MKT 723 Chapter Notes - Chapter 7: Reinforcement, Customer Retention, Relationship Marketing

• School: Ryerson University
• Department: Marketing
• Course: MKT 723
• Professor: Armand Gervais

Document Summary

Relationship marketing focuses on relationship/retention (keeping and improving relationships with current customers) instead of acquisition/transaction (acquiring new customers). This assumes customers prefer to have an ongoing relationship with an organization than to switch. It is suggested that firms focus on attracting but pay little attention to retention. Firms" relationships with their customers evolve over time. Marketing exchange relationships between providers and customers have the potential to evolve from strangers to partners. Customers as strangers customers who are not aware of or had no interactions with a firm. Consequently, the firm"s primary goal with these potential customers is to initiate communication with them in order to attract and acquire. Consumers as acquaintances once awareness and trial are achieved, familiarity is established and the relationship become acquaintances. The main goal of the firm is to satisfy the customer. Firms are concerned with providing a value to customers that is comparable with the competition. Acquaintanceship is effective if the customers are relatively satisfied.