The Role of Relationship Marketing Strategies on Organizational Performance: A Case of Naivas Supermarket Limited in Nairobi, Kenya
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Date
2015-06
Authors
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Publisher
Daystar University, School of Business and Economics
Abstract
Relationship marketing is critical in enhancing organizational performance since it has an impact on the financial performance of an organization such as sales growth, market share as well as the marketing performance in terms of customer loyalty, retention and trust (Sin, 2006). The purpose of this study was to determine the role of relationship marketing strategies on organizational performance employed by Naivas Supermarket. The objectives were to identify the relationship marketing strategies adopted at Naivas Supermarket, the impact of relationship marketing strategies on organizational performance and also the role of relationship marketing strategies on organizational performance. Theories and models such as trust-commitment model of relationship marketing and relationship marketing orientation concept was examined under the literature review. The target population for the study consisted of employees from 18 branches of Naivas supermarkets in Nairobi. Descriptive researcher adopted descriptive case research design, stratified and simple random sampling methods from each stratum were used to select the sample. Out of 65 questionnaires administered, a total of 41 filled questionnaires were returned. Majority of the respondents 63.4% (26) indicated that they had experience in the organizations of between 3-5 years. The main findings from the study were that, quality customer service was highly regarded in the supermarket and communication with customers as a marketing strategy was vital for the organizations performance. Through customer trust commitment the company aimed at building business relationship. Value offers also stimulated customer repurchasing activities and finally pricing was part of the relationship marketing strategies and price perception influenced customer satisfaction and trust. The study therefore recommends that supermarkets need to consistently develop and improve their relationship marketing strategies, and that there should be clear communication and training to all stakeholders so as to achieve best results out of relationship marketing strategies. It is also essential for individual supermarkets to have written operating policies on how to develop and implement relationship marketing strategies tied to well-conceived business plans and relationship management system.
Description
MASTER OF BUSINESS ADMINISTRATION in Strategic Management & Marketing
Keywords
Marketing Strategies, Marketing Strategies