chapter 7 Flashcards
relationship marketing
essentially represents a paradigm shift within marketing - away from an acquisition/transaction focus toward a retention/relationship focus. Relationship marketing is a philosophy of doing business, a strategic orientation, that focuses on keeping and improving relationships with current customers rather than on acquiring new customers
Gröngroos divided customer expectations into three types
1) transactional expectations
Active relational expectations
passive relational expectations
Transactional expectations
where the customer is looking for solutions to their needs at an acceptable price and they do not appreciate contacts from the supplier or service provider in between purchases
Active relational expectations
where the customer is looking for opportunities to interact with the supplier or service provider in order to get additional value. A lack of contact leaves them isappointed because the value inherent in the relationship is missing
Passive relational expectations
Where customers are looking for the knowledge that they could contact the service provider if they wanted to. In this sense, they are also seeking contact, but they seldom respond to invitations to interact
the customer pyramid
Platinum tier
Describes the companys most profitable customers, typically those who are heavy users of the product, are not overly price sensitive and are willing to invest in and try new offerings and are committed customers of the firm
gold tier, not as profitable because of price or loyalty,
Iron tier: essential customers who provide the volume needed to utilize the firms capacity but dont warrent special treatment
Lead tier: consists of customers who are costing the company money. Demand more attention than they are due given their spending and profitability
literature suggests that switching barriers
influence consumers decision to exit from relationships with firms and therefore facilitate customer retention
