Impact of marketing strategy on customer retention in handloom industry

Abstract

Marketing strategies and customer retentions occupy predominant place in marketing literatures. This research attempts to know the relationship between marketing strategies and customer retention in handloom industry. This study selected a nonprobability sampling technique i.e. convenience sampling to collect data from a sample size of 100 customers. The method of data collection is based upon questionnaire. Results revealed that all the items had alpha values more than 0.7 which assures the test reliability of items taken into this study. In this study, correlation is used to know the relationships between marketing strategies such as product, price, place & promotion and customer retention. It has been identified that correlation coefficient of product was 0. 795. There is strong positive relationship between people and customer satisfaction. It can also be recognized that this dimension has highest value of person correlation when compared with other variables. Correlation coefficient of Promotion was 0.577. There is strong positive relationship between product and customer retention. Correlation coefficient of price was 0.492. There is moderate positive relationship between above price and customer satisfaction. As well as, correlation coefficient of place was 0.369. There is moderate positive relationship between place and customer retention. Results of multiple linear regression analysis revealed that value of adjusted R square equals 0.728 explaining around 73% of variation. Marketing mix such as product, price, place and promotion explain around 73% of variation on customer retention.