An approach to increase customer retention and loyalty in b2c world roopa singh, imran akhtar khan. The variables in the study are relationship marketing dimensions which consist of financial benefits x1, social benefits x2, structural benefits x3, customer satisfaction z, and. Thus customer loyalty is when a supplier receives the ultimate reward of his efforts in. The data used in the present study was collected by using a self administered questionnaire. Effects of promotion on relationship quality and customer. An approach to increase customer retention and loyalty in.
Each and every interaction with a customer is a gift and should be valued. The relationship between customer satisfaction and. The purpose of this research is to study the relationship between customer satisfaction and consumer loyalty and apply its relationship into all the market industries including products and services. Concerning potential importance of retaining customers and establishing right relationship with them to create loyalty, previous studies have presented diverse. Effects of relationship marketing rm on customer loyalty. Customer perceptions of relationship marketing and its impact on loyalty study of the main savings customers of pt. Customer loyalty meaning and its important concepts. The impact of customer relationship marketing on customer.
In this study, we will test specifically the intervening effects of customer satisfaction and customer trust in the nexus. Multiple regression analysis assessed the impact on customer loyalty of four key constructs of relationship marketing trust, commitment, communication and conflict handling. Customer relationship marketing and customer satisfaction. In most businesses the costs of obtaining a new customer is greater than retaining a current customer. Analysis and interpretation this section gives the deep analysis on. Pdf relationship marketing and customer loyalty researchgate. Relationship marketing is a facet of customer relationship management crm that focuses on customer loyalty and longterm customer engagement rather than shorterterm goals like customer. Interrelationship between customer satisfaction and customer loyalty it is logic that satisfied buyers will probably return for future purchases and eventually become loyal. The relationship between service quality, customer. A study of relationship marketing on customer satisfaction.
The study reports the impact of relationship marketing on customer loyalty in the luxury and firstclass hotel industry. The unit also links relationship marketing with customer service and quality management. A study on mobile service providing companies in sri lanka research has been done in developed countries. A relationship marketing strategy uses personalized communication to sell products or services. Relationship marketing and customer loyalty ibima publishing. The results revealed that the relationship marketing tactics affected customer loyalty significantly through customer trust and customer satisfaction.
Further to that, one way to enhance customer loyalty in banking is by focusing on offering excellent services and meeting the needs of customer. In customer point of view, trust, commitment, mutuality and long term relationship with customer which are very essential factors to satisfy their customer needs and wants. Customer relationship marketing and its influence on. The relationship between marketing mix and customer. Therefore this study was planned to examine the impact of relationship marketing underpinnings namely trust, commitment, communication, conflict handling, bonding, shared values, empathy, and reciprocity on customer loyalty in the banking industry. The shift in the marketing paradigm gronroos, 1997, as a result of globalization of businesses and the evolving recognition of the importance of customer retention, customer loyalty, market economies and customer relationship economies, has brought companies to deliver the benefits that accrue to customers. Your first strategy to building a strong customer relationship is to make every customer interaction count. By looking specifically into pullpushmooring ppm migration model and commitmenttrust relationship marketing theory, the proposed study aims to examine the impact of relationship. In this paper, we indicate that companies can create loyal customers through clear communication, trust and developing a positive word of mouth. Is customer satisfaction an indicator of customer loyalty. This increases customers trust and satisfaction and in turn enhances profitability of the firm ashley et al.
Relationship marketing strategies and customer loyalty of. This means that every existing customer is crucial to a business. A crosssectional and quantitative study design, with the aim of explaining the relationship between. Moreover, they banking marketers have to amend all challenges to achieve a marketable service. Impact of customer relationship management on customer. Abstract the purpose of this study is to provide an insight into the impact of relationship marketing strategy on customer loyalty of retail bank sector in pakistan. H2 customer satisfaction is positively associated with customer loyalty. A questionnaire derived from previous studies and the relevant literature was completed by 220 bank customers in malaysia.
Due to increase in competition most companies have established relationship. Relationship marketing emerged from two broad areas of service marketing and industrial marketing lemon et al. Introduction aldred 2005 stated that loyalty is more about sales promotion than relationship marketing, the. In addition, as it presented here in early part, service quality is assumed to be an antecedent of customer satisfaction. This chapter will address customer management and the variety of techniques used in customer relationship building, nurturing, loyalty, retention, and reactivation. The main objective of this study is to investigate the impact of customer relationship marketing on customer satisfaction of the arab bank services to achieve the following results. The customer loyalty in banking has seen a major concern to practitioners due to severe competition and higher customer expectations. To examine the impact of relationship marketing strategy on customer loyalty. Relationship marketing isnt as simple as merely following these.
In this regard, the relationship between customer satisfaction and trust on. The impact of a relationship marketing strategy on. The purpose of this study is to discuss the impact of customer loyalty in banking sector. Designmethodologyapproach a questionnaire derived from previous studies and the relevant. Relationship marketing and customer loyalty global journals. The impact of a relationship marketing strategy on customer loyalty. The relationship between customer satisfaction and customer trust on customer loyalty vithya leninkumar. Pdf purpose to examine the impact of relationship marketing strategy on customer loyalty. Loyalty, relationship marketing, emarketing, customer. Relationship marketing is a uniquely difficult aspect of marketing, and one that requires true engagement with your existing customer base. Customer loyalty is the measure of success of the supplier in retaining a long term relationship with the customer. The effect of self service technology, service quality.
The impact of customer loyalty programs on customer. Relationship marketing dimensions in customer satisfaction. The research aim is to examine the impact of relationship marketing on customer loyalty considering the context of tesco plc. Because customer retention focuses on repeated patronage of a marketer or supplier, it is closely related to repeat purchasing. Do customer satisfaction and customer trust really serve as intervening variables. Since customer relationship building creates mutual rewards ndubisi, 2006, 2007 and both the firm and the customer benefit, it is important, therefore, to empirically examine the actual impact of. This particular study concentrates on impact of relationship marketing on customer loyalty in the banking sector and is a form of fact finding research. Relationship marketing, relationship quality, customer loyalty, airline industry. Relationship marketing and customer loyalty emerald insight. G lobalization and highly competitive banking context play an increasingly important role in increasing customer loyalty. Purpose to examine the impact of relationship marketing strategy on customer loyalty. The role of relationship marketing in customer orientation. Transforming indifferent customers into loyal ones and.
This thesis was implemented to an analyzing the relationship between customer satisfaction and customer. H3 customer satisfaction mediates the relationship between marketing mix and customer loyalty. Pdf the impact of relationship marketing tactics on customer. Relationship marketing strategies for customer retention. Successful implementation of relationship marketing was proven by ndubisi. Moreover, they banking marketers have to amend all challenges to achieve a. The third section presents the importance of customer.
Proper relationship marketing may result in lower marketing costs, enhanced customer satisfaction, customer loyalty and possibly increases customer retention levels for banks bergeron et al. Both relationship marketing and crm are grounded in the longheld belief that customerretention and building customer loyalty over time is the key to longterm business success. The customer loyalty in banking has seen a major concern to practitioners due to severe competition and higher. The impact of relationship marketing on customer loyalty. A mediator of relationship marketing and customer loyalty cogent oa. Pdf relationship marketing and customer loyalty by nelson oly. The study found that the correlation value between relationship marketing and customer loyalty is 0. The challenge all marketers face today is in finding ways of increasing customer loyalty and retention.