Chapter 3 Flashcards
Collaborative Advantage
demonstrating special skills in managing relationships with key customers or by jointly developing innovative strategies with alliance partners
Relationship Marketing
centers on all activities directed toward establishing, developing, and maintaining successful exchanges with customers and other constituents
Transactional Exchange
Centers on timely exchange of basic products for highly competitive market prices
Operational Linkages
reflect how much the systems, procedures, and routines of the buying and selling firms have been connected to facilitate operations
Collaborative Exchange
features very close information, social, and operational linkages as well as mutual commitments made in expectation of long-run benefits
Relationship Commitment
involves a partner’s belief that an ongoing relationship is so important that it deserves maximum effort to maintain it
Trust
exists when one party has confidence in a partner’s reliability and integrity
Transactional Relationship
when competitive supply market feature many alternatives, the purchase decision is not complex, and the supply market is stable
Collaborative Relationship
when alternatives are few, the market is dynamic, and the complexity of the purchase is high
Switching Costs
investments and risk of exposure
Activity-Based Costing (ABC)
illuminates exactly what activities are associated with serving a particular customer and how these activities are linked to revenues and the consumption of resources
Net Margin
Equals the net price, after all discounts, minus manufacturing costs
Costs of Serving the Customer
order-related costs plus the customer-specific marketing, technical, and administrative expenses
Customer Relationship Management (CRM)
cross-functional process for achieving a continuing dialogue with customers across all their contact and access points, with personalized treatment of the most valuable customers to ensure customer retention and the effectiveness of marketing initiatives
Value
refers to the economic, technical, service, and social benefits received by a customer firm in exchange for the price paid for a product offering
Value Proposition
represents the products, services, ideas, and solutions that a business marketer offers to advance the performance goals of the customer organization
Relationship Marketing Activities
represent dedicated relationship marketing programs, developed and implemented to build strong relational bonds
Relationship Breadth
represents the number of interpersonal ties that a firm has with an exchange partner
Relationship Composition
centers on the decision-making capability of relational contacts at the customer firm; a contract portfolio that includes high-level decision makers increases a seller’s ability to effect change in customer organizations.
Relationship Strength
reflects the ability of a relationship to withstand stress and/or conflict, such that multiple, high-quality relational bonds result in strong, resilient relationships
Relationship Efficacy
captures the ability of an inter-firm relationship to achieve desired objectives
Relationship Orientation
represents the customer’s desire to engage in strong relationships with a current or potential supplier
Relationship Quality
represents a high-caliber relational bond with an exchange partner that captures a number of interaction characteristic such as commitment and trust
