Dissertation: Relationship Marketing and Customer Loyalty in B2B KSA

This dissertation investigates the influence of relationship marketing on customer loyalty within the B2B environment of the construction industry in Saudi Arabia. The research explores the importance of relationship marketing in the construction sector, identifying factors such as service quality and price that affect customer loyalty. The study utilizes a descriptive research design with both qualitative and quantitative methods, including primary data collection through questionnaires and secondary data through literature review. The dissertation examines the impact of changing marketing environments and the significance of building strong client relationships to retain customers, especially within the context of the real estate sector's growth and the evolving business landscape in Saudi Arabia. The findings and recommendations aim to provide insights into effective strategies for enhancing customer loyalty through relationship marketing in the construction industry.

Dissertation

TABLE OF CONTENTS
Abstract............................................................................................................................................4
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Title -.....................................................................................................................................1
1.2 introduction...........................................................................................................................1
1.3 Background of research.........................................................................................................2
1.4 Rationale of Study.................................................................................................................3
1.5 Problem Statement................................................................................................................3
1.6 Research Questions...............................................................................................................3
1.7 Aim and Objectives...............................................................................................................4
1.8 Structure of dissertation........................................................................................................4
1.9 Framework of study..............................................................................................................5
1.10 Significance of research......................................................................................................6
1.11Research scope.....................................................................................................................6
1.12 Research limitation.............................................................................................................6
CHAPTER 2: LITERATURE REVIEW ...........................................................................................8
Theme 1 Relationship marketing................................................................................................8
Theme 2 Relationship Marketing in Construction sectors........................................................10
Theme 3 Loyalty.......................................................................................................................12
Conclusion................................................................................................................................16
CHAPTER 3: RESEARCH METHODOLOGIES..........................................................................17
Introduction -.............................................................................................................................17
3.1 Research philosophy-..........................................................................................................17
3.2 Research approach-.............................................................................................................17
3.3 Research strategy-...............................................................................................................17
3.4 Research design –................................................................................................................18
3.5 Data collection –.................................................................................................................18
3.6 Data Sampling –..................................................................................................................18
3.7 Data analysis –....................................................................................................................19
3.8 Ethical consideration –........................................................................................................19

3.8 Validity –.............................................................................................................................19
CHAPTER 4: DATA ANALYSIS....................................................................................................20
4.1 Introduction -......................................................................................................................20
4.2 Primary data analysis..........................................................................................................20
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS.......................................................75
5.1 Conclusion..........................................................................................................................75
5.2 Recommendations...............................................................................................................76
REFERENCES..............................................................................................................................78
Appendix........................................................................................................................................80

Abstract
The following dissertation focuses on evaluating relationship marketing in real estate
sector to find out the influence on customer loyalty in B2B environment in construction industry
in Saudi Arabia. There are many factors in marketing that affects the loyalty of business. So this
dissertation will describe that how relationship marketing should be maintained in B2B
environment in construction sector. Moreover, it is concluded that due to service quality, price,
etc. customer loyalty is influenced. For conducting research several methods are being used by
researcher. Thus, it is important for companies engaged in real estate to provide attractive offers
to business to retain them. From research it has been stated that price and service quality are
factors due to which loyalty is affected.

CHAPTER 1: INTRODUCTION
1.1 Title -
“To evaluate how relationship marketing influences customer loyalty within B2B
environment in construction industry in KSA”
1.2 introduction
Real estate plays a vital role in growth and development of an economy (Christopher,
Martin, & et.al.,2013). It is because a country having proper and effective infrastructure will
provide basic amenities to people. Housing sector comes under the basic needs of people. So in
infrastructure includes construction of buildings, dams, roads and all other things. In today
changing world it is very important to have good relations with customers (Hollenbeck, Noe
and et.al 2018). It is because people taste and preference changes frequently. Due to this
business losses their customers. Also, in recent time traditional marketing has been replaced by
digital marketing. Moreover, it is very difficult to do B2B with traditional marketing specially in
construction sector. Therefore, it is very important to build strong relationship with clients so that
customer loyalty is maintained. In construction sector environment is considered as an important
aspect. The major contribution of GDP in Saudi Arabia comes from petrol industry. It is almost
30- 40%. Then, comes real estate sector. There has been many changes in country real estate
reforms. It has increased the price of land and created imbalances between demand and supply.
There are many tax such as VAT, white land tax, etc. that is imposed by government of Saudi
Arabia. It has impacted in negative way. Moreover, various laws and regulations are imposed by
government that has affected the construction industry. A new reform is been developed that
aims to overcome obstacles till 2030. The total tax rate has increased up to 5% in Saudi Arabia.
The white land tax was levied at 2.5%. It is expected that residential units in Saudi Arabia will
rise by 2% annually till 2020 (Hollenbeck, Noe and et.al., 2018) The King has launched a mega
project named as Neom city. This will shift the focus from oil to public sector.
In present era business environment has changed to a great extent around the world. It has
enforced companies to adopt various marketing techniques in order to attract new customer. This
change has reduced the use of marketing mix (Briggs & Grisaffe, 2010). Generally, in

construction field there is very little use of this framework. There are various ways of doing
marketing. It depends on nature and type of industry what marketing technique is applied by
them. The real estate sector is entirely based on relationship marketing. The main objective to
following this concept is to build strong relations with clients. It helps in converting them to
loyal customers. A loyal client will help in promoting business and expanding in different
markets.
In construction sector marketing mix does not work in expanding business. The main
reason behind this is products are same and usually business is done via B2B. Thus, by
maintaining effective relationship business is done (Christopher, Martin & et.al., 2013). Big
construction companies does not focus on marketing rather they build strong relations with
clients. This helps them to expand in different markets.
Customer loyalty is very difficult to gain. It is because there are may drivers that affect
loyalty. In addition to this, loyalty is affected due to change in taste and preference. This has
been identified by conducting many research. Moreover, real estate includes all types of
properties from commercial to residential. Now a days it has become difficult to deal with
property related issues. The rise in price of construction materials has forced customer to opt for
cheapest real estate companies. They are switching according to their needs. Similarly, business
are also engaged with large scale companies. Apart from this, many business have modified their
policies. This is directly affecting the customers. Also, many business are getting involved in
corporate social responsibility (CSR) activities that has enabled them to maintain relationship
with clients (Gupta, Balmer and et.al., 2015). This is created a positive impact on them and
business are able to gain client trust.
1.3 Background of research
Marketing plays a vita role in developing relations with customers. It not only helps in
this but also in attracting other business. An effective and strong relation with business helps in
increasing customer loyalty. This is done by using the concept of relationship marketing.
Generally, real estate sector work on B2B basis. This helps in attracting customer and gaining
market share. Furthermore, the factor that influence construction industry is change in

environment. They have to change their policies and marketing accordingly. In this research
various drivers to customer loyalty is analysed. Also, it is evaluated how change in relationship
marketing influences customer loyalty.
1.4 Rationale of Study
The present study is been conducted due to various reasons. The first one is in Saudi
Arabia real estate sector is at boom, so many new companies are emerging. This has fluctuated
the marketing environment. Thus, researcher wants to identify the factors that has affected the
environment (Taylor and Hunter, 2014). The second is due to change in this customer loyalty
has been influenced. So researcher wants to analyse the drivers that has resulted in reducing
customer loyalty. Besides this, real estates contributes a major part in GDP of country. It
provides a base of growth opportunities for companies. Furthermore, due to increase in
competition among market the way of marketing has been transformed. It has enforced
companies to adopt relationship marketing. Thus, it is essential for researcher to evaluate how it
has influenced customer loyalty in B2B environment.
1.5 Problem Statement
It is very important for companies in construction industry to maintain relationship with
their customers so that it can survive for long time. Also, due to frequent change in marketing
environment it is difficult to retain customer. For companies engaged in B2B concept they have
to gain the trust of customer. Besides this, there are certain drivers that affect customer loyalty.
The problem is related to marketing that is influencing customer loyalty in B2B (Saurage-
Altenloh and et.al., 2018). Thus, with the help of research methods, researcher will collect and
analyse to provide the solution of problem.
1.6 Research Questions
There are some questions that must be determined. The dissertation is based on questions
that are developed. Also, researcher must develop this so that research can be conducted in
smooth manner. The questions are described below :-
 What is role of relationship marketing in construction industry?

 What are the factors that influences the relationship marketing and customer loyalty
within B2B environment in construction industry in Saudi Arabia?
1.7 Aim and Objectives
Aim -“To evaluate the way relationship marketing influences customer loyalty within B2B
environment in construction industry in KSA”
Objectives
The objectives of the present study which will be accomplished in the dissertation are listed
below:
 To understand the importance of customer loyalty in relationship marketing in
construction industry
 To identify the factors that influenced customer loyalty in B2B environment
 To analyse ways through which marketing can influence customer loyalty within B2B
environment in construction industry in KSA
 To recommend strategies through which relationship marketing can be beneficial in long
term growth
1.8 Structure of dissertation
It will describe the structure of dissertation. It will show that how overall research will be
conducted. Also, by developing this researcher will get an insight on what next step can be taken.
Moreover, it will help in conducting research in systematic manner so that the data and
information is thoroughly analysed and aims and objectives of research is achieved in specified
time period. In this context the structure of dissertation is as follows :-
Chapter 1 Introduction: This chapter will give the brief information that is related to topic
which is described in research (Vize, Coughlan and et.al., 2016). With this it will be easy to
analyse what is entire research is all about.
Chapter 2 Literature Review: This is the second chapter that describes about secondary research
related to topic. In this researcher will analyse different types of articles, journals of various
authors. It will provide the theoretical framework.

Chapter 3 Research Methodology: - In this chapter the overall methodology will be explained.
Researcher will describe the methods that will be used or applied by him or her in conducting
research
Chapter 4 Data Analysis and Findings: In this the entire data is analysed and interpreted.
Researcher must analyse data so that findings are generated. It will help users to understand
research subject in more depth (Badi, Wang and et.al, 2017).
Chapter 5 Conclusion and Recommendation: in this researcher will describe what is concluded
from the overall research. Also, it consists of recommendations that organisation can follow or
implement.
1.9 Framework of study
It defines the research methodology that will help researcher in conducting research.
With this it will be easy for researcher to analyse data and information. The following is the
framework of study that is described below :-
Research Philosophy – it states the way through which the data is collected, analysed and
interpreted. There are four types of research philosophy that can be used. For present study
researcher will use positivism philosophy.
Research Design- It is used by researcher in analysing the questions as it contains only general
guidelines (Hollenbeck, Noe and et.al, 2018). Also, it helps in conducting research in
systematic manner. The present study will be based on descriptive research design method.
Research Strategy: It contains the plan through which entire research is been conducted. This
helps in achieving aims and objectives. Basically, there are only two methods that is followed.
These are qualitative and quantitative. These both will be used in dissertation.
Data Collection: Data can be collected by two methods. These are primary and secondary. In
present study researcher will collect data through primary method that is by questionnaire and
literature review will be done by using secondary method that is by previous research paper,
articles, etc.

Sampling- It is a process of selecting sample size. In this there are various methods that is used.
The researcher will take sample size of 20 managers in order to collect and analyse data.
Data Analysis: It is a process in which data is processed to get relevant information. In this
researcher will analyse data by using the thematic analysis.
1.10 Significance of research
This research is conducted in order to identify the relationship between companies in
construction sector and their clients. It is important for companies that are engaged in B2B to
maintain strong and effective relations with clients. This is because change in marketing
environment influences the customer loyalty. In real estate Saudi Arabia is making huge
developments in infrastructure sector. Also, there has been a lot of change due to certain factors.
So this has affected the customer loyalty. Companies are not able to gain their trust and
confidence. Hence, it is influencing loyalty in B2B.
1.11Research scope
This research will give a brief overview of factors that are influencing customer loyalty in
B2B environment in construction industry in Saudi Arabia. This will help companies to retain
their customers so that it can grow and expand operations. This study will also explore the
elements on which relationship marketing is being done by organisation in real estate sector.
1.12 Research limitation
It refers to the issues that are faced by researcher. This will increase time as well as cost
of research. There are several issues that is faced in this which are as follows :-
 Determining aims and objectives- In this researcher has formulated aims and
objectives that are very broad, so they are made short by compressing it. This has
affected the research and results.
 Implementing data collection method- The entire research results depends on data
collection methods. There are many methods through which data can be collected. So this
has confused the researcher on which method must be used by him or her so that aims
and objectives can be attained. This is also a limitation.

 Sample size – After data collection method, sample size must be determined properly so
that research can be conducted. Researcher must select proper and accurate sample size.
If it is too small then results will be affected and if too large then a lot of time will be
required to analyse results.

CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
This is the second chapter in which secondary data related to research is described. This
will help the user in analysing the theoretical framework to study. It is an essential chapter that
helps in identifying the views of different scholars and authors. For this researcher will analyse
secondary data by analysing research papers, journals, articles, etc. written by other researchers.
In context to this, the literature review of dissertation is as follows :-
Theme 1 Relationship marketing
According to Taylor and Hunter, 2014 marketing is an essential element for every
company. It is because it helps in creating awareness in the market about products and services.
Also, marketing creates a base for growth in different markets. There are various forms of
marketing through which company promotes their products. Relationship marketing is a
traditional way in which marketing is done by building relations with clients and customers. It
focuses on customer relationship management (CRM) to develop loyalty so that long term
relationships can be maintained. This form of marketing emphases on individual sales rather than
targeting the entire market. With this it becomes easy to retain customers for long term. As said
by Silva & Gonçalves, 2016 it is generally followed in construction sector as it is not possible to
target all customers. Besides this, the needs and types of projects varies in this. Relationship
marketing supports in acquiring customers and setting short term goals so that it can be achieved
easily. It is different from other forms as it improves the internal operations of company. In this
technology plays a vital role as it is easy for companies in trading with other clients. With this
customers are offered discounts, schemes, etc. to appreciate their loyalty. There are different
tools of relationship marketing that can be followed by companies. It will help in maintaining
relations with customers for long time. The tools that can be followed is as below :-
Tools of relationship marketing
 Networking – This can be done by building an effective and powerful relationship with
clients in online way. This method do not help in creating brand awareness but also