Analyzing Relationship Marketing and Customer Loyalty for Honda Motors

This project examines the impact of relationship marketing on customer loyalty within the context of Honda Motors, a prominent player in the automobile industry. The study begins with an acknowledgment and executive summary highlighting the importance of relationship marketing (RM) or Customer Relationship Management (CRM) in today's competitive market. The project explores various aspects of RM, including its definition, association with customer loyalty, and challenges faced during implementation. Through a literature review, the project synthesizes the views of different authors and publishers on RM, emphasizing its significance in attracting and retaining customers. The research methodology section outlines a qualitative approach to gain deeper insights into the impact of RM on consumer loyalty. The data analysis reveals a positive correlation between effective CRM and increased customer loyalty, emphasizing the value of a strong customer relationship. The project is structured into six chapters, covering introduction, literature review, research methodology, data analysis, discussion, and conclusion. The conclusion provides recommendations for Honda Motors to improve its performance by leveraging RM strategies to enhance customer loyalty and gain a competitive edge in the automobile market. The project also includes an introduction that provides background information, the aim and objectives, the rationale behind the research, the scope of the study, and the structure of the dissertation.

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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puts more attention over the customer retention instead of acquiring new customers and also
works on growth as well.
As per the view of Hänninen and Karjaluoto (2017) the concept of relationship
marketing is based upon the certain characteristics which are concern, trust, commitment and the
service. There are five major RM strategies which are- core service strategy, relationship
pricing, relationship customization, internal marketing and the service augmentation. This
method is not linked to a one product or good but it involves the entire company in refining the
way the business is used to carried out with the objective of increasing the value of the
consumer. This approach has a huge influence over the customer's perception and loyalty
towards the brand. Therefore, by designing and implementing it in the right way after carrying
out the analysis will result into generating greater revenue and profits.
2.3 Association between relationship marketing and consumer loyalty.
Porter's five force model
As per the view of Gummerus, von Koskull and Kowalkowski, (2017), Honda motors is
considered to be as the renowned brand of the auto- mobiles. It has shown significant growth
within the Asian market. The brand has been investing highly in research and development in
order to improve the business operations and efficiency. Honda motors has been poised for the
faster growth and is useful in better innovation and complying with the sustainable technology.
 Competitive rivalry
Thaichon and et.al., (2019) examined the fact that, the competition rivalry among the existing
brands associated with the Honda motors is considered to be significantly high. The company
must invest highly in the relationship marketing because it will lead to attracting large number of
customers and improving the experience of the customers. However, this way it is useful in
improving the loyalty of the customers and attain greater standards. The Honda Motors operates
and trade in the market where the struggle with the rivals is very much which can affect the long
term performance of the company. Therefore, it is become crucial for Honda Motors in
effectively and efficiently implementing the relationship marketing along with other
differentiating strategy for gaining more customers and building customer loyalty towards the
brand. This will consequently lead to increasing the size of the market in an easy way rather than
doing touch competition. The company must always focus on performing better than the
competitors which is useful in improving the business functions and operations.
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 Threat of substitute products
Boateng, (2019) stated that, the threat associated with the substitute goods in case of Honda
motors is considered to be moderate. The brand image of the company is significantly good and
has effective marketing capabilities. There are various brands competing for the same market
and the customer group, thus, the products can be used as the substitute of come another. Along
with that there are other modes of transport as well, like public transport which can act as a
substitute product. The feature of relationship marketing which consists of the various marketing
tactics, competences, brand image with the belief of the client. This will help in lowering the
threat of substitute products through the way of increasing customer loyalty. This way it helps in
improving the customer loyalty. However, the overall threat associated with the substitute
products is considered to be moderate. Effective relationship marketing is useful in effectively
improving the key results and enhancing the customer loyalty.
 Bargaining power of buyers
Van Tonder and Petzer, (2018) examined the fact that, the bargaining power of the buyers is
considered to be exclusively high in case of Honda motors. Customers are highly educated and
informed about the products and services which are available within the market. The customers
have range of products which are available within the market at a competitive price. Author
further added that Customers are the most uncertain and demanding part of the business. Their
desire is to get the best product at the minimum price. By looking at the other aspect, Honda
Motors is having huge customer base, therefore, it has the capacity to fight with the bargaining
power. This is only possible if it is having a good relation with its customers and can be made by
implementing relationship marketing. Honda motors has been investing in marketing which is
relevant in ensuring the safety of the product. This is useful in improving the customer loyalty
and improves the experience of the customers.
 Threat of new entrants
Luu, Ngo and Cadeaux (2018) stated that, the threat of the new entrant entering into the market
is considered to be significantly low. The new entrant has the power to bring in the most of the
innovation in the auto mobile industry and it makes use of the fresh technologies resulting into
putting more burden on Honda Motors. The company might face such many encounters which
may pose as an obstacle in protecting the advantages of the company in against it competitors.
The company can meet with such challenge or threat by the way of managing and maintaining
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the existing customers by the way of relationship management. Honda motors has high degree of
goodwill and good reputation in the eyes of the customers. The new business who has entered
the market cannot match the market position of the Honda motors overnight. Hence, the Honda
motors company has the epitome set of opportunity to improve the business performance and
attain greater opportunity by indulging in the relationship marketing. This way it is considered to
be prominent to enhance the customer loyalty and improve the customer base of the company.
 Bargaining power of suppliers
Gummerus, von Koskull and Kowalkowski, (2017) examined the fact that, Honda motors
has strong supply chain across the globe. In auto mobile industry the base of supplier is diverse
and the dominant position of the suppliers can affect the profits of the company. Honda Motors
has developed a proficient and strong supply chain with multiple suppliers. The situation is that
many suppliers are dependent upon the company for their existence. Therefore, Honda Motors
enjoys its strength of bargaining power, which is because the company has maintained good
relation with its suppliers resulting in timely meeting with the customer requirements. This
means they have high degree of distribution network. This way it is useful in meeting the needs
and requirements of the customers. It also holds the bargaining strength and eventually leads to
high degree of bargaining power.
2.4 Challenges face by company while implementing relationship marketing
For implementing the relationship marketing, it is important to understand and be
prepared for the challenges that might come across. According to Steinhoff and et.al., (2019) the
challenges are bifurcated into four types- which are people, technology, business process and
other challenges. Under people challenge, organization might face the problem pertaining to the
lack of sponsorship by the top or the senior management. As the RM is mostly driven by the IT
team as it involves use of technology. Also, the management are sometimes not able to
understand the importance of it and the benefits attached to it. This challenge also involves
challenge in relation to scope, clarity and outrun of the budget. This challenge is very crucial in
determining and understanding the cost that is required to be incurred. For implementing this,
requires the changes in the management, which makes it important for the organization or the
top management in effectively communicating the change to the employees of the organization.
As emphasized by Grönroos (2017) another challenge is the change in the stakeholders
of the company in the middle of the project. This might cause the problem in implementing the
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contract which has been already signed. Therefore, it is important for the management to
adequately made the documents with the objectives and the in-progress sign off. In terms of
technological challenge, it refers to whether the relationship marketing practice which is
proposed to be used is technology driven or not and what it will be managed as it will require
someone having an expertise in using the relevant technology. Otherwise, it will incur a huge
problem which might result only incurring expenditure for the company. In the another
challenge which is business process, relates to migration of the data with respect to the
customers. Also, by implementing the relationship marketing, it will have a direct impact over
the existing business processes. Luu, Ngo and Cadeaux (2018) states that the organization is
required to understand how the use of this form of marketing will affect the ongoing business
processes and what are the ways through which the management can mitigate or reduce the
impact.
The other challenges which might occur are difficulty in implementing it or monitoring it
on continuous basis for ensuring that it will support the company in attaining the desired
objectives. As per the opinion of Grönroos (2017) the major challenge is on the account of
maintaining the privacy and security of the customer's information. There is possibility of losing
out the confidential information in respect to the customers and other stakeholders which limits
the usage of relationship marketing. Another crucial point pertaining to this approach of
marketing is that there is no guarantee in respect to the outcome. It does not ensure quick profit
as it requires a longer time frame to provide with the desired outcome in comparison to the other
transactional marketing approach. As argued by Greve and Schlüschen (2018) with the
increasing use of this marketing approach might generate over expectation of the consumers
who are returning back to the brand. Therefore, these are the challenges which are faced by the
organization while implementing the RM. By taking care of all these factors or challenges
before implementing the marketing plan will provide assistance to the management in ensuring
that the RM approach will lead to better outcome and in attracting the customers and creating a
positive image in the mind of customers leading gaining customer loyalty.
Pestel Analysis
According to Sinkovics, Kurt and Sinkovics (2018) the Pestel analysis of the Honda
Motors has resulted into analysing the brand along with its business tactics. It will result into
examining the carious macro environmental factors which might a have an impact over the
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