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A New Consumer Relationship Model: The Marketing Communications

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A New Consumer Relationship Model: The Marketing Communications

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Alkis Thrassou a; Demetris Vrontis a
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University of Nicosia, Nicosia, Cyprus
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Journal of Promotion Management, 15:499–521, 2009
Copyright © Taylor & Francis Group, LLC
ISSN: 1049-6491 print / 1540-7594 online
DOI: 10.1080/10496490903281270
A New Consumer Relationship Model: The

Marketing Communications Application
ALKIS THRASSOU and DEMETRIS VRONTIS

University of Nicosia, Nicosia, Cyprus
The article investigates empowered consumer behavior and ex-

plores its evolutionary nature and contemporary contexts in devel-
Downloaded By: [Louisiana State University] At: 17:34 4 November 2009
oped countries. Through a comprehensive literature review multi-

perspective analysis, it finally develops a prescriptive marketing
communication model in the context of an evolving business-
consumer relationship and its corresponding marketing philoso-
phy. The findings identify a rising symbiotic equilibrium between
consumers’ power and businesses’ influence on consumers’ percep-
tions. Consumer “needs” are found to be increasingly manifested
into “wants” which are intangible, of obscure value, affective in na-
ture and vulnerable to marketing communications; the latter being
increasingly oriented towards “perception management” and with
“branding” as a primary vehicle.
KEYWORDS consumer behavior, consumer empowerment, cus-

tomer relationship, developed countries, marketing, marketing
communications
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 of
developed countries. In parallel, the extent and intensity of competition,
and the strict, complex legal and regulatory environments together with the
knowledgeable and demanding business and consumer markets of these
countries, 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 the

School of Business, University of Nicosia, 46 Makedonitissas Avenue, Nicosia, Cyprus. E-mail:
[email protected]
499
500 A. Thrassou and D. Vrontis
Embarking on business in developed countries therefore demands the

ability to cope with a multitude of factors and forces simultaneously, plus
the wisdom to acknowledge that all segments of any organization form
a chain that binds and supports it. A chain which is, however, only as
strong as its weakest link. While retaining a spherical perspective that reveals
the vital interrelationship of the forces involved, this research studies and
analyzes them as interwoven threads that make up the fabric of modern
marketing theory. This research deals with macroenvironmental subjects only
in the context of marketing, explores their effect on consumer behavior, and
necessitates their prioritization according to the relative weight of each in
relation to business.
Additionally, this research utilizes the theoretical findings toward the
construction of a marketing communications model in the context of an
evolving 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 to
those nations that are widely accepted as being the most advanced; not
measured merely by wealth and/or economic output, but also by their
corresponding social organization and consumer behavioral complexity and
development.
Research Background—A Changing Global Marketing Environment

Change in the marketing environment is the consequence of events caused
by 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, and
root-depth human social evolution are forcing the business world to add a
new word to its dictionary: “globality” (Ball, McCulloch, Frantz, Geringer, &
Minor, 2002, pp. 11–14).
The developed countries lie at the heart of these changes, being the
main originators and driving forces behind the incessant reorganization of
our world and—equally importantly—our view of it. Through their combined
power, 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
A New Consumer Relationship Model 501
time, not by elite powerful individuals or nations, but by the spontaneous

improvization of the combined elements of investment, technology, infor-
mation, politics, and militia. It is choreography with strong means but no
conscious or visible ends; choreography for the dance and the dance alone.
These countries differentiate themselves as a group through attributes
relating to wealth, educational levels, technology penetration, and more. In
the business context, these macro-environmental factors come together to
form a single-most-important and unique force, the consumer, that demands
a marketing philosophy re-orientation in these countries.
Research Aims, Methodology, and Limitations

This research undertakes a comprehensive literature review and performs a
multi-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 ultimately
brought together to (d) construct a marketing communications model in
the context of an evolving symbiotic business-consumer relationship and its
corresponding 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 elements
involved. While this methodological approach is undeniably the right one so
early in the development of a contextually new theory, it is also its limita-
tion. It is clarified, therefore, that this research considers the model produced
to be a preliminary one and that substantial primary research is further re-
quired to test and refine the individual model components and to provide
the necessary validity to the framework in its entirety.
This research is conceptual and ultimately aims to provide a challenge
to traditional marketing communications and to reposition them in a new
marketing philosophy context. At this premature stage in its development,
the new concept aims for nothing more and nothing less than to provoke
thought, 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,
Miniard, & Engel, 2006). The significance of consumer behavior knowledge

rests on the foundation of modern marketing philosophy which recognizes
the 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 crowning
them sovereigns among the forces shaping business environments (Kotler
et 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 high

per-capita-income and low inflation, the high labor costs and quality, the
organisation of labor into powerful groups and the increased regulation of
working conditions, the increasingly strengthening role of services in their
economy versus manufacturing and agriculture (Fitzsimmons & Fitzsimmons,
2001; Keegan & Schlegelmilch, 2001; Paladino, 2005), the excellent infras-
tructure for transportation and communication, the comparatively low/stable
inflation and their stability and law supremacy are other characteristics that
should be highlighted. The effect of these on behavior is profound in ev-
ery step of the consumer decision process, which distinguishes itself from
the 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 be
understood.
The use of Maslow’s Theory of Motivation is one way to achieve this
understanding. 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 collective
level. The primary differentiating factor, therefore, in consumer behavior in
developed countries, is the average position where the population of these
countries 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 higher
needs (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 parallel
push upwards and relate not to the individual situation but to macroenviron-
mental elements. The combined effect of person and macroenvironmental
FIGURE 1 A more detailed representation of the consumer decision process. Adapted from
Blackwell 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 situation
in another country. The characteristics that differentiate developed countries
(economic prosperity, etc.), are therefore the ones that push the average
individual motivation level disproportionately higher on the scale, primar-
ily through the application of higher collective expectations on individual
performance.
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 point
of 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 the
model 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.
TABLE 1 Developed Countries’ Consumer Decision Process Differences (Literature Review

Findings)
Developed countries’ consumer decision process

Bibliography differences
GENERIC
Rayner & Easthope, 2001; -Upgraded significance of CDP
Blackwell et al., 2006; -Majority of consumption relating to the satisfaction of
Zeithaml et al., 2006 “higher” needs
NEED RECOGNITION STAGE
Hawkins et al., 2004; Schiffman “Need recognition”, although authentic in the sense that it
& Kanuk, 2004; Blackwell et requires the satisfaction of fundamental human
al., 2006; Zeithaml et al., requirements, it can be directed toward specific branded
2006; Solomon, 2007; products, ideas or positions. Due to:
Thrassou, 2007a, 2007bb -High average income level
-Large number of marketing communication channels with
high reach and impact

-A general social (perceived) correlation between
consumerism and quality of life
-An actual need for new products/ideas, consequential of
the high rates of social and technological changes.
INFORMATION SEARCH STAGE
Feldwick, 2002; Hawkins et al., Though non-marketer dominated sources are extremely
2004; Schiffman & Kanuk, important, there is comparatively greater information
2004; Solomon, 2007; provision through marketer-dominated channels. The
Thrassou, 2007a, 2007bb difference 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 of
products/ideas that often largely rely on intense
communication to succeed
-Value of time diminishing attention spans
ALTERNATIVES EVALUATION STAGE
Kapferer, 1997; Feldwick, 2002; -Consumers are more educated with easier access to
Brassington & Pettitt, 2003; valuable information
Schiffman & Kanuk, 2004; -Abundance of marketing channels and intensive
Thrassou, 2007a, 2007bb competition allows direct comparison of information
-Stricter regulatory environments provide relative assurance
against improper practices
-Relative value placed on branded products which
represents—among other elements—the appreciation,
trust and loyalty towards products and organizations
-Value of time diminishing cognitive processing.
CHOICE (PURCHASING) STAGE
Hawkins et al., 2004; Reedy & -Better infrastructure, greater competition and more
Schullo, 2004; Solomon, 2007 distribution channels
-Personal and social motives play a proportionally greater
role since people place considerable value on the
experience of the CDP itself
(Continued on next page)

TABLE 1 Developed Countries’ Consumer Decision Process Differences (Literature Review

Findings) (Continued)
Developed countries’ consumer decision process

Bibliography differences
CONSUMPTION STAGE POST-CONSUMPTION STAGES

Kapferer, 1997; Feldwick, 2002; -Comparatively less consumption takes place in relation
Brassington & Pettitt, 2003; to immediate practical (lower order) needs, and more
Hawkins et al., 2004; Schiffman in relation to cognitive, social and aesthetic (higher
& Kanuk, 2004; Blackwell et al., order) ones.
2006; Thrassou, 2007a, 2007bb -“Consumption experience” bears an increasing relative
weight
POST-CONSUMPTION STAGE
Kapferer, 1997; Feldwick, 2002; -In spite of the expanded diversity of consumer needs
Brassington & Pettitt, 2003; and wants the fundamental question of satisfaction or
Hawkins et al., 2004; Schiffman dissatisfaction is very similar.
& Kanuk, 2004; Blackwell et al., -Its evaluation is subjective though and portrays
2006 comparatively greater reliance on shopping and
product experience, and higher order factors
DIVESTMENT STAGE
(Blackwell et al., 2001; Blackwell -Divestment is often made due to social, not practical
et al., 2006; Fraj & Martinez, reasons
2006; Zeithaml et al., 2006; -Social shift of consumers and consequently businesses
Thrassou, 2007a, 2007bb towards environmentalism with choice of products
often influenced by their effect during and after
divestment
DEVELOPED COUNTRIES’ DIFFERENCES IN THE DETERMINANTS

OF CONSUMER BEHAVIOR
Behavior, is a result of a combination of factors. Some belong to the wider

consumer environment such as culture, social context, and family, and some
are specific to the individual like personality, values, attitudes, psychographic
profile, and lifestyle. Developed countries differ with regards to personality
influence on consumer behavior chiefly in terms of attitudes and values in
relation 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, Schröder,
Willock, Whitelock, & Mason, 2007; Thrassou, 2007a).
Cultural and social factors are equally important as, among developed
countries, there are commonly shared characteristics. Family influences are
diminishing due to decreasing time spent together by members, increased
divorce rates changing family structure, and “nuclear” families becoming the
norm. This alters both the actual family and the perception of its meaning
and leads to a lack of heritage and continuity (Kotler et al., 2005; Blackwell
et al., 2006; Thrassou, 2007a). Religious influences are also diminishing in
effect due to an array of reasons including education levels, freedom of

expression in combination with increased cultural diversity, liberalization of
economic activities, and increased questioning of religion’s role in modern
societies. This pattern, though, is neither absolute clear, nor constant, as
in the case of early 21st century United States, where religious influence
on 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 nationalist
feelings/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 countries
has, 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 developed
countries. 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 more
on technologies such as the internet, that are difficult to control by the state
or individuals. Education walks hand-in-hand with consumer empowerment
and the perception that citizens self-develop both as individuals and in their
capacity as consumers (Vittell, 2003; Henry, 2005; Blackwell et al., 2006;
Vrontis & Thrassou, 2007). Finally, reference groups tend to significantly
influence an individual’s behavior through socialization, self-concept, com-
parison, conformity, and role models (Maniyiwa & Crawford, 2002; Laroche
et 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 markets
and deliver the desired satisfactions more effectively and efficiently than
competitors in a way that maintains or improves the consumers’ and soci-
ety’s well-being (Kotler et al., 2005). However, if one would retain a more
pragmatic perspective on this frame of thinking, it would not be difficult to
observe an underlying fact: that this definition does not substantially differ
to the “orthodox” marketing concept which does not include the concept of
“maintaining or improving the consumer’s and society’s well-being” (Kotler
et al., 2005). So where does the ingenuity and philosophical innovation lie?
It is the change in the demands of consumers and their overall behavior
that 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,
FIGURE 2 The cycle of increasing business social responsibility.
understand this requirement and deliver accordingly. “Enhancing factors”

cyclically and incessantly evolve into “health factors,” thus constantly raising
the level of acceptable business responsibility as perceived by consumers, to
effectively 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 driving
force behind social responsibility, but simply a catalyst that reinforces the
conviction of consumers as to what to expect from businesses, solidifying
the minimum acceptable standards. This is enhanced in developed countries
by unrestricted competition, increased social awareness, education, and
freedom of expression which makes it difficult for organizations to build
perceptions 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 de-
veloped countries, it will be equally important to consider how businesses
are presently affected by the outcomes. This will be done by extrapolating
from the discussion in the previous sections. Today’s severely competitive
business environment does not allow much room for manoeuvre between
producer supply and consumer demand. This necessitates both a sound
understanding of consumer wants and the wherewithal to satisfy them. It

also renders it increasingly rare for businesses to offer truly good value
through visibly higher quality, lower price, or the best combination of the
two. Consequently, value is frequently offered in other ways, such as in-
novation (Mukherjee & Hoyer, 2001), extended products or services, better
customer 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 building
of 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 than
on 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 of
their income to shape perceptions (and therefore preferences) through all
the varieties of marketing communications at their disposal. The result is
that audiences are constantly exposed to commercial messages, and become
cognitively saturated with information. This in turn reduces ability of pro-
ducers to influence consumers, unless considerable extra effort is put into
increasing the qualitative or quantitative intensity of their communication
(Blackwell et al., 2006), or both.
For a developed world with few concerns for immediate needs towards
survival, consumerism appears to have become an end in itself and, through
it, consumers find a voice of expression, the way to promote their under-
standing of a better society, an abstract escape from the predetermined, and
the means to build an identity for themselves. The choice belongs to the
consumer and the consumer alone, but the context and content belongs to
the businesses.
MARKETING COMMUNICATIONS WITHIN THE NEW FRAMEWORK
The subject of marketing communications both in “classical” literature and in

terms of its developments and contemporary applications has been reviewed
and presented extensively. This research deems that more of such work
is superfluous and consequently will concentrate only on the aspects of
marketing communications that add value in the context of the proposed
new 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.
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 placed
on quality and the clients’ perception of quality with the latter differentiated
form the former.
Lovelock & Wright (2002), in fact, emphasized the importance of phys-
ical evidence To further add to the actual product, they also included other
“real” evidence such as offices and equipment, as well as “mental” evi-
dence such as symbols. Zeithaml & Bitner (2003) identifed the key reasons
for service communication problems as being: inadequate management of
service promises, inadequate management of customer expectations, inad-
equate customer education, and inadequate internal marketing communi-

cations. They subsequently presented a strategy for each toward matching
service promises with delivery. Earlier, McArthur & Griffin (1997) identified
the need to respect the differences of various types of marketers in planning
marketing communication activities. Thrassou & Vrontis (2006) linked the
intangibility and complexity of contemporary consumer behavior with the
increased need for customer education and consultation. Furthermore, they
observe through these consumer behavior attributes an opportunity for busi-
nesses to affect not only client knowledge but also elements such as client
attitudes, beliefs, and feelings towards the service. Marketing communica-
tions are viewed as the means of both receiving the necessary information
and 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 and
analyses that will allow the measurement and understanding of the previous
elements. Of interest to this research are the various means of stimulat-
ing word-of-mouth and targeting opinion leaders. Word-of-mouth has been
shown 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 drawn
through 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 limitations
of their budget, the critical role of the manager, and the need for a marketing
communications focus. Similar findings are noted by Said (2000) and Thras-
sou (2005), with the latter being consistent also with Kotler et al. (2005) in
doubting the necessity of formalized marketing communications processes
for small firms and in stressing the importance of adopting and adapting
marketing communications to resources’ availability.
Finally, Thrassou & Vrontis (2006) brought together the work of various
authors on the subject and combined it with their own primary data findings
to 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 previous
findings and provided three more valuable observations: the need to address
the structure and consistency of the competitive environment (SME concen-
tration, competition on market share vs. total market growth etc.), the need to
consider collective marketing communications through collaborations, and
the consideration of adapting strategy to marketing communications capa-
bilities.
Perhaps the single most important element of change within the new
marketing communications framework is electronic marketing. The subject
is 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, demonstrated
the continuously growing spectrum of communication means available to
businesses and their multiple implications. With the effort for gaining com-
petitive advantage shifted towards non-price factors, new electronic forms of
communication 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 customer
service is multi-channel and its benefits plentiful: it cuts costs, it develops
deeper relationships with customers, it increases sales, and it reduces risk by
spreading 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 over
channel 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, with
younger, more educated techno-users having a natural inclination toward
channels such as M-banking. Laforet & Li (2005) stated that the delivery
of 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 suggested
that consumers prefer a mix of rather than any one single delivery channel
(Howcroft, Hamilton, & Hewer, 2002) and that it is important for providers
to understand and improve each channel within the overall offering rather
than concentrating efforts on improving one delivery channel in isolation
(Patricio, Fisk, & Cunha, 2003).
According to Clarke (2001) value propositions define the relationship

between supplier offerings and consumer purchases. He further outlined that
value propositions specify the interdependence between the performances
attributes 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 proposition
offered by a specific product bundle. Value, in itself, is subjectively found
in new electronic channels and individual customer characteristics (educa-
tion, age, income, etc.) will affect evaluations of perceived risks, perceived
usefulness, and perceived ease of use of electronic means (Bhattacherjee,
2002; Howcroft et al., 2002; Sarel & Marmorstein, 2003a and 2003bb; and
Laforet & Li, 2005). The question of actual practical customer adoption of
new technologies is largely governed by classical theories such as the The-
ory of Diffusion of Innovations (Rogers, 1995, see especially pp. 5, 212–251).
The theory views adoption as “a process by which an innovation is commu-

nicated through certain channels over time among the members of a social
system.” It is determined by five innovation characteristics: Relative Advan-
tage, Complexity, Compatibility, Trialability, and Observability. The Theory
of Planned Behavior (Ajzen, 1991) posited that actual, voluntary use of a
technology is determined by the individual’s behavioral intention, which
in turn, is determined by the individual’s perceptions on the “presence or
absence of requisite resources and opportunities” to perform the behavior
(Ajzen, 1991).
CONSTRUCTING A NEW MARKETING COMMUNICATIONS

“SYMBIOTIC” MODEL
As shown in the introduction of this article, the marketing environment is

changing 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 consumers
and producers will continue to live through times of change, with occasional
interruptions of stability. Successful business will, therefore, be the ones that
accept 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 business
issues. Their findings ultimately provided the conceptual foundation for a
new and balanced relationship between business and consumers. Their re-
search approach held the question of “balance of power” in its epicentre and
presented 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
TABLE 2 List of Forces Affecting Balance of Power Between Businesses and Consumers
512
Forces that Might
Affect Balance of Most likely Overall Effect on
Power Increases Power of Businesses Increases Power of Consumers Power:
IT advances Advanced IT allows better understanding of Increased choice, more information, Moderate shift towards the
market needs/wants and allows more ease of comparison consumer end
efficient marketing mix adaptation
Other science and Efficiency and effectiveness of production and Allows demand for more, better and Neutral
engineering distribution customized products
advances
Demographic changes Higher age of average consumer Minor shift towards the
(low birth rates, means more experienced consumers consumer end
increase of average and therefore more difficult to
age etc) control
Economic changes Growing services sector means growth of Higher purchasing power in the hands Neutral
products with intangible nature and more of consumers resulting in greater
subjective perception of value that makes it buyers’ bargaining power.
easier for businesses to affect.
Higher purchasing power in the hands of
consumers results in changing spending
patterns favoring products satisfying “higher
order” needs which again have a less
objective perception of value that make it
easier for businesses to affect.
Higher purchasing power distributes itself also
into the hands of children and teenager
segments who are more vulnerable to
business tactics
Political/Regulatory These become stricter in favor of the Shift towards the consumer
Changes consumers aiming for their health, (degree is questionable as
safety, and financial protection businesses already often
impose self-restrictions which
are stricter than regulatory
ones)
Forces that Might

Affect Balance of Most-likely Overall Effect on
Power Increases Power of Businesses Increases Power of Consumers Power:
Social and Cultural As consumers pay more attention to As consumers become more socially Minor shift towards the business
Changes social-oriented needs they become more aware and multicultural they are end
dependent on items of subjective value less influenced by fashions usually
relating to esteem, prestige, etc., and which controlled by businesses
are more easily controlled by the businesses.
A changing attitude towards businesses
(characterized by less apprehension) favors
the identification of businesses with specific
socio-cultural elements, in the minds of
consumers
Increased Education Higher education boosts consumer Higher education in reality Major shift towards the consumer
and Experience with overconfidence in self’s ability to defend strengthens consumers’ ability to end
Marketing against manipulative marketing defend against manipulative
Techniques communications thus potentially in reality marketing communications
weakening the defences
Adapted from Vrontis, D., & Thrassou, A. (2007).
513
by two primary forces. The first relates to the incessant macro- and microenvi-
ronmental changes which induce strategic marketing to focus on reflex-style
consumer 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 single
most effective value-adding strategy, primarily, through the construction of
brand personalities and general anthropomorphic brand associations. The
latter 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, the
consumers are becoming more and more empowered regarding their wants
and 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 simply

parallel to the other. The two actions depend on each other. The dawning
business-consumer relationship, therefore, is more than a co-existing one. It
is a symbiotic one.
The implication for business marketing communications is grave. The
new symbiotic relationship shifts marketing communications’ target area from
the consumer’s environment to the consumer’s mind; from the external to
the internal; from the tangible to the intangible. “Reality” is increasingly
shadowed 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 from
“function” (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 by
the business-consumer symbiotic forces, thus depicting both the context, but
also 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 evolves
naturally from 21st century environmental conditions in developed countries
that interweave consumer behavior with corporate strategy. The two act con-
tinuously as equal and opposite forces resulting in a dynamic equilibrium
that achieves the balance and assures the durability of this new symbiosis.
Within this framework, and in accordance with the aforementioned
findings, the various marketing communications components are portrayed.
Firstly, the model notes the three major effects of the symbiotic frame-
work: the “Reversion Effect”—that is, marketing strategy formulated based
515
FIGURE 3 A business-consumer relationship model: The marketing communications application.
on, rather than producing marketing communications resources, capacity,

and competences; the “Double Adaptation Effect”—that is, management, or-
ganization, and culture adapted to fit required marketing communications
strategy and vice versa; and the “Want Satisfaction Effect”—that is, the call
for satisfaction of “wants” which are intangible, of obscure value, and affec-
tive in nature. Subsequently “strategic marketing planning” and “integrated
marketing 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 increase
total 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 and
their attributes to the product experience, the product intangibles and, in
essence, 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 a
number of practical implications. First, its “symbiotic” context allows mar-
keting planners to comprehend contemporary consumers and to utilize that
knowledge. Second, it shifts the focus of marketing communications from
the products and their attributes to the products’ value in terms of product
experience and higher-order need satisfaction. Third, it identifies “Percep-
tion Management” as a primary aim and “Branding” as a primary vehicle; in
effect changing the role of marketing communications from functional mes-
sage transmitters and image-builders to “stipulators” of reality. Overall, the
model demands the concentration of business activity on dynamic interven-
tion in the processes by which consumers perceive the world and frame their
expectations.
This theoretical conceptualization of a new marketing communications’
concept has deliberately incorporated many macro- and microenvironmental
elements 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 for
a new and distinctive analysis and as a stimulus to intellectual discussion
and further research. Though relatively generic, both the framework and
its marketing communications implications cannot be freely applied to any

business or all consumers. They have been constructed from observation of
evolutionary patterns in business and consumer behavior, as described by
contemporary researchers. The framework deliberately focuses on the most
developed and least conservative markets and consumers. We do not suggest
that developed countries are homogeneous, or experience the same exter-
nal environmental forces, but the body of research does indicate patterns
of consumer and business behavior in relation to similar operating environ-
ments, which probably can be generalized. In terms of the products the
more intangible, abstract, and subjective the “value” attribute is, the greater
the fitness of the model. Consequently, it is possible that it will apply for
one 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 other’s value. Marketing

communications have been adapting to the evolutionary leaps of marketing
philosophy: from the concept of “production” to the one of “product,” then
to the “selling,” “marketing,” and “societal marketing” concepts. Perhaps the
time is ripe for another leap.
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A New Consumer Relationship Model: The Marketing Communications

Article in Journal of Promotion Management · October 2009

Alkis Thrassou Demetris Vrontis

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A New Consumer Relationship Model: The

ALKIS THRASSOU and DEMETRIS VRONTIS

The article investigates empowered consumer behavior and ex-

oped countries. Through a comprehensive literature review multi-

KEYWORDS consumer behavior, consumer empowerment, cus-

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

Address correspondence to Alkis Thrassou, Associate Professor of Marketing at the

Embarking on business in developed countries therefore demands the

various findings in their corresponding strategic marketing relationship, act-

Research Background—A Changing Global Marketing Environment

time, not by elite powerful individuals or nations, but by the spontaneous

Research Aims, Methodology, and Limitations

DEVELOPED COUNTRIES’ CONSUMER BEHAVIOR ROLE

“Consumer behavior” is defined as the activities people undertake when

Miniard, & Engel, 2006). The significance of consumer behavior knowledge

Furthermore, the usual cultural diversity of their population, the high

situation allows the average individual in a developed country to be mo-

TABLE 1 Developed Countries’ Consumer Decision Process Differences (Literature Review

Developed countries’ consumer decision process

high reach and impact

(Continued on next page)

TABLE 1 Developed Countries’ Consumer Decision Process Differences (Literature Review

Developed countries’ consumer decision process

CONSUMPTION STAGE POST-CONSUMPTION STAGES

DEVELOPED COUNTRIES’ DIFFERENCES IN THE DETERMINANTS

Behavior, is a result of a combination of factors. Some belong to the wider

effect due to an array of reasons including education levels, freedom of

(Schiffman & Kanuk, 2004; Angelis, Lymperopoulos, & Dimaki, 2005).

FIGURE 2 The cycle of increasing business social responsibility.

understand this requirement and deliver accordingly. “Enhancing factors”

understanding of consumer wants and the wherewithal to satisfy them. It

perceptions in question become more critical parameter than objective re-

MARKETING COMMUNICATIONS WITHIN THE NEW FRAMEWORK

The subject of marketing communications both in “classical” literature and in

equate customer education, and inadequate internal marketing communi-

search, primarily owing to the importance of its contemporary nature. Reedy

According to Clarke (2001) value propositions define the relationship

The theory views adoption as “a process by which an innovation is commu-

CONSTRUCTING A NEW MARKETING COMMUNICATIONS

As shown in the introduction of this article, the marketing environment is

Forces that Might

consequently sculpting consumer demands. The one action is not simply

on, rather than producing marketing communications resources, capacity,

instead of a number of potential integrated marketing communications aims

Implications for Managers and Final Thoughts

its marketing communications implications cannot be freely applied to any

consumer, but their respective perceptions of the other’s value. Marketing