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Case Report
The Effect of Relationship Marketing on Customer Satisfaction (Case
Study:Hepco Company Services Market in Markazi Province)
*1Matin Milani Tabrizi, 1Abass Sheykhan and 2Peyman Ghafari
1
Department of Industrial engineering, 2Department of Bussiness management Arak Branch, Islamic Azad University, Arak Branch, Iran
*corresponding author
ABSTRACT
The aim of this study is to investigate the effect of relationship marketing on customer satisfaction. The present study is considered applied research and the method is causal and is Field studies. The population of the study includes customers of Hepco Company. Which have been selected by available sampling. To collect data using questionnaires that were collected from previous studies. Cronbach's alpha for this scale was achieved 0.794. To analyze the data from the structural equation modeling and LISREL software is used its result shows that: Relationship marketing on, customer satisfaction is effective. Among the aspects of relationship marketing, dimensions of commitment, communication and reciprocity is effective on customer satisfaction. And shared value on customer satisfaction was not confirmed.
Keywords: relationship marketing, customer satisfaction, reciprocity
1. INTRODUCTION
In this part of the study, researchers initially examined the concept of relationship marketing and customer satisfaction and then note the history of research.
1.1. Relationship marketing:
The concept of relationship marketing has occupied much attentionbecause fully covers long-term approach to marketing.Since this approach is focused on customer lifetime not on value of the transaction only. Relationship marketing orientation is to gain customer share, not market share. The underlying assumption is that building and maintaining relationships with customers and maintain customer. Develop customer share and increase profits will rise and when problems occur it is essential to improve relations. Therefore, relationship marketing as a business strategy is increasingly important. Orientation relationship means that marketing focus on customer retention by maintaining and
strengthening the relationship over time would be win-win. This approach means that when a customer has more calls to the service provider, or when services are provided over a long period and also when the client understands that the relationship is important is likely to develop relations. Based on the above discussion, it seems that there are certain conditions that led to the formation of strong relationships with customer. On the contrary, there are conditions that reduce the development of relations.
In addition, there are some basic assumptions that inherent are relationship marketing, including:
- A relationship can be formed with all clients and in all conditions of services, it indicates that all organizations should participate in the development of relations.
- Whatever customer Contacts with a particular service provider become more,
There are more opportunities to strengthen the relationship.
- The demographic characteristics of customers affected the strength of the relationship.
If the customer give more important in answer to such relationships the strength of relationship will further (Ward and Dagger,2007,281)
1.2. Customer Satisfaction
Customer satisfaction defines such as: Emotional response reflects to extent that the service is providing and joy of fulfilling to the customer's needs and goals. Pleasure refers, when pleasure increases that needs and goals will implement, Or to reduce pain and anxiety. Fulfilling the needs and objectives set according to the expectations of our customers and customer expectations, with the pattern of Hope / disapproval, provide a clear framework to judge satisfaction if the perceived service performance exceeds expectations the likely result is satisfactory. On the other hand if the perceived service performance does not meet expectations most likely result is dissatisfaction (Tam et al., 2012, 34).
May the satisfied customer be excellent resource to increase profitability. It is for this reason that satisfied customers are likely are committed to the service organization. And have better social interaction with their service provider. While dissatisfied customers complain more and have less repurchase However, satisfied customers in the future, only to be followed by a service provider and also be willing to pay a tip for that service. Satisfied customers are one of the main factors that affect the intention to repurchase. Another satisfied customer support to enterprise is positive word of mouth. (Kitapci,et al, 2013).
1.3 .LITERATURE REVIEW
It has been shown that the benefits of the relationship may be different among service industries and that research should focus on specific sectors ,there is Several empirical studies on the link between relational benefits, customer satisfaction And behavioral consequences in financial services.
Molina et al (2007) reported similar conclusions in retail banking in most service activities. Which confirms that only benefits make a significant and positive impact on satisfaction; meanwhile behavioral outcomes in this study were not included (Dimitriadis, 2010, 298). Safarnia et al (2013) in their study concluded in today's the variable, high-risk and high competition environment, the most important message is that the strategies, practices and tools of yesterday cannot be hoped to be successfulin business And customer satisfaction.In such circumstances, that the competition is brutal. That organization is successful with using efficient management can be innovations. Or by using modeling from headers, can overtake competitors. Understanding the determinants and consequences of customer satisfaction in Car Dealers have great importance. Research by aimed to evaluate the effects of perceived justice by customer satisfaction and citizenship behavior on behalf of car companies has done in the city of Kerman MVM. Data Collected from a sample of 366 customers. Structural equation modeling was used to test assumptions. The results show that understanding of justice and citizenship behavior affects customer satisfaction. A Research as a relationship marketing, Approach to improve customer satisfaction by Ranjbarian and BARARI was conducted in 2009. In this study, as the organizations realizing the importance of customer satisfaction Are gradually moving away from traditional marketing And trend toward relationship marketing.
the issue of facilities management sector in America are aware of the theory of relationship marketing. This study examined the level of understanding of marketing theory in the management of facilities. In this study, the ability of the facility management industry with uses of relationship marketing strategies are discussed.
1-4-research hypotheses
1- The relationship marketing has a positive impact on customer satisfaction in the commitment aspect.
2- The relationship marketing has a positive impact on customer satisfaction in the bonding aspect .
3. The relationship marketing` has a positive impact on customer satisfaction in the communication aspect.
4. The relationship marketing has a positive impact on customer satisfaction in the shared value aspect.
5. The relationship marketing has a positive impact on customer satisfaction in the empathy aspect.
6. The relationship marketing has a positive impact on customer satisfaction in the reciprocity aspect.
2 -METHODOLOGY 2.1 statistical population
The study population consisted of HEPCO's corporate clients. The researcher is trying to collect the required information from this community.
2.2 Determination of sample size and sampling methods
Statistical sample consists of a limited number of sections of the statistical population which express the main characteristics of the statistical population (Azar and Momeni, 2001, 6).
For sampling can be determined by the principles of multiple regression analysis on the sample size used for structural modeling. According to James Stevens's comments even consider the 15 observations for per Predictor variable in multiple regression analysis with standard ordinary least squares method, is considered A good rule of thumb (Ghaffari Ashtiani, 2008, 93). In this study, given that the
structural equation modeling techniques used for data analysis, the following formula is used to determine the sample size: 5q ≤ n ≤ 15q.
Because the number of questionnaire is 29 questions, Minimum sample should be between 145 and 435. After distributions the questioners by using available sampling finally, 279 questionnaires were completed that this paper analysis was based on this number of questionnaires.
2-3-method of data collection
Data collection for the study is one of the main stages and Due to the importance of it, sometimes mistakenly called research methods. In this study, in order to collect the required data In order to analyze the hypotheses used Field method and distributed questionnaire in the community.
2.4 Data collection tools
Measuring instruments are devices that they can help researchers to analyze and evaluate needed Information and finally, collect the truth. (Hafeznia, 2005, 144).
The data for this study were collected using with questionnaire. The main question is consisted of 29 questions that uses the five-item Likert rating.
2.4.1 The effect of the components of
relationship marketing on customer
satisfaction
To analyze the hypothesis of the study and according to model in relation the impact the factors on each other were used the structural equation models.
customer satisfaction are as the dependent variable.
Figure 1: t-statistic for the model coefficients
According to the first to sixth sub-model track has drawn. Given that each of the six path are between the independent variables and the dependent variable their type is gamma.
In model the variables with below Acronyms are presented:
Commitment (COM), bonding (RE), communications (CO), shared value (SV), empathy (EM), mutual relations (IR), customer satisfaction (SA)
Figure 2: standardized coefficients of the structural model and measurement
3. RESULTS &DISSCUSSION
3.1 The first hypothesis testing Table 1. The results of the first hypothesis
Path hypothesis
Standard coefficient T-statistics
Significant Result
COM→SA
H1
0.21 3.10
meaningful HAcceptance
In the second hypothesis, to evaluate the significance hypotheses is used from the t-statistic, Given that the t-statistic is (3.10) and the amount is not in the range of (+1.96, -1.96) so we can conclude that this hypothesis is significant (means, commitment has a significant impact on customer satisfaction) .On the other hand proposed Path between two variables, commitment and customer satisfaction due to the fact that is between the independent variable and the dependent variable so is from gamma type (0.21) and it's a positive and significant. According to the results from this hypothesis becomes clear that the commitment aspect from relationship marketing has the positive impact on the satisfaction of Hepco Company and this hypothesis is accepted.
3-2- The second hypothesis testing Table 2. Results for the second hypothesis
Path hypothesis
Standard coefficient T-statistics
Significant Result
RE→SA
H2
0.07 0.68
meaningless Rejection
H
Testing third hypothesis, to verify the significant hypotheses from the statistic is used .as regards t-statistic is (0.68) and the amount is in the rang (+1.96,-1.96)
So we can conclude that this hypothesis is not significant (means, bonding aspect from relationship marketing has not a significant impact on customer satisfaction). On the other hand proposed Path between bonding and customer satisfaction due to the fact that is between the independent variable and the dependent variable is from gamma type (0.07) and is positive and meaningless. According to the results from this hypothesis becomes clear that the bonding aspect from relationship marketing has not a significant effect on the satisfaction of Hepco Company and this hypothesis is rejected.
3.3.The third hypothesis testing Table 3. The results of the third hypothesis
Path hypothesis
Standard coefficient T-statistics
Significant Result
CO→SA
H3
0.29 4.60
meaningful H Acceptance
In the fourth hypothesis, to evaluate the significance hypotheses use from the statistic, as regards t-statistic is (4.60) and the amount is not in the range (+1.96, -1.96). So we can conclude that this hypothesis is significant (means, communication aspect from, relationship marketing has a significant impact on customer satisfaction). On the other hand proposed Path between two variables communication and customer satisfaction due to the fact that is between the independent variable and the dependent variable is from gamma type (0.29) and is positive and significant. According to the results from this hypothesis becomes clear that the bonding aspect from relationship marketing has a positive impact on Hepco customer satisfaction and this hypothesis is accepted.
Path hypothesis
Standard coefficient T-statistics
Significant Result
SV→SA
H4
0.05 0.60
meaningless Rejection
H
In the fifth hypothesis, to evaluate the significance hypotheses use from the statistic, as regards t-statistic is (0.60) and the amount is in the range (+1.96,-1. 96) So we can conclude that this hypothesis is not significant (means, the shared value aspect from relationship marketing has not a significant impact on customer satisfaction). On the other hand proposed Path between two variables shared value and customer satisfaction as regards is the independent variable and dependent variable is from gamma type (0.05) and is positive and meaningless. According to the results from this hypothesis becomes clear that the shared value aspect from relationship marketing has not a significant impact on Hepco customer satisfaction and the hypothesis is rejected.
3.5.The fifth hypothesis testing Table 5. Results of the fifth hypothesis
Path hypothesis
Standard coefficient T-statistics
Significant Result
EM→SA
H5
0.26 1.55
meaningless RejectionH
In the sixth hypothesis, to evaluate the significance hypotheses use from the statistic as regards t-statistic is (1.55) and the amount is in the range
(+1.96,-1. 96) So we can conclude that this hypothesis is not significant (means, empathy aspect from, relationship marketing has not a significant impact on customer satisfaction). On the other hand proposed Path between two variables, empathy and customer satisfaction due to the fact that is between the independent variable and the dependent variable is from gamma type (0.26) and its positive meaningless. According to the results from this hypothesis becomes clear that empathy aspect from, relationship marketing has not significant effect on Hepco company customer satisfaction, so this hypothesis is rejected.
3.6.The sixth hypothesis testing Table 6. The results of the sixth hypothesis
Path hypothesis
Standard coefficient T-statistics
Significant Result
IR→SA
H6
0.21 2.18
meaningful H Acceptance
In the seventh hypothesis, to evaluate the significance hypotheses use from the t-statistic, as regards t-statistic is (2.18) and the amount is not in the range (+1.96, -1.96) So we can conclude that this hypothesis is significant (means, reciprocal relations from, relationship marketing has a significant impact on customer satisfaction). On the other hand proposed Path between two variables, reciprocity and customer satisfaction due to the fact that is between the independent variable and the dependent variable is from gamma type (0.21) and is positive and significant. According to the results from this hypothesis becomes clear that reciprocal relations from, relationship marketing has a positive impact on Hepco customer satisfaction and this hypothesis is accepted.
4. CONCLUSION AND
RECOMMENDATIONS
According to the results, it could be argued that for customer the company providing services suitability depends to the relationship and quality of their relationship. And they feel more satisfied with the relationship with the organization. Therefore, the commitment have an impact on customer satisfaction and recommended:
Provide perfect after-sales service and valid guarantees, which marks the company's commitment to the rights of the buyer.
customers, There is no an interaction and close cooperation and there is not long-term relationships between them so this result is acceptable.
According to the results, it can be argued that it is important for customers that the company has a relationship with them and asked their opinions. Customers love that they can easily express their dissatisfaction to the company and their relationships be in a way that does not prevent the expression of their Dissatisfaction. Therefore it is recommended:
• Conduct customer surveys Cross-sectional and after using the product.
• uphold integrity and avoid claims unfounded and unrealistic regarding the promotion and supply of goods.
According to the results, it can be argued that the company has not a common vision with its customers and their feel is not the same in many vision. Also the customers don’t understand the same value with company.The reason could be linked to conditions on the society that makes customers' demands vary with suppliers of goods and services, Customers are looking for products with the lowest price and highest quality And this while the production companies who are looking for cost-effective production. The results suggest that the rate of empathy would not affect the satisfaction. The reason for this can be attributed to this fact that Rate of empathy that exists between the two sides is not so good and not resolve expectations of both sides. It is also important to customers, that the company has not forgotten them and in any situation to act on their promises.In addition, customers expect as in a position to understand and help the company The Company also appreciate this issue and in the perfect opportunity it to be compensated. For example, if in the one point the company had to pre sales its products and receive a percentage the price of the goods and asked from their customers will receive their products a few months later till Company solve supply problems, after the problem should deal to compensate for this forgiveness and customer cooperation.As a
result, company's customers will be satisfied. And recommend that:
• The implementation of compensation programs for consumers when the product has been deducted And customer give service to the organization as ,so there is a need to compensate it implement promises and avoid idealistic plans that cause delay or breach of promise in obligations.
4.2 Suggestions for future research
• Effect of other aspects from relationship marketing such as trust on satisfaction and. • Evaluation of industries and services the impact of relationship marketing, and compare the results.
• regarding the effect of duration the relationship and its depth on customer satisfaction.
• The effect of perceived expectations on customer satisfaction.
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