Relationship Marketing and Customer Loyalty In The Ghanaian Hospitality Industry

Abstract

Relationship marketing has become a buzz word in academia and industry due to its acclaimed benefits of attracting and retaining customers. The hospitality industry in Ghana is one sector where relationship marketing practices have not been well researched. This study was thus motivated to address this research gap. The main purpose of this study was to examine the relationship between relationship marketing and customer loyalty in the Ghanaian Hospitality (hotel) industry. Specifically, the study was meant to examine the extent of relationship marketing practice in Ghanaian hotels, the relationship between relationship marketing, customer satisfaction and customer loyalty as well as examining the practical challenges hotels in Ghana face in implementing relationship marketing as a strategy to win customer loyalty. Data was collected using a questionnaire derived from previous studies as well as the current literature reviewed. These questionnaires were administered and completed by three hundred (300) customers often rated hotels (ranging from 2-star to 5-star hotels) in Ghana. In-depth interviews were conducted with sales managers, marketing managers and sales executives of the sampled hotels. Data was analyzed using the Statistical Package for Social Science (SPSS) to assess the impact of six key constructs of relationship marketing; namely, competence, trust, commitment, communication, conflict handling and relational bonds (social and financial), on customer loyalty. The research findings revealed that all the six relationship marketing constructs (competence, trust, commitment, communication, conflict handling and relational bonds (social and financial) jointly have a significant and positive effect on customer loyalty in the hotel industry in Ghana. However, contrary to Ndubisi (2007) findings, this study found that, out of the six relationship marketing constructs, four (trust, competence, commitment, and relational bonds (social and financial) had significant impact on customer loyalty when the variables were tested individually. The study found that Communication and conflict handling were not significantly affecting customer loyalty in the Ghanaian hotel industry. The findings of the research also revealed that not all loyal

customers are satisfied customers. The study also discovered that even though Ghanaian hotels are relying more on relationship marketing as a strategic tool, their efforts are mostly challenged by a number of factors such as high cost of building and maintaining relationships, low level of management support. lack of manpower and relevant skilled personnel, data capture and maintenance. cuts in government expenditure and lack of customer 1rust This research therefore reasonably concludes that hotel managers can win the loyalty of their customers when they increase their commitment to satisfying customer needs. become more trustworthy. communicate more effectively with customers, build stronger relational bonds with their customers and improve their competence levels.