Free Marketing Dissertations - (boulding Et Al, 2005) In Particular, A Study By Agustin And Singh (2005)
(Boulding et al, 2005)
In particular, a study by Agustin and Singh (2005) provides theoretical and empirical evidence, which backs up the view that CRM is not a fundamental shift with significant impact on the nature marketing. Their research proposes that: the effects of loyalty determinants depict systematic curvilinearities that are captured by both significant linear and quadratic effects. (Agustin and Singh, 2005) Their research is built on both the traditional need-gratification and dual-factor motivation theories (Herzberg 1966, Maslow 1943) and the newer relational exchanges, such as those proposed by Vargo and Lusch (2004), and propose that the curvilinearities involve either increasing or decreasing incremental effects on loyalty intentions. (Agustin and Singh, 2005) The net effect of this is that, for any given determinant of marketing loyalty, be it need gratification or relational: an ‘increasing incremental’ effect implies that with higher values of this determinant, a unit change has an increasingly greater effect on loyalty intentions. In contrast, a ‘decreasing incremental effect’ implies that with higher values of the determinant, a unit change has an increasingly smaller effect on loyalty intentions. (Agustin and Singh, 2005) Thus, no matter what the nature of the marketing style and model used, an increase in any particular marketing tool can be seen to cause a similar type of effect. Therefore, although CRM, and Vargo and Lusch’s ‘new dominant logic’, will likely have a larger effect on loyalty than traditional marketing styles, they will still affect loyalty in a similar way, but on a larger scale.
However, although Vargo and Lusch’s model does not have fundamentally different effects from those which have gone before it, the proposition that marketing is principally concerned with the co-creation of value and relationships, and linking this to a stakeholder perspective on brand value, has inspired numerous other articles and models. In particular, Jones (2005) has used this approach to develop a model for brand managers that helps them to answer the two fundamental questions asked of all brand managers: ‘Where does our brand value lie and how is this value created?’ Equally, Ekeledo and Sivakumar (2004) have used the approach to analyse the effect of e-commerce on market entry strategies, and Meuter et al used it as part of a framework to try and explain why customers decide to try Self Service Technologies (SSTs) within e-commerce, and why some SSTs are more widely accepted than others. Hence, although the ‘new dominant logic’ may not be particularly new, it has definitely contributed to the development of understanding of the marketing process, and how to connect with customers, and is rapidly becoming the dominant approach to marketing as a whole.
References:
Agustin, C. and Singh, J. (2005) Curvilinear Effects of Consumer Loyalty Determinants in Relational Exchanges.
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