The impact of relationship marketing on business performance with the mediating role of loyalty and market position – Industrial market case

Abstract

In industrial markets, partnerships are based on mutual benefits between sellers and buyers. In this market, attracting a customer to become a business partner is difficult, maintaining and developing customer relationships is even more difficult and requires countless efforts from the seller, including the support and cooperation of the buyer. The principles of relationship marketing are built on this foundation. The goal of the research is to confirm the influence of relationship marketing on business performance through the mediating role of loyalty and the enterprise's market position. Accordingly, a structural equation model was formed to test the impact of relationship marketing components (trust, shared value, and bonding) on business performance, while loyalty and market position play a mediating role in this relationship. Empirical research was conducted: respondents are businesses that implement relationship marketing programs with their business partners; the number of valid questionnaires is 385. Survey data were analyzed using SPSS and AMOS statistical software. Research results show: (1) components of relationship marketing (trust, shared values, and bonding) have a positive and direct impact on loyalty and market position; (2) loyalty and market position have a positive and direct impact on business performance. In particular, shared value has the strongest impact on the market position of the business, and trust has the strongest impact on customer loyalty to the business. Next, loyalty has the strongest impact on business performance. Finally, the research has provided useful implications for helping businesses develop relationship marketing activities in the right and effective way to enhance their market position and business performance.