Bussiness

The Exchange Relationship

Ashford University

Managerial Marketing BUS620

Dr. Sharif Muhammad

July 5, 2010

Abstract

Many times companies will affront situations when they will have to choose between profits of a onetime transaction or create a long term relationship with their customers. Understanding the customer’s behavior will always help the company to create better marketing strategies to affront the market. These strategies have to focus on what the customer wants and how to create and maintain the exchange relationship. This paper will try to clarify what, in my point of view, is the key to maintain the exchange relationship.

The Exchange Relationship

Many people have different opinions about how to affront the exchange relationships in their business. Managers have to create the best way to affront this relationship. But, what happens if the customers or “buyers” in this relationship don’t want to be part of this for different reasons? How can manager’s approach these customers, sell their services and products, and maintain a long term relationship with them? How can they sell a product, or introduce a product to the market if the customer is afraid to buy?

This and other questions are going to always be in the head of the managers of the company when the customer doesn’t want to be a customer. Companies who don’t have a market to sell their products will sooner or later fail. A bigger impact for a company when a customer doesn’t want to be a customer is to break the exchange relationship between them. To illustrate better how companies can affront this breaking of the exchange relationship, let’s start this with an example that helps us to clarify what this paper is trying to explain.

A person has diabetes and needs to use insulin every day to stay alive. This person definitely hates the idea to use this product and, in most cases, they feel frustrated for the higher cost of the product and the pain it produces when it’s applied.

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