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Does Relationship Marketing Improve Customer Relationship Satisfaction and Loyalty?

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Does relationship marketing improve customer relationship satisfaction and loyalty? Andreas Leverin and Veronica Liljander

Relationship marketing (RM) has been identified as one of the way for firms to develop mutually beneficial and valuable long-term relationships with customers .RM is believed to work most effectively when customers are highly involved in the good or service, there is also an element of personal interaction.
Research Review:- This study investigates the relationship marketing (RM) strategy of a retail bank and examines whether -after its implementation - customer relationships were strengthened through perceived improvements in the banking relationship and consequent loyalty towards the bank.
Research Methods:- Design/methodology/approach - A survey was conducted on two profitability segments, of which the more profitable segment had been directly exposed to a customer oriented RM strategy, whereas the less profitable segment had been subjected to more sales oriented marketing communications.
Findings - No significant differences were found between the segments on customer’s evaluations of the service relationship or their loyalty towards the bank. The regression analysis revealed that the relationship satisfaction was less important as a determinant of loyalty in the more profitable segment.
Research limitations/implications - This study was conducted as a case study of one specific branch of a bank group in Finland, which limits the external validity of its results. It was not possible to ascertain if, or to what extent, customers of the more profitable segment had received the intended RM treatment.
Practical implications - By identifying the aspects of a

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