Why customers won't relate: Obstacles to relationship marketing engagement☆

a r t i c l e i n f o Due to the challenges associated with reaching consumers using traditional marketing approaches, firms increasingly rely on relational marketing tactics to increase customer patronage with the firm. Yet, consumers often actively avoid relational devices. Thus, firms have a heightened interest in factors that affect customer engagement in relationship marketing efforts. This research provides an empirical test of a model based on equity theory and previous findings regarding psychological engagement. The model predicts whether customers are willing to engage in different relational tactics offered by firms, measured by a formative, actionable Relationship Program Receptiveness (RPR) Index. The results indicate customer perceptions of the inconvenience and anticipated benefits, two factors controlled by the firm, affect RPR. In addition, customer factors, including general privacy concerns, involvement and shopping frequency, affect RPR. Managerially, the results suggest specific actions firms can take to increase the likelihood that consumers engage in relational marketing efforts. Identification of factors that encourage or hinder consumer engagement in relationship marketing programs is important to marketing managers who are trying to make decisions regarding investments in different aspects of the relationship marketing program. Consumer participation in relationship marketing activities has the potential to yield important benefits for the firm, which include increased share of wallet and profitability (Meyer-Waarden, 2007; Verhoef, 2003). However, despite the purported benefits of relationship marketing practices for both the consumer and the organization, relationship marketing practices receive criticism for their failure to yield desired results (e. One reason programs fail is customers fail to participate in the relationship marketing programs. Thus, understanding the factors that affect a customer's willingness to engage in relationship marketing programs is vital for organizations—particularly if these factors can be understood before an organization makes major investments in relationship building efforts. Relationship marketing strategies are typically designed to gather information in order to help firms identify and retain their best customers and to maximize customer value and profitability. Relationship marketing programs are a key instrument in relationship marketing, which is described as " the ongoing process of engaging in cooperative and collaborative activities and programs with immediate and end-user customers to create or enhance mutual economic value at reduced cost " (Parvatiyar and Sheth, 2000, p. 9). Examples of relationship marketing tactics used in such programs include: (1) loyalty card programs, (2) company credit cards, (3) opting in for personalized offers delivered via …