Chapter 3 Flashcards
Explain relationship marketing
Relationship marketing centers on activities directed towards creating, developing and maintaining successful changes with customers
What are some benefits of relationship marketing?
loyal customers more profitable
more insulated from price competition
positive work environment for employees
What are value adding exchanges?
focus shifts from attracting customers to keeping customers
What is a transactional exchange?
timely exchange of basic products for highly competitive market products
Characteristics of a transactional exchnage
many alternatives, simple purchase decision, stable market, commodities
What is a collaborative exchange?
mutual commitments for long run benefits
Characteristics of a collaborative exchange
few alternatives, dynamic marketing, complex purchase decisions
Name some core differentiators
service support, personal interaction, supplier knowhow, improved time to market
Name some moderate differentiators
product quality, delivery performance, lower acquisition costs and operational costs
Name the weakest differentiator
price to seller
Name 2 examples of switching costs
Investments and risk of exposure
What is relationship quality?
number of interaction characteristics (trust, commitment)
What is relationship breadth?
number of interpersonal ties firm has with partner
What is relationship composition?
Decision making capability of relational contacts
What is relational strength?
Ability to withstand stress/conflict
