Abstract

MAKHITHA, KM. The impact of independent retailers' relationship marketing practices on business performance. JCMAN [online]. 2017, vol.14, n.1, pp.645-673. ISSN 1815-7440.

The purpose of this research article was to determine the relationship marketing practices of independent retailers in Soweto. The article, furthermore, purported to determine if relationship practices impact on independent retailers' performance. Relationship marketing has been a subject of investigation for many decades. However, no existing studies have investigated relationship marketing practices of independent retailers in South Africa (SA). Since independent retailers face severe competition from large retailers that have entered the townships and rural areas, independent retailers could use relationship marketing strategies with their suppliers as a competitive advantage. The research targeted small independent retailers in Soweto, Johannesburg, SA. Soweto is the largest township in Johannesburg and is an amalgamation of several different townships A survey was conducted among 102 independent retailers to determine the relationship marketing practices of independent retailers as well as to determine the impact of relationship marketing practices on business performance. A convenience sampling method was adopted owing to lack of access to a database of independent retailers in Johannesburg. Data were analysed using SPSS, version 24. The findings showed that independent retailers are involved in long-term and collaborative relationships. Independent retailers share information with their suppliers and that supplier evaluation is an important aspect of relationship marketing. Furthermore, relationship marketing was found to have impact on performance of independent retailers. For example, independent retailers involved in collaborative relationships reported an increase on the number of customers. Independent retailers involved in long-term relationships also reported increased profit and increased market share, which support that relationship marketing impact on independent retailers' performance

Keywords : collaborative relationships; independent retailers; long-term relationships; relationship marketing; small businesses; suppliers; supplier evaluation.

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