Chapter 7

Question 1

Relationship marketing (RM)

Answer 1

Identifying, developing, maintaining, and terminating
relational exchanges to improve performance.

Question 2

Customer relationship management (CRM)

Answer 2

Organization-wide, customer-focused application of RM, using IT to achieve performance objectives.

Question 3

Relationship equity

Answer 3

Refers to the aggregation of relational assets and liabilities, associated with the firm’s boundary-spanning employees and social networks linked to the offering or experience, that add to or subtract from the value provided by the firm’s offering.

Question 4

Relational dimensions

Answer 4

1. Breadth: Number of relational ties with an exchange partner
2. Quality: Nature of relational bonds with an exchange partner
3. Composition: Decision-making capability of the relational contacts with an exchange partner

Question 5

Relationship marketing strategy

Answer 5

1. Building relationships
2. Maintaining relationships

Question 6

Relationship lifecycle stages

Answer 6

1. Exploratory/early stage
2. Growth/development stage
3. Maturity/maintain stage
4. Decline/recovery stage