Consumer-Firm Relationship and Bonding - Essay Example

Consumer-Firm Relationship and Bonding March 7th 2006 Bonding - Analysis of review The dissertation lays out various definitions of the term bonding and includes definitions of relationship marketing proposed by a number of leading researchers in the field. The review clearly illustrates that bonding has its roots in early childhood and that intrinsic behaviors infants display can be applied and used in other areas such as customer bonding in day to day business. The review highlights the work of many researchers who have conducted studies on bonding (Sheth, Parvatiyar, Morgan, Hunt, Berry, Dwyer, Schurr, Gronroos and Bowlby).

Various definitions of relationship marketing have been proposed and all term it as dynamic and meaningful. Some claim that behaviors people adopt, simplify the buying experience, reduce risks and maintain a psychological level of comfort. Others describe it as attracting, maintaining and enhancing customer relationships. These relationships go through hierarchical chain of events and development phases including exchanges, transactions through which customers receive psychological benefits. The relationships are earned through transactions.

Relationship marketing sets out to establish, maintain, develop and commercialize so that objectives of both the customer and the marketer is met. This is done by mutual exchange and promise fulfillment. Relationship marketing can be viewed as relationships, interactions and networks connecting customers to customers, suppliers to customers, suppliers to suppliers as well as competitors. It includes employing tactical elements like customer contact, customer database management and customer-oriented service.

Strategic elements re-characterize the business as a service business and view the organization as a process instead of a function. The dissertation considers all relationships as having life cycles and questions whether relationship marketing is the development of a new marketing paradigm. Marketing literature offered by firms increasingly point towards a shift towards consumer-firm relationship building measures and do indicate a development of a new paradigm. Other theorists claim that relationship marketing is not the development of a new paradigm, but a focus towards more discipline in the marketing domain.

Nowadays many firms consider their customers as long term partners rather than one-off transactions and firms that recognize this foster loyalty and commitment by strengthening customer-firm relationships. This can attain the bond state through a natural process or a progression of steps. Once customers are familiarized with the firm's products and services the interaction phase develops. Three interactional elements or points of contact are: 1) product/brand interaction 2) service interaction 3) influence of company representatives.

The paper also talks of gender orientation which is another aspect of relationship marketing. The view is that firms with greater association with femininity are likely to engage in long-terms relationships with the customers. The paper posits that consumers may be willing to try new innovative products and services but may be unwilling to engage in a long-term commitment with a firm. Consumers with a low inclination towards innovation may be reluctant to try out new products and services of a competing company and wait until they reach better comfort levels.

Customer satisfaction occurs after interaction with a firm and is the precursor to repeat purchase behavior signifying commitment, trust and loyalty to the firm. The dissertation points out that the frequency rate or the number of exposures to the firm influences the relationship between interaction and satisfaction. The more interaction the customer has with the firm the stronger the bond. Customer-firm relationships cannot be directly observed and so its presence can be addressed by highlighting possible outcomes of the relationship.

For this, four consequence variables may be defined; commitment, loyalty, price sensitivity, eagerness to spend some effort. The paper defines bonding as a continuous on-going process like a commitment. Certain consumers, having strong bonds with a firm, desire to maintain these strong bonds. It describes a consumer's commitment as a subjective mental association of wanting to continue a relationship with a company. Association has three attributes: Personal commitment, moral commitment and structural commitment.

The paper also hints at the problems with the customer-firm relationship model, that input factors do not always guarantee a positive output, ie. "Not all satisfied customers will be brand loyal." The customer-firm bond can act as a link between the input process and the outcome. Factors influencing customer-firm model are proximity, closeness, security, familiarity and reduced anxiety. Bowlby, proposed attachment theory and indicated that instinctive bonding behaviors are motivated by care-giving of infants, separation anxiety, defense and susceptible periods of early development.

In conclusion, the dissertation has talked of customer-firm relationships and that bonding may improve the outcome of all the variables associated with customer-firm relationship. ReferencesLiterature review and explanation of customer-firm relationship and bonding experience