TAILIEUCHUNG - RELATIONSHIP MARKETING IN MASS MARKETS

During Subaru’s 14-year history with the gay and lesbian communities, the company has cultivated an unwavering, authentic relationship with key external stakeholders. While Ford Motor Company has also partnered with the gay and lesbian communities for over a decade, its track record is troubled. Ford was entangled in a 2005-06 battle over gay advertising with two opposing stakeholders: the conservative American Family Association (AFA) and numerous gay organizations. Despite its gay-friendly outreach, Ford handled the boycott in a secretive, indirect manner that led to many questions – from both stakeholder groups. To understand why Ford was. | RELATIONSHIP MARKETING IN MASS MARKETS C. B. Bhattacharya Emory University Ruth N. Bolton University of Maryland Bolton Ruth N. and C. B. Bhattacharya Relationship Marketing in Mass Markets Handbook of Relationship Marketing Jagdish N. Sheth and Atul Parvatiyar Eds. 2000 Sage Publications Thousand Oaks CA 327-54. INTRODUCTION There is considerable evidence that organizations are increasingly applying relationship marketing concepts in mass markets. The business press abounds with examples ranging from Citibank usage rewards to Saturn picnics . Aaker 1994 . These various approaches to developing stronger bonds with customers are typically characterized as customer retention programs loyalty based management or one-to-one marketing strategies Reichheld 1996 Peppers and Rogers 1993 . Many of these new marketing practices have been enabled by advances in information and communications technology and the availability of new exchange forums such as the World-Wide-Web and the Internet. The focus of relationship marketing is frequently considered to be customer retention because retention is less costly than acquisition Fornell and Wernerfelt 1987 Reichheld 1996 and small increases in retention rates can have a dramatic effect on the profits of a company Fornell and Wernerfelt 1987 1988 Reichheld and Sasser 1990 . For example existing customers tend to purchase more than new customers . Rose 1990 and in most cases there are efficiencies in dealing with existing customers as compared to new customers Reichheld 1996 . However relationship marketing can refer to all marketing activities directed toward establishing developing and maintaining successful relational exchanges Morgan and Hunt 1994 . Thus following Berry 1983 p. 25 we define relationship marketing as marketing activities that attract maintain and enhance customer relationships. This chapter focuses on relationship marketing in mass markets -- that is in markets in which customers that is potentially .

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