The Influence of Relationship Marketing Tactics on Customer’s Loyalty in B2C Relationship – The Role of Communication and Personalization

Relationship marketing develops marketing productivity and generates mutual values for both customer and company through growing marketing effectiveness. This study proposes a model to link key relationship marketing tactics to the customers’ relationship satisfaction and customer loyalty. This framework is evaluated from the customer perspective in a business-to-consumer (B2C) setting across the tour and travel industry in Singapore. The Model demonstrates that the customer’s loyalty is basically formed by the variables of communication and personalization. This study intends to evaluate the impact of personalization and communication on customer’s relationship satisfaction and then determines the impact of customer’s relationship satisfaction on customers’ loyalty. Meanwhile, in order to conduct this study, primary data has been collected by a properly designed questionnaire which was distributed among customers in 5 different tour and travel agency in Singapore and the secondary data has been collected through online data base such as Ebsco, Emerald and Science Direct. Afterwards, SPSS (17.0) tool has been used in order to evaluate the relationship between variables of the model. Accordingly, correlation analysis and regression results determined the relationship between the variables. Based on the results, there are significant relationships between personalization and communication as independent variables and customers’ relationship satisfaction as dependent variable. So, high level of communication and personalization increase the customers’ relationship satisfaction. Meanwhile, the results also show that there is significant relationship between customers’ relationship satisfaction on customers’ loyalty. Consequently, as customers’ relationship satisfaction increases, customers’ loyalty also enhances. Ultimately, personalization and communication increases the customer’s loyalty by enhancing customer’s relationship satisfaction