The effect of relationship marketing orientation on business performance in a service‐oriented economy

Abstract

Although a large body of research theoretically asserts a positive association between relationship marketing orientation (RMO) and business performance, a valid measure of RMO has not yet been proposed and systematic analysis of its effect on business performance has thus far not been possible. This paper addresses some conceptual and measurement issues related to the study of RMO and its impact on business performance in a service context. It first reviews the concept of RMO and its important dimensions. Next, a measurement scale with acceptable reliability and validity is developed to capture the dimensions of RMO. In turn, analysis of data shows that RMO is positively and significantly associated with sales growth, customer retention, market share, ROI, and overall performance. The implications of these findings are discussed and the limitations of the study as well as future research directions are addressed.

The Effect of Self-Service Technology, Service Quality, and Relationship Marketing on Customer Satisfaction and Loyalty

“…This study also confirms research by Bitner (1990), Grönroos (1990), Parasuraman et al (1988) regarding service quality. In addition, the findings related to relationship marketing also confirm the research conducted by Sin et al (2002) and Ndubisi (2007). Results regarding customer satisfaction confirm the study by Caruana and Malta (2002); Jamal and Naser (2002) while the research of customer loyalty confirms a study by Baloglu (2002).…”

The Relationship Quality Effect on Customer Loyalty

“…It has been acknowledged that relationship marketing has positive impact on client retention (Sin et al 2002;Rosenberg and Czepiel 1984;Reichheld and Sasser 1990), however the understanding why customers become loyal still is one of the most crucial (Pritchard, Havitz and Howard 1999). The literature mentions different relationship quality dimensions, however no agreement regarding these has been achieved.…”

“…Social involvement dimension in the context of relationship market has influence on client loyalty development and enhancement, directly determining the emerging of affection feeling towards the involvement and relationship and, indirectly, that towards organization (Sin et al 2002). Social benefit includes the conception of amiability and familiarity.…”

The role ofguanxiin buyer–supplier relationships in Chinese small- and medium-sized enterprises – a resource-based perspective

“…Cheng (2007) identifies the differences between relationship management and guanxi in terms of: (i) the personal characteristic of guanxi and the particular nature of the relationship; (ii) trust from xinyong (trust); and (iii) trust and the unique meaning of renqing (favour). Xinyong and renqing are said to direct behavioural norms in guanxi, and this is different from the western concept of relationship management in terms of the order in which transactions and relationships take place and the short-term vs. long-term nature of business transactions Geddie 2002, 2005;Sin et al 2002).…”