Christian Grönroos

A Service Quality Model and its Marketing Implications

Proposes to develop a service quality model, based on test of a sample of business executives, which describes how the quality of services is perceived by customers. Looks at its marketing implications, in which functional quality is seen to be a very important dimension of a perceived service. Concludes that quality dimensions are interrelated and that the importance of image should be recognised.

The value concept and relationship marketing

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.

Relationship approach to marketing in service contexts: The marketing and organizational behavior interface

Abstract A relationship approach to marketing is described. Marketing in a service context, i.e., concerning both service firms and service operations of manufacturers, is considered especially. The traditional view of marketing as a function for specialists planning and executing a marketing mix may not be altogether true when services are concerned. Instead, marketing can be considered as revolving around relationships, some of which are like single transactions, narrow in scope and not involving much or any social relationship (e.g., marketing soap or breakfast cereals). Other relationships, on the other hand, are broader in scope and may involve even substantial social contacts and be continuous and enduring in nature (e.g., marketing financial or hospitality services). The nature of a relationship marketing strategy is explored. Two interfaces between marketing and organizational behavior, both as business functions and as academic disciplines, which follow from this approach to marketing are discussed, viz., the need for a service culture, and internal marketing. These areas represent a major challenge for marketing and organizational behavior, practitioners and academic alike, to remove traditional borderlines and work together.

From Marketing Mix to Relationship Marketing

Discusses the nature and sometimes negative consequences of the dominating marketing paradigm of today, marketing mix management, and furthermore discusses how modern research into, for example, industrial marketing and services marketing as well as customer relationship economics shows that another approach to marketing is required. This development is supported by evolving trends in business, such as strategic partnerships, alliances and networks. Suggests relationship marketing, based on relationship building and management, as one emerging new marketing paradigm of the future. Concludes that the simplicity of the marketing mix paradigm, with its Four P model, has become a straitjacket, fostering toolbox thinking rather than an awareness that marketing is a multi‐faceted social process, and notes that marketing theory and customers are the victims of today′s mainstream marketing thinking. By using the notion of a marketing strategy continuum, discusses a number of consequences of a relationship‐type ma...

Managing Customer Relationships for Profit: The Dynamics of Relationship Quality

Addresses customer‐relationship economic issues, more specifically the link between service quality and profitability from a relationship marketing and management perspective. In this perspective the task of marketing is not only to establish customer relationships, but also to maintain and enhance them in order to improve customer profitability. In the service quality literature higher quality is assumed to lead to customer satisfaction, which leads to customer loyalty and this drives customer profitability. The framework highlights factors that, in addition to service quality and customer satisfaction, influence the links between service quality and profitability. Also discusses aspects of improving the profitability of relationships, such as enhancing relationship revenues through higher degrees of patronage concentration, and reducing relationship cost by changing the episode configuration of customer relationships.

Value‐driven relational marketing: From products to resources and competencies

Marketing from a relational perspective, or relationship marketing, requires that a firm offers more resources and activities than a core product (goods or services) in order to satisfy the long‐term value needs of its customers. In the present article a value‐driven approach to how such long‐term needs are fulfilled is discussed. The analysis goes beyond the product concept and develops a resources‐and‐competencies approach to the market offer. However, a relational approach to marketing can be expected to be successful only if the firm adopts a true relational intent and the customer is in a relational mode. Therefore, the concepts of relational and transactional intent and relational and transactional mode, respectively, are also introduced and discussed.

Value co-creation in service logic: A critical analysis:

The underpinning logic of value co-creation in service logic is analysed. It is observed that some of the 10 foundational premises of the so-called service-dominant logic do not fully support an understanding of value creation and co-creation in a way that is meaningful for theoretical development and decision making in business and marketing practice. Without a thorough understanding of the interaction concept, the locus as well as nature and content of value co-creation cannot be identified. Value co-creation easily becomes a concept without substance. Based on the analysis in the present article, it is observed that the unique contribution of a service perspective on business (service logic) is not that customers always are co-creators of value, but rather that under certain circumstances the service provider gets opportunities to co-create value together with its customers. Finally, seven statements included in six of the foundational premises are reformulated accordingly.

Quo Vadis, marketing? Toward a relationship marketing paradigm

The marketing mix and its 4Ps have remained the marketing paradigm for decades. In the article it is argued that the foundation for this paradigm is weak and that it has had negative effects on marketing research and practice. Contemporary research into services marketing and industrial marketing demonstrates that a new approach to marketing is required. This new approach is based on building and management of relationships. A paradigm shift in marketing is under way. The thoughts and actions of marketing academics and practitioners should not be constrained by a paradigm from the 1950s and 1960s.

Adopting a service logic for marketing

Following the article by Vargo and Lusch (2004), the use of a service-dominant logic has become an international topic for discussion. In the present article, following the research tradition of the Nordic School, the contribution of service marketing to marketing at large is discussed. In this article a service logic is compared to a goods logic. It is concluded that a service logic fits best the context of most goods producing businesses today. These conclusions are similar to those proposed by Vargo and Lusch (2004). However, there are differences as well, as the approach of the Nordic School is to study services directly in their marketing context and report on how changing marketing contexts influence the logic required for effective marketing.

Service as business logic: implications for value creation and marketing

Purpose – The purpose of this article is to analyze the scope, content and nature of value co‐creation in a service logic‐based view of value creation, addressing the customers perspective in a supplier‐customer relationship. The nature of the activities and the roles of the supplier and the customer in value creation and co‐creation are analyzed. Furthermore, the purpose is to discuss what implications for marketing can be derived from this analysis.Design/methodology/approach – The article analyzes the marketing implications that follow from the pivotal role of interactions in service provision. The article, thus, builds on a long history in service marketing research pointing at the impact on the content and scope of marketing of customer‐supplier interactions.Findings – In this article, it is concluded that creating customer value is a multilaned process consisting of two conceptually distinct subprocesses. These are the suppliers process of providing resources for customers use and the customers ...