The Impact of Relationship Marketing on Customer Loyalty

THE IMPACT OF
RELATIONSHIP
MARKETING ON
CUSTOMER LOYALTY

Acknowledgement
I would like to acknowledge all the people who played essential role in my academic
achievement. Firstly, I would like to thank my parents who have provided an effective support
with their love and proper understanding. Without them I would have never reached to my
current position and level of success. Further I would like to thank my committee members who
have provided good and effective advice and guidance through whole of research.

EXECUTIVE SUMMARY
For creating a good image of company product and services the major thing on which company
need to focus is marketing. In the current competitive market the major preference is being given
on relationship marketing. The relationship marketing is defined as the managing of good
relation with the consumer and particularly it can also be said as customer relationship
management (CRM). In this world CRM is very essential to be managed and maintained as this
will attract more of the consumer to come and purchase product and services of company. The
current study outlined the views of different authors and publishers in literature review section
relating to the research topic. The relationship marketing is very important to gain consumer
loyalty for Honda motors. This is particularly because of the reason that with help of relationship
marketing the company can attract more consumers and can keep them connected with company
for longer. Further with help of research methodology section it was identified that the
qualitative research was assistive in developing more knowledge relating to use of relationship
marketing in increasing the consumer loyalty. Further with help of data analysis it was found that
there is positive impact of using relationship marketing over consumer loyalty. This is
particularly because of the reason that when CRM will be effective then this will increase value
of company among the consumers.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
Background.............................................................................................................................1
Aim and objectives.................................................................................................................1
Rationale.................................................................................................................................2
Scope......................................................................................................................................2
Structure of dissertation..........................................................................................................3
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
2.1 Introduction......................................................................................................................4
2.2 Concept of relationship Marketing...................................................................................4
2.3 Association between relationship marketing and consumer loyalty................................5
2.4 Challenges face by company while implementing relationship marketing......................7
2.5 Conceptual Framework..................................................................................................11
2.6 Conclusion......................................................................................................................12
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................12
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION....................................................18
CHAPTER 5: DISCUSSION.........................................................................................................29
CHAPTER 6: CONCLUSION AND RECOMMENDATION.....................................................30
REFERENCES..............................................................................................................................33
APPENDIX....................................................................................................................................36

CHAPTER 1: INTRODUCTION
Background
Now a days, it is very important for the company to not only attract range of customers
but to maintain them as well. During this time, marketing plays an important role because it is
the only strategy that assist to increase customer base. Top multinational companies uses range
of marketing strategies that contribute to continuity of a company. In the same way, the current
study is based upon relationship marketing which mainly focus upon the customer retention and
satisfaction. Hence, this strategy is actually focused on long term customer relationship that
could benefited company. Also, technologies are further plays an important role in relationship
marketing because only Internet offers the possibility of collecting and analyzing the customer
information. Thus, the growth of Internet and social media are also consider some of the best
techniques that leads to improve or manage customer relationship. But branding is also plays
another significant role in relationship marketing. Like, firm build long term relationship with
customers only if firm has a brand image and as a result, it satisfy the need as well.
The chosen firm for this study is Honda Motors who deals at automobile sector and with
its best product and services, it become world's largest motorcycle manufacturer in term of
financial performance. The quoted firm establish its brand image at all over world and it also
knows how to maintain and engage customers towards it. There are various types of marketing
strategy company already follows and this in turn leads to attract users towards it. In the same
the present research study helps to analyze that relationship marketing cause any impact upon
customer loyalty and for that qualitative study will be performed.
Aim and objectives
Aim: To examine the impact of relationship marketing on consumer loyalty in the context of
automobile sector : A study on Honda Motors”
Objectives:
 To understand the concept of Relationship Marketing
 To identify the association between relationship marketing and consumer loyalty
 To analyze the challenges face by Honda Motors while implementing relationship
marketing
 To suggest the best ways through which relationship marketing can be implemented in
company.
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Research questions:
 What is the meaning of relationship marketing?
 What is the association between relationship marketing and consumer loyalty?
 What are the challenges did company face while implement relationship marketing?
Rationale
The rationale for conducting the research is such that it will help to analyze the scope of
marketing within automobile industry. As the present topic is related to analyze the impact of
relationship marketing upon customer loyalty and for that it will assist to increase profit margin.
Also,by study on this particular topic will help to analyze how customers are attracted towards
company while using different marketing strategies. On the other hand, through this research, it
will be easily determine that relationship marketing do affect the customers faithfulness and
further assist to examine some challenges which Honda Motors faces while using such
marketing styles. Also, in this competitive market, companies are keep developing strategies in
order to stay ahead in automobile industry and for that thematic analysis will be performed that
will shed a light on the extent to which Honda Motors can improve performance by using
relationship marketing.
In addition to this, another reason behind choosing the topic is such that to determine the
association between relationship marketing and customer loyalty and this in turn support
company to examine further growth opportunities for a firm as well. Thus, with the help of this
study, Honda Motors identify relationship marketing will support firm to increase the customer
base and retain them as well.
Scope
By doing the research, it has been found that several stakeholders such as scholars,
companies operating in automobile industry will benefit from the outcome derived through
investigation. Thus, other investigator who will perform the same study or similar topic can also
undertake this for identifying the gaps and then develop hypothesis for further study as well.
Thus, it can be said that this study will help to analyse the association between relationship
marketing with customer loyalty and also leads to examine different ways which assist the firm
to take a further level of success.
Also, the study also assist Honda Motors and different companies operating under this
sector to examine ways which assist to meet the define aim. Moreover, research provides range
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of challenges along with ways to cope up with same so that companies do not face any
difficulties while implementing relationship marketing.
Structure of dissertation
Chapter 1: Introduction
The first chapter of dissertation which contain brief overview of research which is being
investigated. It also highlight research aim, objectives and further describe the reason for
selecting particular research topic.
Chapter 2: Literature Review
One of the most important chapter of dissertation in which brief thesis will be prepared
by critical evaluating the topic with the help of relevant books, scholarly articles and journals.
The data are gathered from secondary data collected method in which it will be easy to
determine the association between relationship marketing and customer loyalty.
Chapter 3: Research Methodology
With the help of this chapter, scholar collect information. The third chapter provides a
detail analysis of research type, approach, data collection, sampling, analysis and ethical
considerations that assist to conduct the research in better manner. Moreover, it further present
the tools that clearly assist to investigate the issue with best manner.
Chapter 4: Analysis of Results
This chapter interpret the collected data in effective manner that helps to ascertain
whether the aim and objectives are met or not. In this chapter, different themes and graphs are
presented to look the study in more presentable manner. Along with this, entire primary findings
are further supported through literature review.
Chapter 5: Conclusion and Recommendation
It is the last chapter which summarize entire findings such that conclusion will be drawn
by taking into account research aim and objectives, Literature review, findings. Along with this,
different strategies are also suggested to Honda Motors which can be undertaken in near future
so that organizational performance will be increase.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
In the dissertation, this chapter assist to summarize previous research on topic by using
relevant published articles, journals and books. In this chapter, researcher formulated different
themes by considering the objectives for which the pas literature has been published will be
reviewed and relevant insights are further drawn for different themes. Hence, following themes
are developed by using appropriate literature so that relevant conclusion can be drawn than assist
to examine the association between relationship marketing and customer loyalty.
2.2 Concept of relationship Marketing
Özsaçmacı and Dursun (2020) stated that relationship marketing is mainly the marketing
activities which is based on the concept of developing and building of the long term relationship
with the customers. Under this, varied information pertaining to the details about the customers,
their buying patterns and other useful details are managed and maintained in the database to
which a personnel is assigned who manages the to fulfil the requirements of the customers along
with maintaining the relations. This concept acknowledges the value of the customers along with
the importance of having a good relations with them. Author further stated that with the
enhancement in the technology has resulted into emergence of newer methods of creating and
developing a relationship with the new and the existing customers. As per Boateng (2019)
relationship marketing works on building up the goodwill and trust in the mind of the customers
by showing that the company cares about them. This concept is very broad and not just cover
customers but all other stakeholders of the company who are very crucial for the functioning of
the business.
The relationship marketing has been acquiring acceptance and attention more in the
recent years and many of the organizations are focusing on the implementing the strategies
which will result into retaining the existing customers rather than focusing on the grabbing the
new ones. As defined by Lian and Yoong (2017) traditionally marketing was only about making
revenue and profits. The organizations were more into enhancing the sales through the way of
increasing the customer base. While the relationship marketing, realizes and understands the
significance of the customers and the stakeholders and aims at maintaining a good and cordial
relationship with them. It requires movement from the functional teams to the cross functional. It
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