Relationships and customer retention for Tanzanian ferrous foundries and rollers

Manufacturing companies in search for new approaches to retain customers are increasingly using relationship marketing management as a means of retaining customers. The objectives of this research was to study applicability of relationship marketing in Tanzania’s ferrous foundries and rolling mills to raise switching barriers and create customers longevity. The study also examined how relationship marketing influences business performance in ferrous foundries and rolling mills. First, the study reviews the concept of relationship marketing and its association with business performance, leading to development of two hypotheses. Measurements of relationship marketing, satisfaction, and customer retention were operationalised into simple statements called “items” grouped together to form inventory or survey instruments. The five-point Likert scale was used to measure managers”/ Directors’ experiences and specify their agreement level to each of a list of statements. The five response categories represented an ordical level of measurement. Reliability and validity of the scale were briefly described to provide readers the background for data analysis. Then, several stepwise chi-square analyses were performed to test the hypotheses. Findings indicated that relationship marketing is applicable and is of great importance in the Tanzania’s ferrous foundries and rolling mills. Relationship marketing and customer retention are directly proportional (they go in the same direction). Therefore, this study has highlighted the importance of establishing a customer relationship strategy through relationship marketing management so as to foster customer retention to Tanzania’s iron stakeholders.