Chapter 7: Relationship-Based SCA

Question 1

Relationship Marketing

Answer 1

Identifying, developing, maintaining, and terminating relational exchanges to improve performance (produces relationship equity)

Question 2

CRM

Answer 2

Managerially relevant, organization-wide, customer-focused application of relationship marketing using IT to achieve performance objectives

Question 3

Relationship Equity

Answer 3

The aggregation of relational assets and liabilities

Question 4

Four Mechanisms of Relationship Equity Influencing Financial Outcomes

Answer 4

1. Cooperative behaviours
2. Relational Loyalty
3. Referrals or WOM
4. Empathetic behaviors

Question 5

What are 4 important factors of interpersonal relationships?

Answer 5

1. Gratitude
2. Reciprocity
3. Trust
4. Commitment

Question 6

What is gratitude?

Answer 6

The sentiment that immediately and directly prompts us to reward. Catalyst for starting relationships.

Question 7

What should be done at the exploratory/early stage?

Answer 7

• Use gratitude communication
• Use competency-based strategies to
  build reciprocity norms and explore
  potential

Question 8

What should be done at the growth/development stage?

Answer 8

Use bilateral investments to exploit relationship potential
Company: Personalized services/loyalty programs

Customer: Feedback and engagement

Question 9

Who is RM more effective for?

Answer 9

Customers that are relationship-oriented

Question 10

What should be done at the maturity/maintain stage?

Answer 10

Don’t neglect (ongoing communication and investments) or betray (unfairness and conflict) customers

Question 11

What should be done at the decline/recovery stage?

Answer 11

Use communication together with compromise to rebuild relationships and avoid exchanges based solely on dependence.

Question 12

What are the two steps to building relationship equity?

Answer 12

1. Developing a strong relationship foundation (communication + employee training)
2. Implementing targeted RM and loyalty programs

Question 13

What are the different RM programs?

Answer 13

1. Social RM Programs
2. Structural RM Programs
3. Financial RM Programs

Question 14

Give examples of each of the RM programs

Answer 14

1. Social RM
   Social engagements like meals and
   sporting events to convey customer’s
   special status
2. Structural RM
   Investments that customers might
   not make themselves, like
   customized packaging
3. Financial RM
   Provide economic benefits like
   discounts, giveaways, free shipping