Causes and outcomes of customer satisfaction in business-to-business markets relationship marketing in the South African cement manufacturing industry

Abstract

Close relationships between cement manufacturers and their customers in business-to-business markets are becoming a necessity in today’s competitive markets. The literature search reveals that, three constructs of relationship marketing (trust, commitment and satisfaction) are the most studied and well known. This study contributes to the body of knowledge by adding two constructs (supplier competencies and communication) as vital causes to customer satisfaction and the outcome being customer loyalty and cooperation. The study produced a framework of dimensions of relationship marketing in the South African Cement Industry and its hoped will help marketing managers in the industry and related sectors in coming up with relationship marketing strategies that can go a long way in helping them retain, attract, satisfy, and achieve long-term profitable relationships for both the supplier and the customer. A judgemental sample of major cement customers (362) throughout South Africa’s nine provinces were contacted using face-to-face interview technique with self-administered questionnaires. The results support the conceptual model presented; supplier competencies, trust, commitment and communication have a positive association with satisfaction; and satisfaction, in turn, relates positively to all the two outcomes of cooperation and loyalty. It is recommended that a cement manufacturer must invest in strategies that enhance trust, communication, commitment and supplier competencies in order to satisfy its customers who will in turn contribute to customer cooperation and loyalty.