Relationship Value Of Customer

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. Factors That Influence Relationship Value: The Lifetime or relationship value of a customer is influenced by the length...

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Benefits for Customers and Firms

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. 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...

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The Evolution of Customer Relationship

Scholars have suggested that marketing exchange relationships between providers and customers often have the potential to evolve from strangers to acquaintances to friends to partners. 1.Customers as Strangers: Strangers are those customers who have not yet had any transactions with a firm and may not even be aware of the firm.At the industry level,strangers may be conceptualized as customers who have not yet entered...

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What is Relationship Marketing?

Relationship marketing essentially represents a paradigm shift within marketing away from an acquistitions focus towards a retention focus.Relationship marketing is a philosophy of doing business,a strategic orientation,which focuses on keeping and improving relationships with current customers rather than on acquiring new customers.This philosophy assumes that many consumers and business customer prefer to have an ongoing...

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Service Encounters

We have just finished a discussion of customer perceptions,specifically customer satisfaction and service quality.As discussed in our strategy insight,companies today recognize that they can compere more effectively by distinguishing themselves with respect to service quality,satisfaction and loyalty.Next we turn to what have been termend the building blocks for customer pereptions service encounters or moments of truth.Service...

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What is Customer Satisfaction?

                   "Customer is the King" Everyone knows what satisfaction is,until asked to give a definition.Then,it seems,nobody knows.This quote from Richard Oliver,respected expert and long time writer and researcher on the topic of customer satisfaction,expresses the challenge of defining this basic of customer concepts. In less technical terms,we interpret this...

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Perception in Service Marketing

As a marketer he/she should keep in mind that perceptions are always considered relative to expectations.Because expectations may also shift overtime from person to person and culture to culture.We will be focusing on the perceived service box in in the gaps model.What is considered quality service or the things that satisfy customers today may be different tomorrow.Also keep in mind that the entire discussion of quality...

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The Experience is Marketing

Service are high in experience and credence qualities relative to goods,thus how consumers evaluate the actual experience of the service is critical in their evaluation process and their decision to repurchase later. "The experience is marketing"=>James Gritmore & Joseph Pine In this section we describe elements of consumer behavior that are relevant to understanding service experiences and how customers...

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Philip Kotler: Marketing

America knows how to market itself, its products, and its ideas. For better or for worse, for richer or poorer, American marketing creativity, power, and prestige influence consumers the world over. PhilipKotler, best known for the marketing principle of the four Ps—product, price, promotion, and place—takes us on a guided tour of American marketing, including its origins and trends, its relationship to economics,...

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Consumer Choise

1.Need Recognition: The process of buying a service begins with the recognition that a need or want exists.Although there are many different ways to characterize needs,the most widely known is Maslow's hierarchy,which specifies five need categories arranged in a sequence from basic lower level needs to higher level needs. Physiological Needs- The recognition of these basic needs is fairly straightforward.Recall the...

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Describe Search,Experience and Credence Attributes

One framework for isolating difference in evaluation processes between goods an services is a classification of properties of offerings proposed by economists. 1.In Search Qualities: Attributes that a consumer can determine before purchasing a product are search qualities. Example: Cloth,Car,House Etc. 2.Experience Qualities: Attributes that can be discerned only offer purchase on during consumption are...

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Classification forms of service

A.Service by profit seeking firm: 1.Housing 2.Household operation 3.Recreation and entertainment 4.Personal care 5.Medical and other health care 6.Private education 7.Business and other professional services 8.Insurance,banking and other financial services 9.Transportation 10.Communication B.Service by non-profit organization: 1.Education 2.Cultural 3.Religious 4.Charitable...

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Importance of Service

Services are activity,benefits or satisfactions which are offered for sale or provided in connection with the sale of goods.Importance of service are given below: 1.Creating employment opportunities 2.Improvement standard of living 3.Change in life-style 4.Improvement of technologies and equipment 5.Increasing leisure time 6.Increasing awareness about education,health&fairness 7.Investment,...

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Describe the characteristics that affect the marketing of service

There is general agreement that differences between goods and services exits and that the distinctive characteristics discussed in this section result in challenges for managers of services. Characteristics of Service 1.Intangibility: The most basic distinguishing characteristic of services is intangibility.Because services are performances or actions rather than objects,they cannot be seen,felt,tasted or touched...

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What is Service?

Service are identifiable,intangible activities that are the main object of a transaction designed to provide want-satisfaction to customers.Service are benefits,activities or satisfactions which are offered for sale or provided in connection with the sale of goods. Normal 0 false false false EN-US X-NONE X-NONE ...

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