Marketing Effectiveness and Customer Retention in the Service Sector

Abstract

Recent years have witnessed a growth in the number of studies relating to service orgrrnisations. This steady stream of literature could be attributed to the continuous expansion of the service sector and its increasing contribution to the advancement of many economies. In this context, issues associated with marketing and performance outcomes which managers can influence directly have received a great deal of attention. This research focuses on an empirical investigation of the relationship between marketing effectiveness and customer retention performance in an attempt to contribute to the growing body of conceptual and empiricul knowledge on the links between marketing and performance among service firms. Drawing on our results which indicate a significant and positive association between marketing effectiveness and customer retention, implications of the findings for service firm managers as well as future research directions are subsequently discussed.

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