Impact of Relationship Marketing Tactics (RMTs) on Switchers and Stayers in a Competitive Service Industry

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Abstract:

Businesses today have shifted their strategic focus from emphasising customer acquisition (i.e. targeting switchers) to emphasising customer retention (i.e. targeting stayers) with the objective of creating sustainable and mutually beneficial relationships. However, current knowledge is limited in providing insights to firms regarding which marketing tactics are effective to achieve such objective. This research aims to explore and empirically test the questions as to what, why and how various relationship marketing tactics (RMTs) differentially influence consumers' decision to stay, or to switch their service providers? It examines customers' perceived level of impact of the various RMTs on their decision to choose service providers. As theory suggests and as empirically validated in this study, switchers and stayers differ significantly in their perceived level of impact of the various marketing tactics on their choice of service providers. The findings offer new insights for both practitioners and researchers
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