Relationship Marketing

Re-Imagined

Relationship Marketing
Re-Imagined
Marketings Inevitable Shift from
Exchanges to Value Cocreating
Relationships
Naresh K. Malhotra, Can Uslay,
and Ahmet Bayraktar

Relationship Marketing Re-Imagined: Marketings Inevitable Shift from

Exchanges to Value Cocreating Relationships
Copyright Business Expert Press, LLC, 2016.
All rights reserved. No part of this publication may be reproduced,
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First published in 2016 by
Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
www.businessexpertpress.com
ISBN-13: 978-1-63157-433-7 (paperback)
ISBN-13: 978-1-63157-434-4 (e-book)
Business Expert Press Marketing Strategy Collection
Collection ISSN: 2150-9654 (print)
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Cover and interior design by Exeter Premedia Services Private Ltd.,
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Printed in the United States of America.

I dedicate this book to my precious children, Ruth and Paul, with love.
For ye are all the children of God by faith in Christ Jesus.
Galatians 3:26, The Holy Bible
Naresh K. Malhotra
I dedicate this book to Kaan, may he grow up to author many books!
Can Uslay
I dedicate this book to my lovely wife, Humeyra, whose love and support I
cherish; to our sweet little baby, Tarik Tuna, whom we love so much; and to
my parents, who support and encourage me in all my endeavors.
Ahmet Bayraktar

Abstract
Marketing is arguably amidst a paradigm shift. Marketing orientation is
shifting away from creating exchanges (sales) to creating value (satisfaction) and relationships (cocreating value). Ultimately, the main objective
of all marketing activities is value creation. In vast majority of cases, value
is cocreated by several agents, especially the marketers and customers.
From a value cocreation perspective, a single transaction can blossom to a
process in which the customer and the marketer collaborate (rather than
negotiate) for best total value through products, features, delivery terms,
maintenance, and financing options for both business-to-business (B2B)
as well as business-to-consumer (B2C) markets. Marketers increasingly
need to develop and maintain long-term, winwin relationships with
customers, distributors, dealers, suppliers, competitors, and other external influencers such as governments, media, nonprofit organizations, and
pressure groups.
In this book, we advocate an approach for managing customer relationships based on the use of the customer lifetime value (CLV) metric.
Our premise is that measuring and maximizing CLV benefits not only
marketers but also customers in measurable and concrete ways. However,
in order to fully unlock the potential of the CLV metrics, it is instructive
to be exposed to the history and conceptualization of relationship marketing, its three main types (B2B, B2C, and internal), and the nature
of loyalty and rewards programs. We conclude with a discussion on the
future of relationship marketing and the frontiers of value cocreation.
Cases that illustrate the essence of each chapter along with key points to
ponder and take-aways are presented therein.

Keywords
B2B relationships, B2C relationships, customer lifetime value, customer
loyalty, customer relationship management, customer satisfaction, electronic relationship marketing, internal marketing, loyalty and rewards
programs, mindful relationship marketing, relationship marketing, value
cocreation

Contents
Prefacexi
Book Description..................................................................................xiii
Chapter 1 Introduction......................................................................1
Chapter 2 What Is Relationship Marketing?.....................................11
Chapter 3 B2B Relationship Marketing...........................................25
Chapter 4 B2C Relationship Marketing...........................................63
Chapter 5 Internal Relationship Marketing......................................81
Chapter 6 Building Brand Equity Through Relationship
Marketing........................................................................91
Chapter 7 Customer Relationship Management Analytics..............103
Chapter 8 Future of Relationship Marketing..................................131
Notes135
References147
Index159

Preface
This book is about creating long lasting relationships with customers as
opposed to one-night stands or one-off transactions.
The field of marketing is changing in a much more dramatic fashion than ever, and fields ranging from retailing to entertainment to education are being reformed in the new digital world order. Some of the
long-standing marketing traditions are being challenged. For example,
would you be doing your customers a favor if you give them deep discounts or even an option to pay what they want? Recent research findings
suggest otherwise.
Amidst this influx of change, it has become increasingly important
for firms to count on loyal customers for higher margins, steadier revenue
streams, and positive word-of-mouth. However, brands do not have to
be aspirational to be relational. And high customer loyalty does not necessarily mean that the brand is perceived to be high-end. Furthermore,
marketers increasingly need to manage winwin relationships that extend
beyond customers such as those with distributors, dealers, suppliers, competitors, and other external influencers such as governments, media, nonprofit organizations, and pressure groups.
The area of relationship marketing has met with great interest, has
experienced tremendous growth during the last three decades, and has
become a legitimate field of academic inquiry. But we have come to a
major crossroad. Availability of big data and more capable microprocessors enables microsegments or even segments for one (enabling total customization). Will the large firms that adopt the state-of-the-art customer
relationship management techniques be able to overcome their customer
focus disadvantages against smaller firms specializing in serving market
niches, or succumb to immediate profit motives and lack of personal noncorporate touch? Sheer datamining can create high return on investment
for marketers in the short run but is likely to lead to consumer backlash
due to consequences such as excessive promotional activities or invasion
of consumer privacy. We expect many giants to falter and believe that we

xii Preface

will observe many striking examples of such errors of judgment in the

near future. Small firms can still overcome goliaths as long as they rely on
the foundational premises of relationship marketing.
Marketers of firms, small and large, must not lose sight of the fact
that relationship marketing is ultimately about cocreating value with customers. From coconception, codesign (Threadless.com) to coproduction
(IKEA), copricing (eBay, Priceline.com), copromotion (Yelp.com, IMDb.
com), onto codistribution (peer-to-peer networks), comaintenance, and
codisposal (HP ink cartridges), value is cocreated throughout the supply
chain.
This book is about reimagining marketing for the 21st-century executive, and celebrating the fact that it has moved on from its traditional
focus on exchanges to value cocreating relationships. We begin by discussing the history and conceptualization of relationship marketing. We
then shift our focus to its three main types (B2B, B2C, and internal), and
the nature of loyalty and rewards programs, and electronic relationship
marketing. We introduce the reader to customer relationship management analytics, the customer lifetime value metric, as well as several of
its variants. We provide a discussion of the future of relationship marketing and the possible frontiers of value cocreation. In each chapter, cases
that illustrate the essence of that chapter along with key points to ponder
and take-aways are presented. Thus, we present the theoretical concepts
with an applied and managerial orientation. We hope that this book will
help in unlocking the mystery of mindful and transformative relationship
marketing for business executives and students alike. Happy reading!
Naresh K. Malhotra
Can Uslay
Ahmet Bayraktar

Book Description
Marketing is arguably amidst a paradigm shift. Marketing orientation
is shifting away from creating exchanges (sales) to creating value (satisfaction) and relationships (cocreation of value). Ultimately, the main
objective of all marketing activities is value creation. In the vast majority of cases, value is cocreated by several agents, especially the marketers
and customers. From a value cocreation perspective, a single transaction
can blossom to a process in which the customer and the marketer collaborate (rather than negotiate) for best total value through products,
features, delivery terms, maintenance, and financing options for both
business-to-business (B2B) as well as business-to-consumer (B2C) markets. Furthermore, marketers increasingly need to develop and maintain
long-term, winwin relationships that extend beyond customers, such as
those with distributors, dealers, suppliers, competitors, and other external influencers such as governments, media, nonprofit organizations, and
pressure groups. The 21st-century marketer must also understand how
customer relationship management (CRM) analytics works.
This book advocates managing customer relationships based on the
use of the customer lifetime value (CLV) metric. The premise is that
measuring and maximizing CLV benefits not only marketers but also
the customers in measurable and concrete ways. The reader is exposed
to the history and conceptualization of relationship marketing, its three
main types (B2B, B2C, and internal), the nature of loyalty and rewards
programs, and CRM analytics. A discussion of the future of relationship
marketing and the possible frontiers of value cocreation is provided. In
each chapter, cases that illustrate the essence of that chapter along with
key points to ponder and take-aways are presented.
Business executives, marketing students, and those who are interested
in learning about the transformative power of relationship marketing and
CRM analytics in the business enterprise would highly benefit from reading this book.

CHAPTER 1

Introduction
Marketing is arguably amidst a paradigm shift. Marketing orientation is
shifting away from creating exchanges (sales) to creating value (satisfaction) and relationships (cocreating value). Ultimately, the main objective
of all marketing activities is value creation.1 Figure 1.1 illustrates this
paradigm shift in marketing orientation.
In the vast majority of cases, value is cocreated by several agents, especially the marketers and customers. For example, a healthy patient in the
United States is an outcome of the joint efforts of marketers who inform
the customer and doctors of the benefits of available medication or treatments and distribute the offering, the doctors who diagnose and prevent
illnesses and endorse medications, and last but not least, the patient who
needs to actively engage to take the medication on time, diet, and exercise. From a value cocreation perspective, a single transaction can blossom
to a process in which the customer and the marketer collaborate (rather
than negotiate) for best total value through products, features, delivery
terms, maintenance, and financing options for both business-to-business
(B2B) as well as business-to-consumer (B2C) markets.2
Point to Ponder: Can you think of a service where value is not jointly
created by the marketers and the customer? How about products?
All interactions with customers represent potential relationships,
some more enduring than others. Ranging from a brief single transaction (e.g., purchasing popcorn at a concession stand) to semipersistent
(e.g.,subsequent purchase of two Chevrolet sedan cars but then switch
to Toyota, or according to a recent successful campaign I dont always
drink beer, but when I do, I prefer Dos Equis) to lifelong relationships
(e.g., lifetime subscription to Cosmopolitan magazine; always ordering
Coke). Indeed, it is possible to imagine these relationships as a pyramid,

2 RELATIONSHIP MARKETING RE-IMAGINED

Longterm
Customer
relationship
perspective

Value
cocreation

Value
distribution

Transaction
perspective
Shortterm

Figure 1.1 The paradigm shift in marketing orientation

Source: Adapted from Sheth and Parvatiyar (2000, 137).

with single transactions as fad affairs in the bottom, semipersistent

relationships in the middle, and lifelong relationships at the top. Price
becomes more and more important as we move toward the fleeting relationships deep down in the pyramid. Generally speaking, marketers strive
to turn the pyramid upside down and have more of the enduring relationships and fewer of the fleeting ones. However, as we discuss, there are
exceptions to this rule. An enduring relationship may not always be the
most attractive option for both the marketers and the customers.3
We cannot emphasize enough that the primary means for success and
survival in a competitive landscape is through differentiation of offerings (so that goods and services come to be coveted brands and signature
services). The marketers primary assignmentgenerating, developing,
maintaining, and managing customer relationshipsare at the very heart
of these differentiation efforts. The phrase managing customer relationships sounds off-putting, but in some cases that is precisely what needs
to be done. According to Kotler, smart marketers try to build up longterm, trusting, winwin relationships with customers, distributors, dealers, and suppliers.4 We can extend this to competitors and other external
influencers such as governments, media, nonprofit organizations, and
pressure groups. During the current information age, we are witnessing the revival of the relationship orientation that was deemphasized
during the industrial era.5 In fact, management guru Peter Drucker had

 Introduction 3

powerfully argued that this is a task that needs to permeate throughout

the whole organization. To him, marketing was just too important to be
left to the marketing department, not matter how able.6
Similarly, relationship marketing (RM) is too important to be fully
exposed in a single volume and has indeed become a staple theme that
permeates through many business bestsellers. While customer acquisition
is important, it is even more important to retain existing customers once
they have tried your products and services. Having a smaller number of
loyal customers might really be preferred over a larger number of customers who are defecting. Therefore, communicating with and marketing to
your existing customers can be even more vital than appealing to prospective customers.

Reimagining Relationship Marketing

Marketing organizations often face two conflicting realitiesreduced
marketing resources while having to ensure profitable customer management. The key to resolve these conflicts lies in optimal resource allocation.
Traditionally, firms have misallocated their resources. The common wisdom is that loyal customers are more profitable. However, recent evidence
casts doubts on this; loyal customers may not always be the most profitable or even profitable. Therefore, for effective resource allocation, organizations should allocate resources based on the (current and potential)
profitability of customers. This calls for relationship management that has
been deemed to be a priority topic for both marketing management and
entrepreneurship.7 In this book, we advocate an approach for managing
customer relationships based on the use of the customer lifetime value
(CLV) metric (see Chapter 7). Our premise is that measuring and maximizing CLV benefits not only marketers but also customers in measurable
and concrete ways. However, in order to fully unlock the potential of the
CLV metrics, it is instructive to be exposed to the history and conceptualization of RM (Chapter 2); its three main types, B2B (Chapter3),
B2C (Chapter 4), and internal (Chapter 5); and the nature of loyalty and
rewards programs (Chapter 6). We conclude with a discussion on the
future of RM and the frontiers of value cocreation (Chapter 8).
However, before we introduce further content, we give you a flavor of
RM with a classic case, namely, that of Ritz Carlton.

4 RELATIONSHIP MARKETING RE-IMAGINED

The Ritz-Carlton, Boston. The room rate was $15 when it opened in
1927.
Source: The Boston Public Library.

Case-in-Point: The Ritz-Carlton

The Ritz-Carlton is the only hotel company to ever receive the prestigious
Malcolm Baldrige National Quality Award and one of the only two U.S.
firms to ever receive it twice.8 They must be doing some things right! The
Malcolm Baldrige distinction is based on the evaluation of leadership,
strategic planning, customer and market focus, measurement analysis and

 Introduction 5

knowledge management, human resources focus, process management,

and business results (sounds curiously like relationship marketing? Yes,
and hopefully, by the end of this volume, things will fall into place).
The Ritz-Carlton, Boston, serves as a landmark for its home city as
well as a quality benchmark for all Ritz-Carlton hotels around the globe.
The Boston location redefined luxurious hospitality when it first opened
in 1927 with offerings such as
Private bath in each guest room
Lighter fabrics in the guest room to allow for more thorough
washing
White tie and apron uniforms for the wait-staff, black tie for
the Maitre d and morning suites for all other staff, conducive
to a formal, professional appearance
Extensive fresh flowers throughout the public areas
A la carte dining, providing choices for dinners
Gourmet cuisine, using the genius and cooking methods of
Auguste Escoffier
Intimate, smaller lobbies for a more personalized guest
experience.
While some of the offerings in the above list may have diminished in
their competitive edge during the past eight decades, the last item, personalized experience in a luxury setting is probably still the main differentiator of the hotel chain. Although he did not live to see the opening of the
Boston location, the philosophy and spirit of Ritz-Carlton can be traced
to Cezar Ritz, the king of hoteliers and hotelier to kings. Catering to the
elite and wealthy, Ritz-Carlton insisted on maintaining the privacy of its
guests. The reputation of the hotel was also protected, for example, vacant
room lights were at times left on to project the impression of success. The
hotel maintained its own upholstery and furniture. As such, they were
able to customize the rooms for important guests. For example, Winston
Churchills room was reupholstered in his favorite color, red.
Nevertheless, it took more than sufficient funds to stay at this formal
establishment, and the privilege could take its toll on some guests. Guests
backgrounds were checked regularly to ensure that they were in Whos Who

6 RELATIONSHIP MARKETING RE-IMAGINED

and other publications. Even the use of poor-quality writing paper could
cause the denial of a reservation. At the time, Boston society was formal and
so was the hotel. Management insisted on dress codes, and women could
not lunch alone in The Caf or enter the bar area unescorted as late as 1970!
Old wealth and aristocracy diminished after World War II; several
Ritz-Carltons had to close their doors and the remaining locations had to
adapt. Thus, management began targeting the international businessmen
with expense accounts. By 1968, 70 percent of the guests at the Paris
location were American businessmen.9
In the 1980s, the company was reorganized into the Ritz-Carlton
Hotel Company and bought by Marriott International in 1998. Despite
the tough economic times and turmoil that limited travel around the
world, the bottom line of the company has also gradually improved.
Today, the company operates 87 hotels in 29 countries across the globe
and employs 35,000 employees. It continues to annually top the list of
American Automobile Association (AAA) five diamond properties in the
United States. Gold standards of Ritz-Carlton that cover its values and
philosophy include the following:10
The Credo
The Ritz-Carlton Hotel is a place where the genuine care and comfort of
our guests is our highest mission. We pledge to provide the finest personal
service and facilities for our guests who will always enjoy a warm, relaxed,
yet refined ambience. The Ritz-Carlton experience enlivens the senses,
instills well-being, and fulfills even the unexpressed wishes and needs of
our guests.
Service Values: I Am Proud to Be Ritz-Carlton
1. I build strong relationships and create Ritz-Carlton guests for life.
2. I am always responsive to the expressed and unexpressed wishes and
needs of our guests.
3. I am empowered to create unique, memorable, and personal experiences for our guests.

 Introduction 7

4. I understand my role in achieving the key success factors, embracing

community footprints, and creating the Ritz-Carlton mystique.
5. I continuously seek opportunities to innovate and improve the
Ritz-Carlton experience.
6. I own and immediately resolve guest problems.
7. I create a work environment of teamwork and lateral service so that
the needs of our guests and each other are met.
8. I have the opportunity to continuously learn and grow.
9. I am involved in the planning of the work that affects me.
10. I am proud of my professional appearance, language, and behavior.
11. I protect the privacy and security of our guests and my fellow
employees and the companys confidential information and assets.
12. I am responsible for uncompromising levels of cleanliness and
creating a safe and accident-free environment.
Lets take a look at the some of the process and performance outcomes
of the above gold standards:
Service: Every Ritz-Carlton employee undergoes more than
100 hours customer service training annually.
Every employee is empowered to build relationships and emotional engagement. Helping a guest is more important than
anyones daily duties. The employees are approved to spend as
much as $2,000 to delight a guest with a customer-service
issue.11
Increase in family travel prompted a cross-functional team
from Atlanta and the headquarters to develop a guestroom
child safety program POLO (Protect Our Little Ones). They
benchmarked childrens programs, interviewed customers, and
tested and piloted the program.
Mystique is the company-wide database that enables the
hotel staff to meet and anticipate repeat customer preferences.
Employees are trained to take notes of individual guests likes
and dislikes. The database enables the staff to personalize the
experience of the guests.

8 RELATIONSHIP MARKETING RE-IMAGINED

Every guestroom is maintained, deep cleaned, and renovated

with CARE (clean and repair everything) program every
90 days at the most.
Based on the customer research, customers are checked in
according to their needs and expectations. For example, business travelers are checked in efficiently, whereas leisure guests
are offered a more extensive check-in with champagne and a
more lengthy presentation of the hotel services and amenities.
After two years of research, a five-tier wedding program was
designed and launched to meet the bride and grooms needs
from the initial telephone call to the first anniversary.
To serve their customers better and improve profitability, the
Ritz-Carlton has undertaken several brand extensions. It now includes a
spa division, a private club management division, the Ritz-Carlton Residences (condominiums), the Ritz-Carlton Club (second home alternative), and the Ritz-Carlton Leadership Center (an educational division).
The Ritz-Carlton Corporate Social Responsibility
The Ritz-Carlton also emphasizes and fulfills social responsibility through
its community footprints program. Their focus is on hunger and poverty relief, well-being of children, and environmental conservation. Their
recent Give Back Getaways program enables the guests of the hotel to
combine volunteer work with travel and give back to the community. The
Ritz-Carlton staff (or Ladies and Gentlemen as referred to by the company) and the volunteers work together, and all profits from the volunteer
vacations are donated to charitable partners.
Overall, the company does a superb job of using both human touch
and technology to build relationships with customers, employees, and
other stakeholders. Organizations such as GMs Cadillac division look up
to the example of Ritz-Carlton to improve their performance, and their
employees undergo training by Ritz-Carlton staff.12

 Introduction 9

Ritz-Carlton, Istanbul is an iconic, upscale hotel overlooking the

Bosphorus. It was voted the best luxury hotel in Turkey in 2015.
Source: Wikimedia.

Index
Alliance coordination, 56
Alliance learning, 56
Alliance scanning, 5556
American Airlines, case study, 98100
Antecedents
behavioral, 34
channel relationships. See Channel
relationships
structural, 3435
Apple and Clearwell, strategic
partnership, 6162
Authoritative control mechanism, 35
Behavioral antecedents, 34
Behavioral outcomes, B2C markets,
68
Behavior loyalty, 103
Business-to-business (B2B)
relationship marketing
alliance partnership capabilities,
5556
authoritative control mechanism,
35
business-to-consumer vs., 6567
calculative commitment, 4445
capability, 3739
cause-related marketing, 5153
conflict management, 3941
contractual control mechanism, 35
cooperation and collaboration, 27
cross-sector alliances, 5758
dependence, 2930
environmental influence market,
5153
with government, 51
history of, 2528
interpersonal and
interorganizational
satisfaction, 37
investor relationship marketing,
5051
key factors, 28
knowledge acquisition, 5657

loyalty commitment, 4546

manufacturers to suppliers, 4748
with media, 51
normative control mechanism,
3536
relationship commitment, 30
right channel partner, 3637
role of, 2528
standardization networks, 54
strategic alliances. See Strategic
alliances
supplier relationship management,
4849
technology-oriented alliances, 53
trust, 3031
trust-based performance
improvement, 5860
Business-to-consumer (B2C)
relationship marketing
behavioral outcomes, 68
business-to-business vs., 6567
citizenship behaviors, 7374
commitment, 71
confidence benefits, 70
consumer engagement, 7778
customer loyalty, 7172
customer retention orientation,
69
Gaylord Opryland Hotel, case
study, 7879
history of, 6465
opportunistic behaviors, 72
organizational outcomes, 68, 7475
personalization, 7576
psychological outcomes, 68
relational market behavior, 6768
role of, 6465
satisfaction, 70
social benefits, 70
special treatment benefits, 70
trust, 7071
Business units, as internal customers,
8586

160 Index

Calculative commitment, 4445

Capability
relationship behavioral, 39
relationship infrastructure, 38
relationship learning, 3839
Case studies
Orlando Magic, 128129
Statistical Analysis System (SAS),
128129
Trusted Media Brands, 126127
Case studies
American Airlines, 98100
eatiplyTM, 6061
Gaylord Opryland Hotel, 7879
IKEA, 2023
Kickstarter, 100101
Ritz-Carlton Hotel, 49
Starbucks, 8889
Zappos, 8788
Cause-related marketing, 5153
Channel relationships, 2930
conflict management, 3941
manufacturer to distributors and
retailers, 4446
Channel relationships, antecedents
communication, 3233
opportunistic behavior, 3334
relationship benefits, 3132
relationship termination, 31
shared values (norms), 32
Citizenship behaviors, 7374
Co-marketing, 9395
Commitment, B2C markets, 71
Communication, 3233
Competitor relationships, 53
Confidence benefits, 70
Conflict management, 3941
Consumer engagement, 7778
Consumer ethnocentrism, 55
Consumer-level outcomes, B2C
markets, 68
Contractual control mechanism, 35
Cooperative relationships, 53
CRM. See Customer relationship
management
Cross-sector alliances, 5758
Customer lifetime value (CLV)
customer equity to shareholder
value and, 123124

implementation of, 124

individual calculation, 114117
measurement of, 113114
product-centric to customer-centric
framework, 124125
Rust, Zeithaml, and Lemon model,
118119
segment-wise calculation, 111113
strategies for, 120123
Customer relationship management
(CRM)
benefits of, 105
CLV metrics, 105, 108
CRM analytics, 103129
customer lifetime value. See
customer lifetime value (CLV)
historical development, 106107
loyal customers, 103104
managing, 107108
Orlando Magic, case study,
128129
past customer value, 109110
recencyfrequencymonetary value,
108109
share of wallet, 109
solution providers, 125
Statistical Analysis System (SAS),
case study, 128129
strategy and measurement,
104105
traditional measures, 110111
Trusted Media Brands, case study,
126127
Customer retention orientation, 69
Customer satisfaction, 82, 84
Dependence, 2930
Domestic country bias, 55
Drucker, Peter, 23
eatiplyTM case study, 6061
Electronic relationship marketing
(e-RM), 9598
Employees, as internal customers,
8485
Environmental influence market,
5153
e-RM. See Electronic relationship
marketing

 Index 161

Gaylord Opryland Hotel, case study,

7879
IKEA, case study, 2023
Interdependence, 2829
Internal marketing, 8182
Internal relationship marketing
business units, 8586
customer-oriented culture, 85
definition, 8182
employees, 8485
history of, 8184
role of, 8184
Starbucks, case study, 8889
Zappos, case study, 8788
Interpersonal and interorganizational
satisfaction, 37
Kickstarter, case study, 100101
Knowledge acquisition, 5657
Loyalty commitment, 4546
Loyalty programs
future of, 9394
history of, 93
terminologies of, 92
Marketers primary assignment, 2
Marketing orientation
description, 1
paradigm shift, 12
Mindful relationship marketing,
133134
Normative control mechanism, 3536
Opportunistic behaviors
B2B markets, 3334
B2C markets, 72
Organizational outcomes, B2C
markets, 68, 7475
Orlando Magic, case study, 128129
Personalization, 7576
Psychological outcomes, B2C
markets, 68

Recencyfrequencymonetary (RFM)
value, 108109
Relational market behavior, 6768
Relationship behavioral capability, 39
Relationship benefits, 3132
Relationship commitment, 30, 71
Relationship customization, 76
Relationship infrastructure capability,
38
Relationship learning capability,
3839
Relationship marketing (RM)
definitions, 1314, 16
downstream opportunities, 4143
electronic, 9598
external influence markets, 4950
frontiers for value cocreation,
131133
historical perspectives, 1113
IKEA, case study, 2023
investor relationship marketing,
5051
level 1 of, 1618
level 2 of, 18
level 3 of, 1819
mindful, 133134
reimagining, 3
Ritz-Carlton Hotel, case study, 49
taxonomy of, 1415
upstream opportunities, 4647
Relationship orientation, 2, 12
Relationship termination, 31
Rewards programs. See Loyalty
programs
Ritz-Carlton Hotel, case study, 49
RM. See Relationship marketing
RM programs, 7778
Satisfaction, 70
Shared values (norms), 32
Social benefits, 70
Social media, 9598
Special treatment benefits, 70
Standardization networks, 54
Starbucks, case study, 8889
Statistical Analysis System (SAS),
casestudy, 128129

162 Index

Strategic alliances
alliance partnership capabilities,
5556
cross-sector alliances, 5758
knowledge acquisition through,
5657
technology-oriented alliances, 53
trust-based performance
improvement, 5860
types of, 5455
Structural antecedents, 3435
Supplier relationship management,
4849

Technology-oriented alliances, 53
Trust
B2B markets, 3031
B2C markets, 7071
Trust-based performance
improvement, 5860
Trusted Media Brands, case study,
126127
Value cocreation, 131133
Zappos, case study, 8788