Managing relationship marketing in the food service industry

Abstract

Purpose – The purpose of this paper is to propos a new measuring instrument for relationship marketing which is uniquely designed for the foodservice industry. In particular, the underlying dimensions of relationship marketing as perceived by customers are identified, and strategies for the enhancement of relationship marketing program are put forward. Design/methodology/approach – The proposed 31-item instrument has been empirically tested for unidimensionality, reliability and validity using both exploratory and confirmatory factor analysis Findings – A factorial analysis suggests that relationship marketing is a multidimensional construct consisting of four key dimensions namely communication, trust, empathy and commitment. Practical implications – Communication emphasizes the necessity to communicate in understandable way; trust refers to the ability to inspire confidence; empathy stresses on the importance of exhibiting sympathy and reassurance; and commitment describes the desire to provide excellent service. A subsequent multiple regression analysis reveals that all the dimensions are positively correlated with customer loyalty and trust was the most important dimension. Originality/value – Building strong relationships with customers to gain competitive advantage and customer loyalty is crucial for survival and success in today's business environment. As competition is becoming more intense, customers are increasingly demanding and price sensitive. Although the relationship marketing discipline is relatively well researched, the measuring instrument is limited and practically non-existent in the foodservice industry.