RELATIONSHIP MARKETING, COMPANY PERFORMANCE AND CONSUMER RETENTION: EVIDENCE FROM TURKISH HOSPITALITY SECTOR

Abstract

The research set out to answer the question, "How does relationship marketing affect firm performance in the hospitality industry in Turkey?" by focusing on the mediating impact of customer retention. This motivated us to investigate three related questions: I how relationship marketing affects business performance; (ii) how relationship marketing influences customer retention; and (iii) how customer retention influences the link between marketing relationship and company performance. Quantitative research was used to collect data from customers of hotels in Turkey. Total sample size was 230 and SPSS was used for descriptive analysis while PLS-SEM was used to test the hypothesis. The findings of this study shows that relationship marketing has a substantial and significant impact on both the performance of companies and the retention of customers in the hotel sector of Turkey. The research indicates that hospitality businesses should prioritise relationship marketing and client retention strategies. Therefore, the hotel industry has to create integrated strategies for building consumer relationships and retaining their patronage. The majority of respondents in the study said they do not plan to stay a client of the Turkish hotel business for the foreseeable future, suggesting a potential issue with customer defection.