Relationship Marketing, Brand Image and Customer Retention in Grocery Retail Enterprises in Cape Coast Metropolis

Abstract

The study examined the influence of relationship marketing on customer retention among grocery retail enterprises in the Cape Coast Metropolis through the mediating role of brand image. Specifically, three research objectives were investigated; to analyse the influence of relationship marketing on customer retention; to examine the influence of brand image on customer retention; and to assess the mediating role of brand image in the relationship between relationship marketing and customer retention among grocery retail stores in Cape Coast Metropolis. The study relied on the quantitative approach and explanatory design. A structured questionnaire was used to gather data from a sample of 203 respondents at the selected retail shops. The data was then processed using the IBM SPSS Statistics (version 25) and analysed using inferential statistics through PLS-SEM. The study found that relationship marketing and brand image had a significant influence on customer retention. The study also found that brand image partially mediated the relationship between relationship marketing and customer retention among grocery retail stores in Cape Coast Metropolis. The study, therefore, recommends that retailers in the bit to excel in the competitive environment should first pay attention to the brand image of products they combine to offer the market and second, develop a system such as customer automation to improve on relationship marketing.