ASSESSMENT THE INTERPERSONAL COMMUNICATION PATTERN BETWEEN MARKET WOMEN’S AND CUSTOMERS IN IKARE AND AKUNGBA AKOKO
CHAPTER ONE
1.1 Introduction
Communication plays a crucial role in functioning of reference unit effectively in the library. Consciously it involves sharing of ideas, feelings, thoughts, and many other things that humans share. In fact, what the reference unit requires mainly is communication. It is an inseparable, essential and continuous process just like the circulatory system in the human body.
Ojomo (2004) defined communication as the process of sharing ideas, feelings, thoughts and messages with others. While Rothwell (2001) also sees communication as a transactional process of sharing meaning with others.
Kemoni (2004) citing Ojiambo avers that communication involves the giving and receiving of information, signals or messages by talk, gestures and writing. As a result, communication effectiveness becomes a very vital factor in determining the efficiency with which reference unit performs as a whole.
When two or more people are in the same place and are aware of each other being there, then communication is said to be taking place, no matter how subtle or inadvertent it may be. Even without vocalizations, an onlooker may be using prompts of stance (posture), facial manifestation, and garb to impact other’s role, poignant situation, persona or intents.
The basic process of communication initiates when a fact is perceived or an idea devised by a single person. That person (the sender) chooses to decipher the perception into a message, and subsequently conveys the message through some communication medium to another person (the receiver). The receiver then must construe the message and supply feedback to the sender indicating that the message has been comprehended and fitting action taken.
Interpersonal communication involves sending and receiving of messages between two or more people. DeFleur and Dennis (2002) conceptualized interpersonal communication as a process of using language and non-verbal cues to send and receive messages between individuals that are intended to arouse particular kinds of meaning.
Rothwell (2004) posits that interpersonal communication is dyadic communication; according to him, it is a transaction that takes place between two people. Interpersonal communication is the procedure by which people swap information, feelings and impart through verbal and non-verbal messages. This definition underlines the crucial fact that interpersonal communication is not only apprehensive about ‘what’ is pronounced, i.e., the language employed, but ‘how’ it is pronounced, e.g., the nonverbal messages sent, such as tone of voice and facial expressions. Interpersonal communication can be seen as the process of interacting simultaneously with another and mutually influencing each other, usually for the purpose of managing relationships.
It helps us understand how and why people behave and communicate in different ways to construct, and negotiate a social reality. Interpersonal communication involves sending and receiving of messages between two or more people. Interpersonal communication is the procedure by which people swap information, feelings and impart through verbal and non-verbal messages. Interpersonal communication is real-time, face-to-face or voice-to-voice conversation that allows immediate feedback. Interpersonal communication plays a large role in any manager's daily activities, but especially in organizations that use teams
Indeed it is almost impossible to talk about interpersonal communication without also discussing the interpersonal communication patterns between market women and customers
. The process of communication and the forms it takes are basic to how interpersonal communication develops, grow or fail (Gabarro, 1978). He further argues that relationships are themselves the consequence of repeated communication and interactions among individuals. From tentative initial exchanges, people move to familiarity and from there to more significant exchanges (Burt, 2005).
According to Altman and Taylor (1973), “The growth of interpersonal relationships is associated with a greater depth and value of communication, an opening up of more intimate areas of exchange and more intimate areas of personality", hence, in turn, the nature of the interpersonal relationship has a significant impact on whether or not an individual communicates with another individual as well as the content and flow of the interaction aids communication patterns.
Gabarro (1990) found that weak; acquaintance type relationships are associated with restricted disclosure of socially acceptable topics, whereas close interpersonal relationship exchanges exhibited more depth and richness of information. In terms of efficiency of communication, in close interpersonal relationships intended meanings are transmitted and understood rapidly, accurately, and with a greater sharing of information and ideas (Nonaka, 1994; Kraut et al, 1987; Doring and Schnellenbach, 2006).
Similarly, Sias and Cahill (1998) assert that the relationship development stages of ‘acquaintance’ to ‘friend’ to ‘almost best friend’ are associated with comparable changes in communication, including decreased caution, marked by increased intimacy and an increased discussion of work-related problems.
Further, Altman and Taylor (1973) associate close interpersonal relationships with a state of ‘stable exchange’ involving richness and spontaneity of communication whereby individuals engage in a deeper level of communication involving core areas of personality.
Knapp and Vangelisti (2005:20) believe that just as strong relations between individuals are associated with increased accuracy, speed and efficiency in communication, the early stages of relationships (i.e. acquaintances) hold greater possibilities for less accurate communication and rely heavily on stereotyped behaviors and fewer channels of communication. Based on the foregoing, it is apparent that in order to comprehend the impact that interpersonal relations plays in the efficient transfer of knowledge, both the interpersonal relationship type as well as the interpersonal communication patterns of interaction should be examined.
Many market women today seems to be migrating from transactional mindset to relational mindset in their dealing with customers. The market women are highly competitive and the right knowledge about customer values and demand is essential to differentiate from competitors and gain sustainable competitive advantage. In this regard, development of relationships with customers can be considered as fundamental to the Nigerian market. Ulrich (2010) observed that interpersonal relationships at markets are governed by personality traits.
The idea that business relationships requires both the service firm and the customers to benefit from the relationship has recently stimulated academic interest on the types of benefits consumers receive as a result of engaging in long term relationships with sellers (Gwinner et al, 1998; Hennig-Thurau et al, 2002; Reynolds &Beatty, 1999). As a result Interpersonal communication is becoming more important in today’s global markets, especially in terms of finding out the compatibility levels of individuals.
The market consists of large category of fields that includes trading, restaurants, event planning, theme parks, transportation, cruise line and additional fields within the tourisms market systems. Traditional market thoughts have primarily focused on discrete transactional exchanges with anonymous customers (Ganesan 1994; Morgan and Hunt 1994). As a result, acquiring new customers and increasing sales rather than enhancing relationships were the leading priorities of marketers (Berry 1995). Later, marketers realized that securing existing customer’s loyalty (Reichheld, 1996) and their lifetime value (Bolton, 1998) could be strategically favourable and financially rewarding.
To nurture successful relational exchanges thus became their priority. From a customer’s perspective, relational engagement can effectively reduce choice and facilitate decision making (Sheth and Parvatiyar, 1995). These issues have catalyzed the acceptance of “relationship marketing” or customer relationship management. Mosad(2006) noted that market is also about how to integrate the customer into the design of the product/service and to design a systematic process for interaction that will create substance in relationships.
Hennig -Thurau et al (2005) opined that customer relational benefits have been identified as a driving motivation for customers to engage in long term relationships with service providers. Such benefits can be expected to play a crucial role in the success of service market when extending their business to customers.
Most of the previous discussion on interpersonal communication has been conducted almost exclusively in Nigeria contexts and has not addressed the impact interpersonal communication may have on market performance in the market, for gaining relationship outcomes such as customer loyalty, increase sales turnover, customer retention and competitive advantage. The aim of this research is to deepen our understanding of the effects of interpersonal relationship on marketing performance in order to develop long term relationships with customers in the marketing sectors.
1.2 Background of the Study
Consumer-generated communication processes draws increasing attention of marketers and researchers. An under-researched issue, however, is that interpersonal communications is not always brand-specific. Hence, an individual can adopt a brand either as a result of communication with adopters of that brand (within-brand influence) or due to an interaction with adopters of competing brands (cross-brand influence).
This interplay of within- and cross-brand influence can have a substantial effect on the growth of markets under competition. Haven developed a model that represents the two influences, and focus on the case of two otherwise-identical competing brands with differing entry times. Due to within-brand influence, current customers create an interaction-based advantage for the first entrant, which grows with time. Hence, customers are viewed as market assets yielding increasing returns during the diffusion process. On the other hand, cross-brand influence enables a customer to enjoy a shorter time-to-takeoff. Given the combination of both, we predict the “dual pattern” characterized by a fast takeoff for a customer, followed by a widening gap in favor of the first entrant, ceteris paribus.
In today’s competitive business environment, the attainment of tacit knowledge has been argued to occupy a central place in the development of a business’s sustainable competitive advantage (Ambrosini and Bowman, 2001). Many authors have drawn on this view (Bresman et al, 1999; Gertler, 2001; Zander and Kogut, 1995), citing tacit knowledge as a critical and intangible resource that has the ability to improve business performance, as well as the quality and innovativeness of a business products (Leonard and Insch, 2005; Batt and Purchase, 2003).
Further, Sobol and Lei (1994) argue that marketer operating in highly competitive markets require resources which are distinctive and not easily replicated by rival marketers in the business arena; as tacit knowledge is idiosyncratic and not easily codified, it results in a higher performance that is more sustainable in the longer term (Kogut and Zander, 1992). It is perceived that a marketers competitive position can be further enhanced when tacit knowledge is transferred efficiently, as the less time and effort that is required, the more likely that a transfer will be completed successfully (Hansen, 1999).
Nonaka (1994) argue that the attainment of tacit knowledge, held by individuals, also lies at the heart of a marketer’s knowledge creating process. Creating new knowledge means that the personal tacit knowledge held by an individual is externalized into objective explicit knowledge that is then shared and synthesized by others in the marketing setting (Nonaka and Toyama, 2005).
Interpersonal communication aims at establishing, maintaining and enhancing relationships between the marketers and the customers at a profit so that the marketer’s objectives are met.When the relationship is established between the customers and the marketers, brand loyalty is created from the customer’s repeat purchase and this translates to more profits for the marketers (Victor 1990).
Interpersonal communication is a concept that has gained popularity over the recent years. Markets, Companies and banks are beginning to understand the value of creating a relationship with the customers. Consequently, they are now striving to develop meaningful relationship more proactively. This concept was originally introduced by Leonard Berry in 1983 when he emphasized that relationship marketing was based on the concept of developing a long term relationship with a customer for the purpose of patronage bearing in mind that other competitors are always available (Yan and Wu, 2007).
According to Doyle & Stern (2006), relationship marketing is a long term continuous series of transactions between parties which occurs when each trusts other to deal fairly, reliably and helpfully. Interpersonal communication has therefore emerged as “a popular new paradigm due to shift in focus from customer acquisition to customer retention. It is likely to shift once again and will transform into customer relationship management (CRM) with a hybrid of marketing relationship programs that range from relation to out sourcing market exchange and customer interactions” (Sheth& Kellstall,2002). It therefore suggests that when a good working relationship is built, negotiating time and costs are reduced and the patterns of transactions become more predictable and secure.
Interpersonal communication therefore attempts to create a more holistic, personalized brand experience (service) to create stronger customer ties. According to Kottler and Armstrong, (2009) a number of Markets, Companies and banks are today offering services and relevant facts to individual customers based on information about past transaction, demographics, psychographics, media and distribution preferences. By focusing on their most profitable customers, products and channels, there is a marketer hope to achieve profitable growth capturing a larger share of each customer’s expenditure by building high customer loyalty. Interpersonal communication is aimed at retaining existing customers since attracting new customers may cost up to five times more than retaining an existing customer.
If Market women and other marketers (commercial sectors) in Ikare and Akungba Akoko Area of Ondo State aim at increasing the size of their customers, the markers must train their colleagues in cross selling and up selling their products. There is need to realize the benefits from lowered costs and increased profitability from long term relationships between marketers and their customers. On the other hand, customers will enjoy the transactions of marketers, that understands them and their requirements and they will also have a reliable financial service provider. Therefore, relationship marketing involves all activities and efforts of the business organization aimed at creating and sustaining healthy relationship with the customers. This is necessitated by the fact that the customer is central to market or organizational activities. There is credence by the increasing rate of competition in the business circles especially in the marketing sector and the likes of others.
It is on this note therefore that Victor (1970) acknowledged that; “the key to successful marketing is having the right product at the right price in the right place with the right promotion”. In the end, the person who decides the rightness of these four elements is the customer. The customer is therefore central to the 4Ps of marketing which are: Price, Place, Promotion and Product. It is the customer that determines the relevance of the 4Ps through patronage. Patronage therefore, is arguably the target of the 4Ps of marketing.
However, interpersonal communication seems to go a little beyond patronage and aims at securing the loyalty of the customers. The market women, in this instance, should not limit the definitions of the business organization to the confines of profit making but should see it as a responsible citizen whose interest is to provide customers’ wellbeing. It is on this note therefore, that business organizations such as market women’s, and even GSM service providers get involved in programme sponsorships and community social responsibility projects in their business locations and in most cases, beyond.
In his seeming eulogy to this, Arens (2006) noted that, “A marketer’s driven overriding purpose is to create happy, loyal customers. Customers, not products, are the live-blood of the business”. This is underscored by the fact that, “customers can choose from a wide variety of products and services offered by producers located around the world. As a result, the customer relationship, which the sale is only the beginning, is the key strategic resource of the successful twenty-first century business (Fredrick 1994).
It therefore suffices that every organizational efforts at retaining customers’ patronage through building a healthy relationship qualifies as relationship marketing. In fact, public relations and advertising as promotional tools qualify as relationship marketing techniques, so also do integrated marketing communications. The above gains support from public relations which leans on goodwill between the organization and its publics (markets) hence, relationship marketing. It is therefore in support of the above that Arens (2006) explained public relations as: “The management function that focuses on the relationships and communications that individuals and organizations have with other groups (called publics) for the purpose of creating mutual goodwill.”
It therefore stirs no surprise that organizations like banks intermittently engage in corporate image research with a view to finding out how the organization is being perceived by its publics. The result of the studies enables the organization to re-strategize its activities in order to make for good corporate image in the minds of its publics. It therefore implies that effective communication is a sine-qua- non for relationship marketing. Providing the right information at the right time to the right group keeps the target market adequately informed on the organizational activities.
Little wonder then that Mckenna (1988), acknowledged that all these communications or brand contacts sponsored or not, create an integrated product in the consumer’s mind. The way and manner words are framed determines the meaning it conjures in the mind of the public which also determine the degree at which such organization secures the loyalty and trust of the customer.Be that as it may, the degree of heightened competition in this global age has necessitated the combination of such practices as advertising, public relations, marketing and their likes (hence, integrated marketing communication) at establishing and sustaining relationship marketing.
Definitively, therefore, integrated marketing communication is the process of building and reinforcing mutually profitable relationships with employees, customers, other stakeholders and the general public by developing and co-coordinating a strategic communication programme. According to Shultz, such communication enables them to have a constructive encounter with the company brand through a variety of media or other contacts (Shultz 1993).
According to Gary, this is supposedly important since, “No amount of advertising is likely to win back a customer lost from shoddy products or poor service. The real profit lost is the lifetime customer value (LTCV) to a marketer. More so, research evidence has continued to show that, “90 percent of a manufacturer’s profit comes from repeat purchases” (Gary 1993). It therefore makes business sense to secure and retain the loyalty, patronage and understanding of customers since suchcosts less than wooing new ones. Be that as it may, the question has often been raised on the degree of influence (if any) such efforts at relationship marketing do have on customers in a competitive market economy like Nigeria.
In specifics, however, the heightened competition among marketers especially those located in commercial nerve centres such as Ikare and Akungba Akoko Area of Ondo State which have led to aggressive advertising and marketing of their products and services have also stirred debates and concern. People have therefore continued to question the influence of their direct marketing approach, sale promotion, advertising; media mix approaches and other efforts at relationship marketing on the customers; and overall customers’ patronage and perception of such organization. On the other hand, literature suggesting answers to questions on how these strategies influence customer loyalty among market women in Ikare and Akungba Akoko Area of Ondo State specifically are scanty. This lacuna has the potentials of preventing insight into how relationship marketing may be or not be of benefit to efforts at preserving customer loyalty and increase patronage.
This, therefore, provides basis for this study which among others pries into the influence of relationship marketing on customers’ continuous patronage of market women in Ondo State using Ikare and Akungba Akoko Town as a case study. Hence, the result of this study would either provide justification for the human and material resources infused into interaction marketing efforts or not.
Herein, lays the substance of this study which is geared towards measuring the degree of influence market women efforts at interactive marketing on public perception, loyalty and patronage with a justified bias for market women in Ikare and Akungba Akoko town of Ondo State.
1.3 Statement of the Problem
The increasing competition in the marketing sector has necessitated the need for market women to build a long term relationship with customers, since it costs more to woo a customer than to retain the patronage of an existing customer. This underscores why market women like other marketers seek to embark on interactive marketing techniques which inter alia includes such promotional efforts as public relations, advertising, integrated marketing communications, direct sale, etc. However, it is not known in the literature whether despite the huge amount spent on this effort, people still may not arguably show corresponding interest and enthusiasm to patronize such marketers.
In today’s world, business seems hampered in environment that lack friendliness. The market women as one of the world’s largest and most pervasive marketers are as exposed as any other, to the forces of change that seems to be brought about by competing rivalry in the marketing world. Therefore, the development of market performance, customer loyalty, increase sales and friendly atmosphere appears as major challenges.
To compete effectively, market women are challenged on how to cope with effective interpersonal communication that appears not to be recognized by them as a competitive tool. Most of the market women have modern facilities, in spite of this; they seem to lack relational style that will enable them to achieve high customer patronage for their services.
In view of the fact that customers always patronize market women that have good friendly interaction, friendly interaction poses several challenges to market women. Therefore, any market women who does not reckon with fundamentality of friendly interaction to customer behaviour may have their marketing performance hindered.
Literature research showed that this problem has not been documented and this poses a gap in the understanding of the influence of interaction marketing in customers’ continual patronage of the services of market women, in Ikare and Akungba Akoko. It is on this premise therefore that the researcher aims to find out the influence of friendly interaction on customer continuous patronage of market women, using market women in Ikare and Akungba Akoko interactive marketing efforts.
Indeed, communication has been referred to as the glue that binds together network interrelationships (Johnston et al, 2005) and represents an important conduit for knowledge transfer. Despite this, factors impacting knowledge transfer efficiency at the micro level of analysis, namely a firm’s interpersonal interaction and their ensuing communication patterns have been largely ignored; hence, a major gap exists in academic knowledge involving the foregoing.
1.4 Research Questions
The following research questions guided the research for the purpose of this study:-
1. How often do market women in Ikare and Akungba Akoko engage in interaction with their customers?
2. What are the various communications marketing techniques adopted by market women in Ikare and Akungba Akoko?
3. To what extent does marketing techniques of market women relevant within the context of the socio-economic realities of Ikare and Akungba Akoko people?
4. To what extent does interpersonal communication between market women and customers affects retention of customers?
5. To what extent does marketing effort of market women in Ikare and Akungba Akoko town influence customers’ patronage?
1.5 Objectives of the Study
The broad objective of this study is to assess the interpersonal communication pattern between market women’s and customers in Ikare and Akungba Akoko. This study primarily aims at:
1. To assess how often market women in Ikare and Akungba Akoko engage in interaction with their customer.
2. To examine the various communications marketing techniques adopted by market women in Ikare and Akungba Akoko.
3. To assess how marketing techniques of market women is of relevance within the context of the socio-economic realities of Ikare and Akungba Akoko people.
4. To investigate how interpersonal communication between market women and customer affect retention of customers in sales.
5. To examine how marketing effort of market women in Ikare and Akungba Akoko town influence customers’ patronage?
6. To determine the effect of interpersonal communication on customer loyalty.
7. To find out the impact of relational style on marketing performance.
8. To ascertain the effect of relational atmosphere on sales turnover rate.
9. To examine the influence of friendly interaction on customer retention.
10. To determine the impact of marketing performance on competitive advantage in the marketing sitting.
1.6 Significance of the Study
Academically, this study will examine relevant issues related to interpersonal communication pattern between market women and customer in Ikare and Akungba Akoko. This would bring to the fore the inter linkages between various academic disciplines like Mass Communication, Marketing and other related disciplines.
Theoretically related to the above is the fact that the study would explore relevant theories which provide insight and understanding of the subject matter just as it would provide theoretical basis for further research efforts. Professionally, the study would also help marketing setting to assess their interactional marketing techniques and efforts in a bid to ascertain if it yields desired benefit. Such would enable them tune remedial or corrective actions for better efficiency and productivity.
To provide insights into the relationships between the previously identified contextual factors and interpersonal relationships and communication patterns among network actors.Due to the significant gap in the studies, it is perceived that this study will contribute to existing understanding of achieving efficient knowledge transfer in three ways: contribute substantively to academic understanding on how the efficiency of tacit knowledge can be streamlined, highlight the importance of the relational and communication aspects of network research and, provide insights into the relationships between the previously identified contextual factors and interpersonal interaction and communication patterns among network actors.
1.7 Scope of the Study
The researchers choice category of marketers is derived from the fact that some of them are illiterate while few of them are educated, minorities of the market women use modern interpersonal skills communication as their major business strategies. They also can easily analyze various marketing techniques of the marketers under study; and explain in simple terms their opinion, perception of such techniques and the imprinted image of the marketers on their minds.
1.8 Limitation of the Study
Geographically this study is limited to market women’s, and customers in Ikare and Akungba Akoko within the Ondo State. Also, a cross section of the businessmen in Ikare and Akungba Akoko Marketers were recruited in the study.
1.9 Operational Definition of Terms
Communication: This is the act of conveying intended meaning to another entity through the use of mutually understood signs and semiotic rules.
Customers: Those for whom the market women’s services are targeted at and who patronize the marketer’s services of marketing women’s in Ikare and Akungba Akoko.
Influence: The degree to which a phenomenon can respond or react to stimuli.
Interpersonal: This is usually between two or more people.
Interpersonal Communication: This is an exchange of information between two or more people.
Market: This is an organized, often periodic, trading event at such site.
Marketers: This is when one who designs and executes marketing campaigns.
Patronage: Engaging in business transactions with market based on the services offered by the marketers.
Relationship Marketing: marketing women’s efforts at building a healthy relationship based on trust and friendly interaction.
1.1 Introduction
Communication plays a crucial role in functioning of reference unit effectively in the library. Consciously it involves sharing of ideas, feelings, thoughts, and many other things that humans share. In fact, what the reference unit requires mainly is communication. It is an inseparable, essential and continuous process just like the circulatory system in the human body.
Ojomo (2004) defined communication as the process of sharing ideas, feelings, thoughts and messages with others. While Rothwell (2001) also sees communication as a transactional process of sharing meaning with others.
Kemoni (2004) citing Ojiambo avers that communication involves the giving and receiving of information, signals or messages by talk, gestures and writing. As a result, communication effectiveness becomes a very vital factor in determining the efficiency with which reference unit performs as a whole.
When two or more people are in the same place and are aware of each other being there, then communication is said to be taking place, no matter how subtle or inadvertent it may be. Even without vocalizations, an onlooker may be using prompts of stance (posture), facial manifestation, and garb to impact other’s role, poignant situation, persona or intents.
The basic process of communication initiates when a fact is perceived or an idea devised by a single person. That person (the sender) chooses to decipher the perception into a message, and subsequently conveys the message through some communication medium to another person (the receiver). The receiver then must construe the message and supply feedback to the sender indicating that the message has been comprehended and fitting action taken.
Interpersonal communication involves sending and receiving of messages between two or more people. DeFleur and Dennis (2002) conceptualized interpersonal communication as a process of using language and non-verbal cues to send and receive messages between individuals that are intended to arouse particular kinds of meaning.
Rothwell (2004) posits that interpersonal communication is dyadic communication; according to him, it is a transaction that takes place between two people. Interpersonal communication is the procedure by which people swap information, feelings and impart through verbal and non-verbal messages. This definition underlines the crucial fact that interpersonal communication is not only apprehensive about ‘what’ is pronounced, i.e., the language employed, but ‘how’ it is pronounced, e.g., the nonverbal messages sent, such as tone of voice and facial expressions. Interpersonal communication can be seen as the process of interacting simultaneously with another and mutually influencing each other, usually for the purpose of managing relationships.
It helps us understand how and why people behave and communicate in different ways to construct, and negotiate a social reality. Interpersonal communication involves sending and receiving of messages between two or more people. Interpersonal communication is the procedure by which people swap information, feelings and impart through verbal and non-verbal messages. Interpersonal communication is real-time, face-to-face or voice-to-voice conversation that allows immediate feedback. Interpersonal communication plays a large role in any manager's daily activities, but especially in organizations that use teams
Indeed it is almost impossible to talk about interpersonal communication without also discussing the interpersonal communication patterns between market women and customers
. The process of communication and the forms it takes are basic to how interpersonal communication develops, grow or fail (Gabarro, 1978). He further argues that relationships are themselves the consequence of repeated communication and interactions among individuals. From tentative initial exchanges, people move to familiarity and from there to more significant exchanges (Burt, 2005).
According to Altman and Taylor (1973), “The growth of interpersonal relationships is associated with a greater depth and value of communication, an opening up of more intimate areas of exchange and more intimate areas of personality", hence, in turn, the nature of the interpersonal relationship has a significant impact on whether or not an individual communicates with another individual as well as the content and flow of the interaction aids communication patterns.
Gabarro (1990) found that weak; acquaintance type relationships are associated with restricted disclosure of socially acceptable topics, whereas close interpersonal relationship exchanges exhibited more depth and richness of information. In terms of efficiency of communication, in close interpersonal relationships intended meanings are transmitted and understood rapidly, accurately, and with a greater sharing of information and ideas (Nonaka, 1994; Kraut et al, 1987; Doring and Schnellenbach, 2006).
Similarly, Sias and Cahill (1998) assert that the relationship development stages of ‘acquaintance’ to ‘friend’ to ‘almost best friend’ are associated with comparable changes in communication, including decreased caution, marked by increased intimacy and an increased discussion of work-related problems.
Further, Altman and Taylor (1973) associate close interpersonal relationships with a state of ‘stable exchange’ involving richness and spontaneity of communication whereby individuals engage in a deeper level of communication involving core areas of personality.
Knapp and Vangelisti (2005:20) believe that just as strong relations between individuals are associated with increased accuracy, speed and efficiency in communication, the early stages of relationships (i.e. acquaintances) hold greater possibilities for less accurate communication and rely heavily on stereotyped behaviors and fewer channels of communication. Based on the foregoing, it is apparent that in order to comprehend the impact that interpersonal relations plays in the efficient transfer of knowledge, both the interpersonal relationship type as well as the interpersonal communication patterns of interaction should be examined.
Many market women today seems to be migrating from transactional mindset to relational mindset in their dealing with customers. The market women are highly competitive and the right knowledge about customer values and demand is essential to differentiate from competitors and gain sustainable competitive advantage. In this regard, development of relationships with customers can be considered as fundamental to the Nigerian market. Ulrich (2010) observed that interpersonal relationships at markets are governed by personality traits.
The idea that business relationships requires both the service firm and the customers to benefit from the relationship has recently stimulated academic interest on the types of benefits consumers receive as a result of engaging in long term relationships with sellers (Gwinner et al, 1998; Hennig-Thurau et al, 2002; Reynolds &Beatty, 1999). As a result Interpersonal communication is becoming more important in today’s global markets, especially in terms of finding out the compatibility levels of individuals.
The market consists of large category of fields that includes trading, restaurants, event planning, theme parks, transportation, cruise line and additional fields within the tourisms market systems. Traditional market thoughts have primarily focused on discrete transactional exchanges with anonymous customers (Ganesan 1994; Morgan and Hunt 1994). As a result, acquiring new customers and increasing sales rather than enhancing relationships were the leading priorities of marketers (Berry 1995). Later, marketers realized that securing existing customer’s loyalty (Reichheld, 1996) and their lifetime value (Bolton, 1998) could be strategically favourable and financially rewarding.
To nurture successful relational exchanges thus became their priority. From a customer’s perspective, relational engagement can effectively reduce choice and facilitate decision making (Sheth and Parvatiyar, 1995). These issues have catalyzed the acceptance of “relationship marketing” or customer relationship management. Mosad(2006) noted that market is also about how to integrate the customer into the design of the product/service and to design a systematic process for interaction that will create substance in relationships.
Hennig -Thurau et al (2005) opined that customer relational benefits have been identified as a driving motivation for customers to engage in long term relationships with service providers. Such benefits can be expected to play a crucial role in the success of service market when extending their business to customers.
Most of the previous discussion on interpersonal communication has been conducted almost exclusively in Nigeria contexts and has not addressed the impact interpersonal communication may have on market performance in the market, for gaining relationship outcomes such as customer loyalty, increase sales turnover, customer retention and competitive advantage. The aim of this research is to deepen our understanding of the effects of interpersonal relationship on marketing performance in order to develop long term relationships with customers in the marketing sectors.
1.2 Background of the Study
Consumer-generated communication processes draws increasing attention of marketers and researchers. An under-researched issue, however, is that interpersonal communications is not always brand-specific. Hence, an individual can adopt a brand either as a result of communication with adopters of that brand (within-brand influence) or due to an interaction with adopters of competing brands (cross-brand influence).
This interplay of within- and cross-brand influence can have a substantial effect on the growth of markets under competition. Haven developed a model that represents the two influences, and focus on the case of two otherwise-identical competing brands with differing entry times. Due to within-brand influence, current customers create an interaction-based advantage for the first entrant, which grows with time. Hence, customers are viewed as market assets yielding increasing returns during the diffusion process. On the other hand, cross-brand influence enables a customer to enjoy a shorter time-to-takeoff. Given the combination of both, we predict the “dual pattern” characterized by a fast takeoff for a customer, followed by a widening gap in favor of the first entrant, ceteris paribus.
In today’s competitive business environment, the attainment of tacit knowledge has been argued to occupy a central place in the development of a business’s sustainable competitive advantage (Ambrosini and Bowman, 2001). Many authors have drawn on this view (Bresman et al, 1999; Gertler, 2001; Zander and Kogut, 1995), citing tacit knowledge as a critical and intangible resource that has the ability to improve business performance, as well as the quality and innovativeness of a business products (Leonard and Insch, 2005; Batt and Purchase, 2003).
Further, Sobol and Lei (1994) argue that marketer operating in highly competitive markets require resources which are distinctive and not easily replicated by rival marketers in the business arena; as tacit knowledge is idiosyncratic and not easily codified, it results in a higher performance that is more sustainable in the longer term (Kogut and Zander, 1992). It is perceived that a marketers competitive position can be further enhanced when tacit knowledge is transferred efficiently, as the less time and effort that is required, the more likely that a transfer will be completed successfully (Hansen, 1999).
Nonaka (1994) argue that the attainment of tacit knowledge, held by individuals, also lies at the heart of a marketer’s knowledge creating process. Creating new knowledge means that the personal tacit knowledge held by an individual is externalized into objective explicit knowledge that is then shared and synthesized by others in the marketing setting (Nonaka and Toyama, 2005).
Interpersonal communication aims at establishing, maintaining and enhancing relationships between the marketers and the customers at a profit so that the marketer’s objectives are met.When the relationship is established between the customers and the marketers, brand loyalty is created from the customer’s repeat purchase and this translates to more profits for the marketers (Victor 1990).
Interpersonal communication is a concept that has gained popularity over the recent years. Markets, Companies and banks are beginning to understand the value of creating a relationship with the customers. Consequently, they are now striving to develop meaningful relationship more proactively. This concept was originally introduced by Leonard Berry in 1983 when he emphasized that relationship marketing was based on the concept of developing a long term relationship with a customer for the purpose of patronage bearing in mind that other competitors are always available (Yan and Wu, 2007).
According to Doyle & Stern (2006), relationship marketing is a long term continuous series of transactions between parties which occurs when each trusts other to deal fairly, reliably and helpfully. Interpersonal communication has therefore emerged as “a popular new paradigm due to shift in focus from customer acquisition to customer retention. It is likely to shift once again and will transform into customer relationship management (CRM) with a hybrid of marketing relationship programs that range from relation to out sourcing market exchange and customer interactions” (Sheth& Kellstall,2002). It therefore suggests that when a good working relationship is built, negotiating time and costs are reduced and the patterns of transactions become more predictable and secure.
Interpersonal communication therefore attempts to create a more holistic, personalized brand experience (service) to create stronger customer ties. According to Kottler and Armstrong, (2009) a number of Markets, Companies and banks are today offering services and relevant facts to individual customers based on information about past transaction, demographics, psychographics, media and distribution preferences. By focusing on their most profitable customers, products and channels, there is a marketer hope to achieve profitable growth capturing a larger share of each customer’s expenditure by building high customer loyalty. Interpersonal communication is aimed at retaining existing customers since attracting new customers may cost up to five times more than retaining an existing customer.
If Market women and other marketers (commercial sectors) in Ikare and Akungba Akoko Area of Ondo State aim at increasing the size of their customers, the markers must train their colleagues in cross selling and up selling their products. There is need to realize the benefits from lowered costs and increased profitability from long term relationships between marketers and their customers. On the other hand, customers will enjoy the transactions of marketers, that understands them and their requirements and they will also have a reliable financial service provider. Therefore, relationship marketing involves all activities and efforts of the business organization aimed at creating and sustaining healthy relationship with the customers. This is necessitated by the fact that the customer is central to market or organizational activities. There is credence by the increasing rate of competition in the business circles especially in the marketing sector and the likes of others.
It is on this note therefore that Victor (1970) acknowledged that; “the key to successful marketing is having the right product at the right price in the right place with the right promotion”. In the end, the person who decides the rightness of these four elements is the customer. The customer is therefore central to the 4Ps of marketing which are: Price, Place, Promotion and Product. It is the customer that determines the relevance of the 4Ps through patronage. Patronage therefore, is arguably the target of the 4Ps of marketing.
However, interpersonal communication seems to go a little beyond patronage and aims at securing the loyalty of the customers. The market women, in this instance, should not limit the definitions of the business organization to the confines of profit making but should see it as a responsible citizen whose interest is to provide customers’ wellbeing. It is on this note therefore, that business organizations such as market women’s, and even GSM service providers get involved in programme sponsorships and community social responsibility projects in their business locations and in most cases, beyond.
In his seeming eulogy to this, Arens (2006) noted that, “A marketer’s driven overriding purpose is to create happy, loyal customers. Customers, not products, are the live-blood of the business”. This is underscored by the fact that, “customers can choose from a wide variety of products and services offered by producers located around the world. As a result, the customer relationship, which the sale is only the beginning, is the key strategic resource of the successful twenty-first century business (Fredrick 1994).
It therefore suffices that every organizational efforts at retaining customers’ patronage through building a healthy relationship qualifies as relationship marketing. In fact, public relations and advertising as promotional tools qualify as relationship marketing techniques, so also do integrated marketing communications. The above gains support from public relations which leans on goodwill between the organization and its publics (markets) hence, relationship marketing. It is therefore in support of the above that Arens (2006) explained public relations as: “The management function that focuses on the relationships and communications that individuals and organizations have with other groups (called publics) for the purpose of creating mutual goodwill.”
It therefore stirs no surprise that organizations like banks intermittently engage in corporate image research with a view to finding out how the organization is being perceived by its publics. The result of the studies enables the organization to re-strategize its activities in order to make for good corporate image in the minds of its publics. It therefore implies that effective communication is a sine-qua- non for relationship marketing. Providing the right information at the right time to the right group keeps the target market adequately informed on the organizational activities.
Little wonder then that Mckenna (1988), acknowledged that all these communications or brand contacts sponsored or not, create an integrated product in the consumer’s mind. The way and manner words are framed determines the meaning it conjures in the mind of the public which also determine the degree at which such organization secures the loyalty and trust of the customer.Be that as it may, the degree of heightened competition in this global age has necessitated the combination of such practices as advertising, public relations, marketing and their likes (hence, integrated marketing communication) at establishing and sustaining relationship marketing.
Definitively, therefore, integrated marketing communication is the process of building and reinforcing mutually profitable relationships with employees, customers, other stakeholders and the general public by developing and co-coordinating a strategic communication programme. According to Shultz, such communication enables them to have a constructive encounter with the company brand through a variety of media or other contacts (Shultz 1993).
According to Gary, this is supposedly important since, “No amount of advertising is likely to win back a customer lost from shoddy products or poor service. The real profit lost is the lifetime customer value (LTCV) to a marketer. More so, research evidence has continued to show that, “90 percent of a manufacturer’s profit comes from repeat purchases” (Gary 1993). It therefore makes business sense to secure and retain the loyalty, patronage and understanding of customers since suchcosts less than wooing new ones. Be that as it may, the question has often been raised on the degree of influence (if any) such efforts at relationship marketing do have on customers in a competitive market economy like Nigeria.
In specifics, however, the heightened competition among marketers especially those located in commercial nerve centres such as Ikare and Akungba Akoko Area of Ondo State which have led to aggressive advertising and marketing of their products and services have also stirred debates and concern. People have therefore continued to question the influence of their direct marketing approach, sale promotion, advertising; media mix approaches and other efforts at relationship marketing on the customers; and overall customers’ patronage and perception of such organization. On the other hand, literature suggesting answers to questions on how these strategies influence customer loyalty among market women in Ikare and Akungba Akoko Area of Ondo State specifically are scanty. This lacuna has the potentials of preventing insight into how relationship marketing may be or not be of benefit to efforts at preserving customer loyalty and increase patronage.
This, therefore, provides basis for this study which among others pries into the influence of relationship marketing on customers’ continuous patronage of market women in Ondo State using Ikare and Akungba Akoko Town as a case study. Hence, the result of this study would either provide justification for the human and material resources infused into interaction marketing efforts or not.
Herein, lays the substance of this study which is geared towards measuring the degree of influence market women efforts at interactive marketing on public perception, loyalty and patronage with a justified bias for market women in Ikare and Akungba Akoko town of Ondo State.
1.3 Statement of the Problem
The increasing competition in the marketing sector has necessitated the need for market women to build a long term relationship with customers, since it costs more to woo a customer than to retain the patronage of an existing customer. This underscores why market women like other marketers seek to embark on interactive marketing techniques which inter alia includes such promotional efforts as public relations, advertising, integrated marketing communications, direct sale, etc. However, it is not known in the literature whether despite the huge amount spent on this effort, people still may not arguably show corresponding interest and enthusiasm to patronize such marketers.
In today’s world, business seems hampered in environment that lack friendliness. The market women as one of the world’s largest and most pervasive marketers are as exposed as any other, to the forces of change that seems to be brought about by competing rivalry in the marketing world. Therefore, the development of market performance, customer loyalty, increase sales and friendly atmosphere appears as major challenges.
To compete effectively, market women are challenged on how to cope with effective interpersonal communication that appears not to be recognized by them as a competitive tool. Most of the market women have modern facilities, in spite of this; they seem to lack relational style that will enable them to achieve high customer patronage for their services.
In view of the fact that customers always patronize market women that have good friendly interaction, friendly interaction poses several challenges to market women. Therefore, any market women who does not reckon with fundamentality of friendly interaction to customer behaviour may have their marketing performance hindered.
Literature research showed that this problem has not been documented and this poses a gap in the understanding of the influence of interaction marketing in customers’ continual patronage of the services of market women, in Ikare and Akungba Akoko. It is on this premise therefore that the researcher aims to find out the influence of friendly interaction on customer continuous patronage of market women, using market women in Ikare and Akungba Akoko interactive marketing efforts.
Indeed, communication has been referred to as the glue that binds together network interrelationships (Johnston et al, 2005) and represents an important conduit for knowledge transfer. Despite this, factors impacting knowledge transfer efficiency at the micro level of analysis, namely a firm’s interpersonal interaction and their ensuing communication patterns have been largely ignored; hence, a major gap exists in academic knowledge involving the foregoing.
1.4 Research Questions
The following research questions guided the research for the purpose of this study:-
1. How often do market women in Ikare and Akungba Akoko engage in interaction with their customers?
2. What are the various communications marketing techniques adopted by market women in Ikare and Akungba Akoko?
3. To what extent does marketing techniques of market women relevant within the context of the socio-economic realities of Ikare and Akungba Akoko people?
4. To what extent does interpersonal communication between market women and customers affects retention of customers?
5. To what extent does marketing effort of market women in Ikare and Akungba Akoko town influence customers’ patronage?
1.5 Objectives of the Study
The broad objective of this study is to assess the interpersonal communication pattern between market women’s and customers in Ikare and Akungba Akoko. This study primarily aims at:
1. To assess how often market women in Ikare and Akungba Akoko engage in interaction with their customer.
2. To examine the various communications marketing techniques adopted by market women in Ikare and Akungba Akoko.
3. To assess how marketing techniques of market women is of relevance within the context of the socio-economic realities of Ikare and Akungba Akoko people.
4. To investigate how interpersonal communication between market women and customer affect retention of customers in sales.
5. To examine how marketing effort of market women in Ikare and Akungba Akoko town influence customers’ patronage?
6. To determine the effect of interpersonal communication on customer loyalty.
7. To find out the impact of relational style on marketing performance.
8. To ascertain the effect of relational atmosphere on sales turnover rate.
9. To examine the influence of friendly interaction on customer retention.
10. To determine the impact of marketing performance on competitive advantage in the marketing sitting.
1.6 Significance of the Study
Academically, this study will examine relevant issues related to interpersonal communication pattern between market women and customer in Ikare and Akungba Akoko. This would bring to the fore the inter linkages between various academic disciplines like Mass Communication, Marketing and other related disciplines.
Theoretically related to the above is the fact that the study would explore relevant theories which provide insight and understanding of the subject matter just as it would provide theoretical basis for further research efforts. Professionally, the study would also help marketing setting to assess their interactional marketing techniques and efforts in a bid to ascertain if it yields desired benefit. Such would enable them tune remedial or corrective actions for better efficiency and productivity.
To provide insights into the relationships between the previously identified contextual factors and interpersonal relationships and communication patterns among network actors.Due to the significant gap in the studies, it is perceived that this study will contribute to existing understanding of achieving efficient knowledge transfer in three ways: contribute substantively to academic understanding on how the efficiency of tacit knowledge can be streamlined, highlight the importance of the relational and communication aspects of network research and, provide insights into the relationships between the previously identified contextual factors and interpersonal interaction and communication patterns among network actors.
1.7 Scope of the Study
The researchers choice category of marketers is derived from the fact that some of them are illiterate while few of them are educated, minorities of the market women use modern interpersonal skills communication as their major business strategies. They also can easily analyze various marketing techniques of the marketers under study; and explain in simple terms their opinion, perception of such techniques and the imprinted image of the marketers on their minds.
1.8 Limitation of the Study
Geographically this study is limited to market women’s, and customers in Ikare and Akungba Akoko within the Ondo State. Also, a cross section of the businessmen in Ikare and Akungba Akoko Marketers were recruited in the study.
1.9 Operational Definition of Terms
Communication: This is the act of conveying intended meaning to another entity through the use of mutually understood signs and semiotic rules.
Customers: Those for whom the market women’s services are targeted at and who patronize the marketer’s services of marketing women’s in Ikare and Akungba Akoko.
Influence: The degree to which a phenomenon can respond or react to stimuli.
Interpersonal: This is usually between two or more people.
Interpersonal Communication: This is an exchange of information between two or more people.
Market: This is an organized, often periodic, trading event at such site.
Marketers: This is when one who designs and executes marketing campaigns.
Patronage: Engaging in business transactions with market based on the services offered by the marketers.
Relationship Marketing: marketing women’s efforts at building a healthy relationship based on trust and friendly interaction.
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