MKT 723 Study Guide - Relationship Marketing, Customer Retention, Mammography

• School: Ryerson University
• Department: Marketing
• Course: MKT 723
• Professor: Armand Gervais

Document Summary

Firms primary goal with these potential customers is to initiate communications with them in order to attract and acquire their business: customers as acquaintances- familiarity is established, creating a basis of exchange in relationship. Requires development of trust that it will provide superior value. Confidence benefits- feelings of trust or confidence, sense of reduced anxiety in knowing what to expect. Social benefits- building friendships with the hairdresser makes you not want to switch to a competing firm, sometimes the hairdresser can be your personal confidants. Special treatment benefits- getting the benefit of the doubt , given a special deal or price or getting preferential treatment: eg. Ramyaa gets her doctors notes for free since her family doctor is family friends with her parents. Preferential treatment: benefits for firms, economic benefits. Ability to maintain margins without reducing prices. Lower costs- repeat purchases by established customers require as 90% less marketing expenditure: customer behaviour benefits.