Role of Relationship Marketing in Building Customer Loyalty in Services Sector of Pakistan

Abstract

The basic aim of this study is to unfold the emerging importance of relationship marketing in the present era and build trust and relationship commitment for the customer loyalty for successful relational exchange. The idea was to determine the differential effects of trust, perceived service quality and relationship commitment on customer loyalty. This paper also includes the service quality antecedents and their effect on the loyalty of the customer. The proposed model has been tested with adapted survey questionnaire in context of insurance sector service. The sample size was 100 respondents having insurance policy of two renowned life insurance companies of the country. The regression analysis and PCA (Principle Component Analysis) was performed. This approach of single industry may create the internal validity of the proposed model, repetition in alternative service settings is required to upsurge the generalizability of the results. The results underwrite to understanding of the relationships between dissimilar elements of trust, service quality, relationship commitment, and customer loyalty; offer critical inferences for managers of service organizations; and climax directions for future research. This also helps to understand the firm’s intentions towards the quality and the role quality in customer loyalty.

Keywords: Customer Loyalty, Trust, Relationship commitment, Services marketing, services quality, Salesman Characteristics, Relationship Marketing