Anda di halaman 1dari 10

6

CHAPTER 2
THEORITICAL FOUNDATION
2.1 Relationship Marketing
Relationship marketing is marketing based on interaction within network of
relationships (Gummesson, 2002 pg 3). Berry (1983, pg 25) described the concept of
relationship marketing as a strategy to attract, maintain and enhance customer
relationships. Jackson (1985a, pg. 165) explained relationship marketing is marketing
to win, build and maintain strong relationships with industrial customers. Porter
(1993, pg 14) described relationship marketing is the process whereby both parties
the buyer and provider establish an effective, efficient, enjoyable, enthusiastic and
ethical relationship: one that is personally professionally and profitably rewarding to
both parties.
Gronroos (1994), stated that the aim of relationship marketing is to establish,
maintain, and enhance relationships with customers and other parties, at a profit, so
that the objectives regarding the economic and other variables of all parties involved
are met. The relationship marketing concept appeared within fields of service
marketing and industrial marketing (Christopher, 1991; Gummesson, 1991). Morgan
and Hunt (1994, pg. 22) defined relationship marketing refers to all marketing
activities directed to establishing, developing, and maintaining successful relational
exchange. The goals of relationship marketing are to create and maintain lasting
relationships between the firm and customers that are rewarding for both sides (Rapp
and Collins, 1990).
6
7
Gummesson (2002, pg 3), defined there are three core concepts of relationship
marketing; relationships, networks and interaction.
Relationships require at least two parties who are in contact with each other.
The basic relationship marketing is only between a supplier and a customer.
A network is a set of relationships which can grow into enormously complex
patterns.
Interaction is when the parties enter into active contact with each other.
Peelen (2005, pg 25) described relationship as thoughts of the feelings that two
people have for one another: mutual attraction and respect, consideration, dependency
and the like. Hinde (1979) noted that relationships, after all, imply some sort of
intermittent interaction between two or more persons, involving interchanges over an
extended period of time. Poeisz and van Raaij (1993) were described further as:
Interactions must take place between at least two parties; a characteristic of
interactions is that activities of one of the parties influence those of other, and
vice versa.
A certain degree of continuity must be present in a relationship since
interactions from the past influence present and future interactions;
relationships will also have to extend over a longer period of time.
The effects of interactions are dependent upon the actual events and the
subjective approach to these events.
Gummesson (2002, pg 8) noted that relationship marketing is not just another tricks
to catch the customers, it offers a wide range of conditions for more efficient
management and marketing and also opportunities of making money. The main idea
8
is to encourage customer loyalty, which Oliver (1999) described as a deeply held
commitment to re-buy or re-patronize a prefferd product or service in the future
despite there are situational influence and marketing efforts having the potential to
cause switching behavior.
Blomqvist et al. (1993) described the following key characteristic of relationship
marketing: every customer is considered an individual person or unit; activities of the
firm predominantly directed towards existing customers; implementation is based on
interactions and dialogues; and firm is trying to achieve profitability through the
decrease of customer turnover and the strengthening of customer relationships. An
emergent disciplinary framework for creating, developing and sustaining exchanges
of value, between the parties involved, whereby exchange relationships evolve to
provide continuous and stable links in the supply chain (Ballantyne, 1994 pg. 3).
Gummesson (2002, pg 17) defined relationship marketing is the opposite of
transaction marketing. In transaction marketing, the fact that a customer has bought a
product does not predict the probability for a new purchase, not even if a series of
purchases have been made. A customer may repeatedly use the same supplier because
of high switching cost, but without feeling committed to the supplier or wanting to
enter closer relationship. Transaction lack history and memory and they dont get
sentimental.
9
Table 2.1 Transaction vs Relationship Marketing

Transaction

Relationship
Single purchase Repeated sales
Limited customer contact Close / frequent customer contact
Focus on product benefit Focus on value to customer
Emphasis on short-term performance Emphasis on long-term performance
Limited customer service High level customer service
Goal of customer satisfaction Goal of delighting the customer
Quality a manufacturing responsibility Quality at total organization responsibility
10
However there are some limitation and disadvantages of relationship marketing
concept, according to Levitt (1983), relationship marketing is less appropriate in the
following circumstances:
Relatively low value products and services
Consumer products
Generic commodities
Switching cost are low
Clients prefer single transaction to relationships
No / low customer involvement in production
In relationship marketing, Gummesson (2002, pg 17) noted that customer loyalty is
emphasized. The customers are clients; those who have come back and a long-term
relationship. The customer relationship life cycle is based on the belief that the ability
of the provider to satisfy needs and fulfill promises determines the chances of
retaining the customer (Gummesson, 2002 pg. 229) The service profit chain
according to Gronross (2000) and Heskett et al (1997) :
Good internal quality > satisfied employees > employees stay >
good external quality > satisfied customers > customers stay >
high profitability
11
2.2 The underpinnings of Relationship Marketing
The marketing literature has determined the theory of key virtues that underpin
relationship marketing, such as trust (Morgan and Hunt, 1994; Veloutsou et al, 2002),
commitment (Grossman, 1998; Chan and Ndubisi,2004), conflict handling (Dwyer et
al, 1987; Ndubisi and Chan, 2005), and communication or sharing of secrets (Ndubisi
and Chan, 2005; Morgan and Hunt, 1994; Crosby et al, 1990). Those keys have been
related to customer loyalty. Companies should make sacrifices and worthwhile
investments in building relationships with loyal or at least potentially loyal customers
(Ndubisi, 2004). The four indentified underpinnings of relationship marketing is
argued here to directly linked and whether these capable of predicting customer
loyalty.
The following hypotheses are made to complete the objectives of the study;
H1: Trust is related positively with customer loyalty
H2: Commitment is related positively with customer loyalty
H3: Communication is related positively with customer loyalty
H4: Conflict Handling is related positively with customer loyalty
2.2.1 Trust
According to Rotter (1967) trust is view as generalized expectancy held by an
individual that the word of another can be relied on. Moorman (1993) defined trust
as a willingness to rely on exchange partner in whom one has confidence. Both
definitions also highlight the importance of confidence. The literature of trust
(Altman and Taylor, 1973; Dwyer and LaGrace 1986; Rotter 1971) suggest that
12
confidence on the part of the trusting party results from the firm belief that the
trustworthy party is reliable and has high integrity, which are associated with such
qualities as consistent, competent, honest, fair, responsible, helpful, and benevolent.
The supplier or service provider must keep their promises; a betrayal of the trust
could lead to defection. Trust is the belief that partners word or promise is reliable
and a party will fulfill his/her obligations in the relationship (Schurr and Ozanne,
1985). The terms have defined by the authors as opportunistic behavior (Dwyer et al,
1987), shared values (Morgan and Hunt, 1994), mutual goals (Wilson, 1995),
uncertainty (Crosby et al, 1990), making and keeping promises (Bitner, 1995), and
actions with positive outcomes (Anderson and Narus, 1984).
Integral element of relationship marketing approach is the promise concept (Calonius,
1988). He believed that the responsibilities of marketing is not only include giving
promises and therefore persuading customers as passive counterparts in the
marketplace to act in a given way, but also in keeping promises, which maintains and
improves evolving relationship. Reichheld and Sasser (1990), noted that fulfilling
promises that have been given is equally important as a means of achieving customer
satisfaction, retaining the customer base, and securing long-term profitability.
Certainly, on would expect a positive outcome from a partner on whose integrity one
could confidently rely (Morgan and Hunt, 1994). According to Gronroos (1990), the
resources of the seller personnel, technology and systems have to be used in such a
manner that the customers trust in them, and thereby in the firm itself, maintained
and strengthened.
13
2.2.2 Commitment
Commitment was the most common dependent variable used in buyer-seller
relationship studies (Wilson, 1995). It is another important determinant of the
strength of a marketing relationship, and a useful construct for measuring the
likelihood of customer loyalty and predicting future purchase frequency (Gundlach et
al, 1995; Morgan and Hunt, 1994; Dwyer et al, 1987). In psychology, Kiesler (1997)
define the concept of commitment is in terms of decisions or cognitions that fix or
bind an individual to a behavioral disposition, while in sociology, it is used to analyze
both individual and organizational behavior (Becker, 1960) and mark out forms of
action characteristics of particular kinds of people or groups (Wong and Sohal, 2002).
In marketing, commitment was defined as an enduring desire to maintain a valued
relationship (Moorman et al, 1992). This implies a higher level of obligation to make
a relationship succeed and to make it mutually satisfying and beneficial (Gundlach et
al, 1995; Morgan and Hun 1994). The customers who believe that they receive more
value from a relationship should be willing to give in return effort on behalf of a firm
due to past benefits received (Mowday et al, 1982) and highly committed firms will
have the benefits from the respond.
2.2.3 Communication
The communication in relationship marketing context refers to the ability to provide
timely and trustworthy information. Today, there is a new view of communications as
an interactive dialogue between the company and its customers, which takes place
during the pre-selling, selling, consuming, and post consuming stages (Anderson and
14
Narus, 1990). According to Ndubisi and Chan (2005), communication in this context
means keeping in touch with valued customers, providing timely and trustworthy
information on service changes, and communicating proactively if a delivery problem
occurs. It is the communicators task in the early stages to build awareness, develop
consumer preference (by promotiong value, performance and other features),
convince interested buyers, and encourage them to make the purchase decision.
Communications also provide the information to dissatisfied customers resolve the
cause of dissatisfaction. Building effective communication between the firm and
customers will result better relationship and more customer loyalty.
2.2.4 Conflict Handling
Dwyer et al (1987) described conflict handling as a suppliers ability to avoid
potential conflicts, solve manifest conflicts before they create problems, and discuss
solutions openly when problem do arise. How well this is done will determine
whether the outcome is loyalty, exit or voice. The likelihood of these behaviors
in individual cases depends on the degree of prior satisfaction with the relationship,
the magnitude of the customers investment in the relationship, and an evaluation of
the alternatives available (Rusbult et al, 1988). Ndubisi and Chan (2005) discovered a
major relationship between conflict handling and customer loyalty, indirectly through
trust and perceived relationship quality. The ability of the product or service provider
to handle conflict well will also directly influence customer loyalty.
15





Figure 1 The research framework
Commitment
Trust
Conflict
Handling
Communication

Customer
Loyalty

Anda mungkin juga menyukai