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The Role Of Relationship Investment In Relationship Marketing In Nonprofit Organizations

Author

Listed:
  • Tanti Handriana
  • Basu Swastha Dharmmesta
  • Bernardinus Maria Purwanto

Abstract

This study analyzes the role of relationship marketing investments for organizations in establishing relations with donors, through the mediating variables of trust, relationship commitment and donor’s gratitude. Relationship investment and efforts made by organizations to establish relationships with partners was instrumental in realizing the long-term relationship. This research was conducted on philanthropy organizations in Indonesia, with 507 donor respondents. By using Structural Equation Modeling (SEM), the analysis shows that relationship marketing investment had a significant effect on commitment and gratitude, but not significant effect on trust. Relaionship Marketing Investment effect trust indirectly through the gratitude variable. The effect of gratitude is not significant on intention of donors to redonate in philanthropy organizations. The gratitude variable seems to effect intention to redonate indirectly, through a mediating variable, trust. So donor’s gratitude has a direct effect on trust, and trust has a direct effect on relationship commitment. Trust and commitment have a significant effect on intention of donors to redonate. Overall, telationship marketing investment plays an important role on the relation between philanthropy organizations and donors, through the strategic role of trust and relationship commitment variables

Suggested Citation

  • Tanti Handriana & Basu Swastha Dharmmesta & Bernardinus Maria Purwanto, 2015. "The Role Of Relationship Investment In Relationship Marketing In Nonprofit Organizations," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 8(2), pages 53-65.
    • Handle: RePEc:ibf:ijmmre:v:8:y:2015:i:2:p:53-65
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    References listed on IDEAS

    as
    1. MacMillan, Keith & Money, Kevin & Money, Arthur & Downing, Steve, 2005. "Relationship marketing in the not-for-profit sector: an extension and application of the commitment-trust theory," Journal of Business Research, Elsevier, vol. 58(6), pages 806-818, June.
    2. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(2), pages 18-29, Summer.
    3. Andrea C. Morales, 2005. "Giving Firms an "E" for Effort: Consumer Responses to High-Effort Firms," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 31(4), pages 806-812, March.
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    More about this item

    Keywords

    Relationship Marketing; Relationship Marketing Investment; Donor Gratitude; Trust; Relationship Commitment; Intention to Redonate;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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