Consumer equity in relationship marketing

Abstract

The paper examines the current state of relationship marketing in the consumer services market. It questions whether relationships are mutually beneficial to suppliers and customers and argues that the relationship is managed by the retailer primarily for their gain whereas the customer might benefit more from alternative, immediate rewards. This leads to a consideration of how value and equity within relationship marketing might be viewed using social psychology as a basis for re‐examining the nature of supplier‐customer relationships. Concepts from branding and brand repertoires are also considered in terms of understanding what type of relationship might be most appropriate for consumers. Two case studies are explored to support the suggestion that some consumers are looking for different types of relationship to those currently on offer. Management must consider carefully what this might imply both in terms of future consumer behaviour and how competitive action between retailers may develop.

Defining business-to-consumer relationships: The consumer's perspective

“…The usefulness of the concept is limited by the characteristics of the product or service. 11 In one of the few empirical investigations of this question, Pressey and Mathews found that relationship The first research question examines the claim that: 'Relationship marketing is conceptually distinct from transaction marketing, direct marketing, database marketing, loyalty marketing and retention marketing on the basis that these are tactical, while relationship marketing focuses on long-term interaction leading to social bonds.' The first research question is:…”

Customer perceived value, satisfaction, and loyalty: the role of willingness to share information

“…Research has also shown that customers are aware that mutual gain is not present in all relationships and, therefore, are not willing to build relationships and share personal information with unknown organizations (Phelps, Nowak, and Ferrell 2000;Szmigin and Bourne 1998). For example, according to Sheenan and Hoy (2000), consumers' willingness to provide personal information largely depends on the strength of the their relationship with the requesting company.…”

The blind spot of relationships in consumer markets: the consumer proneness to engage in relationships

“…However, an approach which relies heavily upon direct mail and database marketing, as a "blunt" instrument to reach large numbers of customers will detract from a relationship approach (Dibb and Meadows 2001). The kind of relationship desired, which refers to anything from a full-blooded long-term relationship to a one-off transaction, has to be dependent, on the one hand, on what the customer wants, and on the other, on how well the supplier can match that (Szmigin and Bourne 1998). Since companies and individual consumers act out of self-interest, it cannot make sense to have an approach that rewards the supplier but not the customer.…”