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Marketing Models of Service and Relationships

Published: 01 November 2006 Publication History

Abstract

Given the growth of the service sector, and advances in information technology and communications that facilitate the management of relationships with customers, models of service and relationships are a fast-growing area of marketing science. This article summarizes existing work in this area and identifies promising topics for future research. Models of service and relationships can help managers manage service more efficiently, customize service more effectively, manage customer satisfaction and relationships, and model the financial impact of those customer relationships. Models for managing service have often emphasized analytical approaches to pricing, but emerging issues such as the trade-off between privacy and customization are attracting increasing attention. The trade-offs between productivity and customization have also been addressed by both analytical and empirical models, but future research in the area of service customization will likely place increased emphasis on e-service and truly personalized interactions. Relationship models will focus less on models of customer expectations and length of relationship, and more on modeling the effects of dynamic marketing interventions with individual customers. The nature of service relationships increasingly leads to financial impact being assessed within customer and across product, rather than the traditional reverse, suggesting the increasing importance of analyzing customer lifetime value (CLV) and managing the firm's customer equity.

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    cover image Marketing Science
    Marketing Science  Volume 25, Issue 6
    November 2006
    215 pages

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    INFORMS

    Linthicum, MD, United States

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    Published: 01 November 2006

    Author Tags

    1. complaint management
    2. customer equity
    3. customer lifetime value
    4. customer relationship management
    5. customer retention
    6. customer satisfaction
    7. customization
    8. e-service
    9. pricing of services
    10. relationship marketing
    11. return on quality
    12. service demand
    13. service design
    14. service guarantees
    15. service productivity
    16. service quality
    17. services marketing
    18. word of mouth

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