Essays on The Impact of Relationship Type on Customer Loyalty in the Context of Service Failures Assignment

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The paper "The Impact of Relationship Type on Customer Loyalty in the Context of Service Failures" is a great example of a Marketing Assignment. In the article, “ The Impact of Relationship Type on Customer Loyalty in a Context of Service Failures” , Mattila (2001) explores the effect that relationship types have on the responses and behavioral intentions of customers due to service failures and also in cases of effective service recovery. The relationship types examined in this article include; service relationships, service encounter relationships, and pseudo-relationship. The findings of this article are based on two scenario-based experimental studies conducted in restaurant settings.

The key findings of this study depict that true service relationship with customers is significant in promoting customer loyalty particularly in relation to a failed service recovery attempt. Moreover, this type of relationship minimizes the resistance of customers to premium prices (Mattila, 2001). The key aim of this report is to critically examine the findings and implications of Mattila’ s articles on the effect that relationship types have on the responses and behavioral intentions of customers due to service failures.

Foremost, this report will highlight the key issues and findings depicted in the article. Secondly, it will discuss the implications that the findings of this article have on practitioners. In this case, this report will draw on to relevant marketing and relationship marketing theories. Key findings and issues in the article In this article, Mattila (2001) attempts to establish the influence that three key relationship types have on the responses and behavioral intentions of customers in cases of service failures and effective service recovery. Her study is based on the assumption that service failures are inevitable even in best run service companies.

She draws on to Gutek’ s model to define different interactions or relationships between service companies and their customers. The three relationship types examined in this article include; true service relationships, service encounters, and pseudo-relationship. According to Mattila, true service relationships are characterized by a customers’ repeated contact and interaction with the same service provider whereas service encounter is characterized by customers’ contact and interaction with different providers (Gutek, 1995; Gutek 2000). On the other hand, pseudo relationships are characterized by customers’ interaction with different providers from the same company (Gutek, Bhappu, Liao-Troth & Cherry, 1999). Tax and Brown (2000) observe that, in most cases, service failures have a negative impact on the perception and behavioral response of customers towards the alleged service company.

However, in this article, Mattila suggests that the impact that service failures bring to a service company is dependent on the type of relationship that the company has with its customers. From her research, Mattila basically establishes that service relationships can help to mitigate the negative consequences that come as a result of failed service recovery.

In essence, customers in true service relationships are more willing to forgive their service provider for service failures that customers in service encounters and pseudo relationships. In addition to this, Mattila establishes that service failures often have the strongest negative impact single in cases of single service interaction particularly with regards to the behavioral intentions of customers and their willingness to accept premium prices. Generally, Mattila’ s findings in this article convey that developing a true service relationship with the customer helps to ensure customer loyalty, especially in cases of service recovery.

It can also help to minimize customer’ s resistance to premium prices (Mattila, 2001).

References

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Gutek, B. (1995). The Dynamics of Service: Reflections in the Changing Nature of Customer/Provider Interactions. San Francisco: Jossey-Bass.

Gutek, B., Bhappu, A., Liao-Troth, M. & Cherry, B. (1999), “Dis-tinguishing between Service Relationships and Encounters,” Journal of Applied Psychology, 84 (2): 218-33.

Gutek, B. (2000). “Service Relationships, Pseudo-Relationships and En-counters.” In Handbook of Services Marketing and Management, T.Swartz and D. Iacobucci, eds. Thousand Oaks, CA: Sage, 371-80.

Jha, L. (2008). Customer Relationship Management: A strategic Approach. New Delhi: Global India.

Majumdar, M. (2009). Towards Customer Equity: Should Marketers Shift Focus from Brand Equity. Munich: GRIN Verlag.

Mattila, A. (2001). ‘The Impact of Relationship Type on Customer Loyalty in a Context of Service Failures.’ Journal of Service Research 4(2):91-101

McDonald, M. & Ian D. (2007). Market segmentation: how to do it, how to profit from it. New York: Butterworth- Heinemann.

Morgan, R. & Hunt, S. (1994). ‘The commitment-trust theory of relationship marketing’. Journal of Marketing 58(3): 20-37.

Tax, S. & Brown, S. (2000). “Service Recovery: Research Insights and Practices, ” In Handbook of Services Marketing and Management. Swartz and D. Iacobucci, eds. Thousand Oaks, CA: Sage, 271-86.

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