Customer Satisfaction and profitability from Relationship Marketing Perspective: A Critical Review

The purpose of this study is to review and summaries the previous work on relationship marketing based on the relationship between satisfaction, loyalty and retention. First, the paper will provide a more detailed definition of Relationship Marketing. Then some of the major benefits of and keys to success in implementing an effective Relationship Marketing strategy will be discussed. The firms have already focused on understanding the customer's needs and building a marketing strategy around those needs. But it is critical that the main underlying principals (satisfaction, retention, and loyalty) are understood before an organization starts to develop a relationship marketing strategy. The aim of this critical review is to understand that high levels of each of relationship marketing principals do not always yield high levels of the others and so as increased sales even though the relationship is positive. This paper intends to discuss previous research findings, and an exploration of the theoretical and managerial implications.