Expanding the Scope of Relationship Marketing: Examining the Role of Emotional Values and Personal Factors Variables in Enhancing Customer Retention

Abstract

The current research seeks to investigate the influence of relationship marketing on customer retention in the banking sector with the mediating role of both customer satisfaction and brand identification, as well as considering two more factors (emotional value and personal factor) as moderating effects. Quantitative research design was followed , utilizing survey data from banking users in Karachi, Pakistan. Valid responses were considered, for a total of data that were analyzed through PLS-SEM. Measurement and structural models were estimated to test direct, mediated, or moderated relationships. The findings reflect the insignificant direct impact of relationship marketing on customer retention. Nevertheless, customer satisfaction partially mediates the impact of relationship marketing on customer retention, and brand identification has a partial role in mediating that above-mentioned effect. Customer satisfaction also demonstrates a strong direct influence on customer retention. In addition, emotional value is a strong moderator of the impact of brand identification on customer retention, and personal factor does not moderate satisfaction retention. The analysis is restricted to the bank industry and to a specific geographic location, which may limit generalization. Further studies could examine the applicability of the model to other service sectors and adopt a longitudinal design. The results indicate that, to improve customer retention rate, banks should pursue customer satisfaction levels and emotional connections rather than relationship marketing campaigns. The study adds to relationship marketing literature by establishing the paramount role of indirect and emotional mechanisms leading towards customer retention from an emerging economy perspective.