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ABSTRACT
This paper presents a literature review and classification of Relationship Marketing (RM) research. A range
of online databases were searched to gain comprehensive knowledge on RM. Several articles were identified
and reviewed for their direct relevance to RM, relevant were subsequently selected. Each of these articles
has been further reviewed and classified. Papers and research on RM categorized into five broad categories
(Relationship Marketing – Understanding, Industry Applications, Market Development, Technological con-
cern and Firm Performance) and further sub-categories. The most popular areas covered by the papers in
the sub-category understanding of RM, Market Development; and RM general, concept, and study followed
by papers in different areas of management like-retail, banking, construction etc. The bibliography provides
an academic database of the literature from various journals. The classification approach provides a means
to conceptualize the coverage of relationship marketing and the relative popularity of CRM topic areas. This
paper provides a roster of field projects accompanied by a comprehensive bibliography that will be useful to
both academics and practitioners for studying existing research as well as for contemplating future research.
Keywords: Classification of RM, Literature Review, Market Development, Relationship Marketing (RM),
RM Publications
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International Journal of Customer Relationship Marketing and Management, 3(1), 56-81, January-March 2012 57
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58 International Journal of Customer Relationship Marketing and Management, 3(1), 56-81, January-March 2012
which ideally attracts new customers through (Dwyer et al., 1987; Palmatier et al., 2006;
its need-meeting character. However, creating Sheth & Parvatiyar, 1995).
customer loyalty among the old customers is one
of the main goals of Relationship Marketing. 3.1.2. Relationship Marketing:
At the same time, Gronroos (1990) developed Concepts, Definitions
relationship marketing as a central theme of and Dimensions
service marketing with no separation between
production, delivery, and consumption, thus the This part of research paper focus on basics
buyer-seller interaction must be considered as of RM like its concept, Definitions given by
part of marketing’s task which can be fulfilled marketing expert & researchers and its dimen-
through relationship with the customer. Rela- sions which lead effective relationship between
tionship marketing is now considered to be a buyer and seller.
feasible strategy in mass consumer markets
(Christy et al., 1996; Gronroos, 1996; Sheth & 3.1.2.1. Concept of Relationship Marketing
Parvatiyar, 1995). The evolution of relationship
marketing has been one of the most signicicant The earlier definition of marketing by Ameri-
developments in marketing over the decades, can Marketing Association (1985), states that
particularly in relation to industrial marketing “Marketing is the process of planning and
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International Journal of Customer Relationship Marketing and Management, 3(1), 56-81, January-March 2012 59
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Table 1. continued
Gummesson (1999) Relationship marketing is marketing based on interaction within networks of relationships.
Harker (1999) An organization engaged in proactively creating, developing and maintaining committed,
interactive and profitable exchanges with selected customers (partners) over time is engaged
in relationship marketing.
Parvatiyar and Sheth Relationship marketing as the “ongoing process of engaging in cooperative and collaborative
(2000) activities and programs with immediate and end-user customers to create or enhance mutual
economic value at reduced cost.”
Gronroos (2000) Process of identifying and establishing, maintaining, enhancing, and when necessary terminat-
ing relationships with customers and other stakeholders, at a profit, so that the objectives of all
parties involved are met, where this is done by a mutual giving and fulfillment of promises.
Vavra (1995); Patoka RM includes efforts to keep customers satisfied after purchase, taking steps to increase the
(2001) likelihood of cross-purchasing, measuring the extent to which customers are satisfied, and
translating the sales process into an effective program complete with two-way dialogue
American Marketing Marketing is an organizational function and a set of processes for creating, communicating,
Association (AMA) and delivering value to customers and for managing customer relationships in ways that
(2004) benefit the organization and its stakeholders.
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62 International Journal of Customer Relationship Marketing and Management, 3(1), 56-81, January-March 2012
Table 2. continued
Mohr et al. (1996); Payan (2007) Coordination The extent to which different parties
in a relationship work well together
to accomplish a collective set of
tasks
De Wulf and Odekerken Schroder Customisation The extent to which a seller uses
(2000); Danaher et al. (2008) knowledge about a buyer to tailor
his offerings to the buyer
Gao et al. (2005) Dependence The extent to which there is no
equivalent of better alternatives
available in the market
Sin et al. (2005) Empathy Seeking to understand the desires
and goals of somebody else
Wilson (1995); Coote et al. (2004) Goal compatibility/ The degree to which partners share
goal congruence goals that could only be accom-
plished through joint action and the
maintenance of the relationship
De Ruyter and Wetzels (1999); Opportunistic behaviour The behaviour of a party that
Delerue-Vidot (2006) endangers a relationship for the
purpose of taking advantage of a
new opportunity
Hunt and Nevin (1974); Ashnai et Power The ability of one individual or
al. (2009 group to control or influence the
behaviour of another
Sin et al. (2005) Reciprocity The component of a business rela-
tionship that causes either party to
provide favours or make allowances
for the other in return for similar
favours or allowances at a later stage
Morgan and Hunt (1994); Sweeney Relationship benefits Partners that deliver superior ben-
and Webb (2007) efits will be highly valued and firms
will commit themselves to establish-
ing, developing and maintaining
relationships with such partners
Wilson (1995); Perry et al. (2002) Relationship-specific investment The relational-specific commitment
of resources that a partner invests in
the relationship
Garbarino and Johnson (1999); Satisfaction An overall evaluation based on the
Barry et al. (2008) total purchase and consumption
experience with a good or service
over time
De Ruyter and Wetzels (1999 Service quality A comparison between customer
expectations and performance
Morgan and Hunt (1994); Vatana- Shared values The extent to which partners have
sombut et al. (2008) beliefs in common about what
behaviors, goals and policies are
important, unimportant, appropriate
or inappropriate, and right or wrong
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International Journal of Customer Relationship Marketing and Management, 3(1), 56-81, January-March 2012 63
Table 2. continued
Burnham et al. (2003); Switching costs The one-time costs that customers
Barry et al. (2008) associate with the process of switch-
ing from one provider to another
Moorman et al. (1993); Orth and Trust A willingness to rely on an exchange
Green (2009) partner in whom one has confidence
Noordewier et al. (1990) Uncertainty The unanticipated changes in the
circumstances surrounding an
exchange
with the company for a long time or even more a major change to adjust the corporate focus
requires lot of efforts. Now industries are from product to customer. Most of the com-
planning to initiate the relationship marketing panies begin their RM programmes with two
programmes specially to maintain relationship key components: data warehousing or customer
with the parties with whom they trading or service call centers.
supplying. Effective relationship marketing
programme provides better results in terms of 3.2.2. RM Practices Adopted by
increased customer base, sales & profitability. Industries
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64 International Journal of Customer Relationship Marketing and Management, 3(1), 56-81, January-March 2012
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International Journal of Customer Relationship Marketing and Management, 3(1), 56-81, January-March 2012 65
(Bennett & Rundle-Thiele, 2004). Customer with a particular company on an ongoing basis”
satisfaction (Table 8) is a substantial issue in In the present economic environment, character-
relationship marketing, particularly those in ized by intense competition and technological
services industries (Keiningham et al., 2005; dynamism, the problems of customer reten-
Garbarino & Johnson 1999). Satisfaction is an tion and customer profitability have become
overall evaluation based on the total Purchase paramount for the success of any business
and Consumption experience with a good or (Gurau & Ranchhod, 2002). Customer retention
service over time. brings some remarkable benefits such as lower
price sensitivity, higher market share, positive
3.3.3. Customer Retention word-of-mouth, lower costs (Reichheld, 1994).
Furthermore, customer retention has often been
Retention (Table 9) can be defined as “a com- assumed as a sign of the customer loyalty.
mitment to continue to do business or exchange
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66 International Journal of Customer Relationship Marketing and Management, 3(1), 56-81, January-March 2012
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68 International Journal of Customer Relationship Marketing and Management, 3(1), 56-81, January-March 2012
is a need to develop a user friendly system by decisions nimbly, and monitoring the pulse of
which a customer can easily interact with the business as it occurs. It is the task of customer
online queries. care officer to update the information for cus-
tomers and solve their as soon as possible.
3.4.3. Real Time CRM System
3.4.4. Security Issues
The goal of the real-time system (Table 14) is
to act on events as they happen. It is the es- Security issues now days are major concern for
tablished practices of event-driven marketing, every firm to protect the information related to
process automation, just-in-time provisioning, customers, firm & suppliers. With the imple-
and business intelligence all rolled into one. It is mentation e-CRM companies are connecting
about getting information out quickly, making with their customer easily but the unauthor-
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Olotu, Maclayton, and Examined the practice of Relationship Banking Finding shows that the
Opara (2010) Marketing Orientation (RMO) in Nigerian Industry banking service sector in
banks. Nigeria need to greatly
improve on the practice
of Relationship Market-
ing Orientation.
Omar and Ali (2010) The study tries to determine the Brand Loy- Banking The value of this study
alty and Relationship Marketing in Islamic industry lies in the fact that it
Banking System places the role of brand
management firmly
in Bank Islam. The
employees of Bank
Islam play a key role in
enhancing good relation-
ship with Bank Islam
customers and exert
considerable influence
on the structure and
culture of a company.
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76 International Journal of Customer Relationship Marketing and Management, 3(1), 56-81, January-March 2012
and enhance the excellence in relationship defection rates (Reichheld & Sasser, 1990).
marketing. The literature review show that an increasing
3. Develop a relationship marketing strategy volume of relationship marketing research has
for increasing customer life time value and been conducted for a diverse range of areas and
maximum satisfaction. few areas are identified where more research
4. What are the relationship marketing initia- is required like market development issues
tives taken by the companies? requires more research on customer retention,
5. How successful are relationship marketing customer lifetime value, Trust and commit-
program in retaining customers & provide ment, customer loyalty, customer satisfaction,
lifetime value? and profitability with changing market needs
and customer preferences. Research is required
5.2. Research Issues on market development through relationship
marketing, what are the reasons of non accep-
In today’s marketing environment where tance of relationship marketing programmes
sustainability of the consumer life time value in industries, initiatives taken by industries to
with a particular organization may not have retain their valuable customers. Although many
any validated assurance. In such a scenario the research carried out in relationship marketing
most important tool available with the firms is and customer relationship marketing but there
to make the customers happy. Such concepts is a need to revive market through development
give birth to “relationship marketing”. It is the of relationship marketing strategies which will
time to honour our customer by finding out their lead to customer share development and retain
need and building mutually satisfying relation customers for life time.
with them. On the basis of literature review
following research issues emerging as a part of
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International Journal of Customer Relationship Marketing and Management, 3(1), 56-81, January-March 2012 81
Ashish Gupta is a research scholar in the School of Management Studies, MNNIT, Allahabad,
India. He is pursuing his research in field of marketing. His research area includes – Relationship
Marketing, CRM and Customer Retention. He holds degree in Management and qualified Uni-
versity Grant Commission’s National Eligibility Test for Lecturership in the area of Management.
Copyright © 2012, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.