Abstract

• This research paper identifies the relationship marketing tactics (RMTs) of restaurants in Mandalay and to analyze the impact of relationship marketing tactics on customer satisfaction and trust, which in turn, affect customer loyalty. In this research, both descriptive and exploratory research methods are applied based on surveyed restaurants. To conduct this research, 34 owners or managers are randomly selected and 452 customers are selected by using systematic sampling method from the scope of 34 restaurants. The results show that the surveyed restaurants used RM tactics such as customer orientation, service quality and interpersonal communication. Tangible rewards are less used by the surveyed restaurants. The findings of the research revealed that relationship marketing tactics (customer orientation, service quality and interpersonal communication) have significant and positive impact on the customer satisfaction and loyalty. Customer satisfaction impacts positively on customer trust, which in turn, impacts positively on customer loyalty. After that, trust impacts positively on customer loyalty. In addition, this research has revealed that in comparing the effect of customer satisfaction, trust and RMTs on customer loyalty, trust has a stronger and more positive impact on customer loyalty. According to the findings, this research recommends owners and managers to emphasize more on customer orientation, service quality and interpersonal communication in order to achieve their RM efforts. In addition, the findings of this research provide important implications for owners and managers to highlight the essential role of relationship marketing in achievement of sustained competitive advantage through customer loyalty by adopting RM tactics. Therefore, owners and managers should commit to the implementation of RM tactics.