Relationship marketing in consumer markets – Rhetoric or reality?

Abstract

Relationship marketing (RM) was conceived as an approach to industrial and service markets, and was considered inappropriate in other marketing contexts. Recently, however, the domain of RM has been extended to incorporate innovative applications in mass consumer markets. Much has changed in a few short years. Recent applications of RM in consumer markets have been facilitated by developments in direct and database marketing within an increasingly competitive and fragmented marketplace. This paper presents a critical review of the history of RM in consumer markets, and incorporates important conceptual, practical, empirical and popular contributions. A number of critical issues which remain unresolved are identified in the paper. These form the basis of ten research propositions which are crucial to justifying and advancing the domain extension into consumer markets.

The blind spot of relationships in consumer markets: the consumer proneness to engage in relationships

“…Relationships are not wholly applicable and present considerable barriers in consumer markets (O'Malley and Tynan 2000), where there are too many customers, with too many variations, often spending relatively small sums. The sheer size of these markets, the lack of consumer interest in a "real" relationship and the persistence of aggressive advertising and sale promotion strategies all make for problems.…”

“…Slowly at first and then with a rush unabated, the growing interest in RM brought mature literature and increased recognition of its benefits (Berry 2002). Many marketing academicians accepted RM as the latest gospel and began spreading it faithfully as loyal disciples (O'Malley and Tynan 2000). Often described as "the JOURNAL OF MARKETING MANAGEMENT, 2008, Vol.…”

Customers’ ways of making sense of a financial service relationship through intersubjective mirroring of others

“…Second, it answers calls for further studies into the applicability of RM in commercial mass-market settings. 20 Third, it answers calls for increased knowledge regarding the applicability of RM in a heterogeneous market because the empirical application is in the fi nancial services industry. 21 This study also sheds new light on the fi nancial crisis of 2008 -2010 as it contributes to a better understanding of the context in which individuals took on too large housing loans.…”

Reassessing Relationships in Consumer Markets: Emotion, Cognition, and Consumer Relationship Intention

“…The majority of consumer relationships are not close and long term but distant and discrete (O'Malley & Tynan, 2000). The marriage analogy is inappropriate in consumer markets, in which a commitment may be attractive to the supplier, but not to the buyer, who incurs the opportunity cost of fidelity (Szmigin & Bourne, 1998).…”

“…However, as the dust begins to settle, questions are being asked about how much of RM is reality and how much is pure rhetoric (Agariya & Singh, 2011;Shrivastava & Kale, 2003). RM practices may not be ubiquitous and may suffer from considerable shortcomings in business-to-consumer (B2C) markets, in which the majority of relationships are not close and long term but rather distant and discrete (O'Malley & Tynan, 2000). Also, the RM literature in consumer markets tends to emphasize 42 Reassessing Relationships in Consumer Markets the seller's point of view to the neglect of the buyer's perspective.…”