Lecture

1. Lecture 10 Customer Relationships

2. Customer Relationships — Today’s Objectives • Objectives will be to: • Develop a clear definition of relationship • Explore why firms want relationships with their customers • Discuss the relationship stages and interaction intensity • Examine the effects of the Internet and 2Is on customer relationships • Discuss some final points about customer relationships and the Web

3. Customer Relationships • Defining Relationship • Why Firms Want Relationships With Their Customers • The Relationship Stages and Interaction Intensity • The Effects of the Internet and the 2Ison Customer Relationships • Some Final Points About Customer Relationships and the Web • EBay Case Study • Conclusion

4. Customer Relationships • Defining Relationship • Why Firms Want Relationships With Their Customers • The Relationship Stages and Interaction Intensity • The Effects of the Internet and the 2Ison Customer Relationships • Some Final Points About Customer Relationships and the Web • EBay Case Study • Conclusion

5. Relationship Type & Involvement Continuums Enduring Involvement Exchange Relationships Communal Relationships Situational Involvement

6. A Continuum of Relationship Involvement High Automobile 35-mm Camera Expensive Watch Stereo Component Product type (cost, level of symbolism, risk) Eyeglasses Scotch Whiskey Hair Coloring Wine for Dinner Party Washer/Dryer Purchase situation (visibility, social acceptability) Relationship Involvement Face Soap Credit Card Salad Oil Deodorant Soap Insecticide Headache Remedy Consumer type (interests, values, attitudes) Liquid Bleach Insect Repellent Disposable Razor Potato Chips Soft Drink Paper Towels Low Toilet Tissue

7. Customer Relationships • Defining Relationship • Why Firms Want Relationships With Their Customers • The Relationship Stages and Interaction Intensity • The Effects of the Internet and the 2Ison Customer Relationships • Some Final Points About Customer Relationships and the Web • EBay Case Study • Conclusion

8. Length of Customer Tenure and Profitability Relationship High Profitability Low Short Long Customer Lifetime

9. Customer Relationships • Defining Relationship • Why Firms Want Relationships With Their Customers • The Relationship Stages and Interaction Intensity • The Effects of the Internet and the 2Ison Customer Relationships • Some Final Points About Customer Relationships and the Web • EBay Case Study • Conclusion

10. Moving Through the Relationship Stages Customers can advance through the stages in several different ways Awareness Exploration/ Expansion Commitment Dissolution

11. Two Alternatives for Customers at the Commitment Stage Customers can either stay committed or move to dissolution Stay Committed Satisfied, profitable customers Commitment Dissolution Unsatisfied or unprofitable customers

12. Level of Interaction by Stage of Customer Relationships Four Key Stages of Customer Relationships Awareness Exploration / Expansion Commitment Dissolution Level of Intensity Level of Intensity Intensity Stages of Customer Relationships

13. Customer Relationships • Defining Relationship • Why Firms Want Relationships With Their Customers • The Relationship Stages and Interaction Intensity • The Effects of the Internet and the 2Ison Customer Relationships • Some Final Points About Customer Relationships and the Web • EBay Case Study • Conclusion

14. Are Interactivity and Individualization Always Necessary?

15. Online Privacy Attitudes

16. Customer Relationships • Defining Relationship • Why Firms Want Relationships With Their Customers • The Relationship Stages and Interaction Intensity • The Effects of the Internet and the 2Ison Customer Relationships • Some Final Points About Customer Relationships and the Web • EBay Case Study • Conclusion

17. Price Product Promotion Distribution Integrative Framework: Building Relationships on the Web Four Key Stages of Customer Relationships Awareness Exploration/ Expansion Commitment Dissolution Marketing Levers Brand

18. Customer Relationships • Defining Relationship • Why Firms Want Relationships With Their Customers • The Relationship Stages and Interaction Intensity • The Effects of the Internet and the 2Ison Customer Relationships • Some Final Points About Customer Relationships and the Web • EBay Case Study • Conclusion

19. Building Relationships at EBay Four Key Stages of Customer Relationships Awareness Exploration/ Expansion Commitment Dissolution EBay encourages browsing before registration for the purpose of exploration No. 1 general auction service on the Internet Users can stop buying or selling at any time EBay offers (1) community, (2) individualization, and (3) interaction

20. Customer Relationships • Defining Relationship • Why Firms Want Relationships With Their Customers • The Relationship Stages and Interaction Intensity • The Effects of the Internet and the 2Ison Customer Relationships • Some Final Points About Customer Relationships and the Web • eBay Case Study • Conclusion

21. Customer Relationships —Conclusion • The customer relationship stages are: • Awareness — The customer recognizes that the firm is a possible exchange partner, but has not initiated any communication with the firm or purchased its products • Exploration — The customer considers the possibility of exchange, gathers information and perhaps initiates trial purchases • Commitment — The parties in a relationship feel a sense of obligation or responsibility toward each other • Dissolution — This stage signals the separation of buyer and seller — the loss of connection • The Internet allows firms to interact and to individualize in powerful ways. As a result, firm-customer relationships can be formed and can progress very quickly • Firms don’t always want a relationship with all customers . . . and vice versa