Impact of Relationship Marketing on the Performance of Service Companies: An Empirical Study on NCR

Abstract

Today's customers buying decisions are not based simply on the quality of the product but with the relationship they have with the company. So organizations will have to formulate marketing strategies in a way to not only woo customers toward them but also to retain them. The objective of the study therefore was to empirically investigate the effect of Relationship Marketing (RM) on the performance of service companies.This paper provides a comprehensive review on this concept of RM in the service sector, its foundation as well as its development.The type of research used for this study is descriptive research design. A well structured questionnaire was designed for service providers and administered to collect samples across NCR. Due to high population and need for variety of respondents, Convenience Sampling method was chosen. Data were collected from a cross-section of customers (consisting of 100 samples). Furthermore the paper provides a discussion on the nature and scope of RM and proposes some recommendations to assist firms in the implementation of this new marketing concept. The findings revealed that there are several measures of RM i.e. service quality, trust, price perceptions, complaint handling and customer satisfaction which are responsible for the performance of service companies like Telecom, Healthcare, Banking, Insurance, and Entertainment and so on. Finally the concluding note of this study reflects that the RM and service delivery are the factors responsible for the performance and the growth of service companies.