customer retention, loyalty, and trust are being developed each years. Chapter 21 on customer relationship management describes several of these applications.
One term in Exhibit 7.2 that may be unfamiliar is disintermediation, which means eliminating intermediaries such as wholesalers or distributors from a marketing channel. A prime example of disntermediation is Dell, Inc., which sells directly to business buyers and consumers. Large retailers such as Wal-Mart use a disintermediation strategy to help reduce costs and prices.
A few years ago, many people thought that the Internet would eliminate the need for distributors. Why would customers pay for distributor markups when they could buy directly from the manufactures with a few mouse clicks? Yet Internet disintermediation has occurred less frequently than many expected. The reason is that distributors often perform important functions such as providing credit, aggregation of supplies from multiple sources, delivery, and processing returns. Many business customer, especially small firms, depend on knowledgeable distributors for information and advice that are not available to them online.You will notice in Exhibit7.2 that building chanel partnerships and trust has replaced aggressive disinter initiatives
customer retention, loyalty, and trust are being developed each years. Chapter 21 on customer relationship management describes several of these applications.
One term in Exhibit 7.2 that may be unfamiliar is disintermediation, which means eliminating intermediaries such as wholesalers or distributors from a marketing channel. A prime example of disntermediation is Dell, Inc., which sells directly to business buyers and consumers. Large retailers such as Wal-Mart use a disintermediation strategy to help reduce costs and prices.
A few years ago, many people thought that the Internet would eliminate the need for distributors. Why would customers pay for distributor markups when they could buy directly from the manufactures with a few mouse clicks? Yet Internet disintermediation has occurred less frequently than many expected. The reason is that distributors often perform important functions such as providing credit, aggregation of supplies from multiple sources, delivery, and processing returns. Many business customer, especially small firms, depend on knowledgeable distributors for information and advice that are not available to them online.You will notice in Exhibit7.2 that building chanel partnerships and trust has replaced aggressive disinter initiatives
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