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Leaky Bucket Theory (Source: Egan, 2011)

Leaky Bucket Theory (Source: Egan, 2011)

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This article examined the existing body of literature on transaction and relationship marketing. The specific objectives were to develop a conceptual framework to establish the relationship between relationship marketing and customer satisfaction and to examine the components of relationship marketing on the present ever dynamic world of business....

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... the tendency is that customer acquisition in general terms will become more difficult. Secondly, customer retention which focuses on keeping existing customers happy and satisfied has become one of the major convictions of relationship marketing as seen in Figure 1. The theory has become one of the underpinning convictions of RM that it encourages retention marketing first and acquisition marketing second (Gummesson, 1999). ...

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... The central theory (Coviello et al. 2002) is represented diagrammatically in Fig. 1. Despite the broad scope, relationship marketing has not lost its core marketing orientation, which involves the application of the marketing philosophy to all parts of the industry (Aka et al. 2016). The philosophy of relationship marketing signifies an economic, as well as, a social process that involves maintenance of customer databases, continuing interactions with the customers, and utilizing the network, so created, for better revenues for an organization (Webster 1992). ...
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The present study analyzes the marketing philosophies followed by banking sector executives in India. Four distinct constructs of marketing practices are identified: Transaction Marketing (TM) and Relationship Marketing (RM). The variants of relationship marketing are classified as: (a) Database Marketing (DM) (b) Interaction Marketing (IM) and (c) Network Marketing (NM). The theorized constructs of marketing strategy were utilized in a survey of banking executives. A random sampling method, using an industry database of banking executives, has been utilized. Exploratory, as well as, confirmatory factor analysis, followed by data imputation and structural equation modelling was performed to validate a model. The present study shows that interactive marketing, as well as, database marketing strategies play dominant roles in the success of banking business, especially in the case of private sector banks. Transactional marketing also has some importance in determining the performance of private sector banks. This study should be significant in the sense that it provides a comprehensive and exhaustive review of the TM, DM, IM, and NM marketing strategies and a model to predict the Return on Asset (an indicator of the success of any bank) using the banking executives’ marketing propensities.
... Nowadays, organizations can maintain themselves in the market in the long term by implementing strategies to create a long-term relationship with their customers Salem (2021). As Aka, et al., (2016) indicated that it is a strategic direction that focuses on maintaining existing customers and building a long-term relationship with them. Therefore, maintaining long-term relationships between the organization & customers is a way for organizations to be able to compete in the modern business environment. ...
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The current study sought to determine the quality of management information systems & their contribution to customer orientation at two private universities located in Dohuk Governorate: Cihan & Nawroz. From this point of view, the study problem was identified by the following question: Does the quality of management information systems contribute to customer orientation in the two universities surveyed? In order to answer this question, the researchers adopted the descriptive & analytical approaches, in addition to adopting several hypotheses to address the subject from all its aspects. To test the validity of these hypotheses, a questionnaire was prepared for this purpose. The universities of Cihan & Nawroz were chosen as a research site for the current study. The opinions of a sample of (303) employees of the two universities were surveyed, & the data was analysed using a number of statistical methods using computer software (SPSS) & (AMOS). The study reached a number of conclusions, the most important of which are: The existence of a significant correlation relationship between the quality of management information systems at the macro level & the orientation towards customers in the two institutions investigated. The results of the field study confirmed that the quality of management information systems at the macro level contributes to a positive impact in enhancing customer orientation in the two institutions surveyed. Accordingly, the researchers presented a set of recommendations consistent with these conclusions.
... In previous literature, scholars agree that RM practice is multidimensional and comprises several constructs (Grönroos, 2004;Ndubisi & Wah, 2005). For instance, scholars have investigated the impact of relationship marketing as a latent construct such as, with customer retention (Baron et al., 1995), customer satisfaction (Aka et al., 2016), service quality (Barnes et al., 2004), and word of mouth (Kim et al., 2001). However, research has failed to examine the impact of relationship marketing constructs on customers' brand attachment in a hospitality context. ...
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... If the service providers succeed in achieving customer satisfaction through a good service experience, this will attract more potential clients and increase customer loyalty which may result in greater business profitability. Service experience can be affected by many factors such as service operation, service quality and customer expectation (Aka et al., 2016;Chahal & Devi, 2015;Nauroozi & Moghadam, 2015). To sustain a superior quality service experience, the service providers must have background knowledge and good practices in place for service recovery. ...
... With this in mind, service providers must seriously tackle this issue because the customers might discuss their negative service experiences on social media and this could have a huge impact on the reputation of the service organization. Importantly, previous works have suggested that researchers should investigate service failure and service recovery within the education sector because few studies have concentrated on this area (Aka et al., 2016;Chandra et al., 2019;Nauroozi & Moghadam, 2015). ...
... To deal with behavioral responses from dissatisfied students, higher education providers should have an effective relationship between marketing and the handling of customer complaints because many scholars have mentioned that these two factors affect their satisfaction and loyalty within the education context and other areas (Aka et al., 2016;Alemu & Cordier, 2017;Filip, 2013;Mapunda & Mramba, 2018;Nauroozi & Moghadam, 2015;Ndubisi & Nataraajan, 2018). For instance, Nauroozi and Moghadam (2015) conducted a study on banking services in Iran, the result of which indicated a significant link between marketing and the handling of customer complaints and customer satisfaction and customer loyalty. ...
... The review of the extant literature indicates that most studies confirmed a positive relationship between RM and customer satisfaction as well as loyalty (Aldaihani & Ali, 2019;Djajanto, Afiatin, & Haris, 2019;Kyei & Narteh, 2016;Aka, Kehinde, & Ogunnaike, 2016;Husnain, & Akhtar, 2016;Narteh, 2009;Anabila, Narteh, & Tweneboah-Koduah, 2012;Rootman, Tait, & Sharp, 2011;Olotu, Maclayton & Opara, 2010;Narteh, 2009;Ndubisi, 2006). In view of these findings, a number of banking institutions have adopted relationship marketing strategies in order to gain a competitive urge in the face of the intensity of competition in the Ghanaian banking sector. ...
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The Ghanaian banking industry has experienced a heightened level of competition in recent times due to the recent banking sector clean-up by the Bank of Ghana (BOG) which has resulted in a number of mergers, acquisitions and bank closures. As a result of this development, banks in Ghana have adopted relationship marketing (RM) as a strategy to attract new customers and for customer retention purposes. This research seeks to investigate the impact of relationship marketing (RM) on customer retention in the Ghanaian banking industry. It also examined the impact of relationship marketing (RM) on customer satisfaction as well as the impact of customer satisfaction on customer retention in the Ghanaian banking industry. A survey of customers from twenty banks was conducted using a questionnaire. The results revealed that relationship marketing account for a significant variation in the extent of customer retention in the Ghanaian banking industry. The study further revealed that customer satisfaction also accounts for the level of customer retention in the Ghanaian banking sector. The study also discovered that banks in Ghana are able to retain their customers even without employing non-financial benefits, which is considered as very essential in the implementation of RM practices. This indicates that banks in Ghana which employ non-financial benefits in addition to financial benefits could have a competitive urge over other competitors in the Ghanaian banking industry. As a consequence, there is a call on Ghanaian banks to implement effective relationship marketing strategies in order to ensure the retention of their customers. Furthermore, banks should employ strategies that will ensure that their customers are satisfied in order to guarantee higher level of retention of their customers
... On their part, Hunt, Arnett, and Madhavaram, (2006) posit that the success of a firm's relationship marketing program is determined by relational factors -trust, commitment, cooperation, keeping promises, shared values, and communication between the firm and customers. Velnampy and Sivesan (2012) instead demonstrated that bonds, empathy, and reciprocity were the indicators of successful relational exchanges, whereas Aka, Kehinde, and Ogunnaike (2016) conceptualized trust, commitment, communication, and service quality as the major determinants of relationship marketing. From this review, it becomes evident that there are varying views as to what constitutes successful relationship marketing, however as summarized by Hunt et al. (2006), the most commonly suggested indicators of successful relationship marketing efforts are trust, commitment, communication, bonding, cooperation, keeping promises and shared values and these were the relationship marketing factors adopted for this study. ...
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Organizations seeking a competitive advantage are increasingly embracing relationship marketing programs to manage customer relationships more efficiently. However, despite the deployment of such relationship management programs, customer retention continues to be the greatest challenge facing many organizations. This paper argues that relationship marketing factors - trust, commitment, strong bonds, communication, shared values and keeping promises - each plays a unique role in influencing customer retention, however, the nature of the influence of these individual factors on customer retention moreover in a developing market context has not been empirically investigated much. Relying on social exchange theory and relational market behavior theory, this study sought to determine the relationship between these relational factors and customer retention. Data were collected among 492 customers of Kenya's microfinance sector, using a structured self-administered questionnaire. The association between individual relationship marketing factors and customer retention was tested through simple linear regression analysis. Results showed that among the six relational factors, communication and shared values were the most significant. The study makes a theoretical contribution to the relationship marketing knowledge base by providing empirical evidence on the role of individual relationship marketing factors in predicting customer retention. Marketing practitioners should develop relationship management programs that promote communication effectiveness and shared values.
... Although research on the relationship of customer intimacy and satisfaction is not found in the literature, some literature provide researches on associations between relationship marketing and satisfaction. Aka et al. (2016) and Payne et al. (1995) stated that relationship marketing variables have an impact on customer satisfaction; Crosby et al. (1990) argue that relationship is a key factor of customer satisfaction; and Huntley (2006) mentioned that satisfaction has been identified as an important outcome of successful relationships. Meanwhile, Jun and Cai (2010) found that customer intimacy was the most influential dimension to achieve high internal customer service quality, and subsequently satisfaction. ...
... It can be stated that customer intimacy has a positive and significant influence on satisfaction. This result shows the importance of relationship marketing in increasing customer satisfaction, as stated by Aka et al. (2016), Payne et al. (1995) and so on. Customer intimacy is how well companies and customers know each other (Cochran, 2004), so that it is able to minimize misunderstandings and foster a sense of understanding and belonging to each other. ...
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Purpose The purposes of this study are to develop an extended technology acceptance model (TAM) model by adding customer intimacy, perceived risk, trust and Sharia compliance as external variables, in which TAM is used as the evaluation method for the use of e-banking and m-banking by customers of Islamic bank; and to study the role of customer intimacy in increasing satisfaction and encouraging loyalty of Islamic bank customers in using e-banking and m-banking. Design/methodology/approach Data collection is carried out by the self-administered survey method with Islamic bank customers as target population. Multivariate analysis of variance and multiple linear regression are applied for data analysis. Findings Customer intimacy not only encourages the emergence of customer loyalty directly, but also affects the factors that determine customer loyalty itself, such as perceived usefulness, perceived ease of use, perceived risk, trust, sharia compliance and satisfaction. In other words, customer intimacy has a direct and indirect influence on loyalty. Originality/value This paper offers an extended TAM constructs to study the role of customer intimacy in increasing loyalty by considering various variables, namely, perceived risk, trust, Sharia compliance and satisfaction. Similar research is still very limited in the banking marketing literature, especially in Islamic banks context.
... In both marketing theory and practice, relationship marketing has got monumental attention (Al-Hersh, Aburoub & Saati, 2014). Relationship marketing entails the establishment, maintenance and sustenance of a mutually beneficial relationship between an organisation and her various stakeholders (Aka, Kehinde & Ogunnaike, 2016). It focuses on the building of a two-way symmetrical communication between a company and her various customer groups (Okolo, Nebo, Ugonna & Obikeze, 2017;Nmere, Okolo, Abugu, Alio & Anetoh, 2019). ...
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The objectives of the study are to ascertain the effect of financial bonds on marketing performance of banks in Southeastern Nigeria, to examine the effect of social bonds on marketing performance of banks in Southeastern Nigeria, to examine the effect of customization bonds on marketing performance of banks in Southeastern Nigeria, to in ascertain the effect of structural bonds on marketing performance of banks in Southeastern Nigeria, and assess the effect of customer appreciation on marketing performance of banks in Southeastern Nigeria. The population of the study comprised all the management and administrative staff of First bank Nigeria Plc, United bank for Africa (UBA) Plc and Union bank Plc respectively which brought the total to 660 (Six hundred and sixty). A sample size of 249 (two hundred and forty-nine) was drawn from the population using Taro Yamane sample size determination formula. The content validity and reliability tests of the survey instrument were established. Descriptive research method was used. Copies of questionnaire were administered to 249 respondents through personal contact and 240 copies of questionnaire were returned which formed the basis for data analysis. Data were analyzed using percentage and frequency distribution tables. Five hypotheses were formulated and tested with simple linear regression analysis. The major findings in the study showed that there is significant effect of financial bonds, social bonds, customization bonds, structural bonds, and customer appreciation on marketing performance of banks in southeastern Nigeria. It is therefore recommended that the banking industry should improve on the practice of relationship marketing through a two-way symmetrical communication to achieve a win-win situation with her various stakeholders to be victor over her competitors in the battle for customer acquisition and retention.
... The concept of business to business relationship emerged due to the importance of developing, maintaining and enhancing long term relationships with business partners [9,10]. This is in light with the concept of relationship marketing [11]. ...