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Journal cover: International Journal of Service Industry Management

International Journal of Service Industry Management

ISSN: 0956-4233
Currently published as: Journal of Service Management

Online from: 1990

Subject Area: Industry and Public Sector Management

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Managing Customer Relationships for Profit: The Dynamics of Relationship Quality


Document Information:
Title:Managing Customer Relationships for Profit: The Dynamics of Relationship Quality
Author(s):Kaj Storbacka, (The Swedish School of Economics and Business Administration, Helsinki, Finland.), Tore Strandvik, (The Swedish School of Economics and Business Administration, Helsinki, Finland.), Christian Grönroos, (The Swedish School of Economics and Business Administration, Helsinki, Finland.)
Citation:Kaj Storbacka, Tore Strandvik, Christian Grönroos, (1994) "Managing Customer Relationships for Profit: The Dynamics of Relationship Quality", International Journal of Service Industry Management, Vol. 5 Iss: 5, pp.21 - 38
Keywords:Customer loyalty, Customer satisfaction, Marketing strategy, Pricing, Profitability, Relationship marketing, Service quality
Article type:Research paper
DOI:10.1108/09564239410074358 (Permanent URL)
Publisher:MCB UP Ltd
Abstract: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.



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