chapter 6 customer relationships mcgraw-hill/irwin © 2004 the mcgraw-hill companies, inc., all...
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![Page 1: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/1.jpg)
![Page 2: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/2.jpg)
chapter
66
Customer RelationshipsCustomer Relationships
McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
![Page 3: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/3.jpg)
Customer Relationships — Today’s Objectives
Objectives will be to:
Develop a clear definition of relationship
Explore why firms want relationships with their customers
Discuss the relationship stages and interaction intensity
Examine the effects of the Internet and 2Is on customer relationships
Discuss some final points about customer relationships and the Web
![Page 4: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/4.jpg)
Defining Relationship
Why Firms Want Relationships With Their Customers
The Relationship Stages and Interaction Intensity
The Effects of the Internet and the 2Is on Customer Relationships
Some Final Points About Customer Relationships and the Web
EBay Case Study
Conclusion
Chapter 6: Customer Relationships
![Page 5: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/5.jpg)
Chapter 6: Customer Relationships
Defining Relationship
Why Firms Want Relationships With Their Customers
The Relationship Stages and Interaction Intensity
The Effects of the Internet and the 2Is on Customer Relationships
Some Final Points About Customer Relationships and the Web
EBay Case Study
Conclusion
![Page 6: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/6.jpg)
Relationship Type & Involvement Continuums
ExchangeRelationships
CommunalRelationships
Enduring Involvement
Situational Involvement
![Page 7: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/7.jpg)
Relationship Involvement
Automobile
Expensive Watch
Scotch Whiskey
Wine for Dinner Party
Face Soap
Eyeglasses
Paper Towels
Disposable Razor
Liquid BleachInsect Repellent
Salad Oil
Insecticide
Toilet Tissue
35-mm Camera
Stereo Component
Credit Card
Headache Remedy
Hair Coloring
Deodorant Soap
Soft DrinkPotato Chips
Washer/Dryer
High
Low
Product type (cost, level of symbolism, risk)
Purchase situation (visibility, social acceptability)
Consumer type (interests, values, attitudes)
Exhibit 6.2: A Continuum of Relationship Involvement
![Page 8: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/8.jpg)
Chapter 6: Customer Relationships
Defining Relationship
Why Firms Want Relationships With Their Customers
The Relationship Stages and Interaction Intensity
The Effects of the Internet and the 2Is on Customer Relationships
Some Final Points About Customer Relationships and the Web
EBay Case Study
Conclusion
![Page 9: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/9.jpg)
Exhibit 6.4: Length of Customer Tenure and Profitability Relationship
Short Long
Customer Lifetime
Low
Hig
h
Pro
fita
bil
ity
![Page 10: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/10.jpg)
Chapter 6: Customer Relationships
Defining Relationship
Why Firms Want Relationships With Their Customers
The Relationship Stages and Interaction Intensity
The Effects of the Internet and the 2Is on Customer Relationships
Some Final Points About Customer Relationships and the Web
EBay Case Study
Conclusion
![Page 11: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/11.jpg)
Exhibit 6.6: Moving Through the Relationship Stages
CommitmentCommitment DissolutionDissolutionExploration/Expansion
Exploration/Expansion
Customers can advance through the stages in several different ways
AwarenessAwareness
![Page 12: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/12.jpg)
Exhibit 6.7: Two Alternatives for Customers at the Commitment Stage
CommitmentCommitment
Customers can either stay committed or move to dissolution
DissolutionDissolution
StayCommitted
StayCommitted
Satisfied, profitable customers
Unsatisfied or unprofitable customers
![Page 13: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/13.jpg)
Exhibit 6.10: Level of Interaction by Stage of Customer Relationships
Level of Intensity
Four Key Stages of Customer Relationships
Level of Intensity
Stages of Customer Relationships
AwarenessAwareness Exploration /Expansion
Exploration /Expansion CommitmentCommitment DissolutionDissolution
Intensity
![Page 14: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/14.jpg)
Chapter 6: Customer Relationships
Defining Relationship
Why Firms Want Relationships With Their Customers
The Relationship Stages and Interaction Intensity
The Effects of the Internet and the 2Is on Customer Relationships
Some Final Points About Customer Relationships and the Web
EBay Case Study
Conclusion
![Page 15: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/15.jpg)
Are Interactivity and Individualization Always Necessary?
Low Individualization,
Low Interactivity
Example: news service
Low Individualization,
High Interactivity
Example: library
High Individualization,
Low Interactivity
Example: bank statement
High Individualization,
High Interactivity
![Page 16: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/16.jpg)
Exhibit 6.12: Online Privacy Attitudes
![Page 17: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/17.jpg)
Chapter 6: Customer Relationships
Defining Relationship
Why Firms Want Relationships With Their Customers
The Relationship Stages and Interaction Intensity
The Effects of the Internet and the 2Is on Customer Relationships
Some Final Points About Customer Relationships and the Web
EBay Case Study
Conclusion
![Page 18: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/18.jpg)
Price
Product
Promotion
Distribution
Brand
Marketing Levers
Four Key Stages of Customer Relationships
Exhibit 6.13: Integrative Framework: Building Relationships on the Web
AwarenessAwareness Exploration/Expansion
Exploration/Expansion CommitmentCommitment DissolutionDissolution
![Page 19: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/19.jpg)
Chapter 6: Customer Relationships
Defining Relationship
Why Firms Want Relationships With Their Customers
The Relationship Stages and Interaction Intensity
The Effects of the Internet and the 2Is on Customer Relationships
Some Final Points About Customer Relationships and the Web
EBay Case Study
Conclusion
![Page 20: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/20.jpg)
Building Relationships at EBay
Four Key Stages of Customer Relationships
AwarenessAwareness Exploration/Expansion
Exploration/Expansion CommitmentCommitment DissolutionDissolution
No. 1 general auction service on the Internet
EBay encourages browsing before registration for the purpose of exploration
EBay offers (1) community, (2) individualization, and (3) interaction
Users can stop buying or selling at any time
![Page 21: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/21.jpg)
Chapter 6: Customer Relationships
Defining Relationship
Why Firms Want Relationships With Their Customers
The Relationship Stages and Interaction Intensity
The Effects of the Internet and the 2Is on Customer Relationships
Some Final Points About Customer Relationships and the Web
eBay Case Study
Conclusion
![Page 22: chapter 6 Customer Relationships McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved](https://reader035.vdocument.in/reader035/viewer/2022081514/56649d785503460f94a5b7cd/html5/thumbnails/22.jpg)
Customer Relationships —Conclusion The customer relationship stages are:
1. Awareness — The customer recognizes that the firm is a possible exchange partner, but has not initiated any communication with the firm or purchased its products
2. Exploration — The customer considers the possibility of exchange, gathers information and perhaps initiates trial purchases
3. Commitment — The parties in a relationship feel a sense of obligation or responsibility toward each other
4. Dissolution — This stage signals the separation of buyer and seller — the loss of connection
The Internet allows firms to interact and to individualize in powerful ways. As a result, firm-customer relationships can be formed and can progress very quickly
Firms don’t always want a relationship with all customers . . . and vice versa