The impact of customer relationship marketing on the firm performance: a Spanish case

Abstract

Purpose

While a vast number of studies have pointed out the keys of relationship marketing practices in consumer markets, little attention has been paid to the value the organization can get from such strategies. The literature provides relatively little support for the effectiveness of relationship marketing programs. The purpose of this research is to produce some evidence of the association between customer relationship marketing strategies and the market and economic performance of the firm.

Design/methodology/approach

The proposed hypotheses are tested in the case of car repair and maintenance services, as a case where long‐term relationships are frequent. The hypotheses were evaluated using a path analysis, which associates relationship marketing activities with market performance (customers' perceptions, market position and loyalty) and market performance with economic performance.

Findings

The findings suggest that the effect of attraction and loyalty programs is greater on market performance than on economic performance. Furthermore, the results show that attracting customers through a good service quality and reaching a good position in the market have greater impact on economic results than loyalty.

Practical implications

As a managerial implication, the authors suggest that service providers should put their efforts on improving quality rather than on promotion, advertising or economic bonus to customers.

Originality/value

This article realizes the importance of product and service quality rather than promotions, advertising or economic bonuses in retaining customer loyalty.

Citation

Camarero Izquierdo, C., Gutiérrez Cillán, J. and San Martín Gutiérrez, S. (2005), "The impact of customer relationship marketing on the firm performance: a Spanish case", Journal of Services Marketing, Vol. 19 No. 4, pp. 234-244. https://doi.org/10.1108/08876040510605262