The value concept and relationship marketing

TLDR

The value concept underpins relationship marketing, requiring superior value provision beyond mere quality perception to meet customers’ quality improvement needs and willingness to pay, thereby addressing cost considerations for both parties. The study proposes that reducing customer‑perceived costs is a recommended way to deliver value, potentially enhancing internal cost efficiency. The authors recommend lowering customer‑perceived costs as a mechanism to provide value and improve internal cost efficiency. Reducing customer‑perceived costs enables mutually profitable customer relationships, a key goal of relationship marketing.

Abstract

The value concept is a basic constituent of relationship marketing. The ability to provide superior value to customers is a prerequisite when trying to establish and maintain long‐term customer relationships. Stresses the fact that the underlying construct of customer satisfaction is more than a perception of the quality received. What must be taken into account as well is the customer’s need of quality improvements and his willingness to pay for it. From a relationship perspective these aspects are fundamental, since they are both related to the costs of the parties involved. Suggests that a reduction in customer‐perceived costs may be a most recommendable method of providing value to the customer, since, done properly, it can improve the internal cost efficiency as well. It is then possible to establish and maintain mutually profitable customer relationships, which is of prime concern in relationship marketing.