EconPapers    
Economics at your fingertips  
 

Building Customer Loyalty among SMEs in Uganda: The Role of Customer Satisfaction, Trust, and Commitment

Terry Kakeeto, Jan Van Dalen, Jaap Van den Herik and Bartel Van de Walle
Additional contact information
Terry Kakeeto: Maastricht School of Management, The Netherlands
Jan Van Dalen: Maastricht School of Management, The Netherlands
Jaap Van den Herik: Leiden University, The Netherlands
Bartel Van de Walle: Tilburg University, The Netherlands

No 2014/06, Working Papers from Maastricht School of Management

Abstract: In the marketing arena, the last two decades have been characterised by increased attention towards the subject of Relationship Marketing (RM). Both academics and practitioners today increasingly recognize RM as one of the main marketing strategies that is necessary to keep companies visible and competitive in the eyes of their customers. However, what we observe is that inspite of increased interest in the subject, we know quite little, from an empirical perspective, about the manner in which Small and Medium Enterprises (SMEs), especially those in developing countries, use RM to build and enhance long-term relationships with their customers and thus remain competitive. The purpose of this article is to examine the role of customer satisfaction, trust and commitment in the formation and enhancement of long-term customer relationships among SMEs in the service sector in Uganda and to suggest practical tools that policy makers in developing countries can use to enhance SME competitiveness. We obtained the required data for the study from SME owner-managers, customers, and frontline employees of SMEs operating in two service sectors in Uganda, namely the restaurant sector and the travel-agency sector. Our findings indicate that customer satisfaction, trust and commitment all play a significant role in the building and enhancement of long-term customer relationships among SMEs in Uganda. However, their role varies between different SME sectors. The findings also show that in general, those SMEs whose RM practices customers were more satisfied with had higher levels of customer loyalty compared to those SMEs whose RM practices customers were less satisfied with. This study has increased our awareness about the processes that SMEs in developing countries go through to build customer loyalty and thus long-term competitiveness. In this way, the study has helped to narrow the gap in current literature about the RM practices of SMEs in developing countries.

Keywords: Relationship Marketing; SMEs; Customer Satisfaction; Trust; Commitment; Customer Loyalty (search for similar items in EconPapers)
Pages: 32 pages
Date: 2014-03
New Economics Papers: this item is included in nep-ger, nep-mkt and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://web2.msm.nl/RePEc/msm/wpaper/MSM-WP2014-06.pdf First version, 2014 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to web2.msm.nl:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:msm:wpaper:2014/06

Access Statistics for this paper

More papers in Working Papers from Maastricht School of Management Contact information at EDIRC.
Bibliographic data for series maintained by Maud de By ( this e-mail address is bad, please contact ).

 
Page updated 2024-03-31
Handle: RePEc:msm:wpaper:2014/06