A New Consumer Relationship Model

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A New Consumer Relationship Model: The Marketing CommunicationsApplicationAlkis Thrassou a; Demetris Vrontis aa University of Nicosia, Nicosia, Cyprus

To cite this Article Thrassou, Alkis and Vrontis, Demetris(2009) 'A New Consumer Relationship Model: The MarketingCommunications Application', Journal of Promotion Management, 15: 4, 499 521

To link to this Article: DOI: 10.1080/10496490903281270URL: http://dx.doi.org/10.1080/10496490903281270

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Journal of Promotion Management, 15:499521, 2009Copyright Taylor & Francis Group, LLCISSN: 1049-6491 print / 1540-7594 onlineDOI: 10.1080/10496490903281270

A New Consumer Relationship Model: TheMarketing Communications Application

ALKIS THRASSOU and DEMETRIS VRONTISUniversity of Nicosia, Nicosia, Cyprus

The article investigates empowered consumer behavior and ex-plores its evolutionary nature and contemporary contexts in devel-

oped countries. Through a comprehensive literature review multi- perspective analysis, it finally develops a prescriptive marketingcommunication model in the context of an evolving business-consumer relationship and its corresponding marketing philoso-

phy. The findings identify a rising symbiotic equilibrium betweenconsumers power and businesses influence on consumers percep-tions. Consumer needs are found to be increasingly manifestedinto wants which are intangible, of obscure value, affective in na-ture and vulnerable to marketing communications; the latter beingincreasingly oriented towards perception management and with

branding as a primary vehicle.

KEYWORDS consumer behavior, consumer empowerment, cus-tomer relationship, developed countries, marketing, marketingcommunications

INTRODUCTION

Tracing the patterns of consumer activity, preferences, beliefs, attitudes, and

affections has allowed marketers to adapt their strategies and communica-tions accordingly and, thus, successfully compete in the business arena ofdeveloped countries. In parallel, the extent and intensity of competition,and the strict, complex legal and regulatory environments together with theknowledgeable and demanding business and consumer markets of thesecountries, largely ensure that the organizations that do succeed are truly

worthy of the many and great benefits granted by their success.

Address correspondence to Alkis Thrassou, Associate Professor of Marketing at theSchool of Business, University of Nicosia, 46 Makedonitissas Avenue, Nicosia, Cyprus. E-mail:

[email protected]

499


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500 A. Thrassou and D. Vrontis

Embarking on business in developed countries therefore demands theability to cope with a multitude of factors and forces simultaneously, plusthe wisdom to acknowledge that all segments of any organization forma chain that binds and supports it. A chain which is, however, only as

strong as its weakest link. While retaining a spherical perspective that revealsthe vital interrelationship of the forces involved, this research studies andanalyzes them as interwoven threads that make up the fabric of modernmarketing theory. This research deals with macroenvironmental subjects onlyin the context of marketing, explores their effect on consumer behavior, andnecessitates their prioritization according to the relative weight of each inrelation to business.

Additionally, this research utilizes the theoretical findings toward theconstruction of a marketing communications model in the context of anevolving symbiotic business-consumer relationship. The model positions the

various findings in their corresponding strategic marketing relationship, act-ing both as a marketing philosophy framework and as a practical implemen-tation guide.

A general assumption is that the term developed countries refers tothose nations that are widely accepted as being the most advanced; notmeasured merely by wealth and/or economic output, but also by theircorresponding social organization and consumer behavioral complexity anddevelopment.

Research BackgroundA Changing Global Marketing EnvironmentChange in the marketing environment is the consequence of events causedby historical forces or streams of related events such as the industrial revo-lution, the impact of dominant ideologies, the inequality of human circum-stances, science and technology, the rise of the nation-states, great leaders,and chance (Steiner & Steiner, 2000). This first decade of the third millen-nium finds the world changing at a once unimaginable pace, with organiza-tions struggling to keep up and consequently experiencing severe difficulties

with their longer-term planning. Globalization is shrinking, even eradicating

distances and bringing down physical and cultural frontiers. Technologi-cal advances, cultural diversity, economic integration, political change, androot-depth human social evolution are forcing the business world to add anew word to its dictionary: globality (Ball, McCulloch, Frantz, Geringer, &Minor, 2002, pp. 1114).

The developed countries lie at the heart of these changes, being themain originators and driving forces behind the incessant reorganization ofour world andequally importantlyour view of it. Through their combinedpower, ability, influence, and weight on the world stage they have now lured,pulled, or pushed almost every country and nation into the dance of change

and integration. A dance unknowingly choreographed, perhaps for the first


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A New Consumer Relationship Model 501

time, not by elite powerful individuals or nations, but by the spontaneousimprovization of the combined elements of investment, technology, infor-mation, politics, and militia. It is choreography with strong means but noconscious or visible ends; choreography for the dance and the dance alone.

These countries differentiate themselves as a group through attributesrelating to wealth, educational levels, technology penetration, and more. Inthe business context, these macro-environmental factors come together toform a single-most-important and unique force, the consumer, that demandsa marketing philosophy re-orientation in these countries.

Research Aims, Methodology, and Limitations

This research undertakes a comprehensive literature review and performs amulti-perspective analysis toward (a) depicting consumer behavior in devel-

oped countries, (b) identifying its underlying causes and motivators, and (c)distilling contemporary issues relating to contemporary marketing commu-nications beyond classical theory and practice. The findings are ultimatelybrought together to (d) construct a marketing communications model inthe context of an evolving symbiotic business-consumer relationship and itscorresponding marketing philosophy.

The extensive scope of elements reviewed and incorporated is de-manded by the very nature of the subject; which necessitates a comprehen-sive approach involving all potential factors affecting consumer behavior, as

well as the elements concerning marketing communications. This fact, in its

turn, stipulates the conceptual nature of the research as the only method-ologically viable means to studying the complex interrelation of the elementsinvolved. While this methodological approach is undeniably the right one soearly in the development of a contextually new theory, it is also its limita-tion. It is clarified, therefore, that this research considers the model producedto be a preliminary one and that substantial primary research is further re-quired to test and refine the individual model components and to providethe necessary validity to the framework in its entirety.

This research is conceptual and ultimately aims to provide a challengeto traditional marketing communications and to reposition them in a newmarketing philosophy context. At this premature stage in its development,the new concept aims for nothing more and nothing less than to provokethought, and stimulate further research and analysis.

DEVELOPED COUNTRIES CONSUMER BEHAVIOR ROLE AND DIFFERENCES

Consumer behavior is defined as the activities people undertake when

obtaining, consuming, and disposing of products and services (Blackwell,


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Miniard, & Engel, 2006). The significance of consumer behavior knowledgerests on the foundation of modern marketing philosophy which recognizesthe consumer as being the focus of marketing activity.

In developed countries, consumers influence on business has been

steadily increasing over the past few decades, empowering and crowningthem sovereigns among the forces shaping business environments (Kotleret al., 2005; Blackwell et al., 2006). Developed countries are characterized by:high economic productivity and prosperity, the freedom that largely charac-terizes business activity, high education and administration levels, technolog-ical superiority, the comparative importance of knowledge and information

versus other economic factors, and a socio-cultural environment that sup-ports personal and collective development and expression (Steiner & Steiner,2000; Keegan & Schlegelmilch, 2001; Chan & Chui, 2004; Thrassou, 2007a,2007b).

Furthermore, the usual cultural diversity of their population, the highper-capita-income and low inflation, the high labor costs and quality, theorganisation of labor into powerful groups and the increased regulation of

working conditions, the increasingly strengthening role of services in theireconomy versus manufacturing and agriculture (Fitzsimmons & Fitzsimmons,2001; Keegan & Schlegelmilch, 2001; Paladino, 2005), the excellent infras-tructure for transportation and communication, the comparatively low/stableinflation and their stability and law supremacy are other characteristics thatshould be highlighted. The effect of these on behavior is profound in ev-ery step of the consumer decision process, which distinguishes itself fromthe reciprocal ones in other countries on a number of factors (Laroche,Papadopoulos, Heslop, & Bergeron, 2003; Teng, Laroche, & Zhu, 2007).Prior to investigating these factors, nevertheless, one needs to compre-hend the conceptual basis of these differences, and in order to do that,the very personal, internal, psychological underlying motivation must beunderstood.

The use of Maslows Theory of Motivation is one way to achieve thisunderstanding. While the theory bears a number of faults that diminish its re-liability as a process of understanding motivation at an individual consumer

level (Robbins, 2003), it is a more appropriate approach to use at a collectivelevel. The primary differentiating factor, therefore, in consumer behavior indeveloped countries, is the average position where the population of thesecountries stand in the hierarchy of needs. Referring to the Maslow scale,

while the minority of people are still preoccupied with the first two levels(physiological and safety needs), the majority has moved on to satisfy higherneeds (esteem, cognition, aesthetics, etc.). Although this is something ex-pected, and it theoretically explains consumer behavior within all countries,developed or not, at the collective level, there are forces that give a parallelpush upwards and relate not to the individual situation but to macroenviron-

mental elements. The combined effect of person and macroenvironmental


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FIGURE 1 A more detailed representation of the consumer decision process. Adapted fromBlackwell et al., 2006.

situation allows the average individual in a developed country to be mo-tivated toward higher needs than people with a similar personal situationin another country. The characteristics that differentiate developed countries(economic prosperity, etc.), are therefore the ones that push the averageindividual motivation level disproportionately higher on the scale, primar-ily through the application of higher collective expectations on individualperformance.

This does not only result in different motivators (Rayner & Easthope,

2001), but also in considerably more complex motivational processes, them-selves resulting in both quantitative and qualitative upgrades in the decision-making process of a developed-country consumer (Yi & Baumgartner, 2004;Esch, Langner, Schmitt, & Geus, 2006). The consumer decision process in-cludes the mental and physical steps taken by the consumers from the pointof realization that they want a certain product up to their divestment of it.

A theoretical model is used to understand their behavior and the parame-ters that affect it. Figure 1 portrays the characteristics of each step of themodel and subsequently (in Table 1) the underlying specific-to-developed-countries causal factors of differentiation are summarily presented as they

surfaced from the literature review.


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TABLE 1 Developed Countries Consumer Decision Process Differences (Literature ReviewFindings)

BibliographyDeveloped countries consumer decision process

differences

GENERICRayner & Easthope, 2001;

Blackwell et al., 2006;Zeithaml et al., 2006

-Upgraded significance of CDP-Majority of consumption relating to the satisfaction ofhigher needs

NEED RECOGNITION STAGEHawkins et al., 2004; Schiffman

& Kanuk, 2004; Blackwell etal., 2006; Zeithaml et al.,2006; Solomon, 2007;Thrassou, 2007a, 2007bb

Need recognition, although authentic in the sense that itrequires the satisfaction of fundamental humanrequirements, it can be directed toward specific brandedproducts, ideas or positions. Due to:

-High average income level-Large number of marketing communication channels withhigh reach and impact

-A general social (perceived) correlation betweenconsumerism and quality of life

-An actual need for new products/ideas, consequential ofthe high rates of social and technological changes.

INFORMATION SEARCH STAGEFeldwick, 2002; Hawkins et al.,

2004; Schiffman & Kanuk,2004; Solomon, 2007;Thrassou, 2007a, 2007bb

Though non-marketer dominated sources are extremelyimportant, there is comparatively greater informationprovision through marketer-dominated channels. Thedifference is probably due to:

-The number and array of channels used-The potentialities offered by technological advancement-The level of public education

-The availability of many types and brands ofproducts/ideas that often largely rely on intensecommunication to succeed

-Value of time diminishing attention spans

ALTERNATIVES EVALUATION STAGEKapferer, 1997; Feldwick, 2002;

Brassington & Pettitt, 2003;Schiffman & Kanuk, 2004;Thrassou, 2007a, 2007bb

-Consumers are more educated with easier access to valuable information-Abundance of marketing channels and intensivecompetition allows direct comparison of information

-Stricter regulatory environments provide relative assuranceagainst improper practices

-Relative value placed on branded products which

representsamong other elementsthe appreciation,trust and loyalty towards products and organizations

-Value of time diminishing cognitive processing.

CHOICE (PURCHASING) STAGEHawkins et al., 2004; Reedy &

Schullo, 2004; Solomon, 2007-Better infrastructure, greater competition and moredistribution channels

-Personal and social motives play a proportionally greaterrole since people place considerable value on theexperience of the CDP itself

(Continued on next page)


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TABLE 1 Developed Countries Consumer Decision Process Differences (Literature ReviewFindings) (Continued)

BibliographyDeveloped countries consumer decision process

differences

CONSUMPTION STAGE POST-CONSUMPTION STAGESKapferer, 1997; Feldwick, 2002;

Brassington & Pettitt, 2003;Hawkins et al., 2004; Schiffman& Kanuk, 2004; Blackwell et al.,2006; Thrassou, 2007a, 2007bb

-Comparatively less consumption takes place in relationto immediate practical (lower order) needs, and morein relation to cognitive, social and aesthetic (higherorder) ones.

-Consumption experience bears an increasing relativeweight

POST-CONSUMPTION STAGEKapferer, 1997; Feldwick, 2002;

Brassington & Pettitt, 2003;Hawkins et al., 2004; Schiffman& Kanuk, 2004; Blackwell et al.,

2006

-In spite of the expanded diversity of consumer needsand wants the fundamental question of satisfaction ordissatisfaction is very similar.

-Its evaluation is subjective though and portrays

comparatively greater reliance on shopping andproduct experience, and higher order factors

DIVESTMENT STAGE(Blackwell et al., 2001; Blackwell

et al., 2006; Fraj & Martinez,2006; Zeithaml et al., 2006;Thrassou, 2007a, 2007bb

-Divestment is often made due to social, not practicalreasons

-Social shift of consumers and consequently businessestowards environmentalism with choice of productsoften influenced by their effect during and afterdivestment

DEVELOPED COUNTRIES DIFFERENCES IN THE DETERMINANTSOF CONSUMER BEHAVIOR

Behavior, is a result of a combination of factors. Some belong to the widerconsumer environment such as culture, social context, and family, and someare specific to the individual like personality, values, attitudes, psychographicprofile, and lifestyle. Developed countries differ with regards to personalityinfluence on consumer behavior chiefly in terms of attitudes and values inrelation to social and personal freedom and dignity, respect toward the nat-

ural and built environments, the drive for achievement, and others (Cronin,Brady, & Hult, 2000; Mukherjee & Hoyer, 2001; Laroche, 2002; Maniyiwa &Crawford, 2002; Laroche et al., 2003; Robbins, 2003; McEachern, Schroder,

Willock, Whitelock, & Mason, 2007; Thrassou, 2007a).Cultural and social factors are equally important as, among developed

countries, there are commonly shared characteristics. Family influences arediminishing due to decreasing time spent together by members, increaseddivorce rates changing family structure, and nuclear families becoming thenorm. This alters both the actual family and the perception of its meaningand leads to a lack of heritage and continuity (Kotler et al., 2005; Blackwell

et al., 2006; Thrassou, 2007a). Religious influences are also diminishing in


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effect due to an array of reasons including education levels, freedom ofexpression in combination with increased cultural diversity, liberalization ofeconomic activities, and increased questioning of religions role in modernsocieties. This pattern, though, is neither absolute clear, nor constant, as

in the case of early 21st century United States, where religious influenceon behavior is actually increasing for various historical/political reasons(Solomon, 2007).

In developed countries, national culture is another factor with dimin-ishing influences. (This being a distinctly separate phenomenon to nationalistfeelings/tendencies and their observable increase or decrease). Globaliza-tion, diversity, improved knowledge of history, media influences, practical-ity, and even at times, a conscious direction by the nation-state, have con-tributed to this phenomenon. Cultural diversity within developed countrieshas, in fact, increased the effect on behavior of nationality-based subcultures

(Schiffman & Kanuk, 2004; Angelis, Lymperopoulos, & Dimaki, 2005).The influence of education appears to be increasing, not only because

of rising standards, but also because of the nature of education in developedcountries. It is often becoming more liberal in context. It promotes diversity.It concentrates on individual rather than collective national and religious val-ues. It provokes and rewards critical thinking, and it relies more and moreon technologies such as the internet, that are difficult to control by the stateor individuals. Education walks hand-in-hand with consumer empowermentand the perception that citizens self-develop both as individuals and in theircapacity as consumers (Vittell, 2003; Henry, 2005; Blackwell et al., 2006;

Vrontis & Thrassou, 2007). Finally, reference groups tend to significantlyinfluence an individuals behavior through socialization, self-concept, com-parison, conformity, and role models (Maniyiwa & Crawford, 2002; Larocheet al., 2003; Kotler et al., 2005; Zeithaml, Bitner, & Gremler, 2006).

In the course of understanding consumer behavior in developed coun-tries, business social responsibility and ethics arise as a characteristic con-temporary trend. Societal marketing is defined as the idea that organiza-tions should determine the needs, wants, and interests of target marketsand deliver the desired satisfactions more effectively and efficiently than

competitors in a way that maintains or improves the consumers and soci-etys well-being (Kotler et al., 2005). However, if one would retain a morepragmatic perspective on this frame of thinking, it would not be difficult toobserve an underlying fact: that this definition does not substantially differto the orthodox marketing concept which does not include the concept ofmaintaining or improving the consumers and societys well-being (Kotleret al., 2005). So where does the ingenuity and philosophical innovation lie?It is the change in the demands of consumers and their overall behaviorthat has necessitated the introduction of this extra phrase in the concept.Consumers require businesses to act in an ethically and socially responsi-

ble manner (Carrigan, Szmigin, & Wright, 2004). Businesses, in their turn,


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FIGURE 2 The cycle of increasing business social responsibility.

understand this requirement and deliver accordingly. Enhancing factorscyclically and incessantly evolve into health factors, thus constantly raisingthe level of acceptable business responsibility as perceived by consumers, toeffectively end up with a dynamically self-improving system (see Figure 2).

For this reason, in developed countries, the regulatory environment,although much stricter on businesses than elsewhere, is not the drivingforce behind social responsibility, but simply a catalyst that reinforces theconviction of consumers as to what to expect from businesses, solidifying

the minimum acceptable standards. This is enhanced in developed countriesby unrestricted competition, increased social awareness, education, andfreedom of expression which makes it difficult for organizations to buildperceptions of being socially responsible (Weiner, 2000; Palmer & Ponsonby,2002; Sullivan & Strongman, 2003) without really being so.

Having identified the various parameters of consumer behavior in developed countries, it will be equally important to consider how businessesare presently affected by the outcomes. This will be done by extrapolatingfrom the discussion in the previous sections. Todays severely competitivebusiness environment does not allow much room for manoeuvre between

producer supply and consumer demand. This necessitates both a sound


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understanding of consumer wants and the wherewithal to satisfy them. Italso renders it increasingly rare for businesses to offer truly good valuethrough visibly higher quality, lower price, or the best combination of thetwo. Consequently, value is frequently offered in other ways, such as in-

novation (Mukherjee & Hoyer, 2001), extended products or services, bettercustomer care, personal attention, and increased convenience (Naumann,Jackson, & Rosenbaum, 2001; Thogersen & Olander, 2002).

Simply meeting customer expectations is generally not enough. Busi-nesses have to surpass expectations to meet the prerequisites of quality(Foreman, 2000; Blackwell et al., 2001; Naumann et al., 2001; Gupta &Lehmann, 2002). Another option for the creation of value is the buildingof a strong brand image that communicates it to the consumer. This pro-cess is often artificial, in the sense that it relies more on perceptions thanon reality. In a developed world dominated by information multimedia, the

perceptions in question become more critical parameter than objective re-ality (Naumann et al., 2001; Palmer & Ponsonby, 2002; McCullough, Tsang,& Emmons, 2004). Realizing this, businesses spend a large percentage oftheir income to shape perceptions (and therefore preferences) through allthe varieties of marketing communications at their disposal. The result isthat audiences are constantly exposed to commercial messages, and becomecognitively saturated with information. This in turn reduces ability of pro-ducers to influence consumers, unless considerable extra effort is put intoincreasing the qualitative or quantitative intensity of their communication(Blackwell et al., 2006), or both.

For a developed world with few concerns for immediate needs towardssurvival, consumerism appears to have become an end in itself and, throughit, consumers find a voice of expression, the way to promote their under-standing of a better society, an abstract escape from the predetermined, andthe means to build an identity for themselves. The choice belongs to theconsumer and the consumer alone, but the context and content belongs tothe businesses.

MARKETING COMMUNICATIONS WITHIN THE NEW FRAMEWORK

The subject of marketing communications both in classical literature and interms of its developments and contemporary applications has been reviewedand presented extensively. This research deems that more of such workis superfluous and consequently will concentrate only on the aspects ofmarketing communications that add value in the context of the proposednew framework.

In view of the increasing value of intangible, higher order product at-tributes in developed countries, the new framework proportionately adopts

more elements that relate to services marketing communications theory.


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From authors such as Kotler et al. (2005), Lovelock & Wright (2002), Thrassou& Vrontis (2006), and Zeithaml et al. (2006) three valuable elements arise: dif-ferences in the perception of the environment as physical and non-physical

with the latter naturally presenting complications both in its definition and

analysis, an upgraded value of internal marketing stemming from the rela-tive weight of People in the marketing mix, and the importance placedon quality and the clients perception of quality with the latter differentiatedform the former.

Lovelock & Wright (2002), in fact, emphasized the importance of phys-ical evidence To further add to the actual product, they also included otherreal evidence such as offices and equipment, as well as mental evi-dence such as symbols. Zeithaml & Bitner (2003) identifed the key reasonsfor service communication problems as being: inadequate management ofservice promises, inadequate management of customer expectations, inad-

equate customer education, and inadequate internal marketing communi-cations. They subsequently presented a strategy for each toward matchingservice promises with delivery. Earlier, McArthur & Griffin (1997) identifiedthe need to respect the differences of various types of marketers in planningmarketing communication activities. Thrassou & Vrontis (2006) linked theintangibility and complexity of contemporary consumer behavior with theincreased need for customer education and consultation. Furthermore, theyobserve through these consumer behavior attributes an opportunity for busi-nesses to affect not only client knowledge but also elements such as clientattitudes, beliefs, and feelings towards the service. Marketing communica-

tions are viewed as the means of both receiving the necessary informationand transmitting it successfully toward controlling these elements.

The aforementioned indicate the imperative of marketing communi-cations mix design in parallel to the implementation of the methods andanalyses that will allow the measurement and understanding of the previouselements. Of interest to this research are the various means of stimulat-ing word-of-mouth and targeting opinion leaders. Word-of-mouth has beenshown by previous reviews to be relatively more important to small con-struction consultants whereas the reliance on opinion leaders appears to also

be more frequent in the specific industry. Similar conclusions were drawnthrough the review of work by Hawkins, Best, & Coney, (2004), Schiffman& Kanuk (2004), and Solomon (2007).

In reference to small firms marketing communications, Longenecker,Moore, & Petty (2003) emphasized personal communications, the limitationsof their budget, the critical role of the manager, and the need for a marketingcommunications focus. Similar findings are noted by Said (2000) and Thras-sou (2005), with the latter being consistent also with Kotler et al. (2005) indoubting the necessity of formalized marketing communications processesfor small firms and in stressing the importance of adopting and adapting

marketing communications to resources availability.


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Finally, Thrassou & Vrontis (2006) brought together the work of variousauthors on the subject and combined it with their own primary data findingsto develop an integrated marketing communications model for small firms,relying also on the work of Kitchen (2001), Fill (2002), Pickton & Broder-

ick (2001), and Smith & Taylor (2002). Their work corroborated the previousfindings and provided three more valuable observations: the need to addressthe structure and consistency of the competitive environment (SME concen-tration, competition on market share vs. total market growth etc.), the need toconsider collective marketing communications through collaborations, andthe consideration of adapting strategy to marketing communications capa-bilities.

Perhaps the single most important element of change within the newmarketing communications framework is electronic marketing. The subjectis consequently and subsequently paid greater relative attention to by this re-

search, primarily owing to the importance of its contemporary nature. Reedy& Schullo (2004) through their work on electronic marketing, demonstratedthe continuously growing spectrum of communication means available tobusinesses and their multiple implications. With the effort for gaining com-petitive advantage shifted towards non-price factors, new electronic forms ofcommunication and distribution channels are invaluable for professional ser-

vices, since they provide the opportunity for raising quality or cutting costs without diminishing the existing service standards. The future of customerservice is multi-channel and its benefits plentiful: it cuts costs, it developsdeeper relationships with customers, it increases sales, and it reduces risk byspreading it over multiple channels (Hobmeier, 2001).

In terms of customers channel preferences, Skiera & Gensler (2003)outlined the primary influencers as the nature of the product purchased,the stage of the transaction process, and the customer with all its character-istics. Relating to the nature of the product purchased, Peterson, Balasub-ramanian, & Bronnenberg (1997) concluded that customer preference overchannel choice would depend on the level of outlay, frequency, the na-ture of its tangible aspects, and the physical/informational elements. Finally,considering customer profiles, Rollo (2003) suggested that the demographics

and psychographics of customers also matter in channel preferences, withyounger, more educated techno-users having a natural inclination towardchannels such as M-banking. Laforet & Li (2005) stated that the deliveryof technology-based services appears to be correlated with high satisfaction.This has been shown to be especially true where the product is highly impor-tant to customers (Joseph & Stone, 2003). Similarly, the literature suggestedthat consumers prefer a mix of rather than any one single delivery channel(Howcroft, Hamilton, & Hewer, 2002) and that it is important for providersto understand and improve each channel within the overall offering ratherthan concentrating efforts on improving one delivery channel in isolation

(Patricio, Fisk, & Cunha, 2003).


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According to Clarke (2001) value propositions define the relationshipbetween supplier offerings and consumer purchases. He further outlined that

value propositions specify the interdependence between the performancesattributes of a product and the fulfilment of needs, and solidifies the rela-

tionship between the customer and various dimensions of product value.Thus, customer satisfaction is merely a response to the value propositionoffered by a specific product bundle. Value, in itself, is subjectively foundin new electronic channels and individual customer characteristics (educa-tion, age, income, etc.) will affect evaluations of perceived risks, perceivedusefulness, and perceived ease of use of electronic means (Bhattacherjee,2002; Howcroft et al., 2002; Sarel & Marmorstein, 2003a and 2003bb; andLaforet & Li, 2005). The question of actual practical customer adoption ofnew technologies is largely governed by classical theories such as the The-ory of Diffusion of Innovations (Rogers, 1995, see especially pp. 5, 212251).

The theory views adoption as a process by which an innovation is commu-nicated through certain channels over time among the members of a socialsystem. It is determined by five innovation characteristics: Relative Advan-tage, Complexity, Compatibility, Trialability, and Observability. The Theoryof Planned Behavior (Ajzen, 1991) posited that actual, voluntary use of atechnology is determined by the individuals behavioral intention, whichin turn, is determined by the individuals perceptions on the presence orabsence of requisite resources and opportunities to perform the behavior(Ajzen, 1991).

CONSTRUCTING A NEW MARKETING COMMUNICATIONSSYMBIOTIC MODEL

As shown in the introduction of this article, the marketing environment ischanging at an increasing pace, which we can do little to control and which

we are given no option to accept or reject. We have to accept that consumersand producers will continue to live through times of change, with occasional

interruptions of stability. Successful business will, therefore, be the ones thataccept that turbulence, living through, and for, it. Vrontis & Thrassou (2007)researched the matter extensively, with their analysis outgrowing the ab-stract philosophical context to touch upon a number of practical businessissues. Their findings ultimately provided the conceptual foundation for anew and balanced relationship between business and consumers. Their re-search approach held the question of balance of power in its epicentre andpresented a rudimentary table of the primary forces affecting this balance,as well as their overall effect (see Table 2).

The literature review findings gradually form the contours of a new con-

temporary marketing communications model. This model is clearly shaped


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T

ABLE

2

ListofForcesAffecting

BalanceofPowerBetweenBusinessesandConsumers

ForcesthatMight

A

ffectBalanceof

Power

In

creasesPowerofBusinesses

IncreasesPowerofCo

nsumers

MostlikelyOverallEffecton

Powe

r:

IT

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Advanced

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Increasedchoice,morein

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easeofcomparison

Moderateshifttow

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consumerend

O

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advances

Efficiency

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and

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emographicchanges

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increaseofaverage

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Higherageofaveragecon

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cultto

control

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Higherpurchasingpower

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Neutral

Higherpu

rchasingpowerinthehandsof

consum

ersresultsinchangingspending

patterns

favoringproductssatisfyinghig

her

ordern

eedswhichagainhavealess

objectiv

eperceptionofvaluethatmake

it

easierfo

rbusinessestoaffect.

Higherpu

rchasingpowerdistributesitself

also

intothe

handsofchildrenandteenager

segmentswhoaremorevulnerableto

businesstactics

Political/Regulatory

Changes

Thesebecomestricterinf

avorofthe

consumersaimingforth

eirhealth,

safety,andfinancialpro

tection

Shifttowardsthec

onsumer

(degreeisquestionableas

businessesalreadyoften

imposeself-restr

ictionswhich

arestricterthan

regulatory

ones)

512


16/24

ForcesthatMight

A

ffectBalanceof

Power

In

creasesPowerofBusinesses

IncreasesPowerofCo

nsumers

Most-likelyOverallEffecton

Powe

r:

SocialandCultural

Changes

Asconsum

erspaymoreattentionto

social-orientedneedstheybecomemore

dependentonitemsofsubjectivevalue

relating

toesteem,prestige,etc.,andwh

ich

aremor

eeasilycontrolledbythebusine

sses.

Asconsumersbecomemo

resocially

awareandmulticultural

theyare

lessinfluencedbyfashionsusually

controlledbybusinesses

Minorshifttoward

sthebusiness

end

Achangin

gattitudetowardsbusinesses

(characterizedbylessapprehension)fav

ors

theiden

tificationofbusinesseswithspecific

socio-cu

lturalelements,

inthemindsof

consum

ers

In

creasedEducation

andExperiencewith

Marketing

Techniques

Highered

ucationboostsconsumer

overcon

fidenceinselfsabilitytodefend

againstmanipulativemarketing

communicationsthuspotentiallyinreality

weaken

ingthedefences

Highereducationinreality

strengthensconsumers

abilityto

defendagainstmanipulative

marketingcommunications

Majorshifttowardstheconsumer

end

A

daptedfrom

Vrontis,D.,

&Thrassou

,A.

(2007).

513


17/24


by two primary forces. The first relates to the incessant macro- and microenvi-ronmental changes which induce strategic marketing to focus on reflex-styleconsumer relationships. The second is the consumers needs increasing man-ifestation into intangible wants, of obscure value and affective nature, and

which are naturally more vulnerable to marketing communication strategies.The combined action of the two forces establishes branding as the singlemost effective value-adding strategy, primarily, through the construction ofbrand personalities and general anthropomorphic brand associations. Thelatter includes lifestyles, values, ideas, attitudes, and so forth.

The business-consumer relationship, therefore, as it stems from the lit-erature review, is fundamentally a co-existing one. On the one hand, theconsumers are becoming more and more empowered regarding their wantsand consequent demands. On the other, businesses appear able to substan-tially affect the crucial interface between consumers needs and wants,

consequently sculpting consumer demands. The one action is not simplyparallel to the other. The two actions depend on each other. The dawningbusiness-consumer relationship, therefore, is more than a co-existing one. Itis a symbiotic one.

The implication for business marketing communications is grave. Thenew symbiotic relationship shifts marketing communications target area fromthe consumers environment to the consumers mind; from the external tothe internal; from the tangible to the intangible. Reality is increasinglyshadowed by perception with the latter being predominant for a grow-ing number of product categories. The aforementioned have a profound

effect on marketing communications practice: a transference of focus fromfunction (awareness, knowledge, information, etc.) to perception. Con-sequently, perception management arises as a primary marketing commu-nication process, and branding as its primary vehicle.

Figure 3 presents a marketing communications perspective in the con-text of the evolving symbiotic business-consumer relationship. The market-ing communications model components are in fact schematically enclosed bythe business-consumer symbiotic forces, thus depicting both the context, butalso the boundaries of the marketing communication process. These forces

encompass the two entities of business and consumer in a system of co-existence and interdependence, prescribing that each will ensure the well-being of the other in the interests of its own existence. This situation evolvesnaturally from 21st century environmental conditions in developed countriesthat interweave consumer behavior with corporate strategy. The two act con-tinuously as equal and opposite forces resulting in a dynamic equilibriumthat achieves the balance and assures the durability of this new symbiosis.

Within this framework, and in accordance with the aforementionedfindings, the various marketing communications components are portrayed.Firstly, the model notes the three major effects of the symbiotic frame-

work: the Reversion Effectthat is, marketing strategy formulated based


18/24

F

IGURE

3

Abusiness-consumer

relationshipmodel:Themarketingcommunicationsapplication.

515


19/24


on, rather than producing marketing communications resources, capacity,and competences; the Double Adaptation Effectthat is, management, or-ganization, and culture adapted to fit required marketing communicationsstrategy and vice versa; and the Want Satisfaction Effectthat is, the call

for satisfaction of wants which are intangible, of obscure value, and affec-tive in nature. Subsequently strategic marketing planning and integratedmarketing communications strategy are depicted but left un-prescribed ow-ing to their subjective nature. The integrated marketing communications mix,nevertheless, is presented to differentiate between primary and secondary in-struments and to also note the consideration of collective instruments, that is,the marketing communications collaboration of companies either to increasetotal product usage/market, or to competitively flock smaller companies.Perception Management is then shown to be the primary integrated mar-keting communications process and Branding its primary vehicle. Finally,

instead of a number of potential integrated marketing communications aims(improved service, customer education, etc.) a single terminal aim is pro-

vided: shift of focus of marketing communications from the products andtheir attributes to the product experience, the product intangibles and, inessence, product higher-order value additions.

Implications for Managers and Final Thoughts

In reality, the model produced is a conceptual proposition for a new ap-

proach to marketing communications consequent to an evolving relation-ship between businesses and consumers. In spite of its conceptual nature,nevertheless, even at this stage of its development, the model does bear anumber of practical implications. First, its symbiotic context allows mar-keting planners to comprehend contemporary consumers and to utilize thatknowledge. Second, it shifts the focus of marketing communications fromthe products and their attributes to the products value in terms of productexperience and higher-order need satisfaction. Third, it identifies Percep-tion Management as a primary aim and Branding as a primary vehicle; ineffect changing the role of marketing communications from functional mes-

sage transmitters and image-builders to stipulators of reality. Overall, themodel demands the concentration of business activity on dynamic interven-tion in the processes by which consumers perceive the world and frame theirexpectations.

This theoretical conceptualization of a new marketing communicationsconcept has deliberately incorporated many macro- and microenvironmentalelements into a unique framework, but the outcome is by no means pre-sented as definitive or complete. Rather, it is offered as a starting point fora new and distinctive analysis and as a stimulus to intellectual discussionand further research. Though relatively generic, both the framework and


20/24


its marketing communications implications cannot be freely applied to anybusiness or all consumers. They have been constructed from observation ofevolutionary patterns in business and consumer behavior, as described bycontemporary researchers. The framework deliberately focuses on the most

developed and least conservative markets and consumers. We do not suggestthat developed countries are homogeneous, or experience the same exter-nal environmental forces, but the body of research does indicate patternsof consumer and business behavior in relation to similar operating environ-ments, which probably can be generalized. In terms of the products themore intangible, abstract, and subjective the value attribute is, the greaterthe fitness of the model. Consequently, it is possible that it will apply forone business within an industry but not for another in the same industry,or for one segment within a market but not for another. The ultimate differ-entiating factors are not the traditional elements of business, product, and

consumer, but their respective perceptions of the others value. Marketingcommunications have been adapting to the evolutionary leaps of marketingphilosophy: from the concept of production to the one of product, thento the selling, marketing, and societal marketing concepts. Perhaps thetime is ripe for another leap.

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A New Consumer Relationship Model