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Management article
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Reference no. 85608
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1985

Abstract

Marketing has long emphasized the importance of being close to the customer. A research project that explored long-term relationships between industrial customers and their suppliers led to questions about how realistic this goal is and revealed other issues regarding patterns of customer-vendor behavior. Discussed here are the concepts of relationship marketing and transaction marketing and how customers'' purchasing behaviors call for one or the other approach. To build and maintain lasting customer ties, and to outperform competitors, marketers will profit from careful and explicit consideration of their customer relationships.

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Abstract

Marketing has long emphasized the importance of being close to the customer. A research project that explored long-term relationships between industrial customers and their suppliers led to questions about how realistic this goal is and revealed other issues regarding patterns of customer-vendor behavior. Discussed here are the concepts of relationship marketing and transaction marketing and how customers'' purchasing behaviors call for one or the other approach. To build and maintain lasting customer ties, and to outperform competitors, marketers will profit from careful and explicit consideration of their customer relationships.

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