The value concept and relationship marketing

Annika Ravald (Department of Marketing and Economic Geography, Swedish School of Economics and Business Administration, Finland)
Christian Grönroos (Department of Marketing and Economic Geography, Swedish School of Economics and Business Administration, Finland)

European Journal of Marketing

ISSN: 0309-0566

Publication date: 1 February 1996

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.

Keywords

Citation

Annika Ravald and Christian Grönroos (1996) "The value concept and relationship marketing", European Journal of Marketing, Vol. 30 No. 2, pp. 19-30

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DOI

: https://doi.org/10.1108/03090569610106626

Publisher

:

MCB UP Ltd

Copyright © 1996, MCB UP Limited

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