importance and may become dominant Measurement of customers satisfaction monitoring market share(indirect approach managing customer base (direct approach Customer information system Ad-hoc customer satisfaction surveys Real time customer feedback system Interdependency between marketing and personnel Interface of no or limited strategic importance Interface of substantial importance The role of internal marketing Internal marketing of no or limited importance to success Internal marketing of substantial strategic importance to success Source: Gronoos, (1994) and Dwyer, Schurr & Oh (1987) As noted in the above definitions, it is clear that relationship marketing is influenced by contributions from diverse relational schools. Relationship marketing incorporates the purpose, process, focus and key elements of relationship marketing as explained by Evans, O’Malley and Patterson (2004, p. 210):• the purpose is to satisfy the objectives and enhance the experience of the parties involved, the focus is on key customers and other parties, the process involves the identification, specification, initiation, maintenance and dissolution of relationships, and the key elements include mutual exchange, fulfillment of promise and adherence to relationship norms. Furthermore, one of the main principles of relationship marketing is to identify the most profitable customers so that the business can focus on customers appropriate to its strategy. Wood (2000, p.15) supports this definition and maintains that the main idea behind relationship marketing is to build relationships with customers in order to retain them instead of concentrating efforts on recruiting new ones.
The famous measurement model of service quality is SERVQUAL developed by Parasuraman et al.(1988), who measured the differences between customer expectations and perceptions across five determinants as follows: Tangibles: Physical facilities, equipment and appearance of personnel. Reliability: Ability to perform the promised service dependably and accurately. Assurance: Knowledge and courtesy of employees and their ability to inspire trust and confidence. Responsiveness: Willingness to help customers and provide prompt service. Empathy: Caring, individualized attention the bank provides to its customers. Basing on previous studies and conceptual works, Grönroos (2000) came up with a summary of seven criteria of good perceived service quality as: (1) professionalism and skills; (2) employees’ attitudes and behavior; (3) accessibility and flexibility; (4) reliability and trustworthiness; (5) service recovery; (6) servicescape; and (7) reputation and credibility. The first criteria is outcome-related and thus a technical quality dimension; the last one is image-related and fulfils a filtering function; and the rest five ones are process-related and present the functional quality dimensions (Grönroos 2000). High service quality is regarded as a key to success in competitive service markets (Zeithaml, Bitner & Gremeler 2009). Many researches have showed that service quality perceived by customers directly influence customers’ satisfaction, as well as their trust in the service firm (Parasuraman et al., 1988; Aydin and Özer, 2005;
The bank's pricing policies are attractive (competitive) to customers 4 12.9% 12 38.7% 15 48.4% Source: data (2013) In Contrast, Table 4.28 ( C) (2) Shows That 54.9% Of Management Agree That Their Banks Pricing Policy Is Well Communicated To Customers And 48.4% Agree That The Bank’s Pricing Policies Of Its Products And Services Are Attractive To Customers. These Results Suggest That Management Themselves Believe That Their Current Bank Charges And Rates Are Attractive Enough To Retain Customers. This Is An Area That Would Need Immediate Attention. 4.3.3 Research Objective 3 To Determine The Most Effective Relationship Marketing Tactic On Customers’ Loyalty Commercial Banks In Geita District. Table 4.29 Shows That 71.0% Of The Respondents (Management) Strongly Agree/ Agree That Relationship Marketing Tactics Are Used To Attract And Retain Customers Among Banks In Geita District, And 29.0% Are Neutral To The Statement. 4.29 Effectiveness of Relationship Marketing Tactics Effectiveness of RM Frequency Percent Cumulative Percent Neutral 9 29.0 29.0 Agree 19 61.3 90.3