Relationship marketing and customer loyalty

Instructor: Dr. Pi-Ying Teresa HsuPresenter: Han-Ming Jeffrey Chen

Date: Oct. 22, 2009

Ndubisi, N. O. (2007). Relationship marketing and customer loyalty. Marketing Intelligence & Planning, 25 (1), 98-106.

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Contents

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Reflection

Introduction

Literature Review

Methodology

Result & Conclusion

Introduction

More and more firms are capitalising on strong firm-customer relationship to gain invaluable information on how best to serve customers and keep them from defecting to competing brands.

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Introduction

Customer relationship building creates mutual rewards which benefit both the firms and the customers.

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Purpose

- To examine the impact of relationship marketing strategy on customer loyalty

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Research Framework

Trust

Customer Loyalty

Commitment

Communication

Conflict Handling7

Relationship Marketing

The relationship marketing concept emerged within the field of service marketing and industrial marketing.

(Christopher et al., 1991; Gummesson, 1991; Lindgreen et al.,2004)

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The “underpinnings” of relationship marketing

CommunicationCommitment

Conflict handling

Relationship marketing

Trust

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Trust

“. . . a willingness to rely on an exchange partner in whom one has confidence.”

(Moorman et al., 1993)

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Commitment

A useful construct for measuring the likelihood of customer loyalty and predicting future purchase frequency.

(Gundlach et al., 1995;Morgan & Hunt,1994)

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Communication

An interactive dialogue between the company and its customers, which takes place during the pre-selling, selling, consuming and post-consuming stages

(Anderson & Narus, 1990)

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Conflict handling

A supplier’s ability to avoid potential conflicts, solve manifest conflicts before they create problems, and discuss solutions openly when problems do arise.

(Dwyer et al., 1987)

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Methodology

Participants 220 bank customers

Place in Kota Kinabalu, Malaysia

Period ?

Sampling Quasi-random sampling

Instrument Questionnaire

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Questionnaire

Dimensions SourcesTrust

Commitment

Communication

Conflict Handling

(Churchill & Surprenant, 1982)

Customer Loyalty

(Morgan & Hunt, 1994)

(Bloemer et al, 1999)

the 5-point Likert Scale

Strongly disagree Strongly agree

1 2 3 4 5

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Results

Gender Male : Female = 42% : 58%

Age 27% of all respondents were over 40 years age .

Education 43% of all respondents were graduate .

Years 42% : 11 years or more 39% : between 6 and10 years 19% : 5 years or less

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Reliability estimates

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Relationship between RM underpinnings and customer loyalty

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p-value < .05

Conclusion

Malaysian bank customers tend to be loyal if the bank is: trustworthy; committed to service; reliable and efficient in communicating to customers; able to handle conflicts well.

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Reflection

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Long-term relationship between the service providers and accepters

Relationship Marketing

Thank you for your attention!