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There is a growing body of knowledge related to Relationship Marketing (RM) developed around the world. RM is one of the important developments in the theory and practice of marketing during the past three decades. It covers a wide range of industries from airlines to education, and from banks to petrol stations that it became a part of everyday life (Hunt et al., 2006). RM has been hailed as a paradigm change in marketing theory and practice by some scholars (e.g., Webster, 1992; Gronroos, 1997; Gummesson, 1998; Mulki & Stock, 2003), and on the other hand was barely seen as “the emperor’s new clothes” by others (e.g., O’Malley & Tynan, 2000; O’Malley & Prothero, 2004; Zineldin & Philipson, 2007). Additionally, relationship marketing is used as an umbrella term for a wide range of marketing practices, e.g., customer relationship management (CRM); direct marketing; and database marketing, that have − as a common facet − a focus that goes beyond the single discrete transaction between a buyer and a seller (Parvatiyar & Sheth, 2000).
This paramount academic research interest in RM resulted in numerous definitions of the concept that varied to an extent in the way they conceptualise RM. In this respect, Harker (1999), counted, at the time of writing his paper, as many as 28 substantial RM definitions, while Dann and Dann (2001) estimated the number of published definitions at nearly 50.
The earliest definition of RM was stated by Berry (1983, p. 25) as: “attracting, maintaining and enhancing customer relations”. This definition sets the bases for the RM concept which are: customer acquisition; and customer development and retention. Other definitions have appeared in the literature over the course of the following two decades. Notably, Gronroos’s (1997) definition of RM has been perceived by many scholars (e.g., Palmer, 1997; Abratt & Russell, 1999; Harker, 1999; Dibb & Meadows, 2001; Sin et al., 2002; Farquhar, 2004; Bonnemaizon et al., 2007) as the most well-designed and succinct in delivering the essence of RM.
The Gronroos (1997, p. 407) defines RM as: “to identify and establish, maintain and enhance and, when necessary, terminate relationships with customers and other stakeholders, at a profit so that the objectives of all parties involved are met; and this is done by mutual exchange and fulfilment of promises”. Under this definition, RM has six distinctive characteristics as Gordon (1998) notes and is further supported by Harker (1999) and Egan (2004). These are: