Relationship marketing and customer loyalty in the banking industry of Uganda: A case of Kiddawalime Bakery Ltd

Abstract

The study was about Relationship marketing and Customer Loyalty in the baking industry of Uganda: A case of Kiddawalime bakery limited. Relationship marketing came into existence after businesses realizing that it was more financially costly and time consuming to look for a new client than it is to maintain an old customer. The study looked at three dimensions of relationship marketing that is communication, trust and commitment and how they are related to customer loyalty. The objectives of the study were; to establish the relationship between communication and customer loyalty at Kiddawalime Bakery, to examine the relationship between trust and customer loyalty at Kiddawalime Bakery and to examine the role of commitment in customer loyalty at Kiddawalime Bakery. The study employed a case study research design based on both qualitative and quantitative approaches. A sample size of 170 respondents was drawn from a population size of 200 respondents using the Krejcie and Morgan (1970) mathematical table. Data was collected from158 respondents using questionnaires and interviews. Content validity was ensured through judgement of the items by experts and also calculation of the content validity index. Communication and trust were found to have a moderate positive relationship with customer loyalty well as commitment was found to have a strong positive relationship with customer loyalty. In conclusion this research discovered that where trust exists, where communication is great and where commitment is high, relationships are successful. Recommendations were then made in regards to the findings.