Example: Corning - Corning is a committed partner to Apple, manufacturing all the touchscreens for the iPhone
- As new manufacturers step into the market with tougher, lighter, and glossy touchscreens, Corning is forced to innovate to maintain its relationship, as a top supplier, with Apple
- In turn, Apple also devotes attention to Corning’s R&D effort by informing Corning about the desired properties of the new touchscreens (e.g., size, toughness, texture)
- These efforts on the part of Apple and Corning support and strengthen the relationship bond between these partners.
- Cooperative behaviors are coordinated, complementary actions between partners to achieve a mutual goal
- This creates value beyond what each individual firm could do on its own, cooperation increases customers’ flexibility and adaptiveness to sellers’ requests for changes, information, or reciprocation
- If the customer obtains its portion of that created value before the seller (or vice versa), then the seller must wait for the reciprocal benefits
- Commitment encourages the parties to remain in their valued relationships and bonds, even if the reciprocity is delayed or non-equivalent
Relational Loyalty - Relational loyalty is the likelihood that the customer provides the seller benefits in the exchange process due to their relational attitudes and ties
- Relationships positively influence this loyalty, because customers perceive less risk dealing with trusted partners, act on relationally generated belonging, and minimize costs by buying from valued sellers
- Loyalty is very determinant of firm success in competitive marketplaces
Referrals or Word of Mouth (WOM) - Referrals or word of mouth (WOM), reflects the likelihood that a customer comments positively about a seller to others
- Relational bonds, feelings of gratitude, and positive attitudes drive the motivation and willingness to provide requested or unrequested referrals
- Because it is not affected by switching costs or lack of time or motivation, WOM provides an effective indicator of customer loyalty; only customers with strong, trusting relationships are likely to risk their reputations by advocating a seller to another potential customer
- Referrals and WOM differ from loyalty-favored behaviors, because they represent different performance-enhancing pathways
Share with your friends: |
