Customer Portfolio Management: Toward a Dynamic Theory of Exchange Relationships

Other Titles
Abstract
Management of an entire portfolio of customers who are at different relationship stages requires a dynamic theory of exchange relationships that captures the trade-offs between scale economies and lifetime customer value. This article contributes to the understanding of relationship management by developing a typology of exchange relationship mechanisms and a model of relationship dynamics and by simulating the model to provide guidelines for customer portfolio management. An important insight from the research is that a key to the creation of value through closer relationships lies in bringing weaker relationships into a portfolio in the first place. Another insight is that firms that position themselves toward offerings with low economies of scale, such as personal services, must build closer relationships to create value.
Journal / Series
Volume & Issue
Description
Sponsorship
Date Issued
2004-04-01
Publisher
Keywords
customer portfolio management; exchange relationships; scale economies; customer value
Location
Effective Date
Expiration Date
Sector
Employer
Union
Union Local
NAICS
Number of Workers
Committee Chair
Committee Co-Chair
Committee Member
Degree Discipline
Degree Name
Degree Level
Related Version
Related DOI
Related To
Related Part
Based on Related Item
Has Other Format(s)
Part of Related Item
Related To
Related Publication(s)
Link(s) to Related Publication(s)
References
Link(s) to Reference(s)
Previously Published As
Government Document
ISBN
ISMN
ISSN
Other Identifiers
Rights
Required Publisher Statement: © American Marketing Association. Reprinted with permission. All rights reserved.
Rights URI
Types
article
Accessibility Feature
Accessibility Hazard
Accessibility Summary
Link(s) to Catalog Record