Abstract
In the current era of growing competition and changing customer expectations within the hotel industry, managers are compelled to devise strategies of promoting customer satisfaction in order to attain a competitive advantage. This study investigated the mediation effect of relationship value in the relationship between relationship marketing practices and customer satisfaction in the hotel industry of Uganda. A quantitative survey design was adopted to investigate the envisaged linkage between the study variables from a relational perspective. The results of the study establish that relationship value significantly mediates the relationship between relationship marketing practices and customer satisfaction. In terms study limitations, the study focused on hotel customers in all the four regions of Uganda. The study results provide a reason for hotels to devote more resources towards relationship marketing practices in a bid to propel relationship value, which resonates customer satisfaction. The results of the study support the idea that improved relationship marketing practices through relationship value generate a sustainable psychological satisfaction not only for customers but also high market share for the organization. The study recommends to hotel managers to regularly consider the drivers of relationship marketing practices, which build a long-term relationship and bonds with customers to yield relationship value. As evidenced in this study, it is of great importance to develop relationship-marketing practices that increase relationship value, an aspect that is vital in boosting customer satisfaction. This article is an original piece of work with both empirical and theoretical value. Empirically, this work is the first of its kind aimed at investigating the mediation effect of relationship value between relationship marketing and customer satisfaction within the hospitality setting. Theoretically, the study extends the adaptability of the social exchange theory by expounding relationship marketing in enhancing customer satisfaction.
Highlights
Customer satisfaction in the hotel industry is a concern in less developed countries and across the globe
The results in table 2 show that Relationship marketing practices significantly relate to customer satisfaction (r = 0.501, Ƥ < 0.01), relationship value is significantly related to customer satisfaction (r = 0.577, Ƥ < 0.01), and Relationship marketing practices are significantly related to Relationship Value (r = 0.473, Ƥ < 0.01)
This study examined the extent to which relationshipmarketing practices through relationship value explain variations in satisfaction levels of customers
Summary
Customer satisfaction in the hotel industry is a concern in less developed countries and across the globe. This is because it plays a key role in influencing customer’s attitudes and behavior which in turn shapes the response towards services and goods [4]. Relationship value can be referred to as a result of the combined relationship between the supplier or service provider and the customer. This perspective recognizes that the foundation in respect to quality or ‘value’ in a relationship involves the customer and the service organization [4]
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