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Journal cover: Journal of Services Marketing

Journal of Services Marketing

ISSN: 0887-6045

Online from: 1987

Subject Area: Marketing

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The effect of relationship marketing orientation on business performance in a service-oriented economy


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Title:The effect of relationship marketing orientation on business performance in a service-oriented economy
Author(s):Leo Y.M. Sin, (Associate Professor, Department of Marketing, The Chinese University of Hong Kong, Hong Kong), Alan C.B. Tse, (Associate Professor, Department of Marketing, The Chinese University of Hong Kong, Hong Kong), Oliver H.M. Yau, (Professor of Marketing, City University of Hong Kong, Hong Kong), Jenny S.Y. Lee, (University Lecturer, City University of Hong Kong, Hong Kong), Raymond Chow, (Instructor, City University of Hong Kong, Hong Kong)
Citation:Leo Y.M. Sin, Alan C.B. Tse, Oliver H.M. Yau, Jenny S.Y. Lee, Raymond Chow, (2002) "The effect of relationship marketing orientation on business performance in a service-oriented economy", Journal of Services Marketing, Vol. 16 Iss: 7, pp.656 - 676
Keywords:Hong Kong, Relationship marketing, Service industries
Article type:Research Paper
DOI:10.1108/08876040210447360 (Permanent URL)
Publisher:MCB UP Ltd
Abstract:Although a large body of research theoretically asserts a positive association between relationship marketing orientation (RMO) and business performance, a valid measure of RMO has not yet been proposed and systematic analysis of its effect on business performance has thus far not been possible. This paper addresses some conceptual and measurement issues related to the study of RMO and its impact on business performance in a service context. It first reviews the concept of RMO and its important dimensions. Next, a measurement scale with acceptable reliability and validity is developed to capture the dimensions of RMO. In turn, analysis of data shows that RMO is positively and significantly associated with sales growth, customer retention, market share, ROI, and overall performance. The implications of these findings are discussed and the limitations of the study as well as future research directions are addressed.



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