Relationship intention and satisfaction as predictors of wholesale and retail customers’ loyalty towards their training providers

Abstract

It is not surprising that service providers are increasingly attempting to establish customer loyalty as competition intensifi es in service industries. Building long term relationships and satisfying customer expectations could be an effective strategy to follow according to research that suggests strong relationships between customer relationships, customer satisfaction and customer loyalty. However, some researchers suggest that service providers should direct their marketing efforts only towards customers who have relationship intentions. It is thus essential for service providers to consider customers’ relationship intentions and satisfaction when drafting strategies aimed at building customer loyalty. The purpose of this study was to determine the extent to which relationship intention and satisfaction predict customer loyalty within the wholesale and retail training sectors. Data were gathered from 185 wholesale and retail skills development decision-makers located across South Africa, who were involved in the selection of their organisations’ training providers. Using hierarchical multiple regression analysis, the findings indicate that relationship intention and satisfaction significantly predict customer loyalty towards wholesale and retail training providers. Wholesale and retail training providers thus need to understand that establishing customer loyalty depends on their ability to develop strong relationships with customers who are receptive to relationship marketing efforts, and to ensure that these customers’ needs are met.

Keywords: relationship marketing, long-term relationships, relationship intention, customer satisfaction, customer loyalty, wholesale and retail training industry