Relationship Marketing: The Mediating Role of Customer Experiences

Relationship marketing has received much attention in the last two decades from both practitioners and researchers as one of the strategies firms can employ to remain competitive. Despite this attention, little empirical research has been performed about relationship-marketing practices among SMEs, especially those in developing countries. However, it is now widely accepted that SMEs play a crucial role in economic development. Consequently, their effectiveness in relating to customers in a sustainable way is considered an important contribution to macro-economic development of industries as well as countries. This article intends to investigate the relationship-marketing instruments employed by SMEs in Uganda and to suggest practical tools that policy makers in developing countries can use to enhance SME competitiveness. The current study is part of a wider study to investigate the relationship-marketing practices of SMEs in Uganda and to propose a suitable model that can be used to improve their competitiveness. Data was collected from SME owner-managers, frontline employees, and regular customers to identify (1) the relationship-marketing instruments employed by SMEs and (2) their contribution to SME competitiveness. Findings revealed that the instruments employed vary between different SME sectors and that, in general, those SMEs that were perceived to be more relationship- marketing oriented had higher customer-satisfaction levels compared to those that were not. In particular, the mediating role of customer experiences was confirmed. The findings show that relationship-marketing practices are expected to have a big impact on SME competitiveness in Uganda. The study fills a gap in the existing literature on the relationship-marketing practices of SMEs in developing countries and establishes a foundation for future research in related fields.