The impact of customer relationship marketing on market performance: a study among Iranian telecommunication service providers

While a vast number of studies have pointed out the keys of relationship marketing practices in consumer markets, little attention has been paid to the value the organization can get from such strategies in the B2B market. The literature provides relatively little support for the effectiveness of relationship marketing programs. The purpose of this research is to produce some evidence of the association between customer relationship marketing strategies which are attraction activities and Loyalty programs (Bonus, Contact, Customer satisfaction, Contact) and the market performance. The proposed hypotheses are tested in the case of telecommunication service firms, where long-term relationship is needed. This research involved collecting data from Iranian Telecommunication managers of 105 telecommunication companies to understand the relationship exists between attraction and loyalty programs (Bonus-Contact-Satisfaction and complaint) with market performance of the companies and the market performance is measured by market position, customer perception about the firm and customer’s loyalty. The hypotheses were evaluated using a SEM analysis, which associates relationship between attraction activities and Loyalty and interaction programs with market performance (customers’ perceptions, market position and loyalty) by using Partial Least Square (PLS) Techniques. The findings suggest that the effect of attraction and loyalty programs are greater than service quality on market performance, Furthermore, This means that, loyalty and interaction programs are more influential on companies’ awareness and penetration in the market (market position). Attraction activities (service quality) has greater impact on customer’s perception, however bonus and customer satisfaction are more associated with customers’ loyalty also customer satisfaction has grater impact on customers’ loyalty than service quality.

Author: Pantea Pezeshkan Jalili

Source: Luleå University of Technology

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