The important role of customer bonding capability to increase marketing performance in small and medium enterprises

Abstract

The purpose of this study is to develop the concept of customer bonding capability in the small and medium enterprise. Empirical research was conducted to explain how marketing performance can be improved through customer bonding capability. Considering the number and role of small and medium businesses in Indonesia is increasing. Results revealed that customer bonding capability functions as an intervention between relational capital and marketing performance. Relationship capital, integrated marketing communication and adequate market information have a significant positive effect on customer bonding capability and marketing performance. Managerial implication: salespeople can develop networks that provide mutual benefits, developing closer family ties, developing continual cooperation with customers and sharing experiences with customers who can improve salesperson’s performance. There is no dynamic interaction between researchers and respondents because this research design is cross-sectional. To generate dynamic interactions, longitudinal research data were needed to add deeper insights to sales. Research on customer bonding capability needs to be done because there is still much that is not understood. This customer bonding capability is the development of relationship marketing theory. Thus an empirical research model is needed to develop customer bonding capability.

Keywords

• adequate marketing information
• customer bonding capability
• integrated marketing communication
• marketing performance
• relational capital