This study investigates the chain effect of customer value co-creation behaviour on the customerization capability and service capability of service firms and, ultimately, customer perceived value. ...The study evaluates the moderating roles of the level of technologization and relationship marketing orientation in the relationship between customer value co-creation behaviour and the capabilities of firms. The data were collected from dyadic interaction between customers and the service staff of service firms in Vietnam through surveys. The results show that customer citizenship behaviour and participation behaviour are differentially linked to the customerization capability, and service capability of service firms, which in turn affect customer perceived values. Relationship marketing orientation serves as a significant moderator for customerization capability, yet it is not a significant moderator for service capability. Surprisingly, the level of technologization does not significantly moderate for both customerization capability and service capability. The study advances the literature of value co-creation and offers useful managerial implications.
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BFBNIB, IZUM, KILJ, NUK, PILJ, SAZU, UL, UM, UPUK
•Develop a differential game of customer relationship marketing in a duopolistic market.•The customer retention and the customer acquisition are considered.•Examine the effect of many factors on the ...optimal competitive strategies.•Provide some numerical examples to illustrate the theoretical results.
We propose an optimal customer relationship marketing policy in a duopolistic market, where each firm’s market share depends on the CRM decisions of its own and of its competitors. The evolution process of the number of customers served by each firm is governed by a differential equation in which customer acquisition and retention processes are considered. A differential game model is presented to determine the optimal acquisition and retention expenditures of players. We derive a Nash equilibrium of a duopolistic differential game using the Hamilton–Jacobi–Bellman equations. Our results can be summarized mainly by the following three points. First, the optimal acquisition and retention expenditure strategies depend on each firm’s marginal customer equity, but not on the market share or the number of customers. Second, in response to the variation of the firm’s parameters, if its acquisition effectiveness is greater than its retention effectiveness, the firm would take action by making the same investment decision as its rival’s; instead, if its acquisition effectiveness is lower than its retention effectiveness, its rival would take action by making the different investment decision from the firm’s. Last, besides a mature product market, we also consider a market with remaining potential. In this case, a firm’s marginal customer equity can be decomposed into two components: the marginal customer equity from its own and from its rival’s. We show that the firm’s optimal investments in retention and acquisition are both positively related with a weighted difference between two components of the marginal customer equity.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
Purpose
The purpose of this paper is to present the findings of an exploratory qualitative study of the evolution of modern food retailing in Tanzania (from both retailers and suppliers’ ...perspectives).
Design/methodology/approach
The qualitative case approach was used in this study. Participants were drawn from three sets of actors: retailers, local food suppliers, and government institutions. Data were collected using semi-structured interview format. Thematic qualitative analytical technique was used for the data analysis.
Findings
According to the results of the study, seven major factors that account for the evolution of modern food retail in the country were identified. These are availability of suppliers, acceptance of trade credit, innovation, lifestyle change, institutional support, convenience, and availability of consumers.
Originality/value
The study has expanded the knowledge of the evolution of modern food retail in developing economies by using the relationship marketing theory. Furthermore, the study employed some major actors in the food value chain to understand determinant factors that accelerated the evolution of supermarkets in Tanzania.
Purpose
Considering that low-level general trust may hinder communication, this study aims to detect the factors that can influence general trust between exhibitors and visitors during ...business-to-business trade fairs.
Design/methodology/approach
Based on a literature review and stakeholders’ behavior analysis, a conceptual model of general trust formation between exhibitors and visitors is proposed.
Findings
The preconditions of strangers’ general trust patterns mainly include their early experience regarding trust, institutional trust in the environment and trust propensity. Stakeholders’ treatment, trust transfer, on-site restraints, reward and punishment expansion and on-site personnel arrangement may facilitate the formation of general trust between exhibitors and visitors.
Research limitations/implications
This paper is a conceptual article that requires further investigation to verify the main factors that influence general trust and the impact of general trust on other trust components between exhibitors and visitors.
Practical implications
Organizers, exhibitors and visitors should pay attention to participants’ selection, supervision, self-discipline and personnel management before and during trade fairs. International and small-scale, especially new trade fairs in developed and developing countries, must consider additional measures to improve general trust.
Originality/value
The existing literature has not focused on general trust in the trade fair context. In this paper, research on network and relationship marketing is further deepened in terms of a specific trust type. The interactions between stakeholders before and during fair may promote general trust among participants than in other settings, which partially explains why trade fair (even other two-sided markets) can increase social capital.
In customer relationship management (CRM), it is critical for managers to understand how and when customers terminate their relationships with the company in order to make more accurate predictions ...for CLV. However, in many non-contractual settings, customer churn is not easily observed, which presents difficulty for estimating customer retention. In this research, we present a framework for estimating multichannel customer relationship dynamics in a non-contractual setting that flexibly allows for relationship revival and investigates the effects of different channel experiences and marketing communication on retention and profitability. We use a multi-segment, multivariate hidden Markov modeling framework to model three managerially relevant customer behaviors: purchase amount, purchase incidence, and channel choice. Using data from a multichannel clothing retailer, we uncover two latent relationship states that customers migrate to and from — an active state and an inactive state characterized by different levels of purchase frequency, responsiveness to marketing, and profitability. We find that an offline (retail-store) channel can be used to migrate customers from an inactive state to an active state, effectively serving the purpose of “education” or “revival,” whereas an online channel is most effective in keeping the existing active customers active, thus serving the purpose of “retention”. Using counterfactual analysis, we highlight an opportunity for the multichannel firm to optimize marketing strategies to dynamically manage and increase the retention and hence also the value of its customer base.
•A multivariate HMM for purchase amount, incidence, and channel choice•Models relationship dynamics in a non-contractual setting that allows for revival•Offline store channel serves the purpose of customer “education” and “revival”.•Online channel serves the purpose of customer “retention”.•Provides framework for firms to optimize marketing to increase customer retention
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK, ZRSKP
Studies that examine green banking practice from the relationship marketing perspective are limited. Bearing in mind the importance of loyalty to managers in the banking industry, and the increase in ...the call for greater sustainability performance from banking firms by customers, our study explore customers’ perception on green banking practice and its effect on bank loyalty. It also investigates the mediating effect of green image and bank trust in the relationship between green banking practice and bank loyalty. Through a quantitative survey, data for this study was adopted from 551 customers of the retail banking sector in North Cyprus. The structural equation modeling technique was used to test the relationship between the study variables. Results from the structural equation modeling analysis conducted indicated a direct and significant influence of green banking practice on green image, bank trust, and bank loyalty. Green image significantly affects bank trust and bank loyalty. No significant relationship exist between bank trust and bank loyalty. Green image mediates the relationship between green banking practice and bank loyalty, while bank trust does not mediate the relationship between green banking practice and bank loyalty.
Previous research in retailing contexts finds customers feel guilty after violating a social norm and that such customer‐induced guilt leads to increased repatronage intention, despite guilt being a ...negative emotion. However, prior research has neither identified the mechanism through which this occurs nor how relationship type may influence this process. Additionally, previous work has not considered how service providers should react when a customer experiences guilt. This paper advances research on guilt by first proposing that affective and normative commitment are intermediate e‐motivations, mediating the effect of guilt on repatronage intention, but that these e‐motivations differ depending on the strength of the customer's commercial friendship with the service provider. Second, this research investigates whether service providers, when faced with a guilty customer, should emphasize or downplay the customer's norm violation (CNV). Survey findings reveal that affective commitment fully mediates the relationship between guilt and repatronage intention for those in strong commercial friendships, whereas guilt directly affects repatronage intention for those in weak commercial friendships. Normative commitment does not play a mediating role. Additionally, experimental findings suggest that enhancing the CNV increases guilt. However, doing so also increases perceived guilt induction, which ultimately decreases repatronage intention.
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BFBNIB, FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, SAZU, SBCE, SBMB, UL, UM, UPUK
Recent studies on industrial marketing and business networks suggest that business relationships are changeable phenomena and many of them loose their rent-generating mechanism in time, especially ...when opportunity costs are taken into consideration. Unfortunately, our knowledge about management tools oriented at handling relationship dynamics is relatively weak. Trying to fill this gap, this study proposes a concept of Business Relationship Process Management (BRPM) and grounds it in dynamic capability view of company's strategy. BRPM comprises actions that help a company to restructure its relationship portfolio and improve relationships with deficient partners. This study contributes also to management knowledge by providing an empirical test for the validity of BRPM on the basis of an online survey conducted with 307 Polish companies that handle relationships in supply area. It supports the hypothesis that BRPM leverages the relationship portfolio performance and it complements other relationship-related strategies, like building personal business ties and relationship flexibility. The environmental uncertainty is discussed and tested as a factor moderating the influence of BRPM on relationship portfolio performance.
•Business Relationship Process Management (BRPM) comprises routines oriented at improving relationship portfolio of a company.•BRPM increases the relationship portfolio performance and it complements other business relationship-related strategies.•BRPM is especially important for those companies that operate in more dynamic market conditions.•BRPM may be treated as the implementation of dynamic capabilities approach in the area of supply chain management.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK
499.
Dynamic Relationship Marketing Zhang, Jonathan Z; Watson, George F; Palmatier, Robert W ...
Journal of marketing,
09/2016, Volume:
80, Issue:
5
Journal Article
Peer reviewed
Firms routinely engage in relationship marketing (RM) efforts to improve their relationships with business partners, and extant research has documented the effectiveness of various RM strategies. ...According to the perspective proposed in this article, as customers migrate through different relationship states over time, not all RM strategies are equally effective, so it is possible to identify the most effective RM strategies given customers' states. The authors apply a multivariate hidden Markov model to a six-year longitudinal data set of 552 business-to-business relationships maintained by a Fortune 500 firm. The analysis identifies four latent buyer-seller relationship states, according to each customer's level of commitment, trust, dependence, and relational norms, and it parsimoniously captures customers' migration across relationship states through three positive (exploration, endowment, recovery) and two negative (neglect, betrayal) migration mechanisms. The most effective RM strategies across migration paths can help firms promote customer migration to higher performance states and prevent deterioration to poorer ones. A counterfactual elasticity analysis compares the relative importance of different migration strategies at various relationship stages. This research thus moves beyond extant RM literature by focusing on the differential effectiveness of RM strategies across relationship states, and it provides managerial guidance regarding efficient, dynamic resource allocations.
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BFBNIB, INZLJ, IZUM, KILJ, NMLJ, NUK, OILJ, PILJ, PNG, SAZU, UKNU, UL, UM, UPUK, ZRSKP
Empirical studies on personalization in the luxury hotel context are lacking. Personalization, financial, social, and structural bonds have been proposed together as a conceptual framework, but have ...not been tested empirically. Moreover, relational bond studies in the luxury hotel U.S. market are non-existent. As personalization is a growing trend and luxury hotels continue to be a high revenue generator for brands, we proposed a relational bonds model in the context of U.S. luxury hotels. Multiple regression analysis was conducted on data collected through a Qualtrics Survey Panel from 205 U.S. respondents. A subgroup analysis was performed to examine differences between Millennials and Generation Xers. The results show differences between the two generational cohorts in terms of the relational bonds regarding behavioral loyalty intentions.
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BFBNIB, NUK, PILJ, SAZU, UL, UM, UPUK
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