Structural Equation Model of Relationship Marketing Affecting Customer Loyalty: The Mediating Role of Commitment for Recycling Business in Thailand
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Abstract
This research aims to study the influence of relationship marketing on customer loyalty in the recycling business in Thailand. Data were collected from 250 customers of recycling businesses in Thailand who had selling experience with recycling businesses. Quota sampling was used in this study classified to six groups by region. The data analysis was conducted using the Structural Equation Modeling (SEM) approach. The result showed that factors in relationship termination cost, relationship benefits and trust affected customer engagement. The factor of commitment was the mediator variable (R2 = 91). Theoretical findings affirmed that the commitment-trust theory remained effective in the context of relationships between organizations and customers whereas practical findings revealed that owners should familiarize themselves with customers and be honesty in weighing scales to create customer loyalty of recycling business in Thailand.
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