Roderick J. Brodie

Customer Engagement Conceptual Domain, Fundamental Propositions, and Implications for Research

In today’s highly dynamic and interactive business environment, the role of “customer engagement” (CE) in cocreating customer experience and value is receiving increasing attention from business practitioners and academics alike. Despite this interest, systematic scholarly inquiry into the concept and its conceptual distinctiveness from other, associated relational concepts has been limited to date. This article explores the theoretical foundations of CE by drawing on relationship marketing theory and the service-dominant (S-D) logic. The analysis also examines the use of the term “engagement” in the social science, management, and marketing academic literatures, as well as in specific business practice applications. Five fundamental propositions (FPs) derived from this analysis are used to develop a general definition of CE, and distinguish the concept from other relational concepts, including “participation” and “involvement.” The five propositions are used in the development of a framework for future research, the undertaking of which would facilitate the subsequent refinement of the conceptual domain of CE. Overall, CE, based on its relational foundations of interactive experience and the cocreation of value, is shown to represent an important concept for research in marketing and service management.

How Firms Relate to Their Markets: An Empirical Examination of Contemporary Marketing Practices

The authors examine 308 firms in the United States and four other Western countries to understand how different types of firms relate to their markets. Comparative analysis shows that though there is some support for consumer and goods firms being more transactional and business and service firms being more relational, there are many exceptions. The results also show that firms can be grouped into those whose marketing practices are predominantly transactional, predominantly relational, or a transactional/relational hybrid. Each group constitutes approximately one-third of the sample and includes all types of firms (consumer goods, consumer services, business-to-business goods, and business-to-business services). This suggests that marketing practices are pluralistic and managerial practice has not shifted from transactional to relational approaches per se.

Towards a paradigm shift in marketing? An examination of current marketing practices

In recent years, the traditional Transaction approach to marketing has been challenged to the point where a number of authors have suggested that a “paradigm shift” is occurring. The “newparadigm” is commonly referred to as Relationship Marketing, and has been used to reflect a number of different types of relational marketing activity, including Database, Interaction and Network marketing. This paper investigates current marketing practice to clarify the relevance of these alternative approaches using four case studies and a survey of 134 firms. The results do not support the notion of a complete “paradigm shift”. Rather, the findings show that for many firms, transactional marketing is relevant and practised concurrently with various types of relational marketing. It is concluded that while relational marketing issues are currently receiving attention from academics and practitioners alike, the role of transactional marketing should not be ignored or underestimated.

Understanding contemporary marketing: Development of a classification scheme

The term Relationship Marketing has been used in a multitude of ways to describe and define marketing in the contemporary environment. This has led to the term being loosely defined and applied in the literature, resulting in frustration for both researchers and practitioners. Therefore, a classification scheme is developed from analysis of the extant literature, and used to systematically examine the meaning of marketing across twelve dimensions which reflect issues related to marketing practice. From this scheme, the authors identify two ‘perspectives’ of marketing, which encompass four distinguishable ‘types’ of marketing. Implications for future research in the area are discussed.

An investigation of marketing practice by firm size

Abstract In a review of the state of knowledge at the marketing/entrepreneurship interface, Muzyka and Hills (1993) posed the following question: “Just how well do existing marketing models and the traditional marketing paradigm fit the environment, behavior, and processes found in entrepreneurial organizations?” This is a particularly important issue to consider given that small firm practices have historically been assessed in the context of existing marketing models: models based on large firm practices. Perhaps not surprisingly, small firm marketing practices have generally been criticized as non-traditional, informal, short-term, and non-strategic. However, given that the marketing discipline is undergoing a transformation with new paradigms of thought emerging (for example, relationship marketing), is it now appropriate to assess small firm practices in the context of a broader, more contemporary perspective. This research examines the relevance of the traditional marketing paradigm to smaller firms, in terms of market planning, the type of marketing practiced, and the use of performance measures. Smaller firm practices are compared with those of larger firms in the context of a framework that integrates both the transactional and relational schools of marketing thought. Thus, both traditional and emerging paradigms are considered. Three hypotheses are examined using a self-administered survey designed to collect quantitative and qualitative data pertaining to the firms various marketing practices and processes. The sample consists of 302 firms reflecting two similar sub-samples of managers attending part-time executive programs in New Zealand n = 192 , and Canada n = 110 . These managers represent firms of varying size, age, growth rate, use of technology, and industry sector. Analysis was controlled for each of these variables, with firm size being the primary unit of analysis. The results show that in certain areas, marketing practices differ between smaller and larger firms. For example, size-related differences are reflected in the approach to market planning, where smaller firms are found to be more informal than larger firms. Smaller firms also use fewer ways to measure market performance than larger firms. At the same time, the findings also indicate that small firm marketing practices are similar to those of larger firms in many ways, with both transactional and relational marketing relevant across firm size. For example, similarities can be identified in the intent of marketing decisions, the expected duration of customer relationships, the nature of customer contact, and where firms invest marketing resources. The results show that both types of firms practice aspects of the traditional transaction view of marketing, and also emphasize the development and management of personal relationships with individual customers, and efforts to position the firm in a net of various market relationships. These latter practices reflect the more contemporary relational marketing paradigm. Overall, this study enriches our understanding of marketing practices by viewing them in the context of a contemporary framework. By taking a more modern and integrated view of marketing, the study also provides greater realism to our appreciation of issues at the marketing/entrepreneurship interface. On one hand, it confirms that the traditional models related to market planning and performance measurement are not fully evidenced in the practices of smaller firms. These results clearly support the mainstream entrepreneurship literature. On the other hand, the study also shows aspects of the traditional paradigm do fit the environment, behaviors, and processes found in entrepreneurial organizations. More importantly however, the findings show that to understand and assess small firm practices, we must move beyond the traditional marketing paradigm to appreciate a broader, more modern perspective. In doing so, we find evidence that the types of marketing practiced by smaller and larger firms are not, in fact, fundamentally different. In terms of practical implications for managers of smaller firms, investment (time, personal effort, and financial resources) should be placed in both individual relationships and the development of the firms position in a network of firms. As the firm grows, this understanding of relational marketing will serve the firm well, given managers in larger firms report a perceived need to improve their skills in this area. The traditional view of marketing is also relevant to smaller firms. By learning how to competently manage the areas of product, price, promotion, and distribution in a manner appropriate to the smaller firm, the organization can develop a base on which to develop customer relationships, and also the capacity to compete as a larger organization. With regards to planning and performance measurement, a number of implications can also be drawn. For example, smaller firms are more informal than larger firms in terms of their market planning. As managers in these firms seem to want to improve their planning processes, it might be suggested that this in fact be done. However, since this study does not link planning to market performance, it is inappropriate to suggest that smaller firms should become more formal, as their informality may well be an inherent characteristic of an entrepreneurial organization (and not necessarily a weakness). In terms of performance measurement, the results of the study show that smaller firms tend to rely primarily on financial indicators. Thus, managers should be aware of the risk of being myopic and seek to capitalize on their close market contact by better use of customer feedback. They might also learn from the more holistic approach taken by larger firms. Managers should, however, question the relevance of market performance measures in the context of their specific firm and its environment and not simply adopt formal large firm tools without due consideration.

The service brand and the service-dominant logic: missing fundamental premise or the need for stronger theory?

It is increasingly being recognized that brands play a major role in contributing to the value of service businesses (e.g. Berry, 2000; de Chernatony, 2003). However, in their award-winning article about the emerging service-dominant logic, Vargo and Lusch (2004) pay little attention to branding. This article explores the case for integrating branding into the service-dominant logic (S-D logic). We review how diverse perspectives of brands relate to the S-D logic and then examine Rust, Zeithaml and Lemons (2000) claim that brand equity is a component of the concept of customer equity. Next we review some recent research about brands in relationships and then examine whether there is a missing fundamental premise in the S-D logic about the service brand. Finally we consider the development of stronger underlying theory that integrates the concepts of brand equity, customer equity and network equity into the S-D logic.

Consumer evaluations of brand extensions: Further empirical results

Abstract A replication of Aaker and Kellers study of consumer evaluations of brand extensions examines the extent to which the findings of this exploratory study generalise. We provisionally conclude that consumer acceptance of a proposed brand extension will tend to be higher if: (1) the perceived quality of the brand is high, (2) there is perceived fit between the two product categories, especially in terms of the transferability of the skills and the complementarily of the two products, (3) the extension is in a category which is difficult to make. However, further testing and refinement of these hypotheses and measures are needed in order to produce results which are general enough on which to base marketing strategy.

Contemporary marketing practices of consumer and business‐to‐business firms: how different are they?

The literature has traditionally argued that marketing in firms serving consumer markets is, and should be, different from that in firms serving business markets. This research investigates the marketing practices of 279 firms in Canada and New Zealand to examine the relevance of the consumer/B2B dichotomy in the context of a contemporary conceptual framework. The results show that while consumer firms are somewhat more transactional in their approach to the market and B2B firms are more relational, overall patterns of marketing practice are similar across firm type. Theoretical, practical, and research implications are discussed.

Equity in corporate co-branding: The case of adidas and the All Blacks

Corporate co‐branding is analysed within the context of a case study of the sponsorship relationship between adidas and the New Zealand Rugby Union. The study indicates that corporate brands may develop co‐branding relationships in order to redefine brand identity, discursively reposition the brand and build brand equity. Corporate co‐branding is established at a fundamental brand values level that, in turn, influences the type of marketing communication campaign that may be undertaken. Discourse theory provides insights into the importance of an articulation campaign in order to increase the equity of corporate brands. Co‐branding offers corporate brands access to the brand strategy of the co‐brand partner, the alignment of brand values, the marketing communication association and brand reach and network of relationships.

Retail Service Branding in Electronic-Commerce Environments

Considerable discussion has arisen about how electronic commerce is changing retail marketing theory and practice. Most of the debate revolves around how retailers with investments in physical channels can apply their existing strategy online. The retail service brand is one component that requires examination, but there is no model to guide online strategy. The authors, therefore, draw on exploratory research from consumer focus groups to understand retail service branding in electronic markets. The case setting is a nationwide grocery service that recently extended its traditional strategy and offered consumers online shopping. The authors conclude that the service brand defines the experience of shopping online for consumers in terms of service attributes, symbolic meanings, and functional consequences of the service encounter. In the fulfillment of this role, the service brand acted as a relationship lever (fulcrum) on which trust was built between consumer and service provider. Managerial implications and future research directions are also considered.