Relationship Marketing Activities Research Articles

Internal relationships

PurposePractitioners argue that the way they treat their employees has an impact on firm success. However, they frequently do not equate this with relationship building. On the other hand, the academic relationship marketing literature does highlight internal relationships as having an important impact on external customer relationships. However, this relationship suffers from a lack of academic empirical evidence. Neither seems to recognize the knowledge of the other leading to incongruence between marketing theory and practice. The purpose of this paper is to bring the two literature streams together demonstrating that the practitioners are talking about, and practising, relationship marketing.Design/methodology/approachExploration and comparison of the academic and practitioner literature bases to elaborate on the value of relationship building within organizations.FindingsCompetitive advantage can be attained through development of a relationship‐building culture which includes building relationships inside the organization as well as customer relationships. In fact, successful customer relationships rely on successful internal relationships.Research implications/implicationsA broad research agenda is outlined for understanding the nature of internal relationships and their impact on a firm's success.Practical implicationsOrganizational success can be gained through building strong internal relationships and the development of a relationship‐building organizational culture.Originality/valueLinks practitioner cases and reflections to the concept of relationship marketing, demonstrating further how relationship marketing activities provide a competitive advantage.

The customers' perspective on relational benefits in banking activities

The nature of banking activities is based on the relationship with the customer in as much as this activity implies direct contact. In this paper, some fundamental questions for the development of relationship marketing activities within the financial firms will be analysed. In particular, this paper intends to demonstrate that it is possible to divide up the market into different types of consumers according to the customers' perspective on relational benefits. This paper bases itself on the perception and evaluation of relational benefits by the customer: with this objective in mind, an empirical study was carried out in various financial firms. This study contrasted the evaluation given by each customer to the different relational benefits.

The Importance of Social Bonding and Loyalty: An Empirical Investigation Within U.K. Private Health Clubs

ABSTRACT The association between relationship marketing and the desired outcome of creating true loyalty to the business remains under researched. The following addresses this lacuna by empirically studying this relationship in U.K. private health clubs. The findings indicate the prominence of social bonding in creating truly loyal members, which is in contrast to current relationship marketing activities employed within this market segment. In conclusion, it is argued that the findings may well be applicable to other leisure environments, whilst recognising the need for further research.

Building a business case for digital asset management

One must look beyond simply managing rich media assets to develop a solid business case. The true return on investment (ROI) for digital asset management (DAM) exists in its effect on speed, efficiency and consistency in all aspects of marketing-related activities for an organization.

Building customer capital through relationship marketing activities

PurposeTo provide a theoretic framework of the development of customer capital and an empirical verification using Taiwanese multilevel firms.Design/methodology/approachThe authors used survey research to collect data from members of four Taiwanese multilevel companies. They explored the mediating roles of the drivers of customer equity in the “relationship marketing activities‐customer capita” effect. A total of 306 valid responses were analyzed using structural equation modeling analysis.FindingsFour types of relationship marketing activities – core service performances, recognition for contributions, dissemination of organization knowledge, and member interdependence enhancement – have significant influences on relationship equity. Relationship equity in turn affects customer capital. Value equity and brand equity respectively have significant effects on customer acquisition and customer retention. Customer acquisition has a significant “feedback” effect on value equity, and relationship equity affects brand equity positively.Research limitations/implicationsThe generalizability of this research is constrained due to a non‐probability sample of firms being used to verify the theoretic framework. It is also constrained due to the fact that only customer‐side data were collected and proxy measures of customer capital were used.Practical implicationsEffective and ineffective types of relationship marketing activities have been identified. The causal paths between relationship marketing and customer capital have been illustrated.Originality/valueThis paper sheds light on the approach to building customer capital for membership‐emphasized organization.

The impact of customer relationship marketing on the firm performance: a Spanish case

PurposeWhile 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/approachThe 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.FindingsThe 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 implicationsAs 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/valueThis article realizes the importance of product and service quality rather than promotions, advertising or economic bonuses in retaining customer loyalty.

Relationship quality, relationship marketing, and client perceptions of the levels of service quality of charitable organisations

PurposeTo investigate possible linkages between the relationship marketing activities of charitable organisations and the calibres of the relationships that charities establish with their beneficiaries. Also to identify the specific relationship marketing functions that contribute most to the development of good relationships between charities and their beneficiary clients.Design/methodology/approachOne hundred beneficiaries of UK “helping and caring” charities were questioned about their perceptions of the service quality of the organisations that had given them assistance, their satisfaction with a charity's services, the character of their relationship with the charity, and the calibres of five different forms of relationship marketing (e.g. advertising, database marketing) employed by the charity. A model was constructed and estimated using the method of partial least squares. Perceived service quality was measured via adaptations of the SERVQUAL instrument but without any assessments of the respondents' prior expectations concerning the services they would receive from an organisation.FindingsRelationship marketing was found to represent an effective weapon for improving both relationship quality and beneficiaries' satisfaction with service provision. Charities that “listened” to their beneficiary clients (e.g. by encouraging feedback) and which interacted with them on a regular basis were regarded as being exceptionally good at relationship marketing. Relationship quality as well as actual service quality induced beneficiaries to want to recommend a charity to other people and to engage in positive word‐of‐mouth.Research limitations/implicationsThe configuration of the model meant that it was not possible to examine the consequences of reversing the assumption that satisfaction was the cause of perceived service quality and not vice versa.Practical implicationsThe outcomes offer practical advice to charity managers regarding the manners in which they should pursue their relationship marketing activities. Charity managers need to be trained and competent in the techniques of relationship marketing. A genuine concern for building relationships should suffuse the entire organisation.Originality/valueThis is the first published study to explore the use of relationship marketing by charities in respect of their beneficiaries rather than their donors.

Causes and consequences of donor perceptions of the quality of the relationship marketing activities of charitable organisations

Although relationship marketing has been adopted extensively and enthusiastically by UK charitable fundraising organisations, the operational assessment of what actually constitutes ‘good quality’ relationship marketing by charities has been overlooked. This paper presents the results of an investigation into the perceptions of the quality of charities' relationship marketing activities reported by a sample of 141 known regular supporters of charities. Three forms of relationship marketing were considered: relationship advertising, direct marketing, and ‘two-way marketing contacts’ (public relations events, open days, and other two-way marketing communications). The calibre of each of these genres of relationship marketing was evaluated in terms of five criteria: message relevance, interactive engagement, and the arousal of feelings of commitment, benevolence and trust. A donor's overall perception of the quality of an organisation's relationship marketing was conceptualised as a latent variable formed (rather than reflected) by the individual's opinions of the attributes of the three above mentioned methods of relationship marketing. Connections between the latent relationship marketing quality variable and (i) the levels and frequencies of supporters' donations, and (ii) donors' future intentions to continue giving to the charity, were then examined. The model was estimated using the technique of partial least squares.

Evaluating the Performance of Third‐Party Logistics Arrangements: A Relationship Marketing Perspective

SUMMARYBy 2005, users of third‐party logistics services may be spending an average of nearly one‐third of their total logistics budgets (compared to 20 percent today) to support 3PL services (Gooley 2000). Yet, very little research has examined managerial activities that might influence the performance of these logistics outsourcing relationships. Over the past several years, the management approach that views relationships as key assets of the organization has gained increased prominence in the priorities and practices of many companies (Gruen, Summers and Acito 2000). The current study utilizes this relationship marketing perspective as the basis for evaluating the perceived performance of third‐party logistics arrangements. In particular, the current study examines the influence of six key relationship marketing dimensions on a customer's perceptions of their 3PL provider's performance. In so doing, the article builds on research (e.g., Goldsby and Stank 2000) that focuses on potential linkages between logistical performance metrics and managerial activities. The results suggest linkages between relationship marketing activities and the perceived performance of the 3PL arrangement.

Buyer attentiveness in buyer–supplier relationships

How do a manufacturing firm's (supplier) relationship marketing activities lead to more profitable business-to-business (B2B) customers? This research proposes that a supplier's relationship activities develop a buyer's attentiveness toward the supplier, which, in turn, leads to profitable buyer purchasing behaviors. Findings from 119 buyer organizations support this contention, and, additionally, buyer attentiveness was found to have a stronger positive influence on favorable buyer behavior than does either buyer dependence or relationship length. This study contributes to our understanding of long-term buyer–supplier relationships in B2B markets.

International Strategic Alliances

This paper reports the findings of an empirical investigation of strategic alliance agreements between UK firms and their European, Japanese and US partners. The aim of this paper is to shed some light on the international strategic alliance activity of UK firms and ascertain the objectives and motives of international strategic alliances. In addition, the perceived performance of the strategic alliance is considered together with the perceived level of satisfaction of a range of alliance activities. The findings should prove to be a useful guideline for researchers and practitioners engaged in understanding international strategic alliances. The analysis should allow managers to examine the important issues in the formation of international strategic alliances and allow them to understand the assessment of performance and satisfaction of the alliances formed. Key Results: The findings have shown a definite pattern in UK international strategic alliance activity. The results of the study indicate that the majority of UK firms engage in international partnerships for marketing-related activities and are essentially driven by the financial cost and risk of entering a foreign market; access to overseas market and improving market share. The findings have also indicated that the majority of UK managers are satisfied with the overall performance of the international strategic alliance.

Balancing Transaction and Relationship Marketing in Retail Banking

Over the last number of decades, as a result of regulatory, technological and changing consumer dynamics, many service organisations operate in an increasingly competitive and dynamic external environment. These changes have led to service companies trying to both recruit and retain profitable customers. In order to compete effectively, do companies focus on transaction and relationship marketing activities only or on the balanced delivery of both? Apart from a small body of work (Brodie et al. 1997; Coviello et al. 1997; 2002), the literature has treated transaction and relationship marketing in an isolated and non-integrated fashion. In particular there has been limited consideration of the pertinent issues facing service organisations trying to integrate these two perspectives in practice. This article describes an in-depth study of a service organisation's transaction and relationship marketing activities. In this study theory was used in the development of a conceptual model. This model was used as a framework to guide the study and data collection using one retail bank case. The data were analysed in relation to the transaction and relationship marketing focus and activities of the bank. The findings indicate that resource investment in some aspects of transaction and relationship marketing activities, in practice, was unbalanced compared to the resource investment in a wide range of support activities. The study has implications for research and theory and to those attempting to deliver both transaction and relationship marketing in the context of dynamic and competitive environments.

The Impact of CRM on Firm- and Relationship-Level Performance in Distributed Networks

This paper develops and empirically tests a model to evaluate a manufacturer’s strategy which provides customer relationship management (CRM) technology to its exclusive retailers. The impact of the strategy on manufacturer-retailer relationship quality is also examined. The research objectives are (1) to identify and test factors that promote active implementation of CRM technology among small retail organizations; (2) to determine whether our expanded concept of CRM implementation that integrates customer information management activities and relationship marketing activities explains CRM performance better; and (3) to investigate whether a manufacturer’s support contributes to manufacturer-retailer relationship quality. Statistical analysis shows that the model provides an adequate fit to the data. The retailer’s perception of the importance of customer information, manufacturer support, and trade area competitiveness significantly impacts the intensity of CRM implementation by small retailers. CRM implementation intensity positively influences the performance outcomes of CRM, which in turn greatly improves the quality of the manufacturer-retailer relationship. Different from our expectation, supporting retailers with CRM technology did not directly impact the manufacturerretailer relationship quality. The ease of use of the CRM system also did not influence CRM implementation intensity significantly. The implications of these results and their importance for successful CRM implementation are discussed.

Usage of Antifungal Drugs for Therapy of Genital CandidaInfections, Purchased as Over‐the‐Counter Products or by Prescription: 1. Analyses of a Unique Database

To present sales figures of antifungal drugs for treatment of genital Candida infections in females, which had been purchased in the Swedish county of Skåne (with approximately 1.2 million inhabitants) during the 1990s. To study the relative proportions of the drugs sold by prescription and as over-the-counter (OTC) products. Sales figures of antifungal drugs for therapy of vulvovaginal candidiasis (VVC) and such recurrent infections (RVVC), for the years 1990--99, were collected from the 'ACS' database of the National Corporation of Swedish Pharmacies. The study showed an increase in sales of the type of drugs studied from 45,000 packages in 1990 until mid-93/94, when approximately 70,000 packages were sold (mainly azoles for topical use and fluconazole for oral intake). Thereafter there was a decrease until the end of November 1999, when 54,000 packages were purchased. Of the total sales, 93% were OTC products. Sales of clotrimazole and econazole (for vaginal installation) in 1993--1994 were equal to 85-90 packages/1000 women in the age group 15-45 years. Extremely high sales volumes of fluconazole and itraconazole, for one single year each, could be explained by marketing-related activities directed to the medical community. As many women with RVVC are not cured by iatrogenic initiatives and women consider themselves able to diagnose episodes of genital Candida infection, affected women generally turn to self-medication with antifungal OTC products. This stresses the role of pharmacy counseling. Short-term marked alterations in sales volumes may be due to marketing factors rather than changes in the epidemiology of genital Candida infections.

To Surprise or Not to Surprise Your Customers: The Use of Surprise as a Marketing Tool

It has been contended that companies must move from satisfying their customers to delighting them (Rust, Zahorik and Keiningham 1996). It has also been observed that features that can be used to delight are those that are surprisingly pleasant (Rust and Oliver 2000: p.87). Many relationship marketing activities are being copied and therefore fail to provide for a long-term strategic advantage to the companies that originally launched them. Moreover, some of such activities do not work as originally intended. This article examines when and how surprise can be applied as a marketing tool in retaining a company's customers. A review of the existing literature on (1) the use of relationship-based marketing and emotion-based marketing and (2) the emotion of surprise suggests that it is close to impossible for a company to copy emotion-based marketing activities. Interestingly, the emotion of surprise has recently been proposed as being appropriate for emotion-based relationship marketing. This article argues that surprise can be an extremely efficient marketing tool, but that marketers need to be aware that some situations are more suited for using surprise than other situations. In order to reach this conclusion the article reviews empirical research on the emotion of surprise and its influence on marketing variables such as customer satisfaction, customer retention and trust.

Effects of Relationship Marketing on Repeat Purchase and Word of Mouth

This study explores what kinds of relationship marketing activities affect relationship quality between customer-contact employees and hotel guests. In addition, this study investigates whether relationship quality influences relationship consequences such as commitment, repeat purchase, and word of mouth. This study will help hotel managers design guidelines for efficient relationship marketing activities. The effective use of relationship marketing strategies can increase repeat guests and positive word of mouth. To analyze data collected from 27 luxury hotels in Seoul, South Korea, structural equation modeling was used to discover a causal relationship. The empirical results of this study are twofold: Greater guest confidence and communication result in higher relationship quality, and higher relationship quality results in greater guest commitment and more repeat purchase and positive word of mouth.

Business Implications of Web Technology

The web's global reach and its range of services (e.g. information dissemination, interactive communication and transactional support) make it a potentially powerful business resource. Since this global communication medium naturally supports marketing-related activities, it is not surprising that the current literature highlights such usage. The web's business potential, however, goes far beyond just marketing. US companies are using the web to facilitate the entire range of primary business activities-from product/service design and production to marketing, sales, delivery and after-sales customer service. In addition to supporting traditional businesses and business activities, the web is providing a new locus for value creation and fundamentally transforming traditional ways of doing business. This paper attempts to provide a comprehensive insight into the usage of the WWW by US companies to realize both operational and strategic benefits.

Seller-buyer interactions during the commercialization of technological process innovations

For buyers and sellers alike, high-tech process innovations can be a double-edged sword. On the one hand, technological process innovations (e.g., computer hardware and software, factory automation equipment) offer buyers the potential for reduced production costs and enhanced product quality. However, early adoption of such innovations is often a risky proposition. For the seller, successful commercialization requires stimulating not only adoption, but also successful implementation of the innovation. In other words, effective management of seller-buyer relations during the development and commercialization process go a long way toward determining the success of a high-tech process innovation. Gerard A. Athaide, Patricia W. Meyers, and David L. Wilemon examine the relationship marketing activities employed by successful sellers of high-tech process innovations. They identify eight strategic marketing objectives that underlie these relationship marketing activities: product customization, information gathering on product performance, product education and training, ongoing product support, proactive political involvement (to encourage support for the innovation from the various affected parties in the buyer's organization), product demonstration and trial, real-time problem-solving assistance, and clarification of the product's relative advantage. Their findings suggest that successful sellers engage in relationship marketing activities throughout all phases of the commercialization process. Rather than simply trying to close a deal, these firms seek active involvement from potential customers, ranging from codesigning of products to seeking feedback on productrelated problems or desired modifications. This broader scope of customer involvement necessitates cooperation among various groups in the seller's organization. Product development and engineering work closely with the customer during product customization. Those groups must communicate effectively with the salespeople who demonstrate the product and with the customer support people who obtain feedback and provide real-time problem-solving support. In other words, these relationship marketing activities cut across functional barriers. Consequently, a clear understanding of the buyer's needs and environment is essential throughout the seller's organization, not just in the sales and marketing departments.

Seller–Buyer Interactions During the Commercialization of Technological Process Innovations

For buyers and sellers alike, high‐tech process innovations can be a double‐edged sword. On the one hand, technological process innovations (e.g., computer hardware and software, factory automation equipment) offer buyers the potential for reduced production costs and enhanced product quality. However, early adoption of such innovations is often a risky proposition. For the seller, successful commercialization requires stimulating not only adoption, but also successful implementation of the innovation. In other words, effective management of seller—buyer relations during the development and commercialization process go a long way toward determining the success of a high‐tech process innovation.Gerard A. Athaide, Patricia W. Meyers, and David L. Wilemon examine the relationship marketing activities employed by successful sellers of high‐tech process innovations. They identify eight strategic marketing objectives that underlie these relationship marketing activities: product customization, information gathering on product performance, product education and training, ongoing product support, proactive political involvement (to encourage support for the innovation from the various affected parties in the buyer's organization), product demonstration and trial, real‐time problem‐solving assistance, and clarification of the product's relative advantage.Their findings suggest that successful sellers engage in relationship marketing activities throughout all phases of the commercialization process. Rather than simply trying to close a deal, these firms seek active involvement from potential customers, ranging from codesigning of products to seeking feedback on product‐related problems or desired modifications.This broader scope of customer involvement necessitates cooperation among various groups in the seller's organization. Product development and engineering work closely with the customer during product customization. Those groups must communicate effectively with the salespeople who demonstrate the product and with the customer support people who obtain feedback and provide real‐time problem‐solving support. In other words, these relationship marketing activities cut across functional barriers. Consequently, a clear understanding of the buyer's needs and environment is essential throughout the seller's organization, not just in the sales and marketing departments.

Retirement versus age: Assessing the efficacy of retirement as a segmentation variable

This study examines the relative importance of retirement status as a basis for segmenting markets. A survey instrument was mailed to 500 male consumers living throughout the U.S. They were categorized by retirement status, age, income, and physical health. A series of chi-square tests were run in respect to a number of marketing-related activities. The results clearly indicate that retirement status is a valid segmentation variable.