Performance of direct mail in building customer loyalty in Greek automotive sector during the financial crisis

Abstract

This paper focuses on the performance of direct mail as a key marketing communication tool in customer retention and a loyalty building instrument during the financial crisis in Greek automotive sector. The major transnational car brand Toyota in Greece is selected to investigate the performance of direct mail in enticing customer loyalty during a financial crisis. Athens and Salonica, the two largest cities in Greece, were chosen as the study locations because they comprise the largest segment of the automotive market and have been the main stage for the conflicts and reactions to the crisis between 2010 and 2015. In partnership with a major research agency and Toyota Hellas, a questionnaire was distributed, and 383 completed questionnaires were returned. The results were analysed through analysis of variance with covariates (ANCOVA) and mediated regression analysis. It was found that direct mail has a direct effect on customer attitudinal loyalty, and behavioural loyalty is dependent on customer satisfaction related to direct mail. This paper provides new insights on the effect of direct mail on customer loyalty during economic crises. Showing the performance and role of direct mail in crisis environment is likely to help managers better understand their customers and enhance loyalty.