A Literature Review and Classification of Relationship Marketing Research

1. Introduction

Relationship marketing (RM) is widely acknowledged as a useful tool in gaining customer loyalty in various sectors. In the world of business, the concept of relationship marketing (RM) is widely understood, both academically and professionally. Its goal is to maintain strong relationships and convert indifferent customers into loyal ones (Berry & Parasurarnan, 1991). It involves a process of attracting, maintaining and enhancing relationships with customers and stakeholders (and, when necessary, terminating them) at a profit, so that the objectives of the parties involved are achieved through mutual exchange and the fulfillment of promises (Zineldin & Philipson, 2007; Das, 2009; Adamson et al., 2003; Gronroos, 1994, 2004; Kotler & Armstrong, 1999; Berry, 1995). In business, RM brings stability and decreased uncertainty to a company by acting as a barrier to competitor entry and maintaining a stable and solid base of customers (Alexander & Colgate, 2000). For customers, RM provides closer and longer-term relationships that yield three types of benefits: 1) social (familiarity, friendship and information-sharing), 2) economic (discounts or other money-saving benefits) and 3) customization (tailor made services/products), as noted by Sheth and Parvatiyar (1995), Berry (1995), Gwinmer et al. (1998), and Peterson (1995). RM is relatively more emotional and behavioural, focusing on concepts such as bonding, empathy, reciprocity and trust (Sin et al., 2005; Yau et al., 2000).