Role of Relationship Marketing in Creating Favourable Brand Image in Housing Finance A Case Study of HDFC in Selected Markets

Abstract

While a vast number of studies have pointed out the keys of relationship newlinemarketing practices in consumer markets, little attention has been paid to the value the organization can get from such strategies in the housing finance services market. The literature provides relatively little support for the effectiveness of relationship marketing programs. The purpose of this research is to produce some evidence of the association between customer relationship newlinemarketing strategies which are attraction activities and loyalty programs and the market performance. The proposed hypotheses are tested in the case of housing finance sector with special reference to HDFC Limited, where longterm relationship is needed for business success. This research involved newlinecollecting data from Indian customers of HDFC Limited to understand the newlinerelationship that exists between attraction and loyalty programs with market newlineperformance of the company. The market performance is measured by market newlineposition, customer perception about the firm and customer s loyalty. The newlinehypotheses were evaluated using a structural equation modelling analysis, newlinewhich associates relationship between attraction activities and loyalty and newlineinteraction programs with market performance (customers perceptions, market newlineposition and loyalty) by using Partial Least Square (PLS) techniques. The newlinefindings suggest that the effect of attraction and loyalty programs are greater newlinethan service quality on market performance. Furthermore, this means that, newlineloyalty and interaction programs are more influential on companies awareness newlineand penetration in the market (market position). Attraction activities (service newlinequality) has greater impact on customer s perception. However, bonus and newlinecustomer satisfaction are more associated with customers loyalty. Customer newlinesatisfaction has greater impact on customers loyalty than service quality. newline