Ky 20220627093433 effect of relationship marketing and service quality on repurchase intention

Ky 20220627093433 effect of relationship marketing and service quality on repurchase intention Ky 20220627093433 effect of relationship marketing and service quality on repurchase intention

EFFECT 0F RELATIONSHIp MARKETING AND SERVICE

Thi Le Ha Nguyên

VNU University of Medicine and Pharmacy, Vietnam National University, Hanoi

Email: Ng.leha72@yahoo.com

Abỉtract

Relationship marketing is a íactor that improves service quality, increases customer satisíaction, and maintains loyalty Our study investigates the influence of relationship marketing and service quality on repurchase intention Method: a self-admỉnỉstered questionnaire was given to inpatients who were used healthcare service at a national cancer hospital, vietnam in j u ne 2019 The data set was a na I y zed by using spss 25.0 version for desơỉption statistic analysis and used amos 25.0 to test the proposed hypotheses on the structural equation modeling Results: tindings showed that relationship marketing and service quality have a positive relation to repurchase intentìon; relationship marketing on service quality Moreover, service quality is a mediating íactor betvveen relationship marketing and repurchase intention Our study has implications for service providers and policymakers to build strategic plans when considering íactors that have a direct effect on repurchase intention induding relationship marketing and service quality, aims to improve relationship marketing to increase service quality, leads re-buy intention.

Keyvvords

Relationship marketing; service quality; repurchase in tension

1 INTROĐUCTION

The competition on service quality of providers has an impact on the building a re- lationship betvveen service organization and customer, aiming focus on the move away from transactional marketing to relationship marketing that establishing, maintaining, and increase customer relationship (Sonkova & Grabovvska, 2015)

Relationship marketing is a key íactor to increase customer loyalty (Ndubisi, 2007; Alrubaiee & Al-Nazer, 2010; Ho et al., 2014; Ercis, Unal, Candan, & Yildirim, 2012) In addition, relationship marketing has a strong induence on service quality (Opuni et al., 2014) While, Marakanon and Panjakajornsak (2017), and Ercis et al (2012) supported that perceived quality has a signiíìcant induence on relationship marketing including trust Aspects of relationship marketing include trust, commitment, communication, and condict handling, bonding, satisíầction are predict íactors of customer loyalty (Ndubisi, 2007; Alrubaiee & Al-Nazer, 2010), and it directly eíĩects to repurchase intention (Balla

et al., 2015; Ercis, et al., 2012)

30 TUYỀN TÁP CÔNG TRÌNH KHOA HỌC CỦA CÁC TIÊN SĨTRẺTÓT NGHIỆPTAI NHẬT BẢN (2021)

In the service industry, studies tồcus 011 relationship marketing (Ndubisi, 2007; Balla

et al., 2015; Alrubaiee & Al-Nazer, 2010; Ercis, et al 2012; Opuni et al., 2014) Relation- ship marketing is a marketing tool that aims to impact customers and othcr partners in an eíĩort to customer retention and the long-term prohtability of providers (Balla et al., 2015; Ercis, et al., 2012) Relationship marketing has attracted customers in the provider’s ef- fort to concern about perceived quality (Opuni et al., 2014) In this relationship, service organizations listen and meet the needs of customers that promote customer value, satis- íaction, and loyalty (Moenardy et aL, 2011; Bramulya et al., 2016; Segoro, 2013) Cus- tomer loyalty was based on trust (Ercis et al., 2012) Prior research has supported that the commitment, trust, commitment, communication, conDict handling, bonding, and sat- isfaction are antecedents of'loyalty, and repurchase intention (Ndubisi, 2007; Alrubaiee

& Al-Nazer, 2010; Baila et al., 2015) It was considcred as a factor to improve service quality increasing customer satisfaction and building loyalty (Bramulya et al., 2016) Our study examines aspects of relationship marketing including trust, commitment, and com- munication has related to repurchase intention

Service quality indirectly related to repurchase intention/loyalty vía satisĩaction is the mediator factor in most of the studies (Segoro, 2013; Moenardy et al., 2011) How- ever, Ariíĩìn et al (2016) have shown thai perceived quality has a direct effect on repur- chase intention Service quality has aíTected indirectly on word-of-mouth/ re-buy inten- tion through satisĩaction plays as a mediating role (Anwar & Gulzar 2011)

Raịaobelina and Bergeron (2009) rcfer to repurchase intention as the degree of emo- tional thought regarding repurchasing a particular product/new prodưct from the same provider While studies consider repurchase intention as a repurchase of a specihc prod- uct or service in the 1'uture (Anwar & Gulzar, 2011; Ercis, et al., 2012; Marakanon & Panjakajomsak, 2017) In addition the customer’s attitude based on their satisfaction on service quaiity leads to a repurchase intention (Anwar & Gulzar, 2011; Ercis, et al., 2012) Relationship marketing direct related to loyalty (Ndubisi, 2007; Mbango, 2018)

or indirectly related to loyalty through satistầction plays as a mediating íầctor (Segoro, 2013) In addition, relationship marketing has indirectly related to loyalty through word- of-mouth is a mediator role (Ngoma & Ntale, 2019) Perceived quality has a noticeable induence on satisĩaction related to loyalty (Segoro, 2013)

Our paper examines a model of the eíĩect of relationship marketing and service qual- ity related to repurchase intention Especially, the relationship marketing factor consists

of trust, commitment, and communication; Service quality íactor íocuses on dimensions

of service quality such as assurance and empathy, and repurchase intention was measured service quality

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2 LITERATURE REVIEW

In this section, the authors discuss the relevant literature on the scope of this study include relationship marketing, service quality, and repurchase intention

2.1 Relationship marketing

Relationship inarketing (RM) reíers to commercial relationships betvveen provid- ers and clients by the trust developed through the fulfillment of maintenance promises

to the relationship achieve their goal (Baker, 2003, p 33) This relationship builds trust, commitment to service, communicates with customers in a timely, belive, increases sat- isfaction, bonding, and maintains client loyalty (Ndubisi, 2007; Alrubaiee & Al-Nazer, 2010; Ho et al., 2014) Its purpose is to move strong customer-company relationships and convert indiíTerent customers into loyal ones (Alrubaiee & Al-Nazer, 2010) RM includes trust, commitment, communication, condict handling, bonding, satistầetion are

an antecedent factor to cvolve user loyalty Ndubisi, 2007; Alrubaiee & Al-Nazer, 2010)

In addition, perceived quality has an impact on RM and satisfaction, related to loyalty and repurchase intention (Ercis et al., 2012)

Communication is an aspect of relationship marketing, which is a skill thai enables the creation of the trust relationship between providers and clients, commitment, to meet the needs of clients to improve satisfaction and re-buy (Ercis et al., 2012) Perceived qual- ity has a positive eiĩect on relationship marketing (Ercis et aL, 2012) It includes commu- nication, trust, commitment, conAict handling, satistầction, bonding, and related directly

to loyalty/repurchase intention (Ndubisi, 2007, Balỉa et al., 2015; Alrubaiee & Al-Nazer, 2010) Moreover, relationship quality has a remarkable inAuence on perceived quality, word-of-mouth, and loyalty (Spiridon et al., 2018) The aspects of relationship quality in- cluding trust, commitment, communication, condict handling, bonding, satisfaction have

a positive induence on loyalty/ re-buy (Ndubisi, 2007; Alrubaiee & Al-Nazer, 2010) Our study investigates dimensions of RM including trust, commitment, communication, and their relationships to service quality and repurchase intention

2.2 Service quality

In the service industry, service firms assessed service quality by customers based

on perceived quality (Kitapci et al., 2014) Aspects of perceived service quality include tangibility, reliability, responsiveness, empathy, and assurance Tangibịlity refers to the physical ĩacilities, equipment, personnel, and materials perceived by the five huinan sens-

es Reliability refers to the ability of the supplier to execute the service in a safe and ef- hcient inanner, the belief that the supplier keeps promises, and that there is no need for

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rework Responsiveness includes the availability of the firm with respect to the staff who responded and to the availability of employees to the service process Empathy is dehned

as the service facilities that support the customer, and the kind of personal attention that includes accessibility, sensitivity, and eíĩort with regard to understanding the needs of the customer Assurance involves courtesy, knowledge, and the employee’s ability to trust the service (Lee & Kim, 2017; Kitapci et al., 2014) Our study considers aspects that include empathy and assurance Perceived quality is a tool that measures of service quality of providers (AI Fraihi & Latif, 2016)

Perceived quality has a direct induence on loyalty (Spiridon et al., 2018; Segoro, 2013) or indirectly affect on repurchase/loyalty through satisfaction (Kitapci et al., 2014; spiridon et al., 2018; Segoro, 2013) or word-of-mouth (Kitapci et aL, 2014) which is a mediating lầctor (Kitapci et al., 2014) Customer value anticipation is antecedent to com- mitment, trust to increase satisfaction, maintain the loyalty of the client (Ho et al., 2014)

23 Repurchase intention

Repurchase intention reíers to repurchase in attracting and retaining customers through the marketing funnel (Kotler & Keller, p.163) Relationship marketing contributes to in- creasing perceivcd quality that meets customers’ needs and maintains loyalty (Spiridon et al., 2018) Kotler & Keller (2016, p.205) indicate that the purchase intention related to repurchase behavior a production that presents based on the satistầction level Satisíaction has a direct eíĩect on loyalty/repurchase (Spiridon et al., 2018; Kitapci et ai., 2014) or in- directly iníìuences loyalty through word-of-mouth is a mcdiator role (Kitapci et al., 2014) Perceived quality has directly relatcd to loyalty (Spiridon et al., 2018) and related indirectly

to repurchase which is satisíaction as mediating Tầctors (Kitapci et al„ 2014)

2.4 Research hypotheses

Perceived quality was measured and evaluated the service quality of service fìrms (Kitapci et al., 2014) The dimension of perceived service quality includes tangibility, re- liability, responsiveness, empathy, and assurance (AI Fraihi & Latif, 2016) Relationship marketing has a signihcant eft'ect on service quality (Opuni et al., 2014), which is a tool to increase the perceived quality (Spiridon et al., 2018) Customer satisfaction play as a me- diating role of service quality and trust, commitment is aspects of relationship marketing (Zhou et al., 2017) Thus, we propose: Hl: Relationship Marketing (RM) has a positive signihcance on Service quality (SQ)

Dimensions of relationship marketing include trust commitment, communication, and condict handling that are predicted of loyalty (Ndiibisi, 2007) These dimensions have a strong induence on perceived service quality (Opuni et al„ 2014) together with

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bonding and satisíầction related to loyalty (Alrubaiee & Al-Nazer, 2010) Relationship marketing includes trust, commitment, and satisfaction directly aíĩect repurchase inten- lion (Balla et al., 2015), or indirectly iníĩuence loyalty through satisíaction as a mediator role (Moenardy et al, 2011; Spiridon et a., 2018) Besides, relationship marketing has an indirect inAuence on loyalty by word-of-mouth is a mediating factor (Ngoma & Ntale, 2019) Thereíồre, we propose: H2: Relationship Marketing (RM) has a positive inAuence

on Repurchase Intention (RI)

While studies showed that service quality (SỌ) has a positive eíĩect on customer retention/repurchase/loyalty by satisfaction is a mediator role (Moenardy et al., 2011; Kitapci et al., 2014; Bramulya et al., 2016; Spiridon et al, 2018; Zhou et al., 2017) Moe- nardy ct al (2011) supportcd that SQ rclatcd directly to behavioral intention/retention Factors include satisfaction, trust, and commitment to building loyalty (Ho et al., 2014) Thus, increase sọ and improve satisíaction leads word-of-mouth to maintain loyalty (Kitapci et al., 2014) Based on these discussions, we propose:

H3: service quality (SỌ) positively induences repurchase intention (RI)

3 RESEARCH METHOD

The study was carried out of National Cancer hospital, Vietnam in June 2019 where provides medical service for about 2,500 inpatients per day in 39 departments with vari- ous clinical helds

The staíT was recruited for training one day of rescarch purposes beíồre collecting data These stalĩ contìrmed the intbrmation sheet and consent íồrm of participants

The sample size for our study (N=300) was detennined based on the work of Wolf

et al (2013) Approximately 10 patients were selected from the inpatient list of each de- partment by a simple random sampling method, aged 18 years and older A total of 390 patients vvere selected for this study

The instrument of the study was a self-administered questionnaire that includes 29 questions of two niain parts The socio-demographic Tàctor was concemed with 6 questions related to age, sex, marital status, educational level, occupation, and method of paying hos- pital fees The next it related to 23 questions related to Relationship Marketing (RM), Ser- vice Quality (SỌ), and Reptirchase Intention (RI) Of these, eleven questions focus on the

RM íầctors that including hve of Trust (RM1-RM5), three of Commitment (RM6-RM8), and three of Communication (RM9-RM11) These questions based on the work of Ndubisi (2007) and modihed for suitable with the research hospital The SQ factor was construct-

ed of nine questions with four for assurance (SQ12-SQ15), and five for empathy (SQ16- SQ20) These questions was based on previous researches (Lee & Kim, 2017; Kitapci et al.,

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2014; AI Fraihi & Latif, 2016) Finally, three questions reíèr to the RI tầctor (RI25-R127) A Likert scale was used íồr questions of the study, ranging from one to five

The data set was períồrmed by SPSS software version 25.0 and the AMOS 25.0 sta- tistical software packages The data were analyzed into a two-step approach regarding a measurement model and a structural model The measurement model conhrmatory íầctor analysis (CFA) identihed the underlying structure of the latent variables and the structural equation modeling (SEM) identiíìed the causal relationships among latent variables in a theoretical inodel

4 RESULTSAND DISCUSSION

4.1 Reliability and validity of the scales

Cronbach’s alpha was used by the software SPSS version 25.0 that assess the scales’ reliability Ít considers the degree to which the consistency and stability of a set of indica- tors reíìect a gi ven construct A Likert scale from strongly agrees (5) to strongly disagree (1) was assessed to the responses to questions of the study Findings present in Table 1

Table 1 The results of reliability statistics.

Table 1 indicated that the Cronbach’s alpha vaỉue oíthe RM íaetor was betvveen 0.84 and 0.90, those for SQ were 0.87 and 0.89, and that for RI was 0.83 The alpha coeíĩì- cients of all of the latent variables were over the cut-oíĩreliability value of 0.70, revealed the reliability and adequate intemal consistency of the questionnaire Moreover, there was one item of trust in the relationship marketing íactor that was deleted to ensure the reliability of the scale

Relationship Marketing (RM)

Service Qualỉty (SQ)

4.2 Coníirmatory factor analysis (CFA)

Structural equation modeling was períồrmed using CFAthat variables were assessed the construct and the correct assignment of variables The model of the study was exam-

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ined of standardized regression weights, average variance extracted (AVE), and compos- ite reliability (CR) Eindings presented in Table 2

Table 2 illustrated the standardized coetìhcients íồr all variables were from 0.69 to 0.88 (cut-off = 0.5) The AVE values ranged between 0.59 and 0.65 (cut-off = 0.5) that exceeded the squared correlations between any pair of constructs This proved to show high discriminant validity The CR values for the constructs were between 0.84 and 0.94 (cut-off = 0.7), which showed adequate internal consistency (Hair Jr et al., 2014, p 605)

Table 2 Coníirmatory íactor analysis results and Model goodne$s-of-fìt

Construct measures ỉtandardized

coeffìcients

Average variance Extracted (AVE)

Composite reliability

(CR)

Chỉ-square= 600.397; df=178; p= 0.000; Ch i-square/df= 3.373

GFI= 0.86; TLI= 0.92; CFI= 0.93; NFI= 0.90; RMSEA= 0.08; AGFI= 0.82

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4.3 Model goodness-of-fit

Model goodness-of-fit assessed including goodness-of-fit absolute incremental, and parsimony fit measures such as chi-squared (%2), degrees of freedom (DF), the statistical signihcance of %2 (P-value = O.OOO), goodness-of-fit index (GFI), root mean square of ap- proximation (RMSEA), norrned fit index (NFI), Tucker-Levvis index (TLI), comparative íìt index (CFI), and adjusted goodness-of-fit index (AGFI) The hndings showed in Table 2 Table 2 presented that the ratio of /2 to DF was 3.373 with p = 0.000 This value is sensitive to sample size, and the values showed that the coníìnnatory ĩactor model was sup- ported good fìt to the data such as the GFI=0.88 (cut-ofF = 0.80), NFI=0.90 (requirement

= value of 0 or 1), RMSEA=0.08 (requirement = value between 0.05 and 0.08), CFI=0.93, and TLI=0.92 (cut-oíT = 0.9) (Hair Jr et al 2014, p 630) These hndings revealed that the overall model was supported, the scales meet requirements of the reliability and validity

4.4 Hypotheses testing

The hypotheses of our study represented by the path coelĩicients that standardized coef- hcients were statistically signiíìcant (p < 0.05), indicated impacting íầctors The sign ofthe standardized coeíĩicients presents the direction ofthe eíĩect The hndings illustrated in Table 3

ĩable 3 Hypothesiỉ test results

coefficients

Accepted

Accepted

Accepted Hypotheses were evaluated by standardized coeíTuients and path coethdents with sign iíĩcance (sig.) less than 0.05.

Symbol *** represents (sig < 0.001) Acronymsare relationship marketing (RM), service quality (SQ),and repurchase intention (RI).

Hypothesis Hl: R.M inhuences SQ It is represented by the coefficient of the path

RM —> SỌ of 0.878, which is statistically signihcant with p < 0.001 (Tabie 3) This proved clearly shows a signihcant inhuence of RM on SQ Similar to by Opuni et al (2014), indicating that RM has a direct eíĩect SQ While Zhou et al (2017) supported that SQ has an indirect inAuence on RM including trust and commitment through patient satisfaction as a mediating íactor Our hndings show that RM has directly related to SQ, which is a tool to improve perceived quality to maintain customer loyalty (Spiridon et al., 2018) The dimension of perceived serviee quality improvement sb.ould íồcus on includes tangibility, reliability, responsiveness, empathy, and assurance (AI Praihi & Latif, 2016) Besides, providers should consider satisíaction is a mediator factor between RM and SQ

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Hypothesis H2: RM positively inAuences RL The hypothesis supported by the path

RM —> RI at the coefficient of 0.340 is statistically signihcant with p < 0.001 (Table 3), indicating RM inAuences Rl It the same with the work of Ndubisi (2007), aspects of rela- tionship marketing consist of trust, commitment, communication, and condict handling has

a positive inAuence on loyalty These aspects have a noticeable effect on perceived qual- ity (Opuni et al., 2014) increasing satisfaction related to loyalty (Alrubaiee & Al-Nazer, 2010) Relationship marketing has a direct inAuence on repurchase intention (Balla et al., 2015), or indirectly aíĩect loyalty through satisfactionAvord-of-mouth is a mediating factor (Moenardy et al, 2011; Spiridon et a., 2018; Ngoma & Ntale, 2019) Our study contributed

to providers and policymakers should consider RM including communication, trust, and commitment as íầctors that directly inAuence RI Besides, should be íồcus on satisfaction/

\vord-of-mouth as mediator lầctors of the relationship between RM and Rl

Hypothesis H3: SQ iníluences Rl It showed by the path coeíĩìcient (SQ —» RI) of 0.531 is statistically signihcant with p < 0.001 (Table 3), vvhich indicated this hypothesis

is supported The large of studies supported that sọ has an indirect inAuence on behavior-

al intention/Ioyalty/RI through satisĩaction as a mediator (Kitapci ct al„ 2014; Spiridon et

al, 2018; Zhou et al., 2017; Moenardy et aL, 2011; Bramulya ct ai., 2016) or that sọ itselí' may directly aíTect loyalty (Spiridon et al, 2018) Theretồre, increase the satisíaction of

SỌ building customer loyalty (Spiridon et al, 2018) In addition, develop SQ and increase satisĩaction leads word-of-mouth to remain the client’s loyalty (Kitapci et al„ 2014)

5 IMPLICATIONS EOR PRACTICE

Our paper showed highlights the practical implications that were contributed to a new understanding of the inAuence of relationship marketing management including trust, commitment, and communication on SQ and repurchase intention

Besides, our stndy íồcuses on new knowledge to the service industry that RM has a direct related to sọ and Rl Service quality is a mediator role in RM and RI Thereíồre, improve SQ based on the RM management to maintain customer loyalty Moreover, RM develops a close relationship between providers and customers vía trust, commitment, and communication that meet the customers needs and thereby iniprove perceived qual- ity and build customer loyalty

6 CONCLUSION AND RECOMMENDATION

The purpose of this study investigated the impact of factors including relationship marketing (RM) and service quality (SỌ) that has a positive inAuence on repurchase intention (RI) of the user The instrument of study was used a self-administered question- naire that carried out at a tertiary-level hospital, Vietnam during June 2019 Atotal of 353 questionnaires was used to the stages of analyzing among the 390 distributed

38 TUYỀN TẬP CÔNG TRÌNH KHOA HỌC CUA CÁC TI ÉN sĩ TRẺ TÓT NGHIÈP TAI NHÂT BÀN (2021)

Crobacks’ alpha was assessed for internal consistency in the reliability of the vari- ables Structural equation modeling was used to test the proposed hypotheses based on CFA was assessed to the latent variables of the measurement model

Our hndings revealed that all hypotheses were accepted Especially RM has a sig- nihcant inAuence on sọ and RI; SQ inAuences Rl These proved to show RM and sọ are factors that directly affect RI and that sọ plays as a mediating role between RM and RI Thus, our study contributes to managers and policymakers should be interested in factors

of RM to increase perceived quality maintain RI of the customer

In addition, this paper also highlights several practical implications that are contrib- uting to a new understanding of the impact of relationship marketing management includ- ing trust, commitment, and communieation, related to SQ and customer loyalty

Moreover, this study seeks to contribute new knowledge to the serviee industry thai

RM has a direct inAuence on sọ and Rl Service quality plays a mediator rolc in RM and

RI Thus, the measurement of RM íồcuses on customer loyalty through sọ as the me- diator In addition, RM íồsters a close relationship between the service organization and customer vía the trust, commitment, and eommunication that meet the client’s needs and thereby increase perceived quality and loyalty

Our study assists to provide a better understanding oi' the eíTectiveness of RM on loyalty and the development of strategies that are they capable of accordingly This allows thern to get a better picture of the company-customer relationship strategies to plan to be implemented in order íồr them lo achieve customer loyalty

ACKNOWLEDGMENT

The authors thank for the operational support of the research group of the National Cancer Hospital in Hanoi, Vietnam, and the inpatients who participate in this study This work is supported by Vietnam Association of Japan Alumni (VAJA) and Toshiba International Foundation (TIFO)

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3 Anwar, s, & Gulzar, A (2011) Impact of perceived value on word of mouth endorsement and customer satisíaction: mediating role of repurchase intentions International Journaỉ of Economics and Management Sciences, 1(5), 46-54.