• Philip Kotler

    Philip Kotler received his Master's Degree at the University of Chicago and his PhD at MIT, both in economics. He did post doctoral work in mathematics at Harvard University and in behavioral science at the University of Chicago.

  • Gary Armstrong

    In 2008, the Institute on Comparative Political and Economic Systems added an International Track to its oldest program. The idea was to broaden the program to include foreign policy and a more global perspective.

  • Kevin Lane Keller

    Two articles in Top 20 papers that most affected practice of marketing science in past 25 years, INFORMS Society for Marketing Science, March 2007; Sheth Foundation/Journal of Marketing Award, 2003; Harold H. Maynard Award, Journal of Marketing, 1993; Dissertation Awards, 1986: American Marketing Association, American Psychological Association Division 23, Association for Consumer Research, Marketing Science Institute.

  • Steven J.Skinner

    Steven J. Skinner is the Rosenthal Professor and Director of the School of Management in the College of Business and Economics at the University of Kentucky, where he has taught undergraduate and graduate courses in marketing for 16 years. He was previously on the faculty at Illinois State University, and was formerly a research administrator for State Farm Insurance Companies. He has also consulted with a variety of large and small organizations.

  • Naresh K Malhotra

    Dr. Naresh K. Malhotra is Senior Fellow, Georgia Tech CIBER and Regents' Professor Emeritus, Scheller College of Business, Georgia Institute of Technology, USA. He is listed in Marquis Who’s Who in America continuously since 51st Edition 1997, and in Who’s Who in the World since 2000.In 2010, he was selected as a Marketing Lege nd and his refereed journal articles were published in nine volumes by Sage with tributes by other leading scholars in the field.He was selected to receive the Hind Rattan Award in 2012.

  • David W.Cravens

    David W.Cravens is Emeritus Professor of Marketing in teh M.J.Neeley School of Business at Taxas Christian University.He previously held the Eunice and James L.West Chair of American Enterprise Studies and was Professor of Marketing.

21 February, 2019

Artificial intelligence (AI) and chatbots rank among the top 10 trends in digital marketing this year, said an industry expert, noting that the trends will help one be ready for challenges awaiting one’s business in 2019.

1. Artificial Intelligence:

http://mktgide.blogspot.com/

With everybody talking about AI, don’t be afraid AI will take over the world. But for sure it may have significant impact on your business sooner or later. Mechanisms will be helpful in analyzing your consumers’ behaviour and their search patterns. Making the most out of it, utilizing data from social media platforms and blog posts, you’ll be able to track customer journey and understand how your users and are looking for desired products and services. All this may lead straightforward to better understanding of your customers (by 30 per cent) and more effective performance of your content (15 per cent).

2. Chatbots:

http://mktgide.blogspot.com/2019/02/top-10-trends-in-international-online.html

This AI-based technology can be considered as your virtual concierge, instantly communicating with your users and assisting in completing their goals with immediate answers, messaging in real-time, 24/7 chat. As research shows 90 per cent of their answers are correct, their quality and detailed approach are highly appreciated. Allowing for multi-channel consistency and knowledge centralization, they are getting more and more appreciated, especially in the Gulf region, where not everybody can understand your Call Center employees. No wonder they are becoming so popular. With 1.4 billion people interacting with chatbots worldwide, 80 per cent of savvy businesses are already using or plan to use chatbots by 2020. And by 2022, chatbots will help businesses save over $8 billion per annum, especially in the banking and healthcare industries. Adding up to it the fact, that companies using such solution are perceived as innovative, it’s a simple must have of the season.

3. Programmatic Advertising:

http://mktgide.blogspot.com/2019/02/top-10-trends-in-international-online.html

Going shopping is always exciting, especially when somebody else is paying. But in every other occasion your cost should be reasonably calculated, and each saving will be highly appreciated. Therefore, act like a pro with programmatic advertising, which will make your campaigns more cost-effective. An automated bidding on advertising inventory in real time is a perfect opportunity to show an ad to a specific customer and in desired context. Nowadays 84 per cent of brands and marketing agencies buy display advertisement in such manner and almost two thirds do the same for their mobile campaigns. With reduced budgets and impressions wastage decreased by 30 per cent, it ensures operational efficiency as well, both from buyers’ and sellers’ perspective. No wonder, with increased targeting effectiveness up to 85 per cent indicated by ad agencies, programmatic marketing will be the best supporter in planning your marketing budget for 2019.

4. Voice search:

http://mktgide.blogspot.com/2019/02/top-10-trends-in-international-online.html

Consumers appreciate now everything that makes their life easier, faster, hassle-free and enables data to be accessed on the go. Voice search is not about recalling the spirit of Christmas (with Kevin home alone campaign by Google) or showcasing amazing capacity of Google Duplex, presented by Sundar Pichai, booking a hairdresser appointment. It is about ease of making hands-free call, asking for directions, playing favourite song or checking for movie timings. Consumers consider it as quicker and easier, than going to a website or using app, while driving car making or simple “more fun” than other search methods. Worth considering is fact, that voice recognition devices really do matter in paid search and SEO. In US itself huge increase of solution adopters of voice enabled assistant devices is visible. Trending with 48 per cent annual growth increase in US, voice shopping will rise there to $40 billion per year in the next four years, as consumers warm up to making offscreen purchases. Have in mind, that 50 per cent of all searches will be voice searches by the year 2020. On the top of it – use of voice search can have few more advantages for your company – from improving your brand image, through being recommended by digital assistants and increasing your local relevance, up to reducing negative signals from your website, like bounce rate.

5. Augmented Reality & Virtual Reality:

http://mktgide.blogspot.com/2019/02/top-10-trends-in-international-online.html

With three available technologies: AR (Augmented Reality, enhancing physical objects with digital content), VR (Virtual Reality – completely simulated virtual 3D environment) and MR (Mixed Reality – combining the two by creating VR environment in which physically existing objects take part) are estimated to grow into a $95 billion market by 2025. The strongest demand for technology comes from creative economy industries: gaming, live events, video entertainment and retail, but wider applications in healthcare, education, the military and real estate are predicted over time. With very positive adoption rate (96 per cent in UK!) are very likely to become the third solid way in which people choose to shop. So-called Vcommerce (Virtual Commerce) will add value as supportive technology, defining true omnichannel experience. Seems like this solution is going to bring the trust gap of potential online shoppers – allowing almost to touch and feel products and subsequently build trust with the retailer. Therefore, apart from immersive experience of VR, supporting positive interaction with the brand and used for advertising purpose, research today opportunity of practical applications like virtual changing room (how useful for clothes, glasses, watches, right?) or digital assistants (make up, furniture fitting). Yes – future is here, now and you should not definitely miss it.

6. Content marketing & Personalization:

http://mktgide.blogspot.com/2019/02/top-10-trends-in-international-online.html

Seth Godin said that nowadays marketing is not about tuff that you make, but about the stories you tell. Indeed, we don’t buy anymore simple good or service, but go for brand promise and overall experience assured by storytelling. With words of Jay Baer – content is a fire; social media is gasoline. Therefore, content understood from perspective of superb copywriting, supported with great pictures, create only a basis for a tasty meal. The latter is going to be seasoned with proper spices: tailored-made offers supported with customized message. All combined with personalized emails, remarketing and improving techniques in measuring content effectiveness, will keep content marketing relevant and moving forward, triggering purchase motivations into desired action.

7. Video & video live:

http://mktgide.blogspot.com/2019/02/top-10-trends-in-international-online.html

Talking about content, another valid point needs to be taken into consideration – video (especially YouTube) as an essential for your company and Live Video as another important thing and “must have” of the season. It doesn’t mean Facebook videos are out of the picture. Just the opposite. Consider there your presence with live broadcast along with Instagram (especially if your target audience are youngsters in the Middle East) or LinkedIn. Video, unlike standard display ad, allows you to interact more with your audience – with importance of storytelling, creating tension, involving more senses. If you still are not fully convinced, let these numbers speak for you: 70 per cent of consumers say that they have shared a brand’s video and 52 per cent of consumers admitted, that watching product videos makes them more confident in online purchase decisions. But video is not for B2C only! 72 per cent of businesses claim video has improved their conversion rate, 65 per cent of executives visit the marketer’s website and 39 per cent call a vendor after viewing a video. I guess these numbers show the importance of incorporating video into your digital marketing strategy in 2019, right?

8. Micro-moments:

http://mktgide.blogspot.com/2019/02/top-10-trends-in-international-online.html

With modern customers’ attention span of a goldfish (3 seconds only!) are you often racking your brain for a catchy content, that will literally nail them down? It is time to shift your approach and instead of chasing them, simply do your job well and be ready for micro-moments. This concept, discovered by Google, is nowadays gaining importance. Each micro-moment is an intent-rich moment, when a person turns to a device to act on a need, driven by purchase, activity, location or knowledge lack. These four game-changing moments really matter for your business and the simple three things you need to do is to be there, be useful and be accountable. How it works? Imagine – she saw beautiful orange heels; he needs to repair a device; finding cooking too challenging they decide to go out; kids are doing their homework and need some guidance. Sounds familiar? To help all of them, simply in your digital footprint provide seamless experience relevant to consumer’s’ needs of the moment, anticipate these moments and create relevant insights across all channels. You may be surprised how often people may need your services, products or guidance, asking simple “how to” or expressing “I wish “ as their desire. Remember, early bird catches the worm!

9. Zero-party data economy:

http://mktgide.blogspot.com/2019/02/top-10-trends-in-international-online.html

2018 could be named after “year of trust lack”. Unfortunately, after Cambridge Analytica scandal and Mark Zuckerberg called for hearing, introduction of GDPR (General Data Protection Regulation) became another important threshold, starting new age of privacy. With marketers crying and weaning themselves off third-party data sets, a new day is dawning, with the shift to zero-party data. It is all the information intentionally shared by customer and never inferred. You can consider as such for example customers’ purchase intentions, filled preferences profiles, simply driven by willingness of improved personalization for products and services. Seems like this year will be marked with chase for privacy demand, supported at the same time with multiple requests to enable zero-party data driven offers.

10. Cyber threats and data privacy management:

http://mktgide.blogspot.com/2019/02/top-10-trends-in-international-online.html

We’ve already touch the base with GDPR regulation, necessitate unambiguous consent for data collection and compelling companies to erase individual data on request, with the threat of a fine of up to 4 per cent of their global annual turnover for breaches. No more cookies, data verification, database gathering and sending emails, unless permitted. You think you can sleep safe, as it only concerns EU? Not really. If you are UAE based company operating in Europe, having European customers, or simply advertising online to Europeans, you need to. But this shift means much more. Consumers are more aware of their rights, and it is always better to prevent, than cure. On the top of that one, you need to have in mind two trends. First is social media oversharing, second – too much rush, while working on digital transformation. Both may lead to data breach and negative consequences for your brand, therefore sensitizing your customers and working on enhanced awareness is advised.

Forrest Gump said “life is like a box of chocolate. You never know, what you’re gonna get.” According to it, you may not predict the future, but for sure these trends will help you to be ready for challenges awaiting your business in 2019.
   

Source :PACEDM

27 January, 2019

A digital marketing strategy needs to be frequently revised to stay successful. Here are the latest trends to keep an eye on for 2019.
Technology keeps evolving and we all need to keep up with the latest trends to make sure that we develop successful marketing tactics. It’s the perfect time to reflect on what worked the past year and how the latest trends will affect our marketing strategies in 2019.
Here are the key trends you need to know and how to include them in your current digital marketing strategy.
http://mktgide.blogspot.com/

Video:

http://mktgide.blogspot.com/

Video consumption is not expected to slow down. As more social platforms invest in video content, marketers are investing in video to engage their audience.
However, it’s not enough to create videos with no clear objectives.
Start spending more time on analyzing the best types of video that work for your audience. Bite-sized videos may work on social media, but what if your audience is still interested in watching longer videos?

For example, Instagram will invest more on IGTV to establish it as a new platform to consume longer videos. Although it’s still at an early stage, there is a great opportunity to beat the competition before it gets more popular.

Video ads are also another trend to try out, either to increase awareness or even to drive conversions.
According to Animoto, video ads are the primary way that consumers find out about a brand or product before making a purchase.

Marketers need to optimize videos for mobile users, while the call-to-action needs to be clear but not off-putting. Focus on creating appealing videos that engage the viewers to keep watching.

AI and AR to improve marketing:

http://mktgide.blogspot.com/

Artificial Intelligence can revolutionize our marketing tactics. We’re already seeing its application in customer experience, personalization, analytics and it can turn out to be the secret weapon of your marketing strategy in 2019.

Personalization will be more important than ever and customers are expecting a great shopping experience from brands. It’s interesting that 74% of consumers are willing to give up data for a more personalized ad experience. Thus, AI can be the link between the brand and the customer. In fact, the AI industry is expected to grow to $7.3 billion per year by 2022.
Similarly, augmented reality is reaching the stage that it’s taken more seriously in terms of practical application. As we’ve left Pokemon Go behind, more brands realize that AR can help them create an experience that can boost their messaging. It is already used across many different industries and consumers are ready to use it even more.
Brands can introduce AR to their marketing strategies to:
Raise awareness
Tell a story
Improve customer experience
Promote their products through gamification
Build engagement through a new way to reach your consumers
According to Gartner, 100 million people will be shopping with Augmented Reality by 2020 so this year is the perfect opportunity to explore how AR can fit into your own marketing plans.

Data-driven marketing:

http://mktgide.blogspot.com/

Many successful marketing strategies rely on data to justify their tactics. The more channels and platforms we are using, the bigger the access to data.
This brings out the challenge of bringing it all together with the use of the right tools. Martech can be the solution to this challenge to improve the measurement of your campaigns and the attribution of your best-performing touchpoints.
A data-driven marketing strategy can help you learn more about your audience to improve your tactics and your future campaigns. More specifically, it can help you improve your customer experience with the use of personalization or it can even help you create more effective ads to reach the right audience.

Social media Stories:

http://mktgide.blogspot.com/

Stories make the next big trend in social media marketing. They are already engaging enough to encourage more marketers to try them out and they will become even more popular in 2019.
Vertical content is more appealing for mobile devices and Stories take over most social networks, with Instagram being the most popular platform to use them.
There are more than 400 million active Stories users every month and they seem to be more engaged in Stories comparing to the social feeds.
Brands are using Stories to prove their authenticity with behind the scenes content, fun polls, countdowns or engaging videos that can also involve their followers. Stories don’t necessarily require the help of a creative professional, but they still need a strategy on how to make the most of them,
2019 will be the year that more marketers will integrate Stories into their digital marketing strategies as an effective method of reaching their followers.

Voice technology and the need for conversational content:

http://mktgide.blogspot.com/

Voice technology sees an increased adoption rate year over year and it will become even more popular in 2019. As consumers are ready to spend more time on voice technology, marketers need to understand how to benefit from the growing trend.
There is a new type of conversational content and promotion that they need to involve in their digital marketing strategy. As it differs from other promotional methods, we need to start exploring how to create more conversational content. It’s not enough anymore to think of keywords and marketing jargon. Voice search is about knowing what consumers want and how they would use a voice assistant.
It’s interesting to consider that according to IAB, 18% of American consumers already own smart devices and 65% admit that they couldn’t imagine not using them anymore.
This can bring a big opportunity for the brands that are ready to invest in this trend.

Source : ClickZ

28 December, 2017

What Is Your Digital Marketing Strategy for 2018
Make no mistake; in the modern business world, a huge portion of your marketing is going to be digital.

Consumers are flocking online to find the best deals while businesses continue to migrate over in order to meet their demands. You need to be able to reach those consumers if you have any hope of growing your business.

The problem is that this ever-changing landscape can get quite overwhelming. You already have a lot on your plate just running your business, so when you add in digital marketing, it can really wear on us.

Don’t panic! Here are some steps that you can take to make this much easier.
http://activeation.com/6HwO

Develop Your Buyer Profile

This is the first step to creating any marketing strategy, including digital. You have to know who you are marketing to. The best strategies are built around a detailed buyer profile.

This profile will represent your ideal customer. Envision your ideal customer, put yourself in his/her shoes, and then write down exactly who they are. Your buyer profile should include details such as:

•Age: Even if you feel that it’s not important, I still recommend that you envision an age range just so that you can create an image of the ideal customer in your mind. Then find trends associated with that age group.

•Location: Web analytical tools like Google Analytics is a great way to identify the location of your website traffic. In most cases, you will be targeting your current audience. Location-based SEO is extremely powerful.

•Income: First of all, never ask your followers this question directly. Based on your niche, you should be able to research the income level of people who are going to be interested. With that said, this is important when pricing your new product or service.

•Job Title: You can gauge this from your current customer base. It might not even be relevant to your business.

I also recommend that you set up some surveys and questionnaires for social media. You can also include a post that asks a question and asks for a response in the comments.
http://activeation.com/6HwO

Identify Your Goals

Your marketing goals need to be tied into your business goals. So, if you have a business goal of boosting revenue by 20%, then your digital marketing goal might be to improve your online lead generation by 50%. Whatever your goal might be, just remember that it should follow the SMART formula. The SMART formula states that a goal must be:

•Specific
•Measurable
•Attainable
•Realistic
•Timely

Specific and measurable are probably the two most important parts of a goal. It must be specific. Vague goals are not going to work.

If you noticed, we used a real number in our example above. Saying “I want to improve my online lead generation by 50%.” is much better than just saying “I want to improve my online lead generation.”

Goals must also be measurable. Otherwise, you have no way of knowing whether or not you are achieving them.

Choose Your Digital Marketing Channels

Once you have defined your target audience and set SMART goals, it’s time to choose the marketing channels that you’ll use to push your business.

Let’s look at the three main categories that you will have to choose from:

•Owned Media: These are channels that your business owns. Some examples include social media profiles, blogs, images, logos, and websites. You should always start by making sure these align with your marketing goals.

•Earned Media: Earned media is exposure that you have earned. Some examples are word of mouth advertising and customer experience. One of your goals should be to earn more exposure through customer reviews and having people share content through social media.

•Paid Media: Paid media is any form of advertising that you pay for. In most campaigns, you will use your paid media to funnel prospects to your owned media.
http://activeation.com/6HwO

Gather all of your marketing material and organize it into a spreadsheet so that you can easily keep track of it.

Personalize Customers’ Digital Experience

In marketing, personalization wins big so customized emails are 26% more likely to be opened. The problem is that there are a lot of ways to make this work.

Some experts make customization sound much more complicated than it really is. What’s important is that you collect the right information right away. The rest is actually quite easy.

The truth is that so many marketers miss out on the powerful benefits of personalization because they have already started collecting email addresses but did not get all of the required information. However, it’s never too late to start.

• Create a plan and get your entire team on-board with your new strategy.

• Make sure the right fields are on your sign-up forms.

• Segment your lists (consider geography, gender, age, job title, company size, transactional data etc.)

• Start sending emails with personalized subject lines.

Use Chatbots to Engage Your Audience

The marketing world is in a constant state of flux. Today, we are starting to see a brand new trend that has gained a lot of popularity – known as Chat bots.

As companies continue to battle for customer support and retention, we see new, innovative methods of automation being brought to life.
http://activeation.com/6HwO

Here are some of the reasons why you should include Chat bots as part of your digital marketing strategy:

• Mobile Optimization: Chat bots are designed with the mobile-first approach in mind so you won’t have to worry about having to jump through hoops to have them adapted to mobile devices.

• Consistent Social Media Marketing: By integrating Chat bots across your social media platforms, you will be able to keep all of your various social media campaigns updated consistently.

• Real-Time Updates: Chat bots are still in their earlier stages in development so they are going to see constant improvement over the next several years. That means you can expect real-time analysis and quick updates.

One of the most important benefits of digital marketing is that once you have developed a campaign, you can automate a large portion of it. So if you’re not automating, then you’re going to be several steps behind the competition.

Finally, developing a strategy will put you ahead of your competition. Did you know that 46% of businesses do not have a well-defined marketing strategy?

Don’t be a statistic. Be a success story! Without a plan, you cannot expect to grow and reach the next level.

Written by: Catherine Park

19 February, 2016

This final section of the chapter discusses situations in which the firm might actually consider ending the relationship and how that might occur,in the next chapter we discuss situations in which the customer might decide to terminate the relationship and switch providers.

http://mktgide.blogspot.com/

The Customer Is Not Always Right:

The assumption that all customers are good customers is very compatible with the belief that "the customer is always right",an almost sacrosanct tenet of business.Yet any service worker can tell you that this statement is not always true,and in some cases it may be preferable for the firm and the customer to not continue their relationship.

The Wrong Segment:

A company cannot target its services to all customers,some segments will be more appropriate than others.It would not be beneficial to either the company or the customer for a company to establish a relationship with a customer whose needs the company cannot meet.
For Example: A school offering a lock step,daytime MBA program would not encourage full time working people to apply for its program nor would a law firm specializing in government issues establish a relationship with individuals seeking advice on trusts and estates.

Not Profitable in the Long Term:

In the absence of ethical or legal mandates,organizations will prefer not to have long term relationships with unprofitable customers.Some segments of customers will not be profitable for the company even if their needs can be met by the services offered.

Example: This situation are when there are not enough customers in the segment to make it profitable to serve,when the segment cannot afford to pay the cost of the service,or when the projected revenue flows from the segment would not cover the costs incurred to originate and maintain their business.

Difficult Customers:

Managers have repeated the phrase "the customer is always right" so often that you would expect it to be accepted by every employee in every service organization.So why isn't it? Perhaps because it simply is not true.The customer is not always right.No matter how frequently it is said,repeating that mantra does not make it become reality,and service employees know it. 




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08 January, 2016

Switching barriers tend to serve as constraints that keep customers in relationships with firms because they however firms can engage in activities that encourage customers to remain in the relationship because they creating relationship bonds.
Leonard Berry & A.Parasuraman have developed a framework for understanding the types of retention strategies that focus on developing bonds with customers.
http://mktgide.blogspot.com/


Level :1 Financial Bonds:

The customer is tied to the firm primarily through financial incentives lower prices for greater volume purchases or lower prices for customers who have been with the firm a long time.
Many travelers belong to several frequent flyer programs and do not hesitate to trade off among them.Although price and other financial incentives are important to customers,they are generally not difficult for competitions to imitate because the primary element of the marketing mix being manipulated is price.

# Volume and frequency reward

# Stable pricing

# Bundling and cross selling

Level :2 Social Bonds:

The firm through more than financial incentives.Although price is still assumed to be important,strategies seek to build long term relationships through social and interpersonal as well as financial bonds.Customers are viewed as clients not nameless faces,and become individuals whose needs and wants the firm seeks to understand.

# Continuous relationship

# Personal relationship

# Social bonds among customer

Level :3 Customization Bonds:

Level 3 strategies involves more than social ties and financial incentives,although there are common elements of level 1 and 2 strategies encompassed within a customization strategy and vice versa.Two commonly used terms fit within the customization bonds approach mass customization and customer intimacy.

# Anticipation

# Mass customization 

# Customer intimacy

Level: 4 Structural Bonds:

Level 4 strategies are the most difficult to imitate,they involve structural as well as financial,social and customization bonds between the customer and the firm.Structural bonds are created by proving services to the client that are frequently designed right into the service delivery system for that client .

 Download Tutorial: Click Here


13 November, 2015

Relationship value of a customer is a concept or calculation that looks at customers from the point of view of their lifetime revenue and profitability contributions to a company.This type of calculation is needed when companies start thinking of building long-term relationships with their customers.
http://filesmy.com/file/D6gC72

Factors That Influence Relationship Value:

The Lifetime or relationship value of a customer is influenced by the length of an average "Lifetime" the average revenues generated per relevant time period over the lifetime,sales of additional products and services over time,referrals generated by the customer over time,and costs associated with serving the customer.

Estimating Customer Lifetime Value:

If companies knew how much it really costs to lose a customer,they would be able to accurately evaluate investments designed to retain customers.One way of documenting the dollar value of loyal customers is to estimate the increased value or profits that accrue for each additional customer who remains loyal to the company rather than defecting to the competition.

Linking Customer Relationship Value to Firm Value:

The emphasis on estimating the relationship value of customers has increased substantially in the past decade.Part of this emphasis has resulted from an increased appreciation of the economic benefits that firms accrue with the retention of loyal customers.

Download File : Click Here

06 November, 2015

Both parties in the customer firm relationship can benefit from customer retention.This is,it is not only in the best interest of the organization to build and maintain a loyal customer base,but customers themselves also benefit from long term associations.

http://mktgide.blogspot.com/

Benefits for Customers:

Assuming they have a choice,customers will remain loyal to a firm when they receive greater value relative to what they expect from competing firms.Value represents a trade off for the consumer between the components.

Confidence Benefits:

Confidence benefits comprise feeling of trust or confidence in the provider along with a sense of reduced anxiety and comfort in knowing what to expect.One customer described his confidence that resulted from having developed a relationship with a service provider.

Social Benefits:

Over time,customers develop a sense of familiarity and even a social relationship with their service providers.These make it less likely that they will switch,even if they learn about a competitor that might have better quality or a lower price.This customer's description of her stylist in a quote from the research just cited illustrates the concept of social benefits.

Special Treatment Benefits:

Special treatment includes getting the benefit of the doubt,being given a special deal or price,or getting preferential treatment as exemplified by the following quotes from the research.

Benefits for Firms:

The benefits to organization of maintaining and developing a loyal customer base are numerous.In addition to the economic benefits that a firm receives from cultivating close relationships with its customers,a variety of customer behavior benefits and human resource management benefits are also often received.

Economic Benefits:

Research reveals that over the long run,relationship-oriented service firms achieve higher overall returns on their investments than do transaction oriented firms.These bottom line benefits come from a variety of sources,including increased revenues over time from the customer,reduced marketing and administrative costs,and the ability to maintain margins without reducing prices.

Customer Behavior Benefits:

The contribution that loyal customers make to a service business can go well beyond their direct financial impact on the firm.The first and maybe the most easily recognized,customer behavior benefit that a firm receives from long term customers is the free advertising provided through world of mouth communication.

Human Resource Management Benefits:

Loyal customers may also provide a firm with human resource management benefits.First,loyal customers may,because of their experience with and knowledge of the provider,be able to contribute to the co-production of the service by assisting in service delivery.often the more experienced customers can make the service employees job easier.
 
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