Consumer Decision Making & Relationship Marketing «MANAGEMENT INNOVATIONS MANAGEMENT INNOVATIONS
Show all authors. Abstract: Relationship marketing (RM) was conceived as an approach to industrial and service markets, and was considered inappropriate in . Customer Relationship Marketing is a multi-faceted marketing campaign that entails all aspects of interaction with company's and their current. Consumer Decision Making & Relationship Marketing Friday, May The process of gift exchange is an important part of consumer behaviour.
Fournier, Dobscha, and Mick p. They argue that consumers who prefer discrete transactions feel stressed and manipulated by firms that attempt to engage them in relationships. Garbarino and Johnson empirically segmented the customers of a theater company high and low relational and test whether they differ in their evaluations of future intentions to attend subscribe and donate.
Their focus was on what different role satisfaction, trust, and commitment played for high relational and low relational customers. Antecedent variables determining which consumers were high versus low relational were not addressed.
Relationship Marketing in Consumer Behavior by Antonio Evans on Prezi
Sheth and Parvatiyar present a conceptual framework discussing the antecedents of the relational consumer. These authors suggest a variety of cognitive, sociological and institutional factors that may be influential on consumer partnering with firms. Theories and ideasthat have been developed in using primarily western male subjects cannot necessarily be applied to all persons or all cultures for an example see Gilligan a.
We argue that research focusing on business-to-business relationships is likely to be male dominated and deal with male-male relationships. As such it may not apply equally to other types of relationships female-male or female-female. Similarly, most research in consumer relationship marketing is based on theoretical frameworks developed in western cultures, primarily the U.
It is quite possible that the benefits received, or their importance, in firm-consumer relationships may be very different when considered in other cultural contexts. This paper fills a gap in the current thinking about how to identify consumers who are more likely to engage in relational behavior by considering these missing links.
The first contribution of this paper is that it builds on the existing consumer relationship marketing literature by providing insight into the characteristics of relational consumers, an issue requiring further research suggested by Berry Second, a conceptual framework with several propositions for future testing is proposed.
Finally, by linking gender and cultural variables to relational marketing, this paper adds to the existing theory on relationship marketing. Morgan and Hunt p. This definition appears to be overly broad Peterson Sheth and Parvatiyar p. In discussing two definitions of relationship marketing, Peterson p. While definitions differ with respect to scope and specifics, some common ideas persist. To state the obvious relationship marketing involves relationships.
The parties involved may be firms and consumers business-to-consumeror firms and other firms business-to-businessfirms and suppliers, firms and distributors, or different departments within a firm or various potential others Frenzen and Davis Relationship marketing can be thought of as a strategy used to gain a competitive advantage and stands in contrast to a transactional strategy. Discrete transactions have a "distinct beginning, short duration, and sharp ending by performance", while relational exchanges are "longer in duration, reflecting an ongoing process" Dwyer, Schurr, and Oh p.
The use of the term relationship implies more than a discrete transaction. It implies a long-term focus. The implication is that both arties benefit in some way from the association over a period of time. On this basis we make the following propositions: Relationship marketing will be a more effective strategy when consumers have a relational orientation.
Different types of relationships and their relative importance and influence may differ depending on the situation.
For example, in the banking industry the relationship that a consumer has with the actual person who provides the service may be most important. The relationships the consumer has with either the corporate entity for example Citibankor the product for example their checking accountare probably secondary concerns in this example. Depending on the type of product or service and also on the type of individual, different relationship partners may potentially become more salient.
Berry delineates three levels of relationship marketing. They are financial, social, and structural. With the financial level, the reliance is on pricing to secure customer loyalty e.
The second level of relationship marketing is the social level. Customers are offered social bonds as a means to secure loyalty e. At this level structural solutions to customer problems are used to create loyalty instead of - or in addition to B an individual service provider e. Both of these dimensions need to be considered when conducting research. On the basis of the preceding discussion we propose the following: In fact "consumer behavior is one area in which the differences in behavior between men and women, and often the hierarchical implications of those differences, are evident" Costa p.
Bristor and Fischer p. One such suggestion they discuss is the implications for consumer behavior of the idea that women are more focused on relationships than are men.
In the consumer behavior literature only a small amount of research has directly explored the implications of this "importance to women of relationship building and maintenance" Bristor and Fischer p.
Chodorow argued that women are more "relationship focused" than men. She discussed how this tendency develops from a psychoanalytic viewpoint. Because women have been primary caregivers the childhood of girls differs fundamentally from that of boys. Girls identify personally with their mothers who are around a lot.
This difference between "positional identification" of boys and "personal identification" of girls is the key to what makes women more open to relationship formation Bristor and Fischer Gilligan a; b studied the difference between men and women on conceptions of self and morality in the context of conflict and choice. Her work suggests that theories of human development based on research using male subjects are sex-biased.
A theme in her research is that women are more concerned with relationships and the responsibility of caring for others. The male self is "defined through separation" and the female self is one "delineated through connection" Gilligan a p. Fournier used female informants exclusively in her study of brand relationships. She based this decision on previous research that suggested women "exhibit more and stronger interpersonal relationships and brand involvement" Fournier p. This research separates men and women based on biological sex and proceeds to create generalizations on that basis.
The discussion until now has focused on previous work showing that women are more relational than men, concentrating on biological sex as the differentiating variable. Gender identity is anothe important distinction. Other streams of research suggest differences between femininity and masculinity B the idea of gender versus biological sex B are more important. In developing her sex-role inventory, Bem p. A "feminine gender identity is guided by a communal other orientation, whereas a masculine gender identity is guided by an agentic self orientation" Gainer p.
It is important to note that this is a general statement. Gilligan a suggests that there will be some within group variation.
The interpretations given should not necessarily be taken to "represent a generalization about either sex" Gilligan a p. There will be individual differences among each sex and there will also be overlap between the two distributions Settle and Alreck In terms of the research on masculinity and femininity, "feminine gender identity is often associated with biological sex" and in fact women tend to have higher feminine gender identities Gainer p.
Yet it also has been shown to be valuable as an independent predictor of consumer behavior in certain cases Fischer and Arnold The foregoing literature review suggests: Women are more relational than men and will therefore be more likely to engage in relational market behavior with firms, products or brands.
If an association is shown to exist between the effectiveness of a relationship marketing effort and biological sex women then attention should turn to understanding why this association exists.
It is in this understanding that practical and theoretical implications become salient. To say that a firm will be more successful using a relationship marketing strategy with women may be helpful but does not give the firm any grounding in how to approach increasing their effectiveness. The question that is important to answer is why is there this association? The distinction between sex, gender identity, and gender role attitudes is an important one to make that has implications for consumer behavior.
Fischer and Arnold ; identify the differences between these three concepts. Often consumer behavior research assumes there aredifferences between men and women with respect to things like the products they buy or responses to advertising. This research, however, has been unclear in its distinctions between these three concepts.
This distinction is important because the concepts may have different impacts on consumer behavior. In a given circumstance one or the other may have greater explanatory and predictive power. According to Fischer and Arnoldsex refers to biologically based categories of male and female. Gender is used to describe the psychological features associated with sex.
Gender identity refers to the personality traits of masculinity and femininity and gender role attitude refers to attitudinal differences about the roles, rights and responsibilities of women and men. Which variable will have more predictive power in the case of wanting to engage in relationship with a marketer? There are no clear answers to this question.
A contingent approach is probably called for. Stern reviewed literature on sex-role self-concept measures and consumer behavior and found that biological sex was as good a predictor as psychological sex traits with respect to various aspects of consumer behavior.
Fischer and Arnold in their literature review discuss the fact that research in consumer behavior has shown that gender identity has only a small impact. However, they found that people who were more feminine in terms of gender identity were more involved in Christmas shopping. However, biological sex does have a large impact on socialization and hence on the "consumer activities that an individual will be involved in and learn" Fischer and Arnold p.
There is also some evidence that each variable has differential explanatory power For example Gainer The proposed framework will use both biological sex and gender identity as explanatory individual antecedents to the propensity to engage in marketing relationships.
Empirical testing will be necessary to determine the stronger influence. Hence the sixth proposition is: Persons with a feminine gender identity will be more likely to engage in relational market behavior with firms, products or brands. Gainer argues that certain products are gendered". While some products are linked to biological sex for example feminine hygiene productsothers have a feminine or masculine image that is not necessarily connected to biological sex for example hand lotion has a feminine image.
Whereas in a business market, the competition is even tougher, where there are limited or fewer customers and suppliers. Here the buyers may not always be the end users as they are focused and know about their wants and needs. In such kind of markets, it is very difficult to change the opinions of the consumers. Personal contact between the buyers and sellers is quite possible in a B2B market. Here, the buyer is not always the consumer, and he might come in contact with the seller directly for his whole-sale or retail business.
Whereas, in case of B2C market, the consumers may or may not have any personal contact with the seller, since now-a-days consumers prefer buying products online or even from a self-service store. Possibilities for Mutual Benefit In B2B markets, usually the buyers and sellers have personal contact so that they have some mutual benefit which is not possible in case of B2C markets where the buyers and sellers hardly meet or have any personal contact.
All the above-mentioned factors affect the marketing relationship of consumers and sellers. Marketing planning is the crucial part of marketing relationship. Marketers very carefully need to plan their marketing strategies regarding launching a new product in the market, developing a new product, managing and deciding about the lifecycle of a product. Marketers need to act in a consumer centric manner where they need to understand what a consumer exactly needs.
He needs to explain all the features and highlight all the main or most beneficial ones to the consumers, he needs to decide on the price of the products, the region or the markets or the distributors who are very important while marketing a product. He needs to understand the sentiments of the consumers before marketing or advertising a product.
Thus marketing strategies should always be consumer centric. The strategies should not focus on profit but more on consumer satisfaction. As it is well said Consumer is the king, marketers should not try to influence consumers but should themselves be influenced by them.
Thus understanding consumer behavior and then planning strategies accordingly can lead to a long marketing relationship with the consumers.