ABSTRACT
Service organizations are shifting their focus from “transactional exchange” to “relational exchange” for expanding an equally satisfying relationship with customers (Jain and Jain 2005). Relationship marketing is one of the oldest approaches to marketing, yet one of the least understood (Zineldin and Philipson 2007). Relationship marketing differs from other forms of marketing in that it recognizes the long-term value to the firm of keeping customers, as opposed to direct marketing, which focuses upon the acquisition of new clients by targeting key demographics based upon prospective client lists. Consumers engage in relational market behavior to achieve greater efficiency in their decision making, to reduce the task of information processing, to achieve more cognitive consistency in their decisions, and to reduce the perceived risks associated with future choice. Consumers will only engage in relational exchange with trustworthy partners. However, some concerns arise from the consumers’ perspective such as information misuse, confusion with terms and conditions in the contracts, dishonesty and privacy invasion. This negative behavior will have a greater impact on close relationships. Therefore, a better understanding of overcoming consumers’ concerns will surely improve relationship marketing in the future.
