Impact of Relationship Marketing on Consumer Loyalty in Indian Automobile Industry

Running head: Marketing management
Marketing management

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Impact of relationship marketing on consumer loyalty
It is seen that with more dominance of LPG (Liberalization, Privatization, and
Globalization), marketing has more competition than before. The witness is made on the basis of
customer-driven marketing, as it is seen that to retain customers many offers are given so that
demand can be enhanced effectively.
In this paper, the discussion will be made on relationship marketing by taking into
consideration the Indian automobile industry. To grow in the market situation it is seen that the
sustainable growth in the market helps to attract more customers but also need customer loyalty.
The challenge in the recent scenario is not to achieve first position but to ensure the loyalty of the
customers. In this article, the research methodology is taken into consideration in which the
study undertakes an exploratory research and casual research.
The organizations that are successful has common thing and that is the loyalty of the
clients. The companies offer trust and commitment to the consumers so that good position can be
achieved in the market. Long-term consumers also offer free advertising by being positive about
the company for years (Alrubaiee and Al-Nazer, 2010).
The automobile industry is one of the key players of the Indian Economy as it plays an
important role to develop transportation sector to develop quicker by making an important role of
employment chances. The automobile industry develops relations with the vendors so that the
quality can be maintained and also the cost of inventory can be reduced (Gaurav, 2016).
To understand customers, the automobile organization takes into consideration
relationship marketing strategy so that proper information can be evaluated of the products and
services in the automobile industry. The proper relationship marketing can be maintained by
considering the customer loyalty (Fallon, 2012).
Relationship Marketing is the customer base of the company stability which is the major
component of the business asset. It is evaluated that transaction marketing has moved from
relationship marketing. Relationship marketing does not take into consideration interactions,
relationships, and networks. Transaction marketing approach is based on the idea of interchange
and on the other hand if relationship marketing is seen it is related to identify and establish the

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relations with the customers and other stakeholders so that overall activities of the organization
can be achieved.
Relationship marketing assists the organization to evaluate the consumers. It assists the
company to enhance the market share and profitability so that the cost can be minimized. It is
seen that the cost to attract the customers is more than six times so loyal customers can be served
(Kiyani, Niazi, Rizvi, and Khan, 2012).
Marketers are taking into consideration relationship marketing so that the loyal customers
can be retained. The loyalty of the customers is central as it will last long to create effective
relationship marketing strategies to improve the benefits of the customers. Customer loyalty
helps to enhance the experience so that the sales can be enhanced. The customers who are loyal
are given a premium price so that the profits of the organization can be improved. The service
organization tries to retain customers so that the orders can be repeated. Customer loyalty is the
strength that creates a proper relation between the attitudes of the individual. According to Wong
and Sohal, the loyalty of the customer is when the purchase is done again and again by the
customer and positive attitude is there towards the company.
Explanatory research helps to gain proper research area so that customer loyalty can be
maintained. Casual design helps to evaluate the impact of relationship marketing on the loyalty
of the clients. The research is conducted to collect proper information data. The primary data is
collected from the respondents and there are many other articles from information are taken (Rai
and Srivastava, 2013).
Scale development is the study that is relied on the questionnaire. So, the measurement
that is done is that in relation with the transactional marketing, relationship marketing focuses on
increasing profitability of the company by giving service to the customers and maintaining a
good relationship. Relationship marketing is known as an exit from the traditional transactions
behavior so that the customers as partners can be developed (Baglin, 2014).
The customer loyalty measurement scale is related to Customer loyalty that is measured
through systematic sampling that was described as repeat purchasing frequency and also it
identifies the questionnaire. The scale of reliability can be estimated by the overall average of
coefficient results. In the research study, the scale of measurement is considered and also