ZENITH International Journal of Multidisciplinary Research
Year : 2015, Volume : 5, Issue : 10
First page : ( 124) Last page : ( 129)
Online ISSN : 2231-5780.

Profitability: anindexofefficiency

 Aparna

Assistant Professor, Kishan Lal Public College, Rewari

Online published on 22 January, 2016.

Abstract

Relationship marketing emphasizes the need for maintaining long-term customer relationships. It is beneficial, in general, to serve customers over a longer time, especially in a contractual relationship. However, it is not clear whether some of the findings observed in a contractual setting hold good in no contractual scenarios: relationships between a seller and a buyer that are not governed by a contract or membership. It enables the manager to understand the specific driving forces of customer lifetime profitability. Based on this framework, the firm can identify at any given time the general nature of its customer‘s lifetime patterns and the individual-specific status along the lifetime continuum.

As marketing activities become more precisely targeted to consumers through direct and interactive forms of communication, customer profitability takes on a central role in the development of marketing strategies. A conceptual and methodological foundation for measuring customer profitability by generalizing approaches to measuring customer lifetime value in direct marketing for broader target marketing applications. Particular emphasis is placed on the precise specification of the inputs into a profitability analysis and the measures of the degree of concentration of profits among customers. An empirical analysis involving the profitability of customers in a business-to-business marketing context is described, along with research propositions for future work on the determinants of customer profitability. Relationship of profitability to intermediate, customer-related outcomes managers influence directly. It is predominantly a general management discussion. Customer satisfaction is related to customer loyalty, which in turn is related to profitability.

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Keywords

Profitability, Customer Satisfaction, Relationship and Marketing.

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