SAGE Books - Relationship Marketing: A Consumer Experience Approach
Underpinning all of this is a relationship marketing approach. Arnould et al. ( ) identify different types of operant resources available to consumers – physical. Definitely this is done with Relationship marketing. Relationship boundary about relationship marketing (Parvatiyar et al,. ). Baron et al. (). We propose an integrated framework to conceptualize the relationships between VBC Compared to traditional brand communities [McAlexander et al. ; . to product use, technology, and market information [Nambisan & Baron ].
Hence, a comprehensive literature review of these concepts is provided in this paper. In particular, we begin by offering a brief review of the relevant literature on Marketing 3. Then, the concepts of brand love and customer engagement are presented. Finally, conclusions and managerial guidelines are provided. Emerged as a response to the desire of people to growingly express creativity, values and spirituality, Marketing 3. This has several implications for brand management.
On the one hand, in order to positioning a brand, companies must take into account that the way to differentiate the brand sometimes is not related to the mere fact of attaching the brand itself to a product or service -it should rather link the brand to a particular set of potential emotional benefits that it promises to deliver to the consumer.
On the other hand, it is expected that those brands that are acknowledged as ethical elicit positive emotional responses among its consumers and invoke a stronger level of brand affect among them Glomb et al. Given the relevance of the affective and emotional links usually generated between brands and consumers, companies must take them into account in order to build and manage sustainable brands along time.
With this regard, it is interesting to mention how two areas of research have sparked particular interest in the marketing literature because of their special links with emotions: The first empirical studies carried out to examine these intense consumer-brand relationships were those analyzing the first of these concepts. Nevertheless, Sallam outlined how it was first introduced by Shimp and Maddenthe managerial interest for brand love came after the publication of Roberts Subsequently, Professor Aaron Ahuvia and his co-authors carried out several research works e.
Brand love represents an intimate experience of the customers —in positive emotional terms— toward the brand. Regarding brand love, the following papers are worthy of a special mention: In the management literature, employee engagement was first conceptualized by Kahn High customer engagement, like employee engagement, means that customers present themselves physically, cognitively, and emotionally —i.
Nowadays, several organizations consider important consumer engagement and know that it needs to be at the center of the customer service strategy. In general terms, customer engagement is focused on the interactions between the firm and the customers and is a key research priority of the Marketing Science Institute MSI.
Focusing on customer engagement, the following papers are worthy of a special mention: According to Hollebeekthere is a lack of consensus pertaining to the definition of engagement-based concepts.
Among all of them, we have chosen the two most cited in the literature: In order to measure customer brand engagement CBEHollebeek et al. Although the aforementioned definitions contain common elements, and three papers — Bergkvist and Bech-Larsen, ; Sarkar and Sreejesh, ; Wallace et al. Basically, it could be said that there has been a fragmented interpretation depending on the research tradition in which they have been supported. Thereby, customer engagement have been developed from several marketing theories, such as the expanded domain of relationship marketing Morgan and Hunt,or the service-dominant logic perspective Vargo and Lusch,Vargo and Lusch, ; whilst brand love is based on theories from the psychology domain, such as the triangular theory of interpersonal love Sternberg, Another important issue arises: For instance, the concept of self-congruity —that derives from branding theories— has nearly the same meaning as identity, derived from the identification theory.
Finally, both concepts are frequently applied to different objects of study. In general, brand love has been analyzed in research applied to consumer brands in the Fast Moving Consumer Goods industry, whilst customer engagement has been used mainly in the service sector. However, there are studies that have tried to overcome this limitation. Especially for fulfilling this research gap, in Long-Tolbert and Gammoha model have been developed in order to apply brand love to the case of intangible goods.
Conclusion Consumer-brand relationships have received increasing attention during last years, being Kaufmann et al. This paper contributes to the understanding of the complex brand relationships consumers have, by exploring the dynamics between brand love and co-creation.
In the literature on consumer-brand relationships, there are two concepts that determine a very intense link between them; i. In this paper, a conceptual delimitation of these two key terms has been done. To this end, a brief reflection has been started on the context of Marketing 3.
Under this paradigm, consumers try to acquire those brands that allow them to especially meet their deeper needs for social, economic, and environmental justice. Namely, consumers no longer consider only the role of brands as mere identifiers of products, services or companies, but try to go further, basing their brand choices on potential associations and emotional benefits that a specific brand is susceptible to provide them.
Consumer-Brand Relationships under the Marketing Paradigm: A Literature Review
Then, a conceptual demarcation of terms brand love and customer engagement has been established. In particular, it has become clear how such terms derived from differentiated disciplines and have often been applied to different empirical situations.
Nowadays, given the profound changes taking place in markets, it is necessary to pay attention to how the consumer-brand relationships continue to evolve. In short, among future trends, there should be considered those that are likely to have a greater impact on these relationships, such as the opportunities offered by an efficient management of Big Data and the advent of Marketing 4. Big data helps companies to build strong relationships. Author Contributions All authors listed, have made substantial, direct, and intellectual contribution to the work, and approved it for publication.
Conflict of Interest Statement The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest. When consumers love their brands: Oral participation in retail service delivery: Psychological implications of customer participation in co-production.
And behavioral loyalty emphases on customer behavior like repeat purchase, word of mouth Das, ; Taleghani, Existing customers, who are willing to give enthusiastic references and word of mouth referrals, create free advertising.
The second one is that Loyalty provides the time to respond to competitive moves — it gives breathing Room to organization. Therefore, Banks use the relationship marketing concept as strategy to build loyal with each customer, which leads to improved financial and market performance, and an increased competitive edge Ravesteyn, Ndubisi concluded that if the bank is trustworthy, committed to service, reliable, efficient in communicating to customers and able to handle conflicts well.
Bank customers tend to be loyal in Malaysia. And also Ndubisi suggested that the organization should maintain the good relationship with customers to get the loyalists.
Loyal customers are the greatest asset to the organization. Because they can communicate through the favorable word of mouth about the organization or products to which they feel loyal and also attract new customers for the organization which lead to the benefit of its sales, revenue and profit.
Useful sources of new product ideas can be also drawn from loyalists. And also, Afsar et al. In contrast, Das et al.
These results were also supported by leverin and liljander who found that the implementation of a relationship marketing strategy in a retail bank did not result in the increase of loyalty with respect to the most profitable customer segment. But in most cases in both developed and developing countries the relationship marketing in banking sector is positively related to the customer loyalty.
In Sri Lanka, banking sector is considered as main recipient in recent economic downturn. Better formation of strategies in banking sector is the needed one especially in the recent information technology era.
In an Iran context, Taleghani. However, much of the work and understanding of relationship or relational marketing to date focuses on the Western perspective, and hardly any work has been done in the Asian context Nguyen, And also there are possible influences of personal demographical factors on relationship marketing dimensions and customer loyalty.
Studies have suggested that Women tended to be more loyal than Men; older people have more level of loyalty than younger age groups. Moreover, higher — income customers to receive better attention from banks in Malaysia Ndubisi, Such understanding or finding will help to private commercial banks in Jaffna peninsula, Sri Lanka, to establish the better management of firm —customer relationship and to achieve the higher level of loyalty among customers.
This model of relationship marketing in banking sector introduces new constructs and uniquely combines them in specifying that the customer loyalty is a function of trust, commitment, communication, and conflict handling in the relationship marketing.
In which, personal demographical factors are used as a moderating variable. There is a significant impact of trust on customer loyalty. There is a significant impact of commitment on customer loyalty. There is a significant impact of communication on customer loyalty. There is a significant impact of conflict handling on customer loyalty. Primary data are collected through the questionnaire, and secondary data are collected from texts, journals and magazines.
Relationship Marketing: A Consumer Experience Approach
This study was conducted in private commercial banks in Jaffna peninsula. Factors such as precision, confidence, time and cost constraints were taken into consideration in selecting sample size.
The study is limited to customers of private commercial banks in Jaffna peninsula. Systematic quasi — random sampling has been adopted to select respondents.
- Consumer-Brand Relationships under the Marketing 3.0 Paradigm: A Literature Review
Researchers issued one hundred and fifty questionnaires to the selected customers and out of which hundred and two only returned with their responses. The above table gives details about the distribution of questionnaires. The part 1 includes a number of demographic questions such as age, gender, occupation, income level.
The second part deals with relationship marketing in the banking sector. This is measured by four dimensions from Ndubisinamely 1 trust 2 commitment 3 communication 4 conflict handling which comprised seventeen items.
Part 3 includes customer loyalty in banking sector. This is measured by using two dimensions from Das et al.
Relationship Marketing: A Consumer Experience Approach
It includes multiple regression analysis, independent sample one-way Anova f-testindependent sample t- test t-test. Multiple regression analysis is used to find out the significant impact of relationship marketing on customer loyalty. And t-test and f-test are used to identify the significant mean different between the levels of customer loyalty across the personal demographic factors.
Nunnally as cited in Ahsan et al. The descriptive statistics of the variables and reliability estimates are shown in table No Therefore the normality assumption is the valid one.
These methodologies involved calculation of a Tolerance test and variance inflation factor VIF Ahsan et al. The results of theses analysis are presented in table no Thus the measures selected for assessing independent variable in this study do not reach levels indicate of multi-collinearity and also the acceptable Durbin Watson range is between 1.
In this analysis Durbin Watson value of 1. In this study ,Relationship marketing is considered as independent variable or predictor variable, and the customer loyalty is considered as dependent variable. Table No 06 presents the results of the regression analysis. Trust and communication in the relationship marketing contribute significantly to customer loyalty. And also customer loyalty is not contributed significantly by commitment and conflict handling in the relationship marketing.
Accepted Regression H2 There is a significant impact of commitment on customer Rejected Regression loyalty. H3 There is a significant impact of communication on customer Accepted Regression loyalty. H4 There is a significant impact of conflict handling on Rejected Regression customer loyalty. It is very important that the relationship marketing in the private commercial banks in Jaffna peninsula contributes to the customer loyalty. Mainly trust and communication dimensions in the relationship marketing contribute to the customer loyalty.
Therefore the private commercial banks should strive to earn customers trust. Furthermore, Effective communication predisposes customers to stay with a provider of banking services.
Loyalty can also be nurtured by providing timely and reliable information.
Service(s) Marketing Research: Developments and Directions | Steve Baron - guiadeayuntamientos.info
In contrast, customer loyalty is not significantly contributed by the commitment and conflict handling in the relationship marketing in this study. At the same time mean value of both dimensions are in a low level compare with the mean value of trust and communication dimensions in this study. Therefore, the banks should have proper strategy to handle the conflict. By trying to avoid potential conflict, trying to solve manifest conflicts before they create problems and holding the ability to openly discuss solutions when problems arise.
Furthermore, the commitment is another critical factor to building the customer loyalty. So that banks should concentrate on customer commitment through offering the personalized and flexible services.
Lastly, in the moderating effect of personal demographic variables, banks should concern the age wise segmentation.
Persons who are 56 and more than 56 years old have lowest level of customer loyalty. Lack of knowledge in the banking technological aspects might be the reason for the least level of loyalty among customers who are 56 and more than 56 years old. Several strategies have been attempted to retain customers Afsar et al.
Nguyen, recommended the strategies to develop the capability of relationship marketing in the banking sector especially in the Asian context. It is imperative to develop an overall approach to managing customers.What Is Relationship Marketing? A Beginners Guide
There is a need to link back to the overall corporate and marketing strategy of the company. Customer information strategy CRM: There is a need for detailed data identification, collection, analysis and interpretation of customer information to enable the detailed strategy to be implemented with confidence in the banking sector 3.
Reduce the customer list: There is a need to differentiate customers by value which will allow a firm to priorities its marketing efforts, allocating more resources to high value customers, while minimizing the resources applied to low value customers 4.
Planning and internal marketing: There is a need to draw together all the analyses of the different departments to produce a case for changing the way to manage customers plus the associated investment and profit implications, and developing a project plan to manage and monitor 5.
Consumers are happy because of the increased speed of response and the capability to access information as required. For the purpose of practicability and manageability, Convenience sampling method has been adopted to select respondents.
The other data collection methods had not been considered. In this study, relationship marketing contributes significantly to customer loyalty and predicts 30 percent of the variation found. Remaining 70 percent of the variation should be found.