Promoting Customer Satisfaction: The Role of Relationship Marketing Practices and Relationship Value

Benon Nabimanya Muhumuza; Charles Lagat; Hassan Bashir

doi:doi:10.11648/j.sjbm.20210901.15

| Peer-Reviewed

Promoting Customer Satisfaction: The Role of Relationship Marketing Practices and Relationship Value

Benon Nabimanya Muhumuza, Charles Lagat, Hassan Bashir

Published in Science Journal of Business and Management (Volume 9, Issue 1)

Received: 7 February 2021 Accepted: 19 February 2021 Published: 12 March 2021

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

In the current era of growing competition and changing customer expectations within the hotel industry, managers are compelled to devise strategies of promoting customer satisfaction in order to attain a competitive advantage. This study investigated the mediation effect of relationship value in the relationship between relationship marketing practices and customer satisfaction in the hotel industry of Uganda. A quantitative survey design was adopted to investigate the envisaged linkage between the study variables from a relational perspective. The results of the study establish that relationship value significantly mediates the relationship between relationship marketing practices and customer satisfaction. In terms study limitations, the study focused on hotel customers in all the four regions of Uganda. The study results provide a reason for hotels to devote more resources towards relationship marketing practices in a bid to propel relationship value, which resonates customer satisfaction. The results of the study support the idea that improved relationship marketing practices through relationship value generate a sustainable psychological satisfaction not only for customers but also high market share for the organization. The study recommends to hotel managers to regularly consider the drivers of relationship marketing practices, which build a long-term relationship and bonds with customers to yield relationship value. As evidenced in this study, it is of great importance to develop relationship-marketing practices that increase relationship value, an aspect that is vital in boosting customer satisfaction. This article is an original piece of work with both empirical and theoretical value. Empirically, this work is the first of its kind aimed at investigating the mediation effect of relationship value between relationship marketing and customer satisfaction within the hospitality setting. Theoretically, the study extends the adaptability of the social exchange theory by expounding relationship marketing in enhancing customer satisfaction.

Published in	Science Journal of Business and Management (Volume 9, Issue 1)
DOI	10.11648/j.sjbm.20210901.15
Page(s)	47-54
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Relationship Marketing Practices, Relationship Value, Customer Satisfaction

References

[1]	Abdul-Muhmin, A. G. (2002). Effects of suppliers’ marketing practices variables on industrial buyers’ relationship satisfaction and commitment. Journal of Business & Industrial Marketing.
[2]	Barnes, B. R. (2005). Is the seven-year hitch premature in industrial markets? European Journal of Marketing, 39 (5/6), 560–584.
[3]	Beck, J. T., Chapman, K., & Palmatier, R. W. (2015). Understanding relationship marketing and loyalty program effectiveness in global markets. Journal of International Marketing, 23 (3), 1-21.
[4]	Bi, J.-W., Liu, Y., Fan, Z.-P., & Zhang, J. (2020). Exploring asymmetric effects of attribute performance on customer satisfaction in the hotel industry. Tourism management, 77, 104006.
[5]	Bilgihan, A., & Bujisic, M. (2015). The effect of website features in online relationship marketing: A case of online hotel booking. Electronic commerce research and applications, 14 (4), 222-232.
[6]	Bojei, J., Julian, C. C., Wel, C. A. B. C., & Ahmed, Z. U. (2013). The empirical link between relationship marketing tools and consumer retention in retail marketing. Journal of Consumer Behaviour, 12 (3), 171-181.
[7]	Crosby, L. A., K. R. Evans and D. Cowles (1990). ‘Relationship Quality in Services Selling: An Interpersonal Influence Perspective’, Journal of Marketing.
[8]	Das, T. K., & Teng, B.-S. (2002). Alliance constellations: A social exchange perspective. Academy of management review, 27 (3), 445-456.
[9]	Eugene W. Anderson et al., (1994), customer satisfaction, market share, and profitability; findings from Sweden, Journal of marketing, vol. 58.
[10]	Faroughian, F. F., Kalafatis, S. P., Ledden, L., Samouel, P., & Tsogas, M. H. (2012). Value and risk in business-to-business e-banking. Industrial Marketing Management, 41.
[11]	Harker, M., Brennan, R., Kotler, P., & Armstrong, G. (2015). Marketing: An Introduction.
[12]	Hayes, A. F. (2009). Beyond Baron and Kenny: Statistical mediation analysis in the new millennium. Communication Monographs, 76 (4), 408-420.
[13]	Krejcie, V. R., & Morgan, W. D. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30, 607-610.
[14]	Lervik Olsen, L., Witell, L., & Gustafsson, A. (2014). Turning customer satisfaction measurements into action. Journal of Service Management, 25 (4), 556-571.
[15]	Lima, M., & Fernandes, T. (2015). Relationship bonds and customer loyalty: A study across different service contexts. Paper presented at the International Conference on Exploring Services Science.
[16]	Lin, P., Weng, J. C. M., Hsieh, Y. (2003). Relational bonds and customer's trust and commitment- a study on the moderating effects of web site usage. The Services Industries Journal 23 (3).
[17]	Luu, N., Ngo, L. V., & Cadeaux, J. (2018). Value synergy and value asymmetry in relationship marketing practices. Industrial Marketing Management, 68, 165-176.
[18]	Morgan, R. M., & Hunt, S. D. (1994). The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing, 58 (3), 20-38.
[19]	Nangoli, S., Muhumuza, B., Tweyongyere, M., Nkurunziza, G., Namono, R., Ngoma, M., & Nalweyiso, G. (2020). Perceived leadership integrity and organisational commitment. Journal of Management Development.
[20]	Ndubisi, N. O. (2007). Relationship marketing and customer loyalty. Marketing intelligence & planning.
[21]	Nurbasari, A., & Harani, N. H. (2018). Influence of customer relationship marketing and satisfaction of customer loyalty (Case Study: In Bank CIMB Niaga Lembong in Bandung). Economics, 6 (2), 98-107.
[22]	Neuman, W. L. (2007). Basics of social research; Qualitative and quantitative approaches (2^nded.). Boston, USA: Pearson Education, Inc.
[23]	OJIAKU, C. O., AGHARA, O. V., & Ezeoke Obianuju, L. (2017). Effect of relationship marketing and relationship marketing practices on customer loyalty. International Journal of Business and Management Review, 5 (5), 58-71.
[24]	Palmatier, R. W., Scheer, L. K., Houston, M. B., Evans, K. R., & Gopalakrishna, S. (2007). Use of relationship marketing practices in building customer–salesperson and customer–firm relationships: Differential influences on financial outcomes. International Journal of Research in Marketing, 24 (3), 210-223.
[25]	Pizam, A., Shapoval, V., & Ellis, T. (2016). Customer satisfaction and its measurement in hospitality enterprises: a revisit and update. International Journal of Contemporary Hospitality Management, 28 (1), 2-35.
[26]	Ranaweera, C., & Prabhu, J. (2003). The influence of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting. International journal of service industry management, 14 (4), 374-395.
[27]	Rizan, M., Warokka, A., & Listyawati, D. (2014). Relationship marketing and customer loyalty: do customer satisfaction and customer trust really serve as intervening variables? Journal of Marketing Research & Case Studies, 2014, 1.
[28]	Saad Andaleeb, S., & Conway, C. (2006). Customer satisfaction in the restaurant industry: an examination of the transaction-specific model. Journal of services marketing, 20 (1), 3-11.
[29]	Sheth, J. N., Parvatiyar, A. E., 2000. Handbook of Relationship Marketing, Sage Publication Ltd, London.
[30]	Shiau, W.-L., & Luo, M. M. (2012). Factors affecting online group buying intention and satisfaction: A social exchange theory perspective. Computers in Human Behavior, 28 (6), 2431-2444.
[31]	Song, H., Yu, K., Chatterjee, S. R., & Jia, J. (2016). Service supply chain: strategic interaction and relationship value. Journal of Business & Industrial Marketing, 31 (5).
[32]	Töytäri, P., Rajala, R., & Alejandro, T. B. (2015). Organizational and institutional barriers to value-based pricing in industrial relationships. Industrial Marketing Management, 47, 53-64.
[33]	Uganda owner’s Hotel association report (2018).
[34]	Ulaga, W., & Eggert, A. (2006a). Relationship value and relationship quality: Broadening the nomological network of business-to-business relationships. European Journal of Marketing, 40 (3/4).
[35]	Vavra, T. G. (2002). Customer satisfaction measurement simplified: A step-by-step guide for ISO 9001: 2000 certification. ASQ Quality Press.
[36]	Wilson, A., Zeithaml, V., Bitner, M. J., & Gremler, D. (2016). Services marketing: Integrating customer focus across the firm.
[37]	Wilson, D. T. and S. A. Jantrania (1993). ‘Measuring Value in Relationship Development’, Proceedings of the 9th IMP Conference, Bath University, Bath.
[38]	Wilson, D. T. and S. A. Jantrania (1994). ‘Understanding the Value of a Relationship’, Asia-Australia Marketing Journal, 2 (1).
[39]	Wilson, D., & Jantrania, S. (1997). ``Understanding the value of a relationship'', reprinted in Ford. D. Ed.), Understanding Business Markets, The Dryden Press, London.
[40]	Woodruff, R. B. and S. F. Gardial (1996). Know Your Customer: New Approaches to Understanding Customer Value and Satisfaction. Blackwell Business, Cambridge, MA.
[41]	World Tourism Organization (1985) “Identification and Evaluation of those Components of Tourism Services which have a bearing on tourist satisfaction and which can be regulated, and state measures to ensure adequate quality of tourism services” World Tourism Organization, Madrid.
[42]	Zhang, R., Li, G., Wang, Z., & Wang, H. (2016). Relationship value based on customer equity influences on online group-buying customer loyalty. Journal of Business Research, 69 (9), 3820-3826.

Cite This Article

Plain Text BibTeX RIS

APA Style

Benon Nabimanya Muhumuza, Charles Lagat, Hassan Bashir. (2021). Promoting Customer Satisfaction: The Role of Relationship Marketing Practices and Relationship Value. Science Journal of Business and Management, 9(1), 47-54. https://doi.org/10.11648/j.sjbm.20210901.15

Copy | Download

ACS Style

Benon Nabimanya Muhumuza; Charles Lagat; Hassan Bashir. Promoting Customer Satisfaction: The Role of Relationship Marketing Practices and Relationship Value. Sci. J. Bus. Manag. 2021, 9(1), 47-54. doi: 10.11648/j.sjbm.20210901.15

Copy | Download

AMA Style

Benon Nabimanya Muhumuza, Charles Lagat, Hassan Bashir. Promoting Customer Satisfaction: The Role of Relationship Marketing Practices and Relationship Value. Sci J Bus Manag. 2021;9(1):47-54. doi: 10.11648/j.sjbm.20210901.15

Copy | Download

@article{10.11648/j.sjbm.20210901.15,
  author = {Benon Nabimanya Muhumuza and Charles Lagat and Hassan Bashir},
  title = {Promoting Customer Satisfaction: The Role of Relationship Marketing Practices and Relationship Value},
  journal = {Science Journal of Business and Management},
  volume = {9},
  number = {1},
  pages = {47-54},
  doi = {10.11648/j.sjbm.20210901.15},
  url = {https://doi.org/10.11648/j.sjbm.20210901.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20210901.15},
  abstract = {In the current era of growing competition and changing customer expectations within the hotel industry, managers are compelled to devise strategies of promoting customer satisfaction in order to attain a competitive advantage. This study investigated the mediation effect of relationship value in the relationship between relationship marketing practices and customer satisfaction in the hotel industry of Uganda. A quantitative survey design was adopted to investigate the envisaged linkage between the study variables from a relational perspective. The results of the study establish that relationship value significantly mediates the relationship between relationship marketing practices and customer satisfaction. In terms study limitations, the study focused on hotel customers in all the four regions of Uganda. The study results provide a reason for hotels to devote more resources towards relationship marketing practices in a bid to propel relationship value, which resonates customer satisfaction. The results of the study support the idea that improved relationship marketing practices through relationship value generate a sustainable psychological satisfaction not only for customers but also high market share for the organization. The study recommends to hotel managers to regularly consider the drivers of relationship marketing practices, which build a long-term relationship and bonds with customers to yield relationship value. As evidenced in this study, it is of great importance to develop relationship-marketing practices that increase relationship value, an aspect that is vital in boosting customer satisfaction. This article is an original piece of work with both empirical and theoretical value. Empirically, this work is the first of its kind aimed at investigating the mediation effect of relationship value between relationship marketing and customer satisfaction within the hospitality setting. Theoretically, the study extends the adaptability of the social exchange theory by expounding relationship marketing in enhancing customer satisfaction.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Promoting Customer Satisfaction: The Role of Relationship Marketing Practices and Relationship Value
AU  - Benon Nabimanya Muhumuza
AU  - Charles Lagat
AU  - Hassan Bashir
Y1  - 2021/03/12
PY  - 2021
N1  - https://doi.org/10.11648/j.sjbm.20210901.15
DO  - 10.11648/j.sjbm.20210901.15
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 47
EP  - 54
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20210901.15
AB  - In the current era of growing competition and changing customer expectations within the hotel industry, managers are compelled to devise strategies of promoting customer satisfaction in order to attain a competitive advantage. This study investigated the mediation effect of relationship value in the relationship between relationship marketing practices and customer satisfaction in the hotel industry of Uganda. A quantitative survey design was adopted to investigate the envisaged linkage between the study variables from a relational perspective. The results of the study establish that relationship value significantly mediates the relationship between relationship marketing practices and customer satisfaction. In terms study limitations, the study focused on hotel customers in all the four regions of Uganda. The study results provide a reason for hotels to devote more resources towards relationship marketing practices in a bid to propel relationship value, which resonates customer satisfaction. The results of the study support the idea that improved relationship marketing practices through relationship value generate a sustainable psychological satisfaction not only for customers but also high market share for the organization. The study recommends to hotel managers to regularly consider the drivers of relationship marketing practices, which build a long-term relationship and bonds with customers to yield relationship value. As evidenced in this study, it is of great importance to develop relationship-marketing practices that increase relationship value, an aspect that is vital in boosting customer satisfaction. This article is an original piece of work with both empirical and theoretical value. Empirically, this work is the first of its kind aimed at investigating the mediation effect of relationship value between relationship marketing and customer satisfaction within the hospitality setting. Theoretically, the study extends the adaptability of the social exchange theory by expounding relationship marketing in enhancing customer satisfaction.
VL  - 9
IS  - 1
ER  -

Copy | Download

Author Information

Benon Nabimanya Muhumuza

Department of Marketing and Management, Makerere University Business School, Kampala, Uganda
Charles Lagat

Department of Marketing and Logistics, School of Business and Economics, Moi University, Nairobi, Kenya
Hassan Bashir

Department of Business Administration, Makerere University Business School, Kampala, Uganda

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Benon Nabimanya Muhumuza, Charles Lagat, Hassan Bashir. (2021). Promoting Customer Satisfaction: The Role of Relationship Marketing Practices and Relationship Value. Science Journal of Business and Management, 9(1), 47-54. https://doi.org/10.11648/j.sjbm.20210901.15

Copy | Download

ACS Style

Benon Nabimanya Muhumuza; Charles Lagat; Hassan Bashir. Promoting Customer Satisfaction: The Role of Relationship Marketing Practices and Relationship Value. Sci. J. Bus. Manag. 2021, 9(1), 47-54. doi: 10.11648/j.sjbm.20210901.15

Copy | Download

AMA Style

Benon Nabimanya Muhumuza, Charles Lagat, Hassan Bashir. Promoting Customer Satisfaction: The Role of Relationship Marketing Practices and Relationship Value. Sci J Bus Manag. 2021;9(1):47-54. doi: 10.11648/j.sjbm.20210901.15

Copy | Download

@article{10.11648/j.sjbm.20210901.15,
  author = {Benon Nabimanya Muhumuza and Charles Lagat and Hassan Bashir},
  title = {Promoting Customer Satisfaction: The Role of Relationship Marketing Practices and Relationship Value},
  journal = {Science Journal of Business and Management},
  volume = {9},
  number = {1},
  pages = {47-54},
  doi = {10.11648/j.sjbm.20210901.15},
  url = {https://doi.org/10.11648/j.sjbm.20210901.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20210901.15},
  abstract = {In the current era of growing competition and changing customer expectations within the hotel industry, managers are compelled to devise strategies of promoting customer satisfaction in order to attain a competitive advantage. This study investigated the mediation effect of relationship value in the relationship between relationship marketing practices and customer satisfaction in the hotel industry of Uganda. A quantitative survey design was adopted to investigate the envisaged linkage between the study variables from a relational perspective. The results of the study establish that relationship value significantly mediates the relationship between relationship marketing practices and customer satisfaction. In terms study limitations, the study focused on hotel customers in all the four regions of Uganda. The study results provide a reason for hotels to devote more resources towards relationship marketing practices in a bid to propel relationship value, which resonates customer satisfaction. The results of the study support the idea that improved relationship marketing practices through relationship value generate a sustainable psychological satisfaction not only for customers but also high market share for the organization. The study recommends to hotel managers to regularly consider the drivers of relationship marketing practices, which build a long-term relationship and bonds with customers to yield relationship value. As evidenced in this study, it is of great importance to develop relationship-marketing practices that increase relationship value, an aspect that is vital in boosting customer satisfaction. This article is an original piece of work with both empirical and theoretical value. Empirically, this work is the first of its kind aimed at investigating the mediation effect of relationship value between relationship marketing and customer satisfaction within the hospitality setting. Theoretically, the study extends the adaptability of the social exchange theory by expounding relationship marketing in enhancing customer satisfaction.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Promoting Customer Satisfaction: The Role of Relationship Marketing Practices and Relationship Value
AU  - Benon Nabimanya Muhumuza
AU  - Charles Lagat
AU  - Hassan Bashir
Y1  - 2021/03/12
PY  - 2021
N1  - https://doi.org/10.11648/j.sjbm.20210901.15
DO  - 10.11648/j.sjbm.20210901.15
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 47
EP  - 54
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20210901.15
AB  - In the current era of growing competition and changing customer expectations within the hotel industry, managers are compelled to devise strategies of promoting customer satisfaction in order to attain a competitive advantage. This study investigated the mediation effect of relationship value in the relationship between relationship marketing practices and customer satisfaction in the hotel industry of Uganda. A quantitative survey design was adopted to investigate the envisaged linkage between the study variables from a relational perspective. The results of the study establish that relationship value significantly mediates the relationship between relationship marketing practices and customer satisfaction. In terms study limitations, the study focused on hotel customers in all the four regions of Uganda. The study results provide a reason for hotels to devote more resources towards relationship marketing practices in a bid to propel relationship value, which resonates customer satisfaction. The results of the study support the idea that improved relationship marketing practices through relationship value generate a sustainable psychological satisfaction not only for customers but also high market share for the organization. The study recommends to hotel managers to regularly consider the drivers of relationship marketing practices, which build a long-term relationship and bonds with customers to yield relationship value. As evidenced in this study, it is of great importance to develop relationship-marketing practices that increase relationship value, an aspect that is vital in boosting customer satisfaction. This article is an original piece of work with both empirical and theoretical value. Empirically, this work is the first of its kind aimed at investigating the mediation effect of relationship value between relationship marketing and customer satisfaction within the hospitality setting. Theoretically, the study extends the adaptability of the social exchange theory by expounding relationship marketing in enhancing customer satisfaction.
VL  - 9
IS  - 1
ER  -

Copy | Download