A classification of relationship marketing strategies in business to consumer markets

• Main Author: Kar, Malobi
• Published: University of Manchester 2006
• Subjects: 381
• Online Access: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.487936

Relationship marketing is a process which adopts information enabled marketing strategy and involves acquiring, retaining and partnering with selective customers to create superior value for the company and the customers. The literature suggests that distinctive types of relationship marketing strategies are successful in different contexts. Review of literature on categories or typologies of relationship marketing suggested an inadequate conceptualisation of relationship marketing, with primary emphasis on the value creation aspects of relationship marketing. The role of customer data utilisation is discussed rather superficially. Moreover, there is a lack of empirical research in identifying the contextual aspect of these relationship marketing categories. A combination of qualitative and quantitative research was used in this research. Thirty key respondent interviews were carried with senior marketing executives across ten industry sectors to gain an insight into their relationship marketing strategies. The qualitative data was analysed using constant comparison method advocated by the proponents of grounded theory and this resulted in the identification of five distinctive relationship marketing strategies appropriate under different market conditions. The model of strategic relationship marketing was developed from the qualitative findings and the relationship between strategic relationship marketing and its proposed dimensions was tested using stepwise regression. This research contributes to the academic literature by identifying a typology of relationship marketing strategies in consumer markets, where expanded and integrated use of customer information across the organisation, resulting in focused customer acquisition capabilities and improved proposition customisation for customers, enables companies to gain competitive advantage from their relationship building endeavours. The findings also highlight how data utilisation capabilities are determined by the synergies between frequency of purchase of the product, market heterogeneity and proposition customisability. The synergy between consumer involvement in the product or service category, government regulations and overall industry lifecycle are identified as key factors influencing the mutual value creation capabilities of companies.