8th Global Conference on Business & Economics         ISBN : 978-0-9742114-5-9Relationship Marketing Across Value Delivery...
8th Global Conference on Business & Economics         ISBN : 978-0-9742114-5-9  “Relationship Marketing Across Value Deliv...
8th Global Conference on Business & Economics         ISBN : 978-0-9742114-5-9                                            ...
8th Global Conference on Business & Economics        ISBN : 978-0-9742114-5-9      “Relationship Marketing Across Value De...
8th Global Conference on Business & Economics         ISBN : 978-0-9742114-5-9first defined and analyzed in scientific lit...
8th Global Conference on Business & Economics         ISBN : 978-0-9742114-5-9general, due to rapid and radical changes in...
8th Global Conference on Business & Economics       ISBN : 978-0-9742114-5-9is pertinent to say that RM ensures the contin...
8th Global Conference on Business & Economics        ISBN : 978-0-9742114-5-9developed and tested by various authors. Thes...
8th Global Conference on Business & Economics        ISBN : 978-0-9742114-5-9Globalization and technological innovation ar...
8th Global Conference on Business & Economics         ISBN : 978-0-9742114-5-9Many companies today have partnered with spe...
8th Global Conference on Business & Economics        ISBN : 978-0-9742114-5-9Considering the significance of relationship ...
8th Global Conference on Business & Economics         ISBN : 978-0-9742114-5-9Supporting Relations:        RII: Relationsh...
8th Global Conference on Business & Economics        ISBN : 978-0-9742114-5-9correlation between a companys adoption of re...
8th Global Conference on Business & Economics        ISBN : 978-0-9742114-5-9Key performance variables for relationship ma...
8th Global Conference on Business & Economics           ISBN : 978-0-9742114-5-9•   To find out the nature of existing rel...
8th Global Conference on Business & Economics                       ISBN : 978-0-9742114-5-9References“AMA board approves ...
8th Global Conference on Business & Economics                       ISBN : 978-0-9742114-5-9Hakansson, H. (Ed.) (1982), In...
8th Global Conference on Business & Economics                       ISBN : 978-0-9742114-5-9Treacy M. and Wiersema, F. (19...
8th Global Conference on Business & Economics                     ISBN : 978-0-9742114-5-9Sheth and Parvatiyar (1995b)    ...
8th Global Conference on Business & Economics                         ISBN : 978-0-9742114-5-9Table 3: key performance var...
8th Global Conference on Business & Economics        ISBN : 978-0-9742114-5-9October 18-19th, 2008                        ...
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Relationship Marketing Across Value Delivery Network: A ....doc

  1. 1. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9Relationship Marketing Across Value Delivery Network: A Literature Review AbstractContemporary Marketing Management identifies Relationship Marketing (RM) as a paradigmshift from traditional marketing practices to a strategic function. It is not only concerned withCustomer Relationship Management (CRM) but also plays a significant role in value creationprocess at all levels across the value delivery network. Effort is made hereby to further validatethis statement through secondary literature sources and various references taken out from currentindustry practices. The focus of the study is to understand the concept of relationship marketing,its evolution and its role in current business scenario. This study is proposed to understand thebasic research problem i.e. “How value is created in a value delivery network (Supply Chain)through relationship marketing”? The study concludes by proposing a hypothetical model ofrelationship marketing across a value delivery network.Effort is being made hereby to identify various types of relationships that exist across valuedelivery network, their functions, and finally to identify the key performance variables that addvalue through relationship marketing in a value delivery network. The proposed model furtherprovides a scope for research by identifying various research questions and hypothesis to test itsapplicability in various industries in the current business scenario.Key Terms: Relationship Marketing, value delivery network, key performance variablesOctober 18-19th, 2008 1Florence, Italy
  2. 2. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9 “Relationship Marketing Across Value Delivery Network: A Literature Review”Author(s)*Dr. Tripti SinghLecturer, School of Management Studies,Motilal Nehru National Institute of Technology,Allahabad, Uttar Pradesh-211004, Indiatripti@mnnit.ac.in, kumartripti@rediffmail.comwww.mnnit.ac.in**Vibhava SrivastavaResearch Scholar, School of Management Studies,Motilal Nehru National Institute of Technology,Allahabad, Uttar Pradesh-211004, Indiavibhava.sri@gmail.comwww.mnnit.ac.inOctober 18-19th, 2008 2Florence, Italy
  3. 3. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9 AbstractContemporary Marketing Management identifies Relationship Marketing (RM) as a paradigmshift from traditional marketing practices to a strategic function. It is not only concerned withCustomer Relationship Management (CRM) but also plays a significant role in value creationprocess at all levels across the value delivery network. Effort is made hereby to further validatethis statement through secondary literature sources and various references taken out from currentindustry practices. The focus of the study is to understand the concept of relationship marketing,its evolution and its role in current business scenario. This study is proposed to understand thebasic research problem i.e. “How value is created in a value delivery network (Supply Chain)through relationship marketing”? The study concludes by proposing a hypothetical model ofrelationship marketing across a value delivery network.Effort is being made hereby to identify various types of relationships that exist across valuedelivery network, their functions, and finally to identify the key performance variables that addvalue through relationship marketing in a value delivery network. The proposed model furtherprovides a scope for research by identifying various research questions and hypothesis to test itsapplicability in various industries in the current business scenario.Key Terms: Relationship Marketing, value delivery network, key performance variablesOctober 18-19th, 2008 3Florence, Italy
  4. 4. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9 “Relationship Marketing Across Value Delivery Network: A Literature Review”INTRODUCTIONIn the present era of intense competition and demanding customers, relationship marketing hasgrabbed the attention of scholars and practitioners. It has its proponents not only in the marketingacademia but in industry as well. It had a major impact upon the marketing discipline, triggeringa paradigm shift away from transaction-based marketing towards a relationship focus (Kotler,1992; Webster, 1992). A number of terms synonym to Relationship Marketing, have evolvedover the period of time. Some of these terms are relational contracting (Macneil, 1980),symbiotic marketing (Varadarajan and Rajaratnam, 1986), relational marketing (Dwyer et al1987), working partnerships (Anderson and Narus, 1990), strategic alliances (Day, 1990),internal marketing (Arndt, 1983; Berry and Parasuraman, 1991) and co-marketing alliances(Bucklin and Sengupta, 1993). Though all these proposed terms are encompassed in the conceptof Relationship Marketing, it is further used to reflect a variety of themes and perspectives(Nevin, 1995).EVOLUTION OF RELATIONSHIP MARKETINGThe concept of Relationship Marketing has evolved gradually. It was first evident in servicemarketing as customer was identified as an integral part of the marketing and delivery processwhich subsequently necessitates a close relationship between the customer and the serviceprovider. The phenomenon Relationship Marketing was first identified by some of the insightfulwriters like Berry (Berry et al, 1983), Gronroos (1990) and McKenna (1991). AlthoughMcKenna has often been credited with the term "relationship marketing", but it was Berry whoOctober 18-19th, 2008 4Florence, Italy
  5. 5. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9first defined and analyzed in scientific literature. However there was also a parallel developmentin industrial marketing which contributed to the development of RM (Gronroos, 1990).According to Berry et al (1983) customer relationship can be best established around a coreservice, which ideally attracts new customers through its need-meeting character. However,creating customer loyalty among the old customers is one of the main goals of RelationshipMarketing. Finally, Berry et al (1983) define internal marketing as a pivotal relationshipmarketing strategy, where employees are seen as customers inside the corporations. At the sametime, Gronroos (1990) developed several new concepts in service marketing, which were laterincorporated as part of the Nordic School of Services. He identified relationship marketing as acentral theme of service marketing with no separation between production, delivery, andconsumption, thus the buyer-seller interaction must be considered as part of marketings taskwhich can be fulfilled through relationship with the customer. Strangely enough, traditionalmarketing concepts omitted or ignored it.Industrial marketing has traditionally been seen different from consumer or service marketing.As Gronroos (1990) points out that some of the tasks other than traditional marketing functionsare important in industrial selling. These tasks may include repairs, servicing, maintenance,delivery, product development, installation, training, etc. Performing these tasks necessitates aclose seller buyer connection and often involves partners other than the seller and the buyer.Consequently, even if the term "relationship marketing" was not used in industrial marketing, thenature of industrial marketing clearly demonstrates several of its core characteristics.Thus it can be concluded that there have been in fact two routes to the present-day RM. The firstwas a gradual realization of the importance of relationships, initially in service marketing andpartly in industrial marketing. The second route was through a transformation of business inOctober 18-19th, 2008 5Florence, Italy
  6. 6. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9general, due to rapid and radical changes in the environment. These changes resulted in anemphasis on service, close customer contact, and a holistic view of the parties and processesinvolved in marketing and business. The emphasis is on a holistic view of the supplier-manufacturer-customer chain and process quickly became visible (Aijo, 1996). Cravens andPiercy (1994) suggested that the cornerstones of relationship marketing are customer retentionand process orientation, two issues that are likely to strike a chord with every organization at thepresent time. Relationship marketing is now considered to be a feasible strategy in massconsumer markets (Christy et al 1996; Gronroos, 1996; Sheth and Parvatiyar, 1995).RELATIONSHIP MARKETING: CONCEPTS AND DEFINITIONSThe earlier definition of marketing by American Marketing Association (1985), states that“Marketing is the process of planning and executing the conception, pricing, promotion anddistribution of ideas, goods and services to create exchange and satisfy individual andorganizational objectives”. However, this view of marketing was considered outdated, and its’relevance was found only to certain types of firms and markets (Hakansson 1982; Gummesson,1987, 1994; Gronroos, 1989). Further, argument was made that this perspective is overly clinicaland based solely on short-term economic transactions (Moller, 1992). Such criticisms have led tothe suggestion that a paradigm shift in marketing is needed if marketing is going to survive as adiscipline (Gronroos, 1995) and companies must move from short-term transaction-oriented goalto long-term relationship-building goal (Kotler, 1992). Relationship marketing has been viewedas buyer–seller encounters that accumulate over time with opportunities to transform individualand discrete transactions into relational partnerships (Czepiel, 1990). This view supports thenotion that a relationship exists when an individual exchange is assessed not in isolation, but as acontinuation of past exchanges likely to continue into the future (Wong and Sohal, 2002). Thus itOctober 18-19th, 2008 6Florence, Italy
  7. 7. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9is pertinent to say that RM ensures the continuation of exchange process between buyer andseller by managing the existing relationship (Levitt, 1986). Nevin (1995) quotes that relationshipmarketing has been used to reflect a variety of themes and perspectives which range fromindustrial marketing perspective to service marketing perspective and has been defined innumerous ways by different scholars and practitioners. Some of the selected definitions arefurther compiled in Table 1 and analyzed to conclude a definition of relationship marketing incurrent business practices.Table I: Selected Definitions of Relationship MarketingKey words that appear in contemporary definition of relationship marketing are identified asfollows: Attracting/getting customers, Retaining customers/loyalty; Relational exchange/mutual/reciprocity; Time dimension–extended time horizon; Value creation and sharing; Personalizedmarketing process; Structural/social bonds; Asymmetrical marketing process; Strategicorientation; Input-outcome and ongoing assessmentProposed Definition for Relationship Marketing: On the basis of above-mentioned definitionsof Relationship Marketing and considering its applicability in current business practices, anappropriate interpretation of the term is proposed as, “Relationship Marketing can be defined asan strategic marketing approach which is oriented towards attaining long-term profitability andvalue creation by interactions and mutual exchange among customers suppliers and otherstakeholders.”RELATIONSHIP MARKETING MODELSModels give an explicit description of the various dimension associated with a particular aspect.For the purpose of the aforesaid study effort is made to identify and select various models byreviewing various literatures related to relationship marketing. These models have beenOctober 18-19th, 2008 7Florence, Italy
  8. 8. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9developed and tested by various authors. These models/literatures are based on differentdimensions viz, the process of relationship marketing, phases of its development, differentmarkets where relational exchanges take place, various types of relationships that can bedeveloped, managed and enhanced and finally identifying the variables of relationship marketingfor value creation leading towards attaining the long term profitability. In order to understand therelationship marketing process and its applicability across value delivery network, followingmodels/literatures have been identified and selected, which are shown in Table 2.Table 2: The Relationship Marketing Models/LiteraturesThese selected relationship marketing models/literatures suggest that:• These models have been developed as an extended perspective of relationship marketing. It includes not only marketing as a discipline but also has various human resource implications at different levels.• These models have been developed to identify different relationships which are to be managed by a firm.• Different types of relational exchanges exists in form of different markets have also been identified.• Key Relationship Marketing process can be identified as: Formation or development of relationship, management of relationship, measurement of performances and finally relationship enhancement or termination.• Key performance variables of Relationship marketing is a synergy of various functional areas.VALUE DELIVERY NETWORKOctober 18-19th, 2008 8Florence, Italy
  9. 9. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9Globalization and technological innovation are creating dynamic network or chain ofinterconnected players to bring and deliver value to the end user. The notion that value can becreated by cooperation has led marketers to search for ‘‘win–win’’ positions as a way to enhanceprofitability through collaborative value creation (Anderson, Hakansson, & Johanson, 1994;Kanter, 1994). The idea of value creation and exchange is the foundation stone of relationshipmarketing. This view is based on three different assumptions of value exchange potentialities(Christopher et al., 2002). These value perspectives suggest that value is created; as an offeringand delivered through recurrent transactions within a supplier-managed relationship; throughmutually interactive processes and shared through negotiated agreement within the life of arelationship and shared in interactions that emerge from within networks of relationships.Thus value has been considered to be an important constituent of relationship marketing and theability of a company to provide superior value to its customers is regarded as one of the mostsuccessful strategies. This ability has become a mean of differentiation and a key to the riddle ofhow to find a sustainable competitive advantage (Ravald and Gronroos 1996; Heskett et al 1994;Nilson 1992; Treacy and Wiersema, 1993).Walters and Lancaster (1999a and 1999b) determine value as the utility combination of benefitsdelivered to the customer less the total costs of acquiring the delivered benefits and is then apreferred combination of benefits compared with acquisition cost. There seems to be anagreement that value is a function of what a customer gets, the solution provided by an offering,and the sacrifice of the customer to get this solution. Consumers overall assessment of the utilityof a product based on a perception of what is received and what is given, is known as perceivedvalue (Zeithaml, 1988). In a relational context the offering includes both a core product andadditional services of various kinds.October 18-19th, 2008 9Florence, Italy
  10. 10. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9Many companies today have partnered with specific suppliers and distributors to create asuperior value delivery network, also called a supply chain (Magnet, 1994). Brown (1997) hasdefined supply chain/value delivery network as a tool to disaggregate a business intostrategically relevant activities which enables identification of the source of competitiveadvantage by performing these activities more cheaply or better than its competitors. Itcomprises of larger stream of activities carried out by members like suppliers, distributors andcustomers. Further Christopher (2002) defines a value delivery network/supply chain as thenetwork of organizations that are involved through upstream and downstream linkages in thedifferent processes and activities that produce value in the form of products and services in thehands of the ultimate consumers. In order to gain competitive advantage value delivery network/supply chain collaboration or integration is required i.e. the backward/upstream andforward/downstream collaboration/integration. Mentzer (2001) says a value delivery networkcomprises of number of players in which a firm whether manufacturing or service, holds the keyby creating and offering values in terms of output to its customers. This further can be justifiedwith the help of the notion that the core of relationship marketing is relations, maintenance ofrelations between the company and the actors in its micro-environment, i.e. suppliers, marketintermediaries, the public and of course customers as the most important actor. Thus the morepertinent issue is not what kind of an offering the company provides - rather it is what kind ofrelationship the company is capable of maintaining.PROPOSED MODEL FOR RELATIONSHIP MARKETING ACROSS THE VALUEDELIVERY NETWORKOctober 18-19th, 2008 10Florence, Italy
  11. 11. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9Considering the significance of relationship marketing in a value delivery network it becomesimperative to develop a model so that it can be explicitly described. The objective of theproposed model is: • To identify various types of relationships across a value delivery network. • To find out the function of various types of relationship across a value delivery network. • To identify key performing variables for relationship marketing across a value delivery network.In order to justify these objectives a model for relationship marketing across the value deliverynetwork is proposed hereby which is based on literature study and other references drawn fromindustry practices. It is shown in Figure 1.Figure I: Relationship Marketing across Value Delivery NetworkFeasibility of the modelTypes of Relationships in a Value delivery network: The basic thrust of the model is how thefocal firm manages the relationship with the players at both the ends of network or in otherwords how the focal firm practices relationship marketing across value delivery network. Thekey and more visible relationships across the network can be identified as relationship of focalfirm with suppliers and with customers, which in the proposed model of value delivery networkhas been identified as RI and RIV respectively. These relationships can be termed as Supplierrelationship management (SRM) and customer relationship management (CRM) respectively. Inthe proposed model of value delivery network, following various relationships can be identified:Key Relations: RI: Relationship between Focal Firm-Suppliers (B2B) RIV: Relationship between Focal Firm-Customers/End Users (B2C)October 18-19th, 2008 11Florence, Italy
  12. 12. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9Supporting Relations: RII: Relationship between Focal Firm-Intermediaries (B2B) RIII: Relationship between Intermediaries-Customers/End Users (B2C)Function of various types of relationship across a value delivery network can be furtherexplained as follows:RI: Relationship between Focal Firm-Suppliers: At the backward end/upstream of value deliverynetwork, supplier can be identified as the player supplying inputs to the focal firm whichsubsequently provides value to the customer or end user. The usual approach of value addingstrategies is that the supplier adds technical product features or supporting services to the coresolution so that the total value of the offering is increased (Christopher et al, 1991). A firms goalis to establish and maintain a competitive advantage in its product markets (Walker, 1988) andcentral to achieving this goal are the firms sourcing policies and relationships with its suppliers(Porter, 1979). Sheth and Sharma (1997) have identified four reasons for this phenomenon. First,marketers or sellers are driving this change as firms have started identifying and catering to theneeds of specific customers. Thus, having a relationship with suppliers will enable firms toreceive better service and therefore be more efficient in procurement. Second, firms willrecognize that supplier relationships will allow them to be more effective and implementstrategies such as quality platforms. Third, there are enabling technologies that allow firms toselect their best customers and suppliers through computer programs that allow firms to calculateprofitability associated with each customer or supplier. Finally, competition and the growth ofalliances will force firms to develop better supplier relationships to maintain a competitive edge.Kalwani and Narayandas (1995) have found a positive correlation between long-termrelationships and profitability of suppliers, has yet empirically demonstrated the association orOctober 18-19th, 2008 12Florence, Italy
  13. 13. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9correlation between a companys adoption of relationship marketing programs and itsperformance. A successful relationship with supplier can result into a number of economicconsequences. Eccles (1991) has further identified various relationship benefits viz cost benefitsand revenue benefits to create value across the network.RIV: Relationship between Focal Firm-Customers/End Users: Customer or end user at theforward end/downstream consumes the offerings and decides whether the offering is up tohis/her perceived value. The relationship with customers is the foremost relationship whichensures not only the growth prospects for a firm but also the profitability of a firm (Sheth, 1996).More personalized, customized and valued offerings are made to the costumers to gaincompetitive advantage. The impetus for managing relationships with customers came fromReichheld (1996), who verified that dramatic increase in profits can be achieved from smallincreases in customer retention rates. The need to better understand customer behavior and tofocus on those customers, who can deliver long-term profits, has changed the way marketersused to view the world (Winer, 2001). Customer Relationship Management is a comprehensivestrategy and process of acquiring, retaining and partnering with selective customers to createsuperior value for the company and the customer. It involves the integration of marketing, sales,customer service, and the supply-chain functions of the organization to achieve greaterefficiencies and effectiveness in delivering customer value (Parvatiyar and Sheth, 2002). Theoverall purpose of customer relationship management is seemed to improve marketingproductivity and to enhance mutual value for the parties involved in the relationship. Improvingmarketing productivity and creating mutual values can be achieved by increasing marketingefficiencies and/or enhancing marketing effectiveness (Sheth & Parvatiyar, 1995a; Sheth &Sisodia, 1995).October 18-19th, 2008 13Florence, Italy
  14. 14. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9Key performance variables for relationship marketing in a value delivery network: Based on theabove mentioned literature references, it can be further concluded that various aspects of a valuedelivery network can be identified in terms of value addition (R1), value perception (RIV) andvalue offerings (RII and RIII). The performance variables for each of the relationships are furtheridentified, which are shown in Table 3.Table 3: key performance variables in relationship marketing and value delivery networkThese can be used to formulate hypothesis for further research study and exploration: • Competitive advantage can be gained through relationship marketing across a value delivery network. • Profitability can be enhanced through relationship marketing across the value delivery network. • Integration of various functions can be achieved through relationship marketing across value delivery network. • Mutual values can be developed through relationship marketing across value delivery network.CONCLUSIONSRelationship Marketing has evolved as a strategic marketing approach which is oriented towardsattaining long-term profitability and value creation by interactions and mutual exchange amongcustomers, suppliers and other stakeholders. It is an approach which can be adopted to enhancethe competitiveness and profitability of a value delivery network. Better integration and sharedmutual values can be developed through relationship marketing across value delivery network.Subsequently the present study based on literature review further provides a scope to explore andtest the following research questions:October 18-19th, 2008 14Florence, Italy
  15. 15. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9• To find out the nature of existing relationships.• To identify variables in different relationships that exists in a network.• To find out correlation among various types of relationships.• Role of Information Technology (IT) in relationship marketing.• Measuring return on relationships and evaluating the contributions to profits from the various players in a network.• Indicators to monitor productivity and quality in a network.• Specific issues hindering relationship marketing practices.October 18-19th, 2008 15Florence, Italy
  16. 16. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9References“AMA board approves new marketing definition”, Marketing News, 1 March 1985Aijo, Toivo S. (1996), “The theoretical and philosophical underpinnings of relationship marketing: Environmental factors behindthe changing marketing paradigm”, European Journal of Marketing, Vol. 30, No. 2, pp. 8-18Anderson, Erin and Barton A. Weitz (1992), “The Use of Pledges to Build and Sustain Commitment in Distribution Channels,”Journal of Marketing Research, 29 (February), pp. 18–34Anderson, J. C., Hakansson, H., & Johanson, J. (1994, October), “Dyadic business relationships within a network context”,Journal of Marketing, 58, pp. 1 –15Anderson, James C. and Narus, James A. (1990), “a model of distributor firm and manufacturer firm working partnerships”,Journal of Marketing, 54 (January), pp. 42-58Arndt, Johan (1983), “The political economy paradigm: foundation for theory building in marketing”, Journal of marketing, 47(Fall), pp. 44-54Bejou, David (1997), "Relationship Marketing: Evolution, Present State, and Future", Psychology & Marketing, Vol. 14(8), pp.727-736Berry, L.L., Shostack, G.L. and Upah, G.D. (Eds) (1983), Emerging Perceptions on Service Marketing, American MarketingAssociation, Chicago, IL, pp. 25-8Berry, Leonard L. and Parasuraman, A. (1991), Marketing Services, New York: The free PressBrown, L. (1997), Competitive Marketing strategy, Nelson, MelbourneBucklin, Louis P. and Sengupta, Sanjit (1993), “Organizing successful co-marketing alliances”, Journal of Marketing, 57 (April),pp. 32-46Christopher, M., Payne, A. and Ballantyne, D. (1991), Relationship Marketing: Bringing Quality, Customer Service andMarketing Together, Butterworth Heinemann, OxfordChristopher, M., Payne, A. and Ballantyne, D. (2002) Relationship Marketing: Creating Stakeholder Value, 2nd edition, Oxford:Butterworth HeinemannChristy, R., Oliver, G. and Penn, J. (1996), “Relationship marketing in consumer markets”, Journal of Marketing Management,Vol. 12, pp. 175-187Cravens, D.W., and N.E. Piercy, 1994, “Relationship Marketing and Collaborative Networks in Service Organization”,International Journal of Service Industry Management, Vol. 5, No. 5, pp.39-53Cravens, Davis W. (1995), “Introduction to the Special Issue”, Journal of the Academy of Marketing Science 23 (Fall): 235Crosby, Lawrence A., Kenneth R. Evans, and Deborah Cowles (1990), “Relationship Quality in Services Selling: AnInterpersonal Influence Perspective,” Journal of Marketing, 54 (July), pp. 68–81Czepiel, J. A., 1990, “Service encounters and service relationships: Implications for research”, Journal of Business Research,Vol. 20, No.1, pp. 13 – 21Day, George S. (1990), Market Driven Strategy, New York: The Free PressDe Wulf, Kristof, Gaby Odekerken-Schröder, and Dawn Iacobucci (2001), “Investments in Consumer Relationships: A Cross-Country and Cross-Industry Exploration,” Journal of Marketing, 65 (October), pp. 33–50Doney, Patricia M. and Joseph P. Cannon (1997), “An Examination of the Nature of Trust in Buyer–Seller Relationships,”Journal of Marketing, 61 (April), pp. 35–51Dwyer, Robert F., Paul H. Schurr, and Sejo Oh (1987), “Developing Buyer–Seller Relationships,” Journal of Marketing, 51(April), 11–27Eccles, Robert G., (1991), “The Performance Measurement Manifesto”, Harvard Business Review 69 January–February, pp.131–137Evans, Joel R., and Laskin, Richard L. (1994)., “The Relationship Marketing Process: A Conceptualization and Application”,Industrial Marketing Management, 23, pp. 439–452Gronroos, C. (1989), "Defining Marketing; A Market-Oriented Approach", European Joumal of Marketing, 23, No.l, pp.52-60Gronroos, C. (1990), Service Management and Marketing: Managing the Moments of Truth in Service Competition, LexingtonBooks, Lexington, MAGronroos, C. (1995), "The Rebirth of Modem Marketing: Six Propositions About Relationship Marketing", Swedish School ofEconomics and Business Administration Working Paper 307, HelsinkiGronroos, C. (1996), “Relationship marketing: strategic and tactical implications”, Management Decision, Vol. 34, No. 3, pp.5-14Gronroos, C. (2000), “Relationship Marketing: The Nordic School Perspective”, (Sheth and Parvatiyar Ed.), Handbook ofRelationship Marketing, SAGEGruen, Thomas W., John O. Summers, and Frank Acito (2000), “Relationship Marketing Activities, Commitment, andMembership Behaviors in Professional Associations,” Journal of Marketing, 64 (July), pp. 34–49Gummesson, E. (1987), "The New Marketing — Enveloping Long-term Interactive Relationships", Long Range Planning, 20,No.4, pp.10-20Gummesson, E. (1994), "Broadening and Specifying Relationship Marketing", Asia-Australia Marketing Journal, 2, No.l,pp.31-43Gummesson, E. (1999), Total Relationship Marketing, Butterworth Heinemann, OxfordOctober 18-19th, 2008 16Florence, Italy
  17. 17. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9Hakansson, H. (Ed.) (1982), International Marketing and Purchasing of Industrial Goods: An Interaction Approach. Chicester:John Wiley & Sons Ltd.Heskett, J.L., Jones, TO., Loveman, G.W., Sasser, W.E. and Schelsinger, L.A. (1994), "Putting the Service-Profit Chain to Work"Harvard Business Review, March-Aprii, pp. 164-174.Jackson, Barbara Bund (1983), Winning and Keeping Industrial Customers, Lexington Books, Lexington, KYJap, Sandy D. and Shankar Ganesan (2000), “Control Mechanisms and Relationship Life Cycle: Implications for SafeguardingSpecific Investments and Developing Commitment,” Journal of Marketing Research, 37 (May), pp. 227–45Kalwani, M. and Narayandas, N. (1995), “Long-Term Manufacturer-Supplier Relationships: Do They Pay Off for SupplierFirms?” Journal of Marketing, 59 January, pp. 1–16Kanter, R. M. (1994, July –August), “Collaborative advantage”, Harvard Business Review, pp. 96– 108Kotler, P. (1992), “Marketings New Paradigm: Whats Really Happening Out There”, Planning Review Special Issue, Sept./Oct., pp.50-2.Kumar, Nirmalya, Lisa K. Scheer, and Jan-Benedict E.M. Steenkamp (1995), “The Effects of Supplier Fairness on VulnerableResellers,” Journal of Marketing Research, 32 (February), pp. 54–65Leo Y.M. Sin, Alan C.B. Tse, Oliver H.M. Yau, Raymond P.M. Chow, Jenny S.Y. Lee, Lorett B.Y. Lau (2005), "Relationshipmarketing orientation: scale developmentand cross-cultural validation", Journal of Business Research,Vol. 58, pp. 185– 194Levitt, Theodore (1986), The Marketing Imagination, New York, The Free Press.Lewin, Jeffrey E. and Johnston, Wesley J. (1997), "Relationship Marketing Theory in Practice: A Case Study", Journal ofBusiness Research, Vol. 39, pp. 23-31Macneil, Ian R. (1980), The New Social Contract, An Inquiry Into Modern Contractual Relations, New Haven, CT, YaleUniversity PressMagnet, Myron (1994), “The new Golden Rule of Business”, Fortune, November, pp. 60-64McKenna, R. (1991), Relationship Marketing: Successful Strategies for the Age of the Customer, Addison-Wesley PublishingCo., Reading, MA.Mentzer, John T. (2001), “Supplier Partnering”, (Sheth and Parvatiyar Ed.), Handbook of Relationship Marketing, SAGEMoller, K. (1992), "Research Traditions in Marketing: Theoretical Notes". In: Economics and Marketing in Essays Honour ofGoesta Mickwitz, Nr, 48, Multiprint, Helsinki, pp.197-218Morgan, Robert M., and Hunt, Shelby D., “The Commitment-Trust Theory of Relationship Marketing”, Journal of Marketing,58, 20–38 (1994)Morris, Michael H., Brunyee, Janinne and Page, Michael (1998), “Relationship Marketing in Practice: Myths and Realities”,Industrial Marketing Management, 27, pp. 359–371Nevin, J.R. (1995), “Relationship marketing and Distribution Channels: Exploring Fundamental Issues”, Journal of the Academyof marketing Science, 23, pp. 327-334Nilson, T.H. (1992), Value-Added Marketing: Marketing for Superior Results. London: McGraw-HillParvatiyar, Atul and Sheth, Jagdish N., “Customer Relationship Management: Emerging Practice, Process, and Discipline”,Journal of Economic and Social Research, 3(2), 2001-2002 Preliminary Issue, pp. 1-34Payne, A. (1997), “Relationship Marketing-the six markets framework: A Review & Extension”, (working Paper), Cranfield,England: Cranfield University, School of ManagementPerrien, Jean, and Ricard, L., “The Meaning of a Marketing Relationship”, Industrial Marketing Management, 24, 37–43 (1995)Porter, M. (1979), "How Competitive Forces Shape Strategy," Harvard Business Review, 57, No. 2, pp. 137-145Ravald, A. and Gronroos, C. (1996) "The Value Concept and Relationship Marketing", European Journal of Marketing, 30, No.2, pp. 19-30Ravald, A. and Gronroos, C. (1996), "The Value Concept and Relationship Marketing", European Journal of Marketing, 30, No.2, pp. 19-30Reichheld, Frederick F. (1996), The Loyalty Effect, Cambridge, MA: Harvard Business School PressShani, D. and Chalasani, S. (1991), “Exploiting Niches Using Relationship Marketing”, The Journal of Consumer Marketing, pp.33-42.Sheth, J. N. & Sisodia, R. S. (1995), “Improving Marketing Productivity” In J. Heilbrunn (Ed.), Encyclopedia of Marketing in theYear 2000, Chicago, IL: American Marketing Association/NTC PublishingSheth, J.N. & Parvatiyar, A. (2000), “Relationship Marketing: The Nordic School Perspective”, (Sheth and Parvatiyar Ed.),Handbook of Relationship Marketing, SAGESheth, J.N. (1996), “Relationship marketing: A paradigm Shift or Shaft”, (Sheth and Parvatiyar Ed.), Handbook of RelationshipMarketing, SAGESheth, J.N. and Sharma, A. 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  18. 18. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9Treacy M. and Wiersema, F. (1993), "Customer intimacy and other value disciplines". Harvard Business Review, January-February, pp. 84-93Turnbull, Peter W., and Wilson, David T. (1989), “Developing and Protecting Profitable Customer Relationships”, IndustrialMarketing Management, 18, 233–238Varadarajan, P. and Rajaratnam, Daniel (1986), “Symbiotic marketing revisited”, Journal of Marketing, 50 (January), pp. 7-17Walker, G. (1988), "Strategic Sourcing, Vertical Integration and Transaction Costs," Interfaces, 18, No. 3, pp. 62-73Walters, D. and Lancaster, G. (1999a), “Value and information-concepts and issues for management”, Management Decision,Vol.37, No.8, pp. 643-56Walters, D. and Lancaster, G. (1999b), “Value-based marketing and its usefulness to customers”, Management Decision, Vol.37,No.9, pp. 697-708Webster, F.E. (1992), “The Changing Role of Marketing in the Corporations”, Journal of Marketing, Vol. 56, Oct., pp. 1-17Wilson, David T. (1995), "An Integrated Model of Buyer-Seller Relationships", Journal of the Academy of Marketing Science,pp. 323-335Winer Russell S., “A Framework for Customer Relationship Management”, California Management Review, Vol.43, NO.4,Summer 2001Wong, A. and Sohal, A. 2002, “An examination of the relationship between trust, commitment and relationship quality”,International Journal of Retail & Distribution Management, Vol. 30, No. 1, pp. 34 – 50Zeithaml, V. A. (1988), "Consumer Perceptions of Price, Quality and Value: A Means-End Model and Synthesis of Evidence",Journal of Marketing, 52, July, pp. 2-22Table 1: Selected Definitions of Relationship MarketingAuthors DefinitionsBerry (1983) Relationship marketing (RM) is attracting, maintaining and in multi-services organizations enhancing customer relationships.Jackson (1983) RM is managing strong, lasting relationships with individual accounts.Jackson (1985) In industrial marketing Relationship marketing refers to marketing oriented towards strong, lasting relationships with individual accounts.Turnbull and Wilson (1989) The formation of long-term buyer-seller relationships through the creation of structural and social bonds between companies.Gronroos (1990) The purpose of marketing in the new context is to establish, maintain, and enhance relationships with customers and other partner, at a profit, so that the objectives of the partners involved are met. This is achieved by a mutual exchange and fulfillment of promises.Berry and Parasuraman (1991) Relationship marketing concerns attracting, developing and retaining customer relationships.McKenna (1991); Shani and Chalasani (1991) Relationship marketing attempts to involve and integrate customers, suppliers and other infrastructural partners into a firms developmental and marketing activities.Morgan and Hunt (1994) Relationship marketing refers to all marketing activities directed toward establishing, developing and maintaining successful relational exchanges.Evans and Laskin (1994) The role of relationship marketing is to augment the vendor’s core product, i.e., to differentiate the firm’s total offering in the marketplace. They define relationship marketing as a process that includes inputs (understanding customer expectations, building service partnerships, empowering employees, and total quality management); outcomes (customer satisfaction, customer loyalty, increased profitability, and quality products); and ongoing assessment (customer feedback, integrating relationship marketing into the firm’s strategic planning framework).Sheth and Parvatiyar (1995) Developing close interactions with selected customers, suppliers, and competitors for value creation through cooperative and collaborative effort.Cravens (1995) Relationship marketing, as a field of study, began to attract attention in the early 1990s as firms began to enter into long-term associations to counter the effects of increased customer demands and intensifying global competition.Perrien and Ricard (1995) An asymmetrical and personalized marketing process that takes place in the long-run results in some bilateral benefits and rests on an in-depth understanding of customer needs and characteristics.October 18-19th, 2008 18Florence, Italy
  19. 19. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9Sheth and Parvatiyar (1995b) RM can be defined as the process of developing cooperative and collaborative relationship with customers and other market actors.Morris et al (1998) Relationship Marketing is a strategic orientation adopted by both the buyer and seller organizations, which represents a commitment to long-term mutually beneficial collaboration.Evert Gummesson (1999) Relationship marketing is marketing based on interaction within networks of relationships.Table 2: The Relationship Marketing Models/LiteraturesAuthor (s)/Model (s)/Literature Review Key issuesTriplet of Relationship Marketing by For a successful relationship marketing strategy, three processes are required:Gronroos (2000) Interaction, Dialogue and Value ProcessRelationship Marketing Process Model by Relationship Marketing Process comprises of four sub processes: Formation;Parvatiyar and Sheth (2000) Management and Governance; Performance Evaluation and Relationship evolution/enhancement.Relationship Development Process Model by Relationship between/among buyer and seller evolve through five generalDwyer et al (1987) phases viz, Awareness, Exploration, Expansion, Commitment and Dissolution. Each phase represents a major transition in how parties regard one another.Six Markets Model by Payne, A. (1997) Six different market domains have been identified where an organization can direct their marketing activities: Customer Market; Internal Market; Supplier/Alliance Market; Referral Market; Influence Market and Recruitment MarketThe Relational Exchanges in Relationship 10 distinct forms of intra and inter-organizational relationships have beenMarketing by Morgan and Hunt (1994) identified: Buyer partnerships with Intermediate Customers and Ultimate Customers Supplier partnerships with Good Suppliers and Service Suppliers Lateral partnerships with Competitors, Nonprofit Organizations and Government Internal Partnerships among Various Business Units, Functional Departments and Employees of the FirmDwyer, Schurr, and Oh’s (1987) ; Crosby, Relational constructs are trust, commitment, relationship satisfaction, and/orEvans, and Cowles’s (1990) relationship quality.Morgan and Hunt (1994) Trust and Commitment, both are key to predicting exchange performance.Wilson (1995) Identified an extended list of relationship variables: commitment, trust, cooperation, mutual goals, interdependence/power imbalance, performance satisfaction, and comparison level of the alternative, adaptation, non- retrievable investments, shared technology, summative constructs, structural bonds and social bonds.Lewin and Johnston (1997) Proposed six important relationships construct: Relationship dependence, trust, commitment, communication, cooperation and equity.Bejou (1997) The construct of relationship is not a universal concept. It may be different across different segments of the market.Doney and Cannon (1997); Sirdeshmukh, Trust is alone the critical relational construct.Singh, and Sabol (2002)Anderson and Weitz (1992); Gruen, Summers, Commitment alone is the critical relational construct.and Acito (2000); Jap and Ganesan (2000)De Wulf, Odekerken-Schröder, and Iacobucci The construct of relationship quality is a combination of commitment, trust,(2001); Kumar, Scheer, and Steenkamp (1995) and relationship satisfaction.Leo et al (2005) Proposed Relationship Marketing Orientation (RMO) which is a one- dimensional construct consisting of six components: trust, bonding, communication, shared value, empathy, and reciprocity.October 18-19th, 2008 19Florence, Italy
  20. 20. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9Table 3: key performance variables in relationship marketing and value delivery networkPerformance variables Literature References for Literature references for Value Delivery Relationship Marketing Networks/SCMCompetitive advantage Christopher et al (1991); Ravald and Gronroos (1996); Heskett et al (1994);-Technical product features or Sheth and Sharma (1997) Nilson (1992); Treacy and Wiersema (1993)supporting services-Better service, quality-Enabling technologiesProfitability Kalwani and Narayandas (1995); Anderson, Hakansson, & Johanson (1994); Kanter (Winer, 2001); and Eccles (1991) (1994)Integration of marketing, sales, Parvatiyar and Sheth (2002) Brown (1997)customer service, and thesupply-chain functionsMutual values Parvatiyar and Sheth (2002) Mentzer (2001) Figure I: Relationship Marketing across Value Delivery NetworkOctober 18-19th, 2008 20Florence, Italy
  21. 21. 8th Global Conference on Business & Economics ISBN : 978-0-9742114-5-9October 18-19th, 2008 21Florence, Italy

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