secondary programs has been a national concern for decades (Braxton, 2000). However, doing so remains a challenge (Habley & McClanahan, 2004; Maldonado, Rhoads, & Buenavista, 2005). Improving student retention is a worthwhile goal for a variety of individual, social, and economic reasons (Institute for Higher Education Policy, 2005; Schuh, 2005; Tinto, 1993). And, while not everyone will be comfortable applying concepts from business to an issue in education, adapting the customer retention model to student retention is appropriate given the emphasis both place on quality of services. We include a formula for determining the economic benefits to the institution of retaining students.

Understanding online B-to-C relationships: An integrated model of privacy concerns, trust, and commitment

An integrative framework from information privacy and relationship marketing arenas was employed to investigate whether a traditional business-to-business relationship marketing framework could be applied to the information-intensive online business-to-consumer channel. Roles of consumers' privacy concerns and perceived e-tailer's reputation on their trust in, commitment toward, and purchase intent toward a services e-tailer were examined. Effects of opt-in versus opt-out choice strategies on consumers' privacy concerns and trust were also studied. Results showed that the strongest relationships leading to online purchase intent were those between trust in and commitment toward an e-tailer and between firm reputation and trust. Privacy concerns influenced purchase intent with strong negative effects, both directly and indirectly through trust. No difference was observed in respective direct effects of choice strategy on privacy concerns, nor were strategies found to moderate reputation on privacy concerns or trust. Managerial implications are discussed.