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Effects of Relationship Marketing on Repeat Purchase and Word of Mouth

Oklahoma State University, kwoo{at}okstate.edu

Jin Soo Han

Kyunghee University, jshan{at}nms.kyunghee.ac.kr

Euehun Lee

Sejong University, leeeh{at}sejong.ac.kr

This study explores what kinds of relationship marketing activities affect relationship quality between customer-contact employees and hotel guests. In addition, this study investigates whether relationship quality influences relationship consequences such as commitment, repeat purchase, and word of mouth. This study will help hotel managers design guidelines for efficient relationship marketing activities. The effective use of relationship marketing strategies can increase repeat guests and positive word of mouth. To analyze data collected from 27 luxury hotels in Seoul, South Korea, structural equation modeling was used to discover a causal relationship. The empirical results of this study are twofold: Greater guest confidence and communication result in higher relationship quality, and higher relationship quality results in greater guest commitment and more repeat purchase and positive word of mouth.

Key Words: relationship marketing • LISREL • relationship quality

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