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Challenges in the Era of Globalization - iaabd

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Proceed<strong>in</strong>gs <strong>of</strong> <strong>the</strong> 12th Annual Conference © 2011 IAABD<br />

Comparative Study <strong>of</strong> Perceptions <strong>of</strong> Relationship Market<strong>in</strong>g <strong>in</strong> <strong>the</strong> Nigerian Food and Beverages<br />

Industry<br />

Abstract<br />

Bolajoko Nkemd<strong>in</strong>im Dixon-Ogbechi, dixonogbechi@yahoo.com<br />

University <strong>of</strong> Lagos. Lagos, Nigeria<br />

Elizabeth M. Haran<br />

Salem State University, Salem MA, USA<br />

Joseph Aiyeku<br />

Salem State University, Salem MA, USA<br />

This study <strong>in</strong>vestigates <strong>the</strong> differences among customers and companies when it comes to relationship market<strong>in</strong>g. It<br />

compares <strong>the</strong>ir rank<strong>in</strong>g <strong>of</strong> <strong>the</strong> importance <strong>of</strong> <strong>the</strong> components <strong>of</strong> relationship market<strong>in</strong>g and it identifies where <strong>the</strong>re<br />

are significant differences <strong>in</strong> <strong>the</strong> perceived use and <strong>the</strong> value <strong>of</strong> <strong>the</strong>se tools among <strong>the</strong> three groups: mult<strong>in</strong>ational<br />

and <strong>in</strong>digenous marketers and <strong>the</strong> customers <strong>the</strong>y serve, via ANOVA. Post hoc analysis identifies subgroups with<br />

similar values. Comparisons are made based on Likert scale rat<strong>in</strong>gs as well as on <strong>the</strong> weight<strong>in</strong>gs obta<strong>in</strong>ed from <strong>the</strong><br />

Analytic Hierarchy process. The sampl<strong>in</strong>g frame was all <strong>in</strong>digenous companies and mult<strong>in</strong>ationals <strong>in</strong> <strong>the</strong> Nigerian<br />

food and beverages <strong>in</strong>dustry based <strong>in</strong> Lagos, Nigeria and also <strong>of</strong> customers <strong>of</strong> <strong>the</strong> products <strong>of</strong> <strong>the</strong> selected<br />

companies, as listed by <strong>the</strong> 2007 Nigerian Bus<strong>in</strong>ess Directory. Four hundred customer questionnaires were<br />

adm<strong>in</strong>istered, 94% were returned; 300 questionnaires were adm<strong>in</strong>istered to mult<strong>in</strong>ational employees, 89%were<br />

returned; 300 questionnaires were adm<strong>in</strong>istered to employees at <strong>in</strong>digenous companies, 88% were returned.<br />

Introduction<br />

Organizations operate <strong>in</strong> a very dynamic market<strong>in</strong>g environment as a result <strong>of</strong> rapid changes <strong>in</strong><br />

technology, consumer tastes, economic and social forces, not to mention <strong>the</strong> global marketplace. To<br />

survive <strong>the</strong>se, all bus<strong>in</strong>ess organizations must adapt to <strong>the</strong> chang<strong>in</strong>g bus<strong>in</strong>ess environment, and<br />

cont<strong>in</strong>uously design and improve market<strong>in</strong>g strategies. Relationship market<strong>in</strong>g is one <strong>of</strong> such<br />

contemporary market<strong>in</strong>g strategies employed <strong>in</strong> both developed and develop<strong>in</strong>g economies.<br />

Relationship market<strong>in</strong>g <strong>in</strong>cludes all <strong>the</strong> market<strong>in</strong>g activities designed to establish, develop, ma<strong>in</strong>ta<strong>in</strong>, and<br />

susta<strong>in</strong> a successful relational transaction with a view to ga<strong>in</strong><strong>in</strong>g <strong>the</strong> maximal value <strong>of</strong> customers who can<br />

contribute to long-term organizational pr<strong>of</strong>itability. Adopt<strong>in</strong>g relationship market<strong>in</strong>g effectively tends to<br />

give an organization dist<strong>in</strong>ctive or comparative advantage over competitors because it will enable <strong>the</strong>m to<br />

communicate effectively with <strong>the</strong> customers; know what <strong>the</strong>y need and want; why <strong>the</strong>y cont<strong>in</strong>ue to<br />

patronize <strong>the</strong> organization’s products and services; and <strong>the</strong> strategies to use to manage such relationships<br />

effectively. When long-term relationships exist between organizations and customers, <strong>the</strong> distance<br />

between <strong>the</strong>m becomes shorter and <strong>the</strong> organization benefits from repeat purchase and <strong>the</strong> goodwill <strong>of</strong> <strong>the</strong><br />

customer (Jackson 1985; Groonroos 1990; Tanner Jr. 2006).<br />

The relationship market<strong>in</strong>g strategy is relevant to <strong>the</strong> Nigerian context because <strong>the</strong> strategy emphasizes<br />

endur<strong>in</strong>g relationships, and <strong>the</strong> Nigerian culture promotes endur<strong>in</strong>g relationships. Culture affects what<br />

Nigerians do: Nigeria is a tradition driven society (Achumba and Osuagwu 1994, Achumba 1996). The<br />

Nigerian marketer, like any o<strong>the</strong>r marketer, has to devote time to build relationships with <strong>the</strong> customers <strong>in</strong><br />

order to ga<strong>in</strong> repeat patronage (Brondmo 2002).<br />

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