Discuss about the Relationship Marketing Productivity Paradigm.
Service quality has become the area of importance for today’s managers, researchers, and practitioners due to its relation with customer satisfaction. In today’s globalized industry, service quality has been the matter of getting aid from the competitors. It is also important for its relation to the customer retention, costs, and profitability.
This study will present the concepts and theories of service quality. The study will also outline the role and importance of relationship marketing in the marketing theory and practice. It will also critically review the service quality and relationship marketing literature. In addition to this, the study will also portray the connections between the service quality and relationship marketing literature.
Service quality has turn out to be the area of importance for today’s managers, researchers, and practitioners due to its relation to customer satisfaction. In today’s globalized industry, service quality has been the matter of getting aid from the competitors. It is also important for its relation with the customer retention, costs, and profitability (Gupta, McDaniel and Kanthi Herath, 2005). It is now considered as a significant characteristic of company’s financial and marketing performance. In terms of definition, service quality is measured as a valuation of how well a conveyed service imitates to the clients’ perceptions. Service suppliers often review their service quality that has been delivered to the clients for improving their service, and to identify the problems. It is also done for assessment of customer’s satisfaction (Kang and James, 2004). Thus, service quality is the progression of handling the superiority of services delivered to the customers in terms of his or her expectations and perceptions. It is about how well the service has been provided in order to advance the superiority in future and to identify the problems on the services provided.
Many studies have been conducted to evaluate the service quality. Most of the initial work of studies regarding service quality came from Parasuraman et al 1985; this study noticed that inconsistencies existed between the organizations and consumer expectations are mainly of the service quality that has been delivered (Kang and James, 2004). Parasuraman et al 1985, developed the SERVQUAL scale, which consists of 22 expectations and 22 perception questions that ranged from strongly agree to strongly disagree. After the adaptation of the study, the SERVQUAL scale was developed as a model that comprises of five proportions, namely, tangibles, reliability, responsiveness, assurance and empathy. The study proposed a tool that puts into operating the five proportions and gaps model of service quality. The GAP model of Parasuraman et al 1985 projected that service quality is the purpose of the variances between the expectancy and enactment along the quality proportions (Kang, Jame and Alexandris, 2002). The five gaps of the GAP model are the variance between purchaser expectancy and management awareness, variance between management awareness of consumer anticipations and service quality stipulations, difference between the service stipulations and provisions and service actually conveyed, difference between the services delivered and communications about the service, and variance between the customer’s hope and delivered service.
The technical and functional quality paradigm of Gronroos 1984, states that a corporation in order to contest positively must have a perceptive of consumer awareness of the superiority and the way through which the service is conveyed (Quality service, 2004). Managing service quality indicates that the company has to equal the predictable service of the customers so that their satisfaction can be achieved. Haywood- Farmer, 1988 stated another attribute service quality paradigm that defines that service providers have high functionality if it manages to meet the customer perceptions and expectations consistently. The study outlined that service quality has three basic characteristics namely, physical services, people’s manners, and specialized judgment.
It is evident that various studies have been proposed for the service quality models and it completely states that the importance of the concept of service excellence has been amplified. The majority of the service quality paradigm supports the SERVQUAL model of Parasuraman et al 1985. People nowadays are elaborated in all kinds of service area, from educational establishments, health centres, and shipping to baking (Svensson, 2003). Service is seriously playing a crucial role in corporation’s maneuvers. Thus service excellence has appeared as a key approach embraced by the business to offer quality provision facility to the consumers. As for illustration, in the banking segment, where alike products are accessible, banking officials give much-focused attention to service provisions (Zeithaml and Parasuraman, 2004). It is for the reason that, service quality does not only influence the customer-decision building process but also effects the customer approval, faithfulness and business endurance and purchase retention.
Relationship marketing is termed as the aspect of customer relationship management which mainly emphases on purchaser loyalty and long-term customer commitment with the company. It is implemented in a company to solidify the connections between the customer and company by providing them with the information that suits the consumer needs and interests (Palmer and Bejou, 2006). It is done by seeking customer’s interests and by prompting an open communication. Relationship marketing is the marketing happenings that are intended at mounting the trust and long-term associations with the valuable patrons (Bejou and Palmer, 2013). In relationship marketing, purchasing patterns, purchaser’s profile and account of contacts are maintained with the sales catalogue. Relationship marketing thus is not only taken up as a marketing approach but also as the establishment on which organizations shape their core value and morals. It describes the context for the business enterprises to reach and prepare themselves for the marketplace, to the end consumers, and to the business partners. Companies now are recognizing the human quotient and emotional measure of the business interactions. Thus, relationship marketing can be considered as the regulation that assists companies to look over the businesses to establish long-term relationships (Bush, Underwood and Sherrell, 2007).
From the last few years, professionals and researchers attentive more on how businesses relate to their marketplaces which stemmed in the appearance of marketing which is referred as relationship marketing. Some author considers relationship marketing as a process while some considers it as a strategic organization (Bush, Underwood and Sherrell, 2007). Morgan and Hunt 1994 have demarcated relationship marketing as the publicizing actions which are focused towards launching and preserving effective relational exchanges. According to McKenna 1991, relationship marketing efforts to contain and assimilate the customers, vendors and other business partners for the company’s expansion and marketing actions. Wilson 1995 has précised various affiliation aspects that affect the relationship of the firm with dissimilar stakeholders (Das, 2009). These aspects are trust, commitment, mutual goals, cooperation, structural bonds, and comparison level of alternatives, adaption and shared bonds. Morgan and Hunt 1994, while stating the relationship variables were more anxious about the assurance and trust as the chief variable that imitates the relationship between the dissimilar parties. Some authors like Gummesson 1994 and Heide 1992, states that relationship marketing is a set of interactions and networks.
One of the most important variables that have been examined in the relationship marketing is the context of satisfaction (Gupta and Sahu, 2012). Satisfaction here is the customer effective and emotional state against the relationship with the companies. According to Kotler 2006, satisfaction is the customer’s feeling against the comparative judgment of products performance and expectations towards the company’s services.
There are various descriptions of relationship marketing and many of the reading have specified that relationship marketing is about accepting, dealing exchange relationships between the partners, numerous channel members and last consumers. In the current business situations, relationship marketing is termed as and approach that is developed to create a long-term relationship with the customers, measuring the happiness level and developing effective and efficient programs to preserve the customers with the concern (Johns, 2012). Relationship marketing, emphases on attracting and maintaining the relationships, between corporation and the consumers. It is about generating efficient communication with the customers and delivering it for enhancing the value with the customers. Relationship marketing is evolving in the field of marketing and its other dimensions. Its role has expanded towards the company’ core product. It is augmented towards the differentiation that the firm is offering in the marketplace.
It is now true that modern business revolve around customers. Every organization has understood that meeting the customer needs is the way to increase the sales and revenue. Relationship marketing does not only consider about the better relationships with the customer markets but also in development of relationships with the suppliers, internal and influence markets (Johns, 2012). Some of the importance of relationship marketing is described below:
Relationship marketing helps in developing the relationships with the suppliers. In modern business, organizations are moving towards mutual support and cooperation. Companies are now aware about the benefits to be gained together to meet the needs of the final consumers.
Relationship marketing helps companies to have its connection with the recruitment markets. It helps in maintain the connection to the organizations which provides human resources to the organization (Oakley and Bush, 2012). Service providers have to cultivate long-term relationships with the suppliers of human resource to ensure that they can have the right employees.
It also helps in marinating the connections with the referral markets. It is important for the companies to have connections with these markets to generate business (Oakley and Bush, 2012). It also involves a closer alignment with the three important areas of business such as marketing, service quality and customer service.
For generating sales and increasing the revenue, connection between the business and its customers are important. Likewise, for a service to be properly efficient, service providers must continue to attract the consumers by delivering them services which meet their needs and perceptions (Palmer and Bejou, 2006). In this business situation, globalization has become the utmost important. A factor that determines the ways to create loyalty among the consumers has become the essential matter for the companies. In order to take advantage of the huge market potentiality, companies have to investigate the factors that produce the loyalty by understanding the consumer perceptions. By keeping in mind the increasing competition, it is now important for the business firms to become customer-oriented by understanding their needs and by supplying the services that fills the gap between the customer needs and the service offered (Siems, Bruton and Moosmayer, 2010). The popularity of relationships marketing from the assumption that creating customer relationships will lead the company to increase its profits in the form of customer loyalty and increased buying has been in focus of the companies. Relationship marketing has been put into the open as a way for companies to create mutually beneficial and valuable long-term relationships with the consumers.
Relationship marketing is absolutely connected to the customer loyalty and thus it is also absolutely related to the service quality. Relationship marketing is termed as the feature of customer relationship management which mostly focuses on customer loyalty and long-term customer commitment with the company (Vieira, 2010). It is implemented in a company to solidify the connections between the customer and company by providing them with the information that suits the consumer needs and interests. Relationship marketing is mentioned as a marketing process for enticing, developing and maintains the customer relationships (Zeithaml and Parasuraman, 2004). Preserving long-term associations with the customers and growing the customer fulfillment are highly related to the profitability of the businesses. Crosby et al 1990 in his study noted that relationships play a very critical role in affecting the customer loyalty and service quality of the company. Many studies have stated that good quality relationships mean that customers are able to find and have the trust and confidence in buying the products and services of the company through a continuous sense of satisfaction (Zeithaml and Parasuraman, 2004). Other studies about the relation between the relationship marketing and service quality indicate that when consumers are aware of the continuous, better service quality, they are more willing to create and maintain a long-term relationship. After finding the services as satisfactory, customers are more loyal towards the company and express a higher sense of trust towards the services.
For enhancing sales, it is important for the organizations to have interactions with the customers and it has become majority in the current business situations. Likewise, for giving a pleasant service to customers, service providers must continue to impress the customers with their unique and satisfactory services (Kang, Jame and Alexandris, 2002). This conception is based on the argument that customer’s perceptions, loyalty are driven with the understanding, mutuality and cordiality of the relationships. According to the definitions of relationship marketing, the main objective of relationship marketing is to influence patrons in the firm’s effort to communicate with them in service delivery. It also offers possibilities for service providers to listen and address the concern and needs of the customers in order to promote customer value and satisfaction (Vieira, 2010). Thus, relationship marketing develops a framework of guidelines in order to personalize the service delivery, where each of the customers is made to believe that the service is especially made for them and they are valuable for the customers.
Relationship marketing is becoming the basis of services of marketing in many businesses. By specific observation, this happening is more declined and more characteristic towards the financial services and hospitality sectors (Kang, Jame and Alexandris, 2002). Consequently, relationship marketing is positively related towards the service quality and customer satisfaction. Though many authors like Saxena 2013, and Dinh & Pickler 2012, argues that in the light of positive effect of relationship marketing on service quality is insignificant when the relationships executives and service providers do not imply emotional intelligence in the provision of the service.
However, the influence of relationship marketing on service quality is largely affected by emotional intelligence. This is due to the power of the bond between the relationship marketing and service quality diminishes expressively when the influence of emotional intelligence to relationship marketing is engaged away (Oakley and Bush, 2012). This means, when service providers do not indulge emotional intelligence in serving the customers, relationship marketing does not make any positive impact on service quality. Likewise, relationship marketing also does not make any significant effect when its positive influence over the customer satisfaction is taken away. Thus, without the effect of emotional intelligence, relationship marketing does not positively affect the service quality (Oakley and Bush, 2012). It is important that firms which are customer oriented use customer service executives who can apply emotional intelligence in their service delivery. They must be provided with special training programs to get trained with the execution of emotional intelligence on service quality.
Experimental marketing is a way of advertising that emphases on serving the customers to face a brand. Though the customary advertising method benefits the organization, but experimental marketing tries to submerge with the customers within the merchandise by fetching as many human senses as conceivable (Schembri and Sandberg, 2011). It can formulate a range of other marketing approaches from individual sampling to large scale guerrilla marketing. The motive of global marketing is to improve a memorable and emotional linking in between of shopper and brand.
Experimental marketing allows a customer to experience the brand. It embodies the messaging that people can touch, feel or view in the physical space (Schmitt, 2011). The main objective of experimental marketing is to form a notable connection between the purchaser and the brand in order to generate customer loyalty and thus lastly influencing the purchase decision. When a customer likes the product or service of a specific company and believes that the company is doing its best to provide him or her service, he or she is to be more loyal towards the brand. They get associated with the memorable emotions with the brands (Hernandez, Basso and Brandão, 2014). Customer’s perceptions about the brand essence can be changed by making them go through a significant experience in an experimental marketing event and the impact will majorly be positive.
Conclusion
It has been found in the study that service quality is playing a crucial role in business’s processes. It has appeared as a key approach implemented by the corporation to offer excellence service to the consumers. It also outlined that service quality does not only influence the customer-decision making process but also impacts the customer pleasure, loyalty and business survival and purchase retention.
The findings of the study indicates that for enhancing sales, it is important for the organizations to have interactions with the customers and it has become majority in the current business situations. Relationship marketing is becoming the foundation of services of marketing in many businesses. Relationship marketing is absolutely related to the purchaser loyalty and thus it is also positively related to the service quality.
References
Bejou, D. and Palmer, A. (2013). The Future of Relationship Marketing. 1st ed. Hoboken: Taylor and Francis.
Bush, R., Underwood, J. and Sherrell, D. (2007). Examining the Relationship Marketing, Marketing Productivity Paradigm. Journal of Relationship Marketing, 6(2), pp.9-32.
Das, K. (2009). Relationship marketing research (1994?2006). Marketing Intelligence & Planning, 27(3), pp.326-363.
Gupta, A. and Sahu, G. (2012). A Literature Review and Classification of Relationship Marketing Research. International Journal of Customer Relationship Marketing and Management, 3(1), pp.56-81.
Gupta, A., McDaniel, J. and Kanthi Herath, S. (2005). Quality management in service firms: sustaining structures of total quality service. Managing Service Quality: An International Journal, 15(4), pp.389-402.
Hernandez, J., Basso, K. and Brandão, M. (2014). Experimental Research in Marketing. Revista Brasileira de Marketing, 13(02), pp.98-117.
Johns, R. (2012). Relationship Marketing in a Self-Service Context: No Longer Applicable?. Journal of Relationship Marketing, 11(2), pp.91-115.
Kang, G. and James, J. (2004). Service quality dimensions: an examination of Grönroos’s service quality model. Managing Service Quality: An International Journal, 14(4), pp.266-277.
Kang, G., Jame, J. and Alexandris, K. (2002). Measurement of internal service quality: application of the SERVQUAL battery to internal service quality. Managing Service Quality: An International Journal, 12(5), pp.278-291.
Oakley, J. and Bush, A. (2012). Customer Entertainment in Relationship Marketing: A Literature Review and Directions for Future Research. Journal of Relationship Marketing, 11(1), pp.21-40.
Palmer, A. and Bejou, D. (2006). The Future of Relationship Marketing. Journal of Relationship Marketing, 4(3-4), pp.1-10.
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Schembri, S. and Sandberg, J. (2011). The experiential meaning of service quality. Marketing Theory, 11(2), pp.165-186.
Schmitt, B. (2011). Experiential marketing. 1st ed. New York: Free Press.
Siems, F., Bruton, J. and Moosmayer, D. (2010). Integrating Core Marketing Ethical Values Into Relationship Marketing. Journal of Relationship Marketing, 9(2), pp.68-82.
Svensson, G. (2003). A generic conceptual framework of interactive service quality. Managing Service Quality: An International Journal, 13(4), pp.267-275.
Vieira, A. (2010). Relationship Marketing and the Philosophy of Science: A Tribal Journey Through Relationship Quality. Journal of Relationship Marketing, 9(2), pp.83-97.
Zeithaml, V. and Parasuraman, A. (2004). Service quality. 1st ed. Cambridge, MA: Marketing Science Institute.
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