The Effect of Customer Relations and Marketing Communication on Competitive Advantage and Customer Loyalty

Taufik Zulfikar; Sucherly; Undang Juju

doi:10.37641/jimkes.v13i6.4062

Authors

Taufik Zulfikar Universitas Sangga Buana, Indonesia
Sucherly Universitas Padjajaran, Indonesia
Undang Juju Universitas Pasundan, Indonesia

DOI:

https://doi.org/10.37641/jimkes.v13i6.4062

Keywords:

Competitive Advantage, Customer Loyalty, Customer Relation, Marketing Communication

Abstract

Competitive advantage is achieved when a company runs a marketing strategy by producing products and services different from those of other competitors and/or producing cheaper products and services, which creates a superior value. Repeat purchase is a manifestation of customer satisfaction with the value received, and customer loyalty reflects companies with competitive advantages. This research aims to determine the impact of customer relations and marketing communication on competitive advantage, which affects customer loyalty. The research method used is a survey aimed at 400 hotel customers, and the analytical instrument used is the Structural Equation Model (SEM). The research shows that there is an influence of competitive advantage on customer loyalty, Customer relationship, and marketing communication, which affect competitive advantage both partially and simultaneously. Customer loyalty will happen when a company has a competitive advantage, encouraged by customer relationships and optimal marketing communication. This research highlights that loyalty is not merely the outcome of customer satisfaction but is rooted in a firm’s ability to build trustful relationships, communicate effectively, and sustain competitive advantage.

Downloads

Download data is not yet available.

References

Al Karim, R., Alam, M. M. D., & Al Balushi, M. K. (2024). The nexus between CRM and competitive advantage: The mediating role of customer loyalty. Nankai Business Review International, 15(2), 248–268.

Al-Haraizah, A. (2014). The role of electronic customer relationship management pillars in achieving competitive advantage for banking sector in Jordan. British Journal of Marketing Studies, 2(7), 29–44.

Al-Shibly, M. S., & Alkhawaldeh, K. H. (2017). The impact of marketing by relationships to achieve competitive advantage: A case study "Cellular telecommunication companies in Jordan." Journal of Marketing Management, 5(2), 31–43.

Al-zoubi, A. F. (2016). The role of customer relationships management in achieving competitive advantage (A prospective study on a sample of employees at banks in Irbid city) speed advantage. Journal of Marketing Management, 4(1), 137–150.

Arens, W. F. (2009). Contemporary advertising (12th ed.). New York, NY: McGraw-Hill.

Balmer, J. M. T., & Gray, E. R. (2000). Corporate identity and corporate communications: Creating a competitive advantage. Industrial and Commercial Training, 32(7), 256–262.

Barney, J. B., & Hesterly, W. S. (2015). Strategic management and competitive advantage: Concepts and cases (5th ed.). Harlow, UK: Pearson Education Limited.

Brown, S. A., & Coopers, P. W. (1999). Customer relationship management: A strategic imperative in the world of e-business. Hoboken, NJ: John Wiley & Sons.

Caricato, L. (2006). CRM and corporate communication. Symphonya. Emerging Issues in Management,(2), 62–72.

Clow, K. E. (2013). Integrated advertising, promotion and marketing communications (4th ed.). Chennai: Pearson Education India.

Darley, W. K. (2016). Brand building via integrated marketing communications. In F. Dall’Olmo Riley, J. Singh, & C. Blankson (Eds.), The Routledge companion to contemporary brand management (pp. 201–217). London, UK: Routledge.

Darmawan, D., & Grenier, E. (2021). Competitive advantage and service marketing mix. Journal of Social Science Studies (JOS3), 1(2), 75–80.

Ekhlassi, A., Maghsoodi, V., & Mehrmanesh, S. (2012). Determining the integrated marketing communication tools for different stages of customer relationship in digital era. International Journal of Information and Electronics Engineering, 2(5), 761–765.

Finne, Å., & Grönroos, C. (2013). Rethinking marketing communication: From integrated marketing communication to relationship communication. The Evolution of Integrated Marketing Communications: The Customer-Driven Marketplace, 15(7), 105–122.

Greenberg, P. (2010). CRM at the speed of light. New York, NY: McGraw-Hill.

Griffin, J. (2014). Customer loyalty: How to earn it, how to keep it. Lanham, MD: Lexington Books.

Hassan, S. Q. U., & Rehman, C. A. (2016). The impact of competitive advantage, customer satisfaction and customer relationship management on customer loyalty: An empirical analysis of banking sector of Pakistan. Singaporean Journal of Business, Economics and Management Studies, 5(4), 1–10.

Ilić, D., Vujić, N., Ratković, M., & Ilić, I. (2021). Application of the CRM concept to improve sustainable competitive advantage through achieving long-term consumer loyalty. International Journal of Economics & Law, 11(32), 40–52.

Jagodič, G., & Milfelner, B. (2022). The role of B2B marketing strategy, ICT B2B marketing support, and service quality in market orientation–performance relationship: Evidence from three European countries. Cogent Business & Management, 9(1), 212–252.

Kandampully, J., & Suhartanto, D. (2000). Customer loyalty in the hotel industry: The role of customer satisfaction and image. International Journal of Contemporary Hospitality Management, 12(6), 346–351.

Keshvari, R. S. (2012). The impact of E-CRM on customers attitude and its association with generating competitive advantages in Iranian financial B2B context. International Business Research, 5(4), 34–54.

Kotler, P., & Keller, K. L. (2016). Marketing management (13th ed.). Upper Saddle River, NJ: Prentice Hall.

Lina, R. (2022). Improving product quality and satisfaction as fundamental strategies in strengthening customer loyalty. Akademik: Jurnal Mahasiswa Ekonomi & Bisnis, 2(1), 19–26.

Liu, Y. (2007). The long-term impact of loyalty programs on consumer purchase behavior and loyalty. Journal of Marketing, 71(4), 19–35.

Meha, A., Zeqiri, F., & Zeqiri, A. (2022). An investigation of integrated marketing communication for a successful customer relationship. Calitatea, 23(187), 280–286.

Nwabueze, U., & Mileski, J. (2018). Achieving competitive advantage through effective communication in a global environment. Journal of International Studies, 11(1), 50–66.

Parvatiyar, A., & Sheth, J. N. (2001). Customer relationship management: Emerging practice, process, and discipline. Journal of Economic and Social Research, 3(2), 1–34.

Payne, A. (2005). Handbook of CRM: Achieving excellence in customer management. Oxford, UK: Butterworth-Heinemann.

Poovalingam, K., & Veerasamy, D. (2007). The impact of communication on customer relationship marketing among cellular service providers. Alternation, 14(1), 86–119.

Rajab, N. F., Shiamwama, S. M., & Otiso, K. N. (2014). Impact of customer relationship management as a strategy for competitive advantage in Kenyan public universities: A case study of Moi University. International Journal of Business, Humanities and Technology, 4(4), 136–145.

Sharma, R. (2015). IMC: A tool for building competitive advantage. International Journal of Management and Commerce Innovations, 2(2), 75–88.

Shetty, K. K., & Gopal, R. (2010). Sustainable competitive advantage in the hotel industry and impact of innovations on occupancy rate – A managerial perspective. Journal of Business Management, 7(10), 481–493.

Sihite, J., Harun, T. W., & Nugroho, A. (2014). The low cost airline consumer price sensitivity: An investigation on the mediating role of promotion and trust in brand. International Journal of Management and Commerce Innovations, 7(3), 199–211.

Singh, J., Ehrenberg, A. S. C., & Goodhardt, G. (2008). Measuring customer loyalty to product variants. International Journal of Market Research, 50(4), 513–532.

Solomon, M. R., Marshall, G. W., & Stuart, E. W. (2000). Marketing: Real people, real choices. Upper Saddle River, NJ: Prentice Hall.

Tankosic, M., Dragovic, N., & Ivetic, P. (2017). Strategic communications in business success as a competitive advantage via electronic data interchange. WSEAS Transactions on Advances in Engineering Education, 14(1), 1–8.

Veerasamy, D. (2011). The role of communication in promoting relationship marketing within the cellular industry in South Africa. African Journal of Business Management, 5(6), 2356–2362.

Venkatesan, R., Kumar, V., & Reinartz, W. (2022). Customer relationship management in business markets. In J. Sheth & N. Parvatiyar (Eds.), Handbook of business-to-business marketing (pp. 521–543). Cheltenham, UK: Edward Elgar Publishing.

Williams, K. C. (2012). Core qualities of successful marketing relationships. Journal of Management and Marketing Research, 10(1), 1–10.

Wirtz, J., & Lovelock, C. (2021). Services marketing: People, technology, strategy. Singapore: World Scientific.

Yang, Z. (2008). Analysis on product differentiation strategy and product innovation of travel agency in China. Proceedings of the 7th International Conference on Innovation & Management, 2(2), 593–596.