Topic > Relationship Marketing - 1078

This essay is a critical review of the literature on Relationship Marketing in relation to customer satisfaction and loyalty. In this review I will provide a brief orientation on relationship marketing; identify the different dimensions of relationship marketing and critically analyze the concept of relationship marketing with regards to customer satisfaction and loyalty. Leahy (2011:651) defined relationship marketing as “attracting and retaining customers over a long period of time”. Relationship marketing is used by companies to change consumer attitudes and increase the frequency of purchase at a company using marketing techniques such as promotions and advertising. According to Ndubisi and Chan (2005), relationship marketing offers an organization the opportunity to think ahead to gain access to the right information about its customers, meet customer needs effectively and efficiently, and gain a competitive advantage . As a result of globalization, Geddie et al. (2005) viewed relationship marketing through the prism of technology because companies have the opportunity to store vital information about their customers' purchasing habits in their databases, using the data to their advantage to provide better customer service and establish a long-term sustainable relationship. relationship with its customers and this could lead to greater customer satisfaction and loyalty. Peperoni et al. (1999) defined relationship marketing as “one-to-one marketing” and suggested that companies must be dynamic and fast in their approach and response to individual customer needs which are constantly changing and unpredictable. Therefore, organizations must be prepared to provide tailored products or services that… middle of paper…, Leahy (2011) notes that even if a company uses databases that have enabled it to reach all its customers, that doesn't mean they are successfully maintaining the relationship with their customers. However, a customer's perception of the relationship is not rated highly nor is it appreciated because customers see it as "impersonal" and are very suspicious of the company's motives (Leahy, 2011: 453). With technology, companies have been able to contact customers about advertising and promotions, but that doesn't mean there is an active relationship between both parties. Customers become interested in what brands have to offer them that is of great interest to them and they do not appreciate companies that try to establish a relationship with them. It might be helpful if companies decide to consider other avenues to try to reach and establish close relationships with their customers so that it can be effective.