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The Impact of Relationship Marketing Strategies on Customer Loyalty in the High-End Hair Salon Industry in Auckland

Author

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  • Jia Wei- Sim

    (Otago Polytechnic Auckland International Campus, Auckland, New Zealand)

  • Indrapriya Kularatne

    (Otago Polytechnic Auckland International Campus, Auckland, New Zealand)

Abstract

The business world is a competitive place, and enterprises must cultivate sustainable relationships with their clients to gain customer loyalty. Concepts of relationship marketing (RM) are becoming vital in the service industry. Different RM strategies are used to attract customers, but some of these strategies do not achieve customer loyalty as easily as predicted due to customers’ changing behaviour patterns. This paper investigates the impact of RM strategies on customer loyalty through relationship qualities (customer satisfaction and trust) by concentrating on the high-end hairdressing sector in Auckland. Additionally, this research investigates the expectations of customers of high-end hair salons formed by RM strategies, which influence their satisfaction, trust, and customer loyalty to their service provider. The results indicate that brand image shows a significant relevance to trust, satisfaction, and customer loyalty claiming that brand image is an essential element of RM. Additionally, this investigations revels that, hair salons in Auckland are looking forward to ascertaining a sustainable relationship with their clients through a spectrum of strategies such as positive brand image, good service quality, reasonable price, and good value deals to earn optimistic relationship quality, which will ultimately escalate to customer loyalty. Findings of this research will be useful in supporting hair salons to gain a greater understanding of their customers by adopting effective RM strategies.

Suggested Citation

  • Jia Wei- Sim & Indrapriya Kularatne, 2024. "The Impact of Relationship Marketing Strategies on Customer Loyalty in the High-End Hair Salon Industry in Auckland," Journal of Regional Economics, Anser Press, vol. 3(1), pages 17-37, March.
    • Handle: RePEc:bba:j00009:v:3:y:2024:i:1:p:17-37:d:311
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    References listed on IDEAS

    as
    1. V. Kumar & Werner Reinartz, 2012. "Relationship Marketing and the Concept of Customer Value," Springer Texts in Business and Economics, in: Customer Relationship Management, edition 2, chapter 2, pages 21-31, Springer.
    2. Liu, Chung-Tzer & Guo, Yi Maggie & Lee, Chia-Hui, 2011. "The effects of relationship quality and switching barriers on customer loyalty," International Journal of Information Management, Elsevier, vol. 31(1), pages 71-79.
    3. Brodie, Roderick J. & Ilic, Ana & Juric, Biljana & Hollebeek, Linda, 2013. "Consumer engagement in a virtual brand community: An exploratory analysis," Journal of Business Research, Elsevier, vol. 66(1), pages 105-114.
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