Managing Customer Relationships for Profit: The Dynamics of Relationship Quality

Managing Customer Relationships for Profit: The Dynamics of Relationship Quality Addresses customer‐relationship economic issues, more specifically the link between service quality and profitability from a relationship marketing and management perspective. In this perspective the task of marketing is not only to establish customer relationships, but also to maintain and enhance them in order to improve customer profitability. In the service quality literature higher quality is assumed to lead to customer satisfaction, which leads to customer loyalty and this drives customer profitability. The framework highlights factors that, in addition to service quality and customer satisfaction, influence the links between service quality and profitability. Also discusses aspects of improving the profitability of relationships, such as enhancing relationship revenues through higher degrees of patronage concentration, and reducing relationship cost by changing the episode configuration of customer relationships. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Service Industry Management Emerald Publishing

Managing Customer Relationships for Profit: The Dynamics of Relationship Quality

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Publisher
Emerald Publishing
Copyright
Copyright © 1994 MCB UP Ltd. All rights reserved.
ISSN
0956-4233
DOI
10.1108/09564239410074358
Publisher site
See Article on Publisher Site

Abstract

Addresses customer‐relationship economic issues, more specifically the link between service quality and profitability from a relationship marketing and management perspective. In this perspective the task of marketing is not only to establish customer relationships, but also to maintain and enhance them in order to improve customer profitability. In the service quality literature higher quality is assumed to lead to customer satisfaction, which leads to customer loyalty and this drives customer profitability. The framework highlights factors that, in addition to service quality and customer satisfaction, influence the links between service quality and profitability. Also discusses aspects of improving the profitability of relationships, such as enhancing relationship revenues through higher degrees of patronage concentration, and reducing relationship cost by changing the episode configuration of customer relationships.

Journal

International Journal of Service Industry ManagementEmerald Publishing

Published: Dec 1, 1994

Keywords: Customer loyalty; Customer satisfaction; Marketing strategy; Pricing; Profitability; Relationship marketing; Service quality

References

  • Relationship Marketing
    Berry, L.M.
  • Customer Analysis for Strategy Development in Industrial Markets
    Campbell, N.C.G.; Cunningham, M.T.
  • Developing Buyer‐Seller Relationships,
    Dwyer, R. F.; Schurr, P.H.; Oh, S.
  • Estimating Zones of Tolerance in Perceived Service Quality
    Liljander, V.; Strandvik, T.

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