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Relationship marketing in consumer markets
 

Relationship marketing in consumer markets

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    Relationship marketing in consumer markets Relationship marketing in consumer markets Presentation Transcript

    • Relationship Marketing in Consumer Markets Akash C.Mathapati Akash C.Mathapati
    • Consumer Choice Reduction as the BasicTenet of Relationship Marketing The fundamental axiom of RM is or should be, that consumers like to reduce choices by engaging in on going loyalty relationship It’s a form of commitment made by consumers to patronize selected products, services & marketers rather than exercise market choice Thus, form a consumer perspective reduction of choice is the crux of their relationship marketing behavior Its estimated that as often as 90% of the time, consumers go to same supermarket Why do consumers engage in relational market behavior ? Akash C.Mathapati
    • Consumer Learning Theories & RelationalMarket Behavior  P: in buying & consuming situations, where there is a greater need to routinize choices because of the efficiency potential, consumers will engage in relational market behavior Consumers like to simplify their extensive & limited problem solving situations into routinized behavior by learning to reduce the no. of products under consideration into an evoked set Akash C.Mathapati
    •  P: when consumers are satisfied due to lack of novelty or variety in the relationship. They would disengage from the relational market behavior, including existing from relationship Conditioning offers a greater potential for response – generalization, consumers will exhibit a relational market behavior  E.g., One stop shop – consumers are inclined to engage & maintain relationship  P: the greater the opportunity for consumers to generalize response to other purchase & consumption situations, the greater will be the propensity to engage in relational market behavior Akash C.Mathapati
    • The Sociological Reasons for Engaging inRelational Market Behavior P: the greater the social orientation of the consumer, the greater will be the consumer propensity to accept family & social norms with respect to relational market behavior P: the greater the potential of a market choice to fulfill social aspirations or reduce social risks the greater the consumer propensity to adopt relational market behavior Consumers may not necessarily be a member of the group or be in physical contact with it Akash C.Mathapati
    •  Some of this behavior may be aspirational in nature or even dissociative The two underlying motivational dimensions of reference group related consumer behavior are human aspirations and reductions of perceived risk Akash C.Mathapati
    •  P: consumers will have a greater propensity to engage in relationship with such market choices that are recommended by opinion leaders of referral networks Social group influence are coupled with powerful word of mouth communication Why do consumers agree to be influenced by word of mouth communication ? Akash C.Mathapati
    • Institutional Reasons for Engaging inRelational Market Behavior P: consumers are more likely to maintain relationship with those market choices that are mandated by the government, especially if these choices also serve consumers self interest Purpose here is not to question the appropriateness of such govt policies & regulations But rather top seek explanation of why consumers abide by these regulations  Social & civic responsibility  Compliance  welfare Akash C.Mathapati
    • Religion and Relational Market Behavior P: Consumers are more likely to maintain relationships with those market choices that their religious beliefs have identified as important to maintain faith in the religion & enhance self-interest Moral training & spiritual education provided by religious institutions have behavioral impacts on individuals use of products, services, institutions, place etc Akash C.Mathapati
    • Employer Influence Influence include norms that relate to employees are activities outside the organization, such as neighborhoods in which employees are expected to live, the types of automobiles they are expected to drive, social recreation etc. Employers limit employees choices among fringe benefit items that are offered for personal consumption Akash C.Mathapati
    • Marketers Influence or RelationalMarket Behavior P: consumers will be more willing to accept marketer- induced choice reduction when marketer policies are positively balanced toward meeting the consumers personalized needs Although risk-reduction or compliance mechanisms may initiate a favorable response from consumers, ultimately consumers will not accept these institution-mandated choice reductions unless they perceive the limitations to be in their own self-interest Akash C.Mathapati
    •  The marketing management literature illustrates how marketers influence consumers to reduce their choices through the use of pricing, merchandising etc Akash C.Mathapati