American Journal of Marketing Research
Articles Information
American Journal of Marketing Research, Vol.3, No.1, Feb. 2017, Pub. Date: Jul. 27, 2017
An Examination of Marketing Mix Elements and Customer Retention in Malaysian Retail Market
Pages: 1-7 Views: 2513 Downloads: 1468
Authors
[01] Jalal Rajeh Hanaysha, Faculty of Business and Management, DRB-HICOM University of Automotive Malaysia, Pahang, Malaysia.
Abstract
This paper was designed to test the effect of selected marketing mix elements on customer retention in retail industry. Based on the review of past literature, it appears that there are only few studies which examined the empirical link between both constructs, particularly in Malaysian retail sector. To accomplish the above objective, a quantitative survey method was employed for collecting the data from several customers of retail stores in East Coast Malaysia. The collected data were inserted into SPSS and analyzed using structural equation modeling (AMOS). The findings revealed that advertising has an insignificant effect on customer retention. The results also showed that distribution intensity, price, and store location have significant positive effects on customer retention. Finally, the outcomes confirmed that store image plays a significant role in affecting customer retention. The study builds upon the literature by confirming the importance of the selected marketing mix elements in affecting customer retention in retail industry with empirical data from Malaysian context.
Keywords
Advertising, Customer Retention, Distribution Intensity, Place, Price, Store Location, Store Image
References
[01] Abrat, R., & Russell, J. (1999). Relationship marketing in private banking South Africa. The International Journal of Banking Marketing, 17(1), 5-19.
[02] Ang, L., & Buttle, F. (2006). Customer retention management processes: A quantitative study. European Journal of Marketing, 40(1/2), 83-99.
[03] Aspinall, E., Nancarrow, C., & Stone, M. (2001). The meaning and measurement of customer retention. Journal of Targeting, Measurement and Analysis for Marketing, 10(1), 79-87.
[04] Barrett, P. (2007). Structural equation modelling: Adjudging model fit. Personality and Individual differences, 42(5), 815-824.
[05] Bataineh, A. Q., Al-Abdallah, G. M., Salhab, H. A., & Shoter, A. M. (2015). The effect of relationship marketing on customer retention in the Jordanian's pharmaceutical sector. International Journal of Business and Management, 10(3), 117-131.
[06] Boohene, R., Agyapong, G. K., & Gonu, E. (2013). Factors influencing the retention of customers of Ghana Commercial Bank within the Agona Swedru Municipality. International Journal of Marketing Studies, 5(4), 82.
[07] Christopher, M. (1996). From brand values to customer value. Journal of Marketing Practice, 2(1), 55-66.
[08] Coviello, N. E., Brodie, R. J., Danaher, P. J., & Johnston, W. J. (2002). How firms relate to their markets: An empirical examination of contemporary marketing practices. Journal of Marketing, 66(3), 33-46.
[09] Danish, R. Q., Ahmad, F., Ateeq, A., Ali, H. Y., & Humayon, A. A. (2015). Factors affecting customer retention in telecom sector of Pakistan. American Journal of Marketing Research, 1(2), 28-36.
[10] Davies, W., & Brush, K. E. (1997). High-tech industry marketing: The elements of a sophisticated global strategy. Industrial Marketing Management, 26(1), 1-13.
[11] Dawkins, P., & Reichheld, F. (1990). Customer retention as a competitive weapon. Directors and Boards, 14(4), 42-47.
[12] Frazier, G. L., & Lassar, W. M. (1996). Determinants of distribution intensity. Journal of Marketing, 60, 39-51.
[13] Garavand, A., Nourayi, M., & Saee A, I. (2010). The effect of marketing mix on purchasing decision and customer satisfaction from producing cooperative companies of Kuhdasht country. Science and Research Quarterly Journal of Cooperation and Agriculture, 21(3), 69–87.
[14] Gummesson, E. (2002). Relationship marketing in the new economy. Journal of Relationship Marketing, 1(1), 37-57.
[15] Grönroos, C. (1991). The marketing strategy continuum: towards a marketing concept for the 1990s. Management Decision, 29(1), 7-13.
[16] Hanaysha, J. (2016). Examining the link between word of mouth and brand equity: A study on international fast food restaurants in Malaysia. Journal of Asian Business Strategy, 6(3), 41-49.
[17] Hanaysha, J., & Hilman, H. (2015). The impact of product innovation on relationship quality in automotive industry: Strategic focus on brand satisfaction, brand trust, and brand commitment. Asian Social Science, 11(10), 94-104.
[18] Hartman, K. B., & Spiro, R. L. (2005). Recapturing store image in customer-based store equity: a construct conceptualization. Journal of Business Research, 58(8), 1112-1120.
[19] Hawkins, D. I., Best, R. J., & Coney, K. A. (2001). Consumer behavior: Building marketing strategy (8th edition). Boston: McGraw-Hill.
[20] Hennig-Thurau, T. (2004). Customer orientation of service employees: Its impact on customer satisfaction, commitment, and retention. International Journal of Service Industry Management, 15(5), 460-478.
[21] Hilman, H., Ghani, A. G., & Hanaysha, J. (2013). Relationship quality as a strategic tool in today’s turbulent business world. Australian Journal of Basic and Applied Sciences, 7(14), 478-478.
[22] Hilman, H., & Hanaysha, J. (2015). The impact of country of origin on relationship quality: Empirical evidence from automotive industry. Mediterranean Journal of Social Sciences, 6(2), 165-174.
[23] Ismail, M. B. M., & Safrana, M. J. (2015). Impact of marketing strategy on customer retention in handloom industry. 5th International Symposium 2015, pp. 16-25.
[24] Johnson, G., Scholes, K., & Whittington, R. (2008). Exploring corporate strategy: Text and cases. Pearson Education.
[25] Khazaei, A., Manjiri, H., Samiey, E., & Najafi, H. (2014). The effect of service convenience on customer satisfaction and behavioral responses in bank industry. International Journal of Basic Sciences and Applied Research, 3(1), 16-23.
[26] Kim, J. H., & Hyun, Y. J. (2011). A model to investigate the influence of marketing-mix efforts and corporate image on brand equity in the IT software sector. Industrial Marketing Management, 40(3), 424-438.
[27] Kotler, P., & Armstrong, G. (2010). Principles of marketing, Pearson education.
[28] Kotler, P., Wong, V., Saunders, J., & Armstrong, G. (2004). Principles of marketing, Financial Times (4th ed.), Prentice Hall.
[29] Ling, A. P. A. (2007). The impact of marketing mix on customer satisfaction: A case study deriving consensus rankings from benchmarking. (Master’s thesis).
[30] Lovelock, C. (2011). Services marketing: People, technology, strategy, Pearson Education India.
[31] Mahmood, R., & Khan, S. M. (2014). Impact of service marketing mixes on customer perception: A Study on Eastern Bank Limited, Bangladesh. European Journal of Business and Management, 6(34), 164-167.
[32] Martin-Consuegra, D., Molina, A., & Esteban, A. (2007). An Integrated Model of Price, Satisfaction and Loyalty: An Empirical analysis in the Service Sector. Journal of Product & Brand Management, 16 (7), 459-468.
[33] Nazir, B., Ali, M., & Jamil, M. (2016). The Impact of Brand Image on the Customer Retention: A Mediating Role of Customer Satisfaction in Pakistan. International Journal of Business and Management Invention, 5(3), 56-61.
[34] Njane, J. G. (2013). An investigation of factors affecting customer retention in Barclays bank of Kenya (Master’s dissertation, University of Nairobi).
[35] Peter, P. J. & Donnelly, J. H. (2007). Marketing Management: Knowledge and Skill. (8th edition), McGraw-Hill, New York: USA.
[36] Pourdehghan, A. (2015). The impact of marketing mix elements on brand loyalty: A case study of mobile phone industry. Marketing and Branding Research, 2, 44-63.
[37] Qadri, U. A., & Khan, M. M. S. (2014). Factors affecting on customer retention: A Case study of cellular industry of Pakistan. International Journal of Recent Research in Commerce Economics and Management (IJRRCEM), 1 (1), 1-22.
[38] Ramirez, S. D., Amurao, E. A., & Mercado, R. T. (2014). Marketing strategies of selected business establishments in the city of Tarlac. Review of Integrative Business and Economics Research, 3(2), 502-522.
[39] Reichheld, F. F. (1992). Loyalty-based management. Harvard Business Review, 71(2), 64-73.
[40] Reichheld, F. & Sasser W. E. (1990). Zero defections: Quality comes to services. Harvard Business Review, 68(5), 105-111.
[41] Roberts, K., Varki, S., & Brodie, R. (2003). Measuring the quality of relationships in consumer services: an empirical study. European Journal of Marketing, 37(1/2), 169-196.
[42] Salgado-Beltrán, L., Espejel-Blanco, J. E., & Beltrán-Morales, L. F. (2013). Marketing Mix Influencing Organic Foods Purchase of Mexican Consumers. China-USA Business Review, 12(6), 618-626.
[43] Seiders, K., Berry, L. L., & Gresham, L. G. (2000). Attention, retailers! How convenient is your convenience strategy? MIT Sloan Management Review, 41(3), 79.
[44] Shamsher, R., & Hossain, M. J. (2012). Consumer behavior in retailing: A comparative study between traditional and large-scale retailing. The Chittagong University Journal of Business Studies, 21(2), 179-197.
[45] Shareef, M. A., Kumar, U., & Kumar, V. (2008). Role of different electronic-commerce (EC) quality factors on purchase decision: a developing country perspective. Journal of Electronic Commerce Research, 9(2), 92-113.
[46] Sim, J., Mak, B., & Jones, D. (2006). A model of customer satisfaction and retention for hotels. Journal of Quality Assurance in Hospitality & Tourism, 7(3), 1-23.
[47] Sinha, P. K. (2003). Shopping orientation in the evolving Indian market. Vikalpa, 28(2), 13-22.
[48] Solomon, M., Bamossy, G. & Askegaard S. (2002). Consumer Behaviour: A European Perspective, Essex, UK: Prentice Hall.
[49] Tamuliene, V., & Gabryte, I. (2014). Factors influencing customer retention: case study of Lithuanian mobile operators. Procedia-Social and Behavioral Sciences, 156, 447-451.
[50] Wang, X., & Montgomery, A. L. (2012). Customer acquisition at online auctions: Why more bidders can decrease profitability. Retrieved on 28 March, 2017 from: https://pdfs.semanticscholar.org/83fb/6ea1d48dde711578af24d1841d5485f46c32.pdf?_ga=1.83958809.103776059.1493342169
[51] Yoo, B., Donthu, N., & Lee, S. (2000). An examination of selected marketing mix elements and brand equity. Journal of the Academy of Marketing Science, 28(2), 195-211.
[52] Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioural consequences of service quality. Journal of Marketing, 60(4), 31-46.
[53] Zineldin, M. (2000). Total relationship management (TRM) and total quality management (TQM). Managerial Auditing Journal, 15(1/2), 20-28.
600 ATLANTIC AVE, BOSTON,
MA 02210, USA
+001-6179630233
AIS is an academia-oriented and non-commercial institute aiming at providing users with a way to quickly and easily get the academic and scientific information.
Copyright © 2014 - American Institute of Science except certain content provided by third parties.