Relationship marketing can mitigate product and service failures

Abstract

Relationship marketing is beneficial to firms because it can foster customer loyalty and re-patronage behavior. Consumers engaged in relational exchanges are more satisfied than those in discrete transactions because of the ease and psychological comfort of purchasing from a familiar company. This research investigates the power of relationship marketing to mitigate in two situations. One exposes consumers to poor product performance and examines their levels of trust, commitment and satisfaction. The second presents a product failure that is followed by a lapse in service recovery and measures satisfaction and exit behavior. The findings of both studies suggest that relationships make up for increasingly strong negative encounters, providing a level of insulation for the marketer. Implications for service firms are discussed.

Do Switching Barriers Exist in the Online Travel Agencies?

“…Eventually, the retailer will believe the wholesaler's salesperson to be trustworthy (n 9 ), thus potentially raising switching barriers. These interpersonal relationships have been identified in other studies such as Priluck [29] and Chao, Fu and Lu [31] (Table 2). …”

“…Research in marketing demonstrates that interpersonal relationships bond customers with their retailers [27,28]. Conversely, close interpersonal relationships may motivate retailers to willingly give their service providers a second chance to redress any service failure [29].…”

The Effects of Interaction Experience and Product Involvement on Decision Making of Purchase: The Corporate Facebook Page

“…Not only companies promote their products but communicate with customers establishing positive relationship through Facebook pages. Through this, well-made relationship can make a great result compared to the past issue that was insufficient based on the relationship with customer before [39] and can be an important factor in the aspect of improving product quality [40].…”

The Effect of Service Failure on Customer Switching Intention in the Tourism Industry

“…Priluck (2003) considered that customers dissatisfied with service providers may terminate the business transaction, or provide negative reviews (Chang, 2015), both of which cause damage to the enterprise. Zheng Shaocheng, Wu Jiajie (2003) noted that the gravity of the service failure will cause halo effect and domino effect of two properties.…”