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KOFORIDUA POLYTECHNIC
FACULTY OF BUSINESS AND MANAGEMENT STUDIES
(DEPARTMENT OF MARKETING)
RESEARCH TOPIC:
ASSESSING THE ROLE OF RELATIONSHIP MARKETING ON CUSTOMER
RETENTION IN THE PHARMACEUTICAL INDUSTRY
(A STUDY OF INTRAVENOUS INFUSION LIMITED)
Submitted in partial fulfillment of the requirements for the award of the Higher National
Diploma (HND) in marketing to Koforidua Polytechnic.
BY
ABRAHAM NARH
(04/2012/1182D)
AND
GODFRED ADU BOAHENE
(04/2012/1125D)
JULY 2015

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DECLARATION
We (Abraham Narh and Godfred Adu Boahene) hereby declare that this project is our own work
towards the certification of HND in marketing and that, to the best of our knowledge, it contains
no material previously published by another person or a group of persons nor material which has
been accepted for the award of any other HND in polytechnic, except where due
acknowledgement has been made in the text. We personally accept criticisms for any errors and
shortcomings contained in the work.
Abraham Narh ………………………………… …………………..
Signature Date
Godfred Adu Boahene …………………………………. …………………..
Signature Date

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CERTIFICATION
I, the undersigned supervisor, hereby certify that the research embodied in this project work
entitled “ Assessing the role of Relationship Marketing on Customer Retention in the
Pharmaceutical Industry (A study of Intravenous Infusion Limited)” was carried out by Abraham
Narh and Godfred Adu Boahene and was supervised by me.
Mr. Timothy Fiadzoe …………………………………. …………………..
(SUPERVISOR) Signature Date

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DEDICATION
We dedicate this project to Almighty God who had seen us throughout the work to its success,
our parents for their love, care and support financially, our humble supervisor for his support and
guidance throughout the work and our loved ones for their support and prayers.

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ACKNOWLEDGEMENT
Our utmost profound gratitude goes to the Lord God Almighty for giving us the strength,
wisdom, and knowledge to come out with this project.
We also owe a special thanks to Mr. Timothy Fiadzoe whose supervision and guidance added to
the understanding, clarity, and quality of this project work.
Finally, we also wish to tender our sincere gratitude to our families and all who have supported
us in diverse ways.
God richly bless you.

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ABSTRACT
This project work is a survey designed to assess the Role of Relationship Marketing on Customer
Retention in the Pharmaceutical Industry in the New-Juabeng Municipality.
The objectives were to find out measures or mechanisms put in place by the company’s
management in order to facilitate effective relationship marketing practices, to find out if
relationship marketing activities used has satisfied customers, ascertain the level of customer
satisfaction in Intravenous Infusion Limited, examine how relationship marketing has helped the
company to retain customers and to find out if relationship marketing in Intravenous Infusion
limited has been able to solve the problem of customer defection or switching .
The population used for the study was made up of management, non-management staff and
customers of Intravenous Infusions Limited in the New-Juabeng municipality. Out of these
groups of people, samples were chosen using purposive sampling technique and simple random
sampling technique. The people who made up the sample were the respondents to the
researchers’ questionnaire and their opinions made it possible for the researchers to come out
with their findings.

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TABLE OF CONTENTS
COVER PAGE i
DECLARATION ii
CERTIFICATION iii
DEDICATION iv
ACKNOWLEDGEMENT v
ABSTRACT vi
TABLE OF CONTENT
LIST OF TABLES
LIST OF FIGURES
CHAPTER ONE
INTRODUCTION
1.0.0 BACKGROUND OF THE STUDY……………………………………… .…………1
1.0.1 BACKGROUND OF THE COMPANY …………………………………………..2
1.2.0 PROBLEM STATEMENT ……………………………………………………………...4
1.3.0 OBJECTIVES OF THE STUDY……………………………………………................ .4
1.4.0 RESEARCH QUESTIONS………………………………………………………..…...5
1.5.0 SIGNIFICANCE OF THE STUDY 5

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1.6.0 SCOPE OF THE STUDY 6
1.7.0 LIMITATIONS OF THE STUDYS 6
1.8.0 ORGANIZATION OF THE STUDY 6
CHAPTER TWO
LITERARURE REVIEW
2.0 INTRODUCTION……………………………………………………………………..….8
2.1 DEFINITIONS OF RELATIONSHIP MARKETING ………………………………. 8
2.2 REASONS FOR THE GROWTH OF RELATIONSHIP MARKETING…………… 11
2.3 BUYER-SELLER RELATIONSHIP………………………………………………... 12
2.3.1 BUYER-SELLER RELATIONSHIP LIFE CYCLE …………….. 14
2.4 RELATIONSHIP LEVELS ……………..…. 16
2.5 CONTENTS OF RELATIONSHIP MARKETING 19
2.6 COMPARISON BETWEEN RELATIONSHIP MARKETING AND TRANSACTIONAL
MARKETING 22
2.6.1 FROM TRANSACTIONAL MARKETING TO RELATIONSHIP MARKETING 23
2.7 PLANNING FOR RELATIONSHIP MARKETING 25
CHAPTER THREE
RESEARCH METHODLOGY
3.0 INTRODUCTION…………………………………………………………………………30
3.1 RESEARCH DESIGN…………………………………………….………………………30

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3.2TARGET POPULATION…………………………………………………………………..30
3.3 SAMPLE SIZE AND SAMPLING TECHNIQUE …………………………… 31
3.4 RESEARCH INSTRUMENTS…………………………………………………………....32
3.5DATA COLLECTION PROCEDURE…………………………………………………......32
3.6 METHODS OF DATA ANALYSIS……………………………………………………...33
CHAPTER FOUR
DATA ANALYSIS AND PRESENTATAION OF RESULTS
4.0 INTRODUCTION……………………………………………………………………….…34
4.1 PROFILE OF RESPONDENTS (CUSTOMERS)…………………………………… .35
4.2PROFILE OF RESPONDENTS (MANAGEMENT, NON-MANAGEMENT AND
CUSTOMERS)…..... 40
.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.0 INTRODUCTION…………………………………………………………………………. 54
5.1 SUMMARY OF FINDINGS 54
5.2 CONCLUSION 56
5.3 RECOMMENDATIONS 57

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REFERENCES
APPENDIX A: Questionnaire for Customers
APPENDIX B: Questionnaire for Management and Non-management staff
LIST OF TABLES
Table 1 Model on relationship levels 17
Table 2 The shift to relationship marketing 24
Table 3 A summary of questionnaires administered and collected 34
Table 4 How long have customers been dealing with intravenous infusions limited? 36
Table 5 What kind of customer relationship exists between customers and the company? 37
Table 6 How often do personnel of intravenous infusions limited visit customers? 38
Table 7 Why do personnel from intravenous infusions visit or contact you? 39
Table 8 When you express dissatisfaction, at what rate does intravenous infusions respond to
your complaints? 40
Table 9 Are you satisfied with the way the company reacts to your complaints? 41
Table 10 Does the relationship between you and intravenous infusions influence your decision to
buy their products? 41
Table 11 Are you satisfied with Intravenous Infusions Limited’s relationship with you? 42
Table 12 How will you describe the attitude of Intravenous Infusions Limited delivery men? 43
Table 13 Have you ever thought of switching to other competing firms to do business? 44

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LIST OF FIGURES
Fig. 1 The three levels of relationship marketing 18
Fig. 2 Customer loyalty ladder 26
Fig. 3 the three (3) dynamics to build trust 28
Fig. 4: A cone chart showing whether the company believes in the concept of relationship
marketing 45
Fig. 5: The pie chart showing how long IIL have been practicing relationship marketing 46
Fig.6: A bar chart showing what the company has achieved from practicing relationship
marketing. 47
Fig. 7: A bar chart showing what hinders the company from practicing relationship marketing.48
Fig 8: What measures and mechanisms has the company put in place to ensure the building of
mutually satisfied long-term relation with key parties? 49
Fig. 9: A graph showing how often the company’s personnel visit customers. 50
Fig 10: Why does your company visit or contact customers? 51
Fig. 11: A chart showing the level of customer satisfaction in Intravenous Infusions Limited 52
Fig. 12: A pie chart showing the rate at which the company reacts to the complaints of their
customers. 53

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CHAPTER ONE
INTRODUCTION
1.0.0 BACKGROUND OF THE STUDY
The rampant introduction of companies in this generation has really rendered some companies
obsolete in the pharmaceutical industry. The advancement has also increased competition among
companies who produce similar products and even those producing differentiated products. This
is because, all companies are working desperately towards one objective and that is “The
attainment of customer retention”.
In addition, because Ghana is practicing a liberal system of trade, there has been an increase in
the establishment of companies in the country and this has accelerated competition. For this
reason, companies need to relate well with their customers in order to achieve competitive edge
and earn more profit. Customers are satisfied and loyal when their needs and wants are met.
They do not only remain loyal but tend to recommend their satisfaction experience to other
customers.
Relationship marketing helps competitors to develop a strong and mutual relationship with their
customers and this help prevent such customers from switching to competitors. The
pharmaceutical industry, just like the hospitality industry has seen tremendous competition since
its introduction. Companies that are able to survive the intense competition are those that
understand their customer’s needs and wants.

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Research has proven that the longer a customer stays with a company, the more money they are
willing to spend on the products of the company. It has also been proven by research that 68% of
customers defect if they receive bad service from an organization and only 5% report bad
services or customer service. Meaning, 95% leave without complaining. Melvin Brand Flu,
Psychology of customer defection in a digital world (2014).
Due to the factors outlined above, relationship marketing has become an important anchor when
it comes to strategies that companies in the pharmaceutical industry needs to adopt in order to
attain a competitive edge in a turbulent environment like the Ghanaian market.
Using Intravenous infusion limited as a point of study, the researchers hope to investigate into
the reasons why the relationship marketing is not effectively practiced in the pharmaceutical
industry.
1.0.1 BACKGROUND OF THE COMPANY
Intravenous Infusion Limited (IIL) is a private limited liability pharmaceutical company and a
leader in the manufacture of intravenous infusion in the country. The company was incorporated
under the company’s code 1963(Act179) on 12th December, 1969 and issued with the certificate
to commence business on 22nd December, 1969 the same year under certificate number C-3828.
The company is duly registered under the factories, offices, and shops Act 1970 under certificate
number 1/14/1019. It was founded by Mr. S.K Apenteng (late), the sole proprietor of the
company. The company was the first in the West African sub-region; it is located in Koforidua in
the Eastern Region of Ghana. Currently the company has more than 200 employees.
The company is authorized to undertake the following business objects:

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 Manufacturing of infusions, drugs, medicines and other by-products.
 Selling of pharmaceutical products on the local market and also for export.
The company manufactures 45 products with the major ones being Saline (0.9%), Dextrose
(5%), in normal saline solution and Hartman’s Ringer Lactate. This product line sets the
company above any manufacturer in the sub-region
The vision is to be the leading manufacturer and supplier of pharmaceutical and medical
products in Africa in the 21st Century.
The mission of intravenous infusion limited is to produce with the highest standards, good
quality products, meeting the health needs of valued African clients using cutting edge
technology
The corporate culture of intravenous infusion limited is guided by five fundamental values.
These values which will be brought to bear on the company’s operations are
 Product quality and cleanliness
 Commitment and dedication
 Personalization and respect
 Reliability and efficiency
 Partnership approach to business. Building partnerships with clients to anticipate needs
and provide proactive solutions.
In the pursuit of expanding its main business, intravenous infusion limited has developed more
specialized fluids like Gastro Intestinal replacement fluid, Beddoes maintenance fluid and 5:4:1
single replacement fluid for cholera with the help of experts in the medical field. This came
about because of the outbreak of cholera in the year 2014. Also in meeting the ever changing

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need of the pharmaceutical market, the company in 2005 added IV Metronidazole to its range
of products.
1.2.0 PROBLEM STATEMENT
In Ghana, there is a problem with retention of customers in the pharmaceutical industry. Many
pharmaceutical companies have floating customers. Abdallah Q. Bataineh Ghaith M. Al-Abdallah1,
Hanadi A. Salhab and Amer M. Shoter (2014). Intravenous infusions limited and other
pharmaceutical companies face a problem with the retention of customers. They are always
switching from one company to another. Issaka Edward, B (2008). Intravenous infusions limited is
one of the companies using relationship marketing yet their effort and measures put in place to make
sure they satisfy their customers and possibly retain them has proven futile. Relationship marketing
is a customer relationship management strategy designed to encourage strong, lasting customer
connection to a brand. The goal is to generate repeat sales, encourage positive word-of-mouth
promotion, and gather customer information. Relationship marketing over the years has been
ignored by many pharmaceutical companies but has been picked up by companies who have realized
that the selling and production orientations they use are becoming outmoded and are now focusing
on customer orientation.
1.3.0OBJECTIVES OF THE STUDY
The study was carried out specifically to:
 Find out measures or mechanisms put in place by the company’s management in order to
facilitate effective relationship marketing practices.

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 Find out if relationship marketing activities used has satisfied customers.
 Ascertain the level of customer satisfaction in Intravenous Infusion Limited.
 Examine how relationship marketing has helped the company to retain customers.
 Find out if relationship marketing in Intravenous Infusion limited has been able to solve the
problem of customer defection or switching.
1.4.0 RESEARCH QUESTIONS
The project work sought to address the following questions:
1. What are the control measures and mechanisms put in place by management in order to
facilitate effective relationship marketing practices?
2. How has the relationship marketing activities used satisfied customers?
3. What is the level of customer satisfaction in Intravenous Infusion Limited?
4. How has relationship marketing helped the company to retain customers?
5. Has relationship marketing in Intravenous Infusion Limited been able to solve the
problem of customer defection or switching?
1.5.0 SIGNIFICANCE OF THE STUDY.
The study into the concept of relationship marketing in the pharmaceutical industry in Ghana
was necessary due to the following reasons:
1. The study would benefit the pharmaceutical industry in Ghana as to the correct
implementation of relationship marketing in the industry.

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2. The findings of the research could serve as a manual for further study and research in the
field of relationship marketing.
3. The study, when accomplished will identify problems the industry faces in relationship
marketing and efforts to provide first class pharmaceutical products in the county.
4. It may also serve as a guide for management of Intravenous infusions limited in their
policies and decision making.
1.6.0 SCOPE OF THE STUDY
The study would be restricted to management staff, non- management staff and
customers of Intravenous infusion limited (Koforidua).
1.7.0 LIMITATIONS OF THE STUDYS
The problem the researchers face in an attempt to gather data and information for the research
work was as follows:
1. There was difficulty in getting information from management of the company.
2. There was difficulty in gathering information from the internet.
1.8.0 ORGANIZATION OF THE STUDY
The study is divided into five chapters:
Chapter one (1) which is the introduction chapter will address itself to the background
information, problem statement, objective of the study, significance, scope and limitations to the

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study, chapter two(2) will review literature on the theoretical framework, and related review
exiting literature.
Chapter three (3) will present the methodology with details regarding the research design,
population, sampling, data collection and analysis technique. Chapter four (4) will contain the
presentation and analysis of data collected. It will contain tables, graphs, methods among others.
Chapter five (5) which is the last chapter provides the summary of findings, conclusions, and
recommendations for the study.

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CHAPTER TWO
LITERATURE REVIEW
2.0 INTRODUCTION
This chapter reviews literature on the concept of relationship marketing and its relation
with customer retention. It covers introduction, definitions of relationship marketing, reasons for
the growth for relationship marketing, buyer- seller relationship, relationship levels, and content
of relationship marketing, comparison between relationship marketing and transactional
marketing, planning for relationship marketing, and improving customer retention and
satisfaction.
2.1 DEFINITIONS OF RELATIONSHIP MARKETING
The concept of relationship marketing has taken marketing back to its basic principle. It
recognizes the fundamental importance in sustaining customer relationship in order to generate
customer loyalty and repeat purchase.
According to Berkowitz (1997), Relationship marketing is the hallmark of developing
and maintaining effective customer relationship. It is today called relationship, linking the
organization to its individual customers, employees, suppliers, and other partners for their mutual
benefit. The database marketing is a step in a right direction which is more appropriate over the
traditional market segmentation and goes further to criticize its lack of personal interaction
between the seller and the consumer. The main steps in establishing relationship marketing
programs in a company are by Berkowitz(1997):

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A. Identify the key customers waxing relationship management, choose the largest or
best customers and designate them for relationship management. Other customers
can be added that show exceptional growth or pioneer new industry development.
B. Assign a skilled relationship manager to each key customer. The service provider
currently serving the customer should receive training in relationship management
or be replaced by someone more skilled in relationship management.
C. Develop a clear job description for relationship managers. Describe evaluation
criteria. Make the relationship manager focus on few customers.
D. Have each relationship manager develop annual and long range customer
relationship plans. These plans should state objectives, strategies, activities, and
required resources.
E. Appoint an overall manager to supervise the relationship managers. This will
develop job descriptions, evaluation and effectiveness.
Kevin P. Gwinner, Dwayne D. Gremlar and Hennig-Thurau (1997) defined relationship
marketing as” an organization’s effort to develop a long term, cost effective link with individual
customers for mutual benefit ”. This depicts the fact that both the customers and the organization
twin (win-win) under this concept or relationship. Also, the relationship is maintained at a cost
which needs to be taken into consideration.
The relationship marketing concept is also a situation where an organization secures strong
economic and social ties with all its customers. It is a long-term approach to create and enhance a
strong relationship with customers and stakeholders.

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According to Philip Kotler (2001), Relationship marketing is creating, maintaining, and
enhancing strong relationships with customers and other stakeholders. He went on to say that
marketing is drifting away from a focused building value-laden relationships and marketing
networks. It requires all the company’s departments to work together as a team to serve the
customer. It involves building relationship at many levels; economic social, technical and legal-
resulting in high customer loyalty. It should carefully coordinate the whole company’s effort to
create value-laden, satisfying relationship with customers.
According to Zikmund/ d’Amico (2001), the term relationship marketing (relationship
management) communicate the idea that a major goal of marketing is to build long term
relationship between a company and the parties who contribute to the company’s success. Once
an exchange is made, effective marketing stresses managing relationship that will bring about
additional exchanges. Effective marketers view making a sale not as the end of a process but as
the start of the organizations relationship with customers. Satisfied customers who want to
purchase the same product in the future will return to a company that has treated them well in the
past.
Pride and Ferrell (1997) defined relationship marketing as “establishing long term mutually
satisfying buyer-seller relationships”. Relationship marketing refers to long-term mutually
beneficial arrangement in which both the buyer and the seller focus on value enhancement
through the creation of more satisfying exchanges.
Relationship marketing is an approach which emphasizes the continuing relationships that should
exist between the organization and its customers. It emphasizes the importance of customer
service and quality and developing a series of transaction with consumers.

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Cateora (1996), also stated that relationship marketing is built in effective communication
between the seller and buyer. It also focuses on building long-term alliances rather than treating
each sale as a one-time event. It attempts to ensure that an organization uses varying informal
and formal tactics that will ensure that customer, once gained, will not take away their business
to competitors.
According to Cateora, (1996), a salient feature that is a characteristic of all the above definitions
is that relationship marketing seeks to;
1. Ensure that a company uses effective communications and other activities to ensure that
customers once gained, will not switch to other competitors
2. The greater level of customer satisfaction with a relationship, not just the product or
service, the greater the likelihood that the customer will stay with and be retained in the
organization.
3. Emphasis on the interaction between suppliers and customers, implies that there is a shift
from a transaction oriented approach to a relation-oriented approach.
2.2 REASONS FOR THE GROWTH OF RELATIONSHIP MARKETING
The growth of intensive competition in the marketing environment has led to companies moving
from marketing to relationship marketing, in this sense; they can build strong mutual confidence
and long term effective communication with their customers and other stakeholders so as to
exchange information to prevent the customers from switching to competitors. Research
estimates may be different, but on the average, it is expensive to create or gain new customers
than maintaining the existing ones.

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Relationship marketing can also go a long way to benefit a buyer. Visually, a customer can buy
the brand from the same company, organization or supplier which will tend to reduce time and
effort to purchase.
Jackson (1997), suggested that developing a relationship marketing approach is not always for all
customers, because customers are dynamic and are better managed through the traditional
marketing approach. These customers seek for lower price from suppliers and for that matter do
not value long-term relationship.
Relationship marketing has the aim of building mutually satisfied long-term relation with key
parties-customers, suppliers, distributors- in order to earn and retain their business. Marketers
accomplish this by promising and delivering high quality products and services at fair prices to
the other parties over time. (Philip Kotler, 2001)
Berkowitz D. (2000), said that, huge manufacturers find this rigorous standard of relationship
marketing difficult to achieve but due to today’s information technology along with cutting edge
manufacturing and marketing process, has led to mass customization, tailoring goods and
services to the seats of individual customer in high volume at a relatively low cost. Thus you can
place an internet order for Dextrose(5%) from Intravenous infusions and have it delivered in 4 or
5 days- a configuration tailored to your unique wants.
2.3 BUYER- SELLER RELATIONSHIP
Many experts have sought to research on buyer and seller relationship in the business market and
their channels.

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Theodore Levitt (1983), said, the relationship between a seller and buyer seldom ends when the
sale is made. In a great and increasing proportion of transaction, the relationship actually
intensifies subsequent to the sale. This actually becomes the critical factor in the buyers choice
of the seller the next time around, the sale merely consummates the courtship. Then the marriage
begins. How good the marriage is depends on how well the relationship is managed by the seller.
Etzel and Gaski (2001) suggested that rather than focusing only on the immediate customer,
marketers should approach marketing as a series of link between buyers and sellers. The value
chain approach should consider the roles of suppliers, producers, distributors, and end benefits
from the final product. This perspective leads to a recognition and understanding of the roles
played by all the parties involved in successfully bringing the product to market. Research has
shown that it is as much as six times less expensive to make a repeat sale than it is to make a sale
to a new customer. Repeat sales are often the results of loyalty and willingness of the buyer to
purchase from the seller without an extensive evaluation of alternatives. Loyalty requires a high
level of trust of the part of the buyer.
Wilson and Moller (1988) developed a list of variables that have been successfully used in
modeling different relationship situations. The five variables by Wilson and Moller are listed
below in details:
1. REPUTATION; it can be negative or positive, but a firm who wants to build a strong
relationship with its customers must have a reputation that is positive. Poor reputation can
affect the firm’s aim of maintaining their existing customers.

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2. TRUST; it is one of the essential element that hold a relationship to it highest point. This
leads the parties to make investment, exchange information, share secret, and work
together in a way that will bring the objectives of the relationship into reality.
3. MUTUAL GOAL; mutual is the degree to which partners share goals that can only be
achieved through joint action and the maintenance of the relationship. Mutual goals
encourage the partners to more mutually understand and depend on each other in the
business.
4. COMMITMENT; this is most common independent variables used in a buyer seller
relationship. This independently follows the course of action or contains believe which
will lead to bringing satisfaction and profitability to them.
5. PERFORMANCE SATISFACTION; for a long lasting relationship to be succeeded,
the basic need of the customer has to be met. Satisfaction is not defined or not succeeded
when the business service or product under the expectation of customers and profitability
of the company is not met.
2.3.1 Buyer-Seller relationship life cycle
Buyers and sellers proceed through a relationship if they believe that staying in it will enable
them to achieve their objectives better than would be possible outside it. The decision whether to
invest or divest in a relationship can be seen as dependent on the quality of the relationship so
far. There has now been much research into the factors that hold buyers and sellers together in a
relationship. Emerging from the general modes of buyer behavior, a number of theoretical and

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empirical based models have been developed to explain the processes of interaction between
buyers and sellers both in the industrial sector and for consumer markets.
Dwyer F. Robert, Paul H. Schurr and Sejo Oh (1987), used a life cycle theoretical approach to
develop a model of buyer- seller relationship. This model identifies five stages of relationship
development- awareness, exploration, expansion, commitment and dissolution. They proposed
that a relationship begins to develop significance in the exploitation stage when the relationship
is characterized by attempts by the seller to attract the attention of the other party, to bargain and
to understand the nature of the power, norms and expectations held by the other. They see the
expansion phase of the relationship resulting from the successful conclusion of the initial
exploratory interaction between the parties. Exchanging outcomes at this stage provides clues
about the suitability of long-term relationships. The commitment phase of the relationship
implies some degree of exclusivity between the parties and results in a minimal information
search for alternatives- if it occurs at all. However, the possibility of a relationship being
terminated is always present and can occur during any of the previous stages. The consequences
of termination are greatest where a party has made significant investment in the relationship.

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2.4 RELATIONSHIP LEVELS
Kotler (2000) distinguished five (5) different levels of relationship that can be formed with
customers who purchase a company’s product as follows:
 Basic level: In this level of relationship, the company’s salespersons sell the product but
do not follow up in any way. A company with many customers and low profit margins
usually would adopt this.
 Reactive level: At this level the salespersons sell the product and encourage the customer
to call whenever they have problems or questions. This level may be adopted by a
company with few low-margin customers or one with many medium-margin customers.
 Accountable level: The salesperson at this level goes further to call or phone the customer
a short time after the sale is made to check whether the product is meeting the customer’s
expectation. He solicits also from the customer any product improvement suggestions and
any specific disappointments. This information usually helps the company improve upon
their products. It is usually adopted by a company with many high margin customers, few
medium margin customers, or one with medium number of customers who have medium
profit margins.
 Proactive level: the salesperson or others in the company call the customer regularly with
suggestions about newly improved products. Companies with medium number of
customers who have high profit margins usually adopt this approach.
 Partnership level: the company works continuously with the customer and with other
customers to discover ways to deliver better value. It may be adopted by a company with
few high profit margin customers.

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The above can be represented by a model as shown below:
Table 1: model on relationship levels as a function of profit margin and number of
customers.
PROFIT MARGINS
HIGH MEDIUM LOW
MANY Accountable Reactive Basic
MEDIUM Proactive Accountable Basic
FEW Partnership Accountable Reactive
Source: Kotler, P. et al (1999): principles of marketing.
To encourage loyalty, factors which influence customer retention should be considered. Among
such factors are the following:
1. High quality products
2. Excellent customer service
3. Taking long-term marketing decisions
4. Establishing customer profits or database
From a customer communication perspective, the most important factor in relationship marketing
is the creation of a dialogue between the organization and the customer. This results in the

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customer getting what they want and at the same time becoming loyal customers who
recommend others to the firm. Kotler, P. et al (1999).
Mcdaniel (2006) Suggested that relationship marketing can be practiced at three levels.
structural social financial
Social financial
financial
Fig. 1 The three levels of relationship marketing
Source: McDaniel (2006), introduction to marketing.
Level 1 Financial; the firm uses pricing incentives to encourage customer to continue doing
business with them. In a case where Intravenous Infusion limited gives 5% price discount on
Dextrose(5%), if the customer is able to buy ten boxes at a time. This level is the least effective
in the long-term because its price based advert is easily imitated by competitors.
3. Creating value-added service not
available elsewhere.
2. Design service to meet customer’s needs
1. Price incentives

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Level 2 Social Financial; this level of relationship marketing also uses pricing incentives but
seeks to build social bond with customers. The firm stays in touch with customers, learn about
their needs and design service to meet those needs. In this level relationship marketing has a
higher potential for keeping the firm ahead of the competition than it does in level one.
Level 3 Structural social financial; at this level, the firm again uses financial and social bond
but adds structural bond to the formula. Structural bonds are developed by offering value added
services that cannot be readily given by other firms. Marketing programs like this one have the
strongest potential for sustaining long-term relationships with customers.
2.5 CONTENTS OF RELATIONSHIP MARKETING BY PALMER, A. (2000)
1. I can get no satisfaction:
Relationship marketing relies on the communication and acquisition of consumer
requirements solely from existing customers in a mutually beneficial exchange usually
involving permission for contact by the customer through an “opt-in” system. With
particular relevance to customer satisfaction, the relative price and quality of goods and
services produced or sold through a company alongside customer service generally
determine the amount of sales relative to that of competing companies. Although groups
targeted through relationship marketing may be large, accuracy of communication and
overall relevancy to the customer remain higher than that of direct marketing, but has less
potential for generating new leads than direct marketing and is limited to viral marketing
for the acquisition of further customers.

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2. Relationship selling:
All businesses grow on good relationship with customers. However, few companies
spend much effort in equipping their sales people with this skill. Sales representatives are
well trained to present their products benefits and features but the need to build lasting
customer relationship is often overlooked. Today, selling is no longer about pushing a
product and achieving good or quick sales, it is about building lasting and long-term
customer loyalty. Product knowledge is important for every salesperson because it helps
to present whatever they are trying to sell. Unfortunately, this misses the more important
aspect of creating or selling value to customer. A good customer relationship is only built
when the customer truly gains value from what he or she purchases.
3. Retention:
A key principle of relationship marketing is the retention of customers through varying
means and practices to ensure repeated trade from pre-existing customers by satisfying
requirements above that of competing firms through a mutually beneficial relationship.
This technique is now used as a means of counter-balancing new customers and
opportunities with current and existing customers as a means of maximizing profit and
counteracting the “leaky bucket theory of business” where new customers gained in older
direct marketing oriented business were at the expense of or coincided with the loss of
older customers. The process of “churning” is less economically viable than retaining all
or majority of customers using both direct and relationship management. It is claimed by
Reichheld and Sasser (1990) that a 5% improvement in customer retention can cause an
increase in profitability of between 25 and 85 percent (in terms of net present value),
depending on the industry.

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According to Buchanan and Gilles (1990), the increased profitability associated with customer
retention effort occurs because of several factors that occur once a relationship has been
established with a customer. Long-term customers tend to be less inclined to switch, and also are
less price sensitive. This can result in stable unit sales volume and increases in dollar sales
volume. Long-term customers may initiate free word of mouth promotions and referrals. Long-
term customers are more likely to purchase auxilliary and high margin supplemented products.
Customers that stay with you tend to be satisfied with the relationship and are less likely to
switch to competitors, making it difficult for competitors to enter the market or gain market
share. Increased customer retention and loyalty makes the employees jobs easier and more
satisfying. In turn, happy employees feed back into better customer satisfaction in a virtuous
cycle.
Buchanan and Gilles (1990), suggested that customer retention efforts involves considerations
such as the following:
1. Customer valuation—Gordon(1990), describes how to value customers and categorize
them according to their financial and strategic value so that companies can decide where
to invest for deeper relationship and which relationships need to be served differently or
even terminated.
2. Customer retention measurement- Dawkins and Reichheld (1990), calculated a
company’s “customer retention”. This is simply the percentage of customers at the
beginning of the year, that are still customers by the end of the year.

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3. Determine reasons for defection—look for the root causes not the mere symptoms. This
involves probing for details when talking to formal customers. Other techniques include
the analysis of customer’s complaints and competitive benchmarking.
4. Develop and implement corrective plan—this would involve actions to improve
employee practices, using the benchmarking to determine best corrective practices,
visible endorsement of top management, adjustment to the company’s reward and
recognition system, and the use “recovery teams” to eliminate the causes of defections.
Many relationship marketers use a team-based approach. The rationale is that the more
point of contact between the organization and customer, the stronger the bond and secure
the relationship.
2.6 COMPARISON BETWEEN RELATIONSHIP MARKETING AND
TRANSACTIONAL MARKETING
To understand the nature of relationship marketing, it is useful to compare and contrast it with
the transactional marketing approach. In transactional marketing, sellers base their immediate
sale on offering an attractive combination of products, price, technical support and others. In the
case of relationship marketing the focus is not on a “one-off” transaction but on a long term
interactive relationship that has mutual benefits to both the marketer and the customer. Thus
where transaction marketing is “one-off”, relationship marketing is long- term.
Relationship marketing and transactional marketing are not mutually exclusive and there is no
need for a conflict between them. However, one approach may be more suitable in some
situations than others. Transactional marketing is most appropriate when marketing relatively

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low value consumer products, when the product is a commodity, when switching costs are low,
when customers prefer single transactions to relationships and when customer involvement in
production is low. When the reverse of all the above is true, as in typical industrial and service
markets, then relationship marketing can be more appropriate. (Lancaster et al, 1990).
2.6.1 From Transactional Marketing To Relationship Marketing
Berry, L.,(1983) suggested that a more conventional approach to marketing has been the old
transactional marketing, whereby the functions of marketing, customer service and quality has
been separate entities within the organization. However, the disintegrated approach to marketing
meant that the potential to optimize marketing relationship was being lost, As the lack of co-
ordination between gave way to a fragmented approach to achieving customer satisfaction.
Ultimately and in many instances, this started to prove problematic with many organizations, as
they were suffering from lack of market share, to the more-relationship focused businesses.
There are a number of significant differences between the concepts and context of transactional
and relationship marketing.
Principally, the key difference in the management of the relationship is that the basis of it will be
a long-term relationship, a long-term view achieving and long term customer loyalty. Payne A.
and Sue H. (1991) suggested that in order to establish and construct a relationship program, there
are four (4) factors that the organization will need to concentrate on. These factors include:

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1. Defining the value proposition
2. Identifying the appropriate customer value segments
3. Designing value delivery systems
4. Managing and maintaining delivered satisfaction.
Table 2:The shift to relationship marketing
Transactional focus Relationship focus
1. Orientation to single sales Orientation to customers
2. Discontinuous customer contact Continuous customer contact
3. Focus on product features Focus on customer value
4. Quality is the concern of staff Quality is the concern of all staffs
5. Limited commitment to meeting
customer expectations
High commitment to meeting customer
satisfaction
6. Limited emphasis on customer service High customer service emphasis
Source: Payne et al (1991), Relationship Marketing
For an organization to succeed, it is essential that the value proposition meets the expectation of
customers, so that the expectations in their minds meet those in the mind of the supplier and that
there is little scope for customer uncertainties, a concept that one comes across in selling.
Therefore, the value proposition needs to fill any gap in expectation. At the end of the day, the
better the value proposition, the better customers are treated and the more likely it is that the

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organization can establish competitive advantage. The quality and strength of customer
relationship is vital to the survival and profitability of all organizations, it is essential for
competitive advantage to be sustained, customer loyalty to be achieved, that the process of
delivering customer satisfaction is clearly defined to avoid any potential gaps in customer
perception of the value proposition and their expectations. Payne et al (1991).
2.7 PLANNING FOR RELATIONSHIP MARKETING
According to Palmer A, (2000), a marketing relationship does not just happen, evolve or emerge,
it has to be planned. As with all other aspects of marketing, it requires a structured approach to
ensuring that relationship marketing does maximize business potential, provides the basis for
profitability, create sustainable competitive advantage through robust and long-term customer
and supplier stakeholder relationships. In order to plan for relationship marketing, there is the
need to understand some key factors; customer loyalty, the dimensions of quality, building trust
and the basis of continuous improvement.
1. Customer Loyalty:
To achieve customer loyalty is highly challenging, as it looks at the loyalty of all
customer groups that are involved in the relationship marketing process. In order for
relationship marketing to be truly implemented as part of the business culture, it focuses
on all customer groups. Relationship marketing is a long-term process, and in order for
customer loyalty to be considered and achieved, there are a number of key identifiable
stages that the relationship moves through. This is more formally known as the ladder of
customer loyalty. It is illustrated in figure (2) below.

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Emphasis on customers
(Customer catching)
Emphasis on developing
And enhancing relationships
(Customer keeping)
Fig. 2 Customer loyalty ladder
Source: Palmer A, (2000), Principles of Marketing
The ladder highlights the process for targeting the customer to adoption and to developing the
relationship from customer to long-term client. From here, it is then essential to encourage the
customer to become both supporters and advocates of the company in order that they can become
a marketing tool on your behalf not just retaining them but to grow your market. Customer
loyalty however has two dimensions-a long-term loyalty, which is the basis of a true relationship
marketing scenario, and of course, false loyalty. This will essentially be driven by a number of
key factors which are limited completion of the task, high switching cost, propriety technology,
Advocate
Supporter
Client
Customer
prospect

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and the attraction of the same loyalty scheme. The key objectives in this context are to actually
switch the power base of loyalty to a more long term relationship and indeed partnership.
Customer loyalty of course is very much linked with brand loyalty.
2. The key dimension of relationship marketing:
According to Palmer A, (2000), quality is the core of the business and the relationship
with customers. Therefore there are some key dimensions that an organization must deliver in
order to provide a basis upon which a relationship is built. These are;
 Reliability- this is the ability to perform the promised services dependably and
accurately.
 Responsiveness- this is the willingness to help customers provide prompt service
 Assurance- this has to do with the knowledge and courtesy of employees and their
ability to inspire trust and confidence in customers.
 Empathy- this involves caring, individualism, attention, which the firm provides
to the customers
 Tangibles- this are the physical facilities equipment and appearance of personnel.
In order for the relationship to be established, the basis of the quality gap must be
filled, that is the difference between the customer expectations and the
organizational perception of what is being delivered must be a keen consideration.
3. Building a relationship based on trust:
Morgan and Hunt (1994), suggested three dynamics to build trust within a relationship.

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Fig.3 the three (3) dynamics to build trust
Source: Morgan and Hunt (1994), what builds trust?
There are three simplistic components that will form the basis of any relationship. The basis of
trust provides the opportunity to develop a relationship that includes co-operation, leading to
relationship commitment. Relationship marketing is an ideal concept, typically this three
components tend to be overlooked perhaps assumed or even ignored. Principally, there should be
a basis for relationship marketing aims and objectives. However, in figure 6, you will see the
benefit of building a relationship on trust, as you can save relationship termination cost, gain
many benefit, and look towards a relationship, based on shared value.
Opportunistic behavior will be great benefit of partnership in a relationship management context.
Communication is absolute, this is because the more inward and outward bound communication
that exist, the more you will find out about the customer, their needs, wants and perhaps their
Relationship ,
commitment
Co-operation
Trust

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competitive experience of which will only serve to strengthen the basis of which you would
operate.

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CHAPTER THREE
METHODOLOGY
3.0 INTRODUCTION
This chapter presents the research method adopted for this research. This chapter is discussed
under the following sub-headings; population, sample size and sampling procedure, research
instrument, procedure followed in data collection and method of data analysis.
3.1 RESEARCH DESIGN
This is a detailed outline of how the investigation will take place. A research design will include
how data is to be collected, what instruments will be employed, how the instruments will be used
and the intended means for analyzing data collected. For the purpose of this study, interviews
and questionnaires will be administered to collect data from the field. Purposive sampling
technique and simple random sampling will be the sampling techniques to be used. The received
questionnaires will be analyzed to bring out the findings in a statistical manner.
3.2 POPULATION
A population is a summation of all the organisms of the same group or species, which live in a
particular geographical area, and have the capability of interbreeding.
All elements, individuals, or units that meet the selection criteria for a group to be studied, and
from which a representative sample is taken for detailed examination. The total of all populations
is called a universe. By this definition, the universe was made up of all hospitals, clinics and
pharmacies in the Eastern Region of Ghana which were 394 of which the 25 were chosen from

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the New Juabeng municipality as the population of the study in addition to 25 staff of
Intravenous infusions limited.
The population was made up of management and non-management staff of intravenous
infusions limited and its customers (hospitals clinics and pharmacies) in Koforidua and its
immediate environment. The researchers settled on the population based on the fact that the
constituent members have an in-depth knowledge about the company and its relationship
marketing activities. The population, for analytical reason, was divided into two (that is;’A’ and
‘B’). Population for sub-category A comprised both management and non-management staff of
intravenous infusions limited, while population sub-category B comprised of customers of
intravenous infusions limited.
3.3 SAMPLE SIZE AND SAMPLING TECHNIQUE
The study considered two major categories of sub-samples (that is ‘A’ and ‘B’). In the case of
sub-sample A, five (5) managers were selected and twenty (20) other staff. Sub- sample B, was
made up of twenty-five (25) customers of intravenous infusions limited. In all, the sample size
was fifty (50). For sample A, the purposive sampling technique was used to select the
management and non- management staff of intravenous infusions limited. The researchers used
the purposive sampling technique because, in their view, the managers and staff are the best
people to provide them with the type of information needed about the company. For the
customers (that is the hospitals, clinics and the pharmacies), simple random sampling was used
to select them. This is because they all stood a chance of being chosen.

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3.4 RESEARCH INSTRUMENT
The researchers used interviews and questionnaire as their research instrument for the project
work.
The questionnaires were administered to management and non-management staff of intravenous
infusions limited and their customers. The researchers also used open- ended and close- ended
questions. The closed-ended questions pre-specified all the possible answers for the respondent
to make a choice. While the open-ended questions allowed the respondent to answer in their own
words.
The questionnaire was employed because, it effectively eliminates interviewer’s biases and
control inhibitions of workers.
Interviews were also conducted with some hospitals and clinics. Both structured and
unstructured interviews were used for soliciting for information. For structured interviews, the
researchers used it to pre-design to make it possible for responses from different individuals to
be compared. For the unstructured interviews, the researchers used it to ensure the completeness
of the research work by obtaining additional information not obtained through the administration
of the questionnaire.
The interview was conducted because it offers the opportunity to answer more complex
questions. Since the presence of the interviewer can assist in answering the questions.
3.5 PROCEDURE FOLLOWED IN DATA COLLECTION.
The researchers, prior to going to the field to collect data took and introductory letter from the
head of marketing department, Koforidua Polytechnic. The introductory letter was presented to

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the management of intravenous infusions limited and some hospitals, clinics and pharmacies in
Koforidua in the quest of soliciting their permission to conduct the research in their respective
outfits.
In the case of intravenous infusions limited upon receiving the letter, the researchers were
introduced by management to the staff members of the company. The management of the other
respective firms (ie hospitals, clinics and pharmacies) also informed their staff members and
entreated them to cooperate, as appropriate, with the researchers to achieve the objectives of the
study.
The study’s questionnaires were distributed personally by the researchers with the aid of one
staff member of the firm. The individual members of the study’s sample were assured that
answers would be treated with the highest level of confidence. The researchers allowed a
maximum of 10 days for the various respondents to complete the questionnaires. Two days after
the specified period the researchers did a follow up to retrieve the entire questionnaires.
3.6 METHODS OF DATA ANALYSIS
Data collected from primary sources were meticulously edited to crosscheck that relevant data
needed to achieve the purpose of the research study had been provided. This were then classified
and counted to determine their respective frequencies and percentages. Some of the date
provided have been provided in simplified graphs, chats, and tables. The researchers used the
above statistical tools because, in the researchers view it is simple to understand.

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CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.0 INTRODUCTION
This chapter focuses on the presentation and analysis of data collected from the questionnaires
administered to get the opinion or the views of management and non-management and
customers.
In all, fifty (50) questionnaires were sent out. Five (5) went to management and twenty (20) went
to non-management staff of Intravenous infusions limited. Twenty-five (25) also went to
customers of Intravenous infusions limited especially (hospitals, clinics and pharmacies). The
analysis has been presented in graphs charts and tables.
TABLE 1:A SUMMARY OF QUESTIONNAIRES ADMINISTERED AND COLLECTED
GROUP NUMBER ISSUED NUMBER
COLLECTED
PERCENTAGE (%)
Management 5 4 80
Staff 20 15 75
Customers 25 20 80
Total 50 39 78
The table above explains or represents the number of questionnaires administered and retrieved
from management, staff and customers of Intravenous infusions limited.

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Even though 50 questionnaires were administered, only 39 representing 78% of the total number
of the questionnaires were retrieved and 11 representing 22% could not be retrieved.
4.1 PROFILE OF RESPONDENTS
Out of the thirty-nine (39) questionnaires retrieved, 23 respondents, representing (59%) were
males and sixteen (16) respondents representing (41%) were females from the various age
groups.
It can be deduced that, majority of the respondents were between the ages of 31 to 40 years
representing 30.4% males and 31.3% females respectively. It can be deduced that, more males
than females responded to the questionnaires.
TABLE 3: HOW LONG HAVE CUSTOMERS BEEN DEALING WITH INTRAVENOUS
INFUSIONS LIMITED?
DURATION NUMBER OF RESPONDENTS PERCENTAGES (%)
Below 1 year 2 10
1-5 years 5 25
6-10 years 10 50
11 and above 3 15
TOTAL 20 100

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Source: Field Survey June 2015
From the table above, it can be deduced that, most of the customers of Intravenous infusions
limited have been dealing with them for the period of 6-10 years which represents 50% of the
total respondents. This shows that customers have been dealing with the company for a very long
time.
TABLE 4: WHAT KIND OF CUSTOMER RELATIONSHIP EXISTS BETWEEN
CUSTOMERS AND THE COMPANY?
RESPONSES NUMBER OF
RESPONDENTS
PERCENTAGES (%)
Corporate customers 11 55
Individual customers 7 35
Others 2 10
TOTAL 20 100
From the table above, it shows clearly that, the customers of the company are mostly corporate
customers representing 55% of the total responses from customers. This means that, the
respondents answered the questionnaires for their respective institutions that purchase the
products of Intravenous infusions limited.

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TABLE 5: HOW OFTEN DO PERSONNEL OF INTRAVENOUS INFUSIONS LIMITED
VISIT CUSTOMERS?
RESPONSES NUMBER OF
RESPONDENTS
PERCENTAGES (%)
Frequently 2 10
Always 3 15
Once a while 11 55
Never 4 20
TOTAL 20 100
The information from the data above indicates that, most of the company personnel visit their
customers once a while. This deduction was made because eleven (11) respondents who
represent 55% of the total 100% said that the company’s personnel visit them once a while,
while three (3) out of the total twenty (20) respondents representing (15%) responded that the
company’s personnel visit their organization always and two (2) out of the total twenty (20)
respondents representing (10%) said the company personnel visit them frequently and out of the

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twenty (20) respondents, four (4) respondents representing (20%) also said the company’s
personnel never visit them. This is represented in a diagram below.
TABLE 6: WHY DO PERSONNEL FROM INTRAVENOUS INFUSIONS VISIT OR
CONTACT YOU?
RESPONSES NUMBER OF
RESPONDENTS
PERCENTAGES (%)
To explain new product
features and uses
3 19
To introduce the company’s
new products
9 56
To find out if there is any
problem associated with the
use of IIL products
4 25
Others 0 0
TOTAL 16 100
From the previous survey it was said that the company’s personnel never visit four (4)
customers. Therefore the only customers they visit are sixteen (16) out of the twenty (20)

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respondents. The above table indicates that, the primary reason why the company’s personnel
visit or contact customers are to introduce the company’s new products. This is indicated in the
table above, where (56%) of the respondents agreed to this.
TABLE 7: WHEN YOU EXPRESS DISSATISFACTION, AT WHAT RATE DOES
INTRAVENOUS INFUSIONS RESPOND TO YOUR COMPLAINTS?
RESPONSES NUMBER OF
RESPONDENTS
PERCENTAGES (%)
Very quickly 3 15
Quickly 13 65
Not quickly 4 20
TOTAL 20 100
From the table above, it can be noticed that, three (3) respondents representing 15% responded
“very quickly” to the question above. Also 13 respondents representing 65% responded
“quickly” to the question above. Four (4) respondents who represent 20% responded “not
quickly” to the question above.
Based on the data above, it can then be confirmed that, the intravenous infusions limited respond
quickly to their customers (hospitals, clinics and pharmacies) in the New-Juabeng municipality.

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TABLE 8: ARE YOU SATISFIED WITH THE WAY THE COMPANY REACTS TO YOUR
COMPLAINTS?
RESPONDENTS NUMBER OF RESPONDENTS PERCENTAGE (%)
Yes 7 35
No 13 65
TOTAL 20 100
Information from the above table shows clearly that, (7) respondents representing 35% of the
total respondents, responded “YES” to the question above and (13) respondents out of the (20)
respondents representing 65% responded “NO” to the question above. This implies that majority
of the customers are dissatisfied with the way the company reacts to their complaints. This is
clearly indicated by (13) respondents responding “NO” to the question.
TABLE 9: DOES THE RELATIONSHIP BETWEEN YOU AND INTRAVENOUS
INFUSIONS INFLUENCE YOUR DECISION TO BUY THEIR PRODUCTS?

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RESPONSES NUMBER OF
RESPONDENT
PERCENTAGES (%)
Yes 12 60
No 8 40
TOTAL 20 100
From the table above, it can be noticed that, 12 respondents representing 60% of the total
respondents responded “YES” while 8 respondents representing 40% answered “NO” to the
question above. It implies that customers purposely buy from intravenous infusions limited
because of their relationship with them.
It indicated clearly that the relationship between Intravenous infusions limited and their
customers influence the customer’s decision to buy their products.
TABLE 10: ARE YOU SATISFIED WITH INTRAVENOUS INFUSIONS LIMITED’S
RELATIONSHIP WITH YOU?
RESPONDENTS NUMBER OF
RESPONDENTS
PERCENTAGES (%)
Yes 6 30
No 14 70
TOTAL 20 100

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The table above shows that intravenous infusions limited customers are dissatisfied with the
company’s relationship with them i.e. customers. This can be confirmed by 14 out of the total 20
respondents representing 70% answering “NO” to the question.
TABLE 11: HOW WILL YOU DESCRIBE THE ATTITUDE OF INTRAVENOUS
INFUSIONS DELIVERY MEN?
RESPONDENTS NUMBER OF
RESPONDENTS
PERCENTAGES (%)
Very friendly 5 25
Friendly 13 65
Unfriendly 2 10
TOTAL 20 100
The information above indicates clearly that, the attitude of the company’s delivery men is
friendly. To support this, the 13 respondents from the total respondents, representing 65%
responding that the attitude of the company’s delivery men is friendly.
Also 5 respondents responded “very friendly” to the question asked. They represent 25% of the
total respondents.

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Finally, 3 respondents representing 10% responded that they were unfriendly to the above
question.
They came out that, they want the company to maintain the level of product quality, easy access
to their products, good pricing policies and packaging. Some also said that, the delivery time of
the company was also accurate. Those who said it wasn’t, suggested the company should not
focus on product quality only but equal attention should be given to issues like, having meeting
with the customers once every 2 months, so that the customers can also be part of the decision
making.
TABLE 12: HAVE YOU EVER THOUGHT OF SWITCHING TO OTHER COMPETING
FIRMS TO DO BUSINESS?
RESPONSES NUMBER OF
RESPONDENTS
PERCENTAGES (%)
YES 8 40
NO 12 60
TOTAL 20 100
From the above table, it can be seen clearly that, most of the respondents responded “NO” to the
question. About 12 of the respondents representing 60% of the total respondents responded
“NO” to the question. Also 8 of the respondents representing 40% of the total respondents

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responded “YES” to the question above. This means that more customers have thought of
switching then staying with the company.
4.2 PROFILE OF RESPONDENTS FROM MANAGEMENT AND NON-
MANAGEMENT STAFF
The graph above clearly indicates that the company strongly believes in the building a mutually
beneficial long-term relationship with customers. This is shown by 15 respondents representing
79% of the total respondents responding “YES” and 4 respondents representing 21% if the total
respondents responding “NO” to the question.
In support of the analysis management explained that there is a mutual interaction between the
company and its customers, where the customers visit the company from time to time.
The company also regularly communicates with its customers and also pays a critical attention to
their social responsibility.

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FIG. 1: A BAR CHARTS SHOWING WHETHER THE COMPANY BELIEVES IN THE
CONCEPT OF RELATIONSHIP MARKETING.
From the graph below, it can be noticed that out of the 19 respondents, 11 of them representing
58% responded that the company has been practicing relationship marketing for 11-15 years.
Also 4 respondents representing 21% of the total respondents responded that the company has
been practicing relationship marketing for 6-10 years to the question above. 2 responded 1-5
years, 1 answered 16-20 years and 1 also responded 21 years and above to the question.
0
10
20
30
40
50
60
70
80
YES NO
15
4
79
21
RESPONSES
PERCENTAGES(%)

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FIG. 2: THE PIE CHART SHOWING HOW LONG IIL HAVE BEEN PRACTICING
RELATIONSHIP MARKETING.
The graph indicated that the company has achieved customer loyalty as a result of practicing
relationship marketing. This is indicated by 8 out of the total respondents representing 42%
responding “customer loyalty” to the question above. 4 out of the total respondents representing
21% responding “higher sales” and “goodwill” respectively. Also 2 respondents representing
11
21
58
5 5
PERCENTAGES(%)
1-5 years
6-10 years
11-15 years
16-20 years
21 and above

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11% responded “all the above” while only 1 respondent representing 5% responded “others” to
the question.
FIG.4: A BAR CHART SHOWING THE WHAT THE COMPANY HAS ACHIEVED FROM
PRACTICING RELATIONSHIP MARKETING.
The graph indicates that the company’s major challenge is effective communication skills for
building of the mutually beneficial relationship with customers. To support this fact, 8
respondents representing 41% responded communication problem to the question above. They
are also faced with financial and managerial problems,6 respondents representing 32% and 3
representing 16% responded to the question above respectively.
4
8
4
2 1
21
42
21
11
5
0
5
10
15
20
25
30
35
40
45
Higher sales Customer
loyalty
Goodwill All the above Others
RESPONDENTS
PERCENTAGES (%)

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FIG. 5: A BAR CHART SHOWING WHAT HINDERS THE COMPANY FROM
PRACTICING RELATIONSHIP MARKETING.
From the graph above, it is indicated that the company is doing something to address the
communication problem. In support of this, the company is developing an effective
communication skills to curb the problem.
From the graph below, it can be seen that the company is vividly putting in place resources to
ensure the effective building of mutually satisfying relationship with key parties. To support this
fact, 15 respondents representing 79% answered that they are putting in resources to curb the
0
5
10
15
20
25
30
35
40
45
6
3
8
2
0
32
16
41
11
0
RESPONDENTS
PERCENTAGES (%)

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problem whiles 4 out of the total respondents representing 21% answered that rewards are being
given in terms of remuneration to employees who help foster the better relationship.
FIG. 6 : WHAT MEASURES AND MECHANISMS HAS THE COMPANY PUT IN PLACE
TO ENSURE THE BUILDING OF MUTUALLY SATISFIED LONG-TERM RELATION
WITH KEY PARTIES?
The information from the graph below indicates that, the company’s personnel visits their
customers once a while. This analysis was made because, 9 respondents who representing 47%
of the total 100% said that the company’s personnel visit them once a while. Two (2) out of the
total 19 respondents representing 11% responded that the company’s personnel visit them
frequently. Also 5 of the respondents representing 16% responded that they visit always and 5
representing 26% responded that they never visit.
0
10
20
30
40
50
60
70
80
Resources Rewards
79
21
15
4
PERCENTAGES(%)
RESPONDENTS

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FIG. 7: A GRAPH SHOWING HOW OFTEN THE COMPANY’S PERSONNEL VISIT
CUSTOMERS.
The pie chart below shows that the main reason why the company visit or contact customers is to
introduce their new product. This is indicated in the table above where,13 out of the total
respondent representing 68% of the respondent agreed to this. Also the company contact
customers to explain new product features and to find out if there is any problem associated with
the use of their product representing 21% and 11% respectively.
0
10
20
30
40
50
Frequently
Always
Once a
while Never
11 16
47
26
PERCENTAGES(%)
PERCENTAGES (%)

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FIG. 8: WHY DOES YOUR COMPANY VISIT OR CONTACT CUSTOMERS?
From the chart below it is seen clearly that management are of the view that the level of
customer satisfaction in the company is medium. This is shown where 10 of them representing
53% responded that customer satisfaction in the company is medium. Five (5) were also of the
view that the level of satisfaction was high and four (4) were of the view that it was low.
21
68
1111
PERCENTAGES(%)
To explain hew product
features
To introducethe company’s
new products
To find out if there is any
problem associated with the
use of their products

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FIG. 9: A BAR CHART SHOWING THE LEVEL OF CUSTOMER SATISFACTION IN
INTRAVENOUS INFUSIONS LIMITED.
0
10
20
30
40
50
60
HIGH MEDIUM LOW
26
53
21
PERCENTAGES(%)
PERCENTAGES (%)

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From the pie chart below, it can be noticed that, 4 respondents representing 21% responded
“very quickly” to the question above, 10 respondents representing 53% responded “quickly” to
the question above and 5 of the respondents representing 26% responded “not quickly” to the
question.
FIG. 10: A PIE CHART SHOWING THE RATE AT WHICH THE COMPANY REACTS TO
THE COMPLAINTS OF THEIR CUSTOMERS.
21
53
26
PERCENTAGES(%)
very quickly
quickly
not quickly

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CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.0 INTRODUCTION
This chapter will focus on summary of findings, conclusion and recommendation based on the
profile of customers, management and non-management staff.
5.1 SUMMARY OF FINDINGS (MANAGEMENT, NON-MANAGEMENT AND
CUSTOMERS)
More males responded than females, majority of the respondents fell between 31 and 40 years.
Also according to the data analysis the kind of customer relationship that exist between the
respondents and the company is corporate. This means that the respondents purchase the product
on behalf of their prospective organizations (hospitals, clinics and pharmacies).
It was found out that personnel from intravenous infusions limited visit or contact customers
once a while to introduce the company’s new products. These personnel visit their customers
mainly to introduce new products and check or examine the products performance.
About how often personnel of intravenous infusions limited visit their customers, it was noted
that, they visit once a while. This serves as weakness to the building of strong relationship
marketing by the company.
Concerning the rate at which intravenous infusions limited responds to their customer
complaints, majority of the respondents said the company responds to their complaints quickly.

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This is to some extent a good sign in terms of building strong relationship marketing. The
customers also responded that they are satisfied with the way the company reacts to their
complaints.
The external customers describe the relationship between them and the company as good. They
also responded that their decision to purchase the company’s products are being influenced by
their relationship with company, showing clearly that relationship marketing is one of the
important techniques that the company should put into critical consideration. About how
satisfied the external customers are, with the company’s relationship with them, majority of the
respondents responded “YES” showing that they are satisfied.
According to the analysis, more males responded than female. Majority of the respondents fell
between the ages of 30 and 40 years. Also, majority of management and non-management staff
have been working with the company for the past 10 years and below.
The analysis also indicated that the company believes in relationship marketing. Taking the
majority views into consideration, the company has been practicing relationship marketing for
about 11 to 15 years. As a result of the relationship marketing, the company has achieved
customer loyalty.
Also taking the majority into consideration, the challenge hindering the practicing of relationship
marketing by the organization, was communication problem. From the data analysis, on what the
company is doing to tackle the problem, it was confirmed that, the company is developing an
effective communication skills to care for the problem.

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Most respondents also said that because customers are allowed to share their views and at times
take part in decision making, they are in a partnership relationship with customers, because the
company takes customer needs and wants into consideration before production. This shows that
they believe in the concept of relationship marketing.
Taking into consideration, what measures or mechanisms the company is putting in place to
ensure good relationship marketing, the company is strongly putting in place resources (money,
competence and equipment). Also when asked how often do personnel visit customers, the
company said they visit or contact customers once a while, to introduce new products to them
and also when customers express dissatisfaction, the company is able to respond to them quickly,
which is a plus to the company in this competitive environment.
5.2 CONCLUSION
It can be concluded that relationship marketing really has impact on intravenous’ marketing and
sales activities. However, their relationship marketing practice is not all that effective and
efficient. The company, instead of being proactive to steer their own destiny is rather react, the
problem must occur before they react to it, which is not the best strategy in this competitive
marketing environment.
Even though majority of the respondents said that they are satisfied with the company’s
relationship with them, the company has to go the extra mile to delight the customer if they want
to survive in this competitive marketing environment.
It can be concluded that, the company’s believe in the relationship marketing is not all that
strong. This is because they normally visit their customers once a while to introduce new

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products to them and or to check or find out about their product performance of which
relationship marketing goes beyond.
In addition to this, the company understands the concept of relationship marketing but their main
problem is resources.
5.3 RECOMMENDATIONS
 Staff of the company, should be trained to know the need of becoming proactive
rather than reactive.
 The company’s personnel attitude (friendliness) towards customers is a plus to the
company. These personnel should be motivated or rewarded so that they can keep up
with their work.
 The company should also improve their communication system with both the external
and the internal customers.
 Adequate resources should be allocated to the marketing department to help enhance
the practicing of relationship marketing.
 The marketing department should educate all the departments especially the finance
and accounting about the need to invest in relationship marketing to be able to delight
their customers.

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REFERENCES
1. Berry, L., (1983), Relationship Marketing. American Marketing Association (AMA).
2. Buchanan, R and Gilles, C. (1990), Value Managed Relationship; the key to customer
retention and profitability. European Management Journal (EMJ)
3. Berkowitz N., Hartley W., Kerin A and Rudelius W (2000) Marketing, 6th Edition,
McGraw Hill: USA
4. Dwyer F, and Tanner J, (1999)Business Marketing, McGraw Hill: USA
5. Gordon (1991), Relationship Marketing; New Strategies Techniques and Technologies to
Win the Customer You Want and Keep Them Forever. John Wiley and Sons Publishers
6. Hair J., Lamb C. and McDaniel C. (2006) Introduction to Marketing, 8th Edition,
Thomson: South Western
7. Isobe Doole and Rubin Howe, (1999),International Strategy, 2nd Edition, Thomson
Learning.
8. Jackson B. (1985), Build Customer Relationship That Last . Harvard Business Review.
9. Kotler P.(2003),Marketing Management,11th Edition,Prentice Hall Inc.,New York,U.S.A.
10. Kotler P. and Keller K.(2006), Marketing Management, 12th Edition, Pearson Prentice
Hall.
11. Kevin, Hartley, Berkowtz and Rudelias (1997), Marketing, 5th Edition. David Kendrick
Brake.
12. Lancaster, G. and Massingham, L.(1990), Essential of Marketing,2nd Edition , McGraw
Hill Inc, United Kingdom.
13. Levitt T. (1983), After Sale Is Over, Harvard Business Review.
14. Morgan and Hunt (1994), Marketing. Harvard Business Review.

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15. Nigel Hill (1994) Marketing, 2nd Edition, Business Education
16. Payne et al (1991) Relationship Marketing. Prentice Hall Inc., New York, U.S.A.
17. Pride and Ferrell (1997),Marketing, 10th edition. Houghton.
18. Palmer, A. (2000) Principles of Marketing, Oxford University Press, Inc., New York.
19. Zikimund, G .W. and d ’Amico, M.(2001),The Power of Marketing,7th edition, South-
Western College Publishing.

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A SAMPLE OF QUESTIONNAIRE FOR CUSTOMERS
(HOSPITALS, CLINICS AND PHARMACIES)
DEPARTMENT OF MARKETING
This study entitled “Assessing the role of relationship marketing on customer retention in the
pharmaceutical industry; A study of intravenous infusions limited” is in partial fulfillment of the
requirement for the award of higher national diploma (marketing) in Koforidua Polytechnic. The
researchers would be most grateful if you could provide candid responses to itemized questions
that follows. Any information offered would be kept confidential and used only for the above
purpose of the study.
Thank you for your cooperation.
Instruction: please tick [√ ] the answer that most suits you and comment in your own words
where appropriate.

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1. Gender: Male [ ] Female [ ]
2. Age: Below 20years [ ] 21-30years [ ] 31-40years [ ] 41-50years [ ]
51years and above [ ]
3. How long have you been a customer of intravenous infusions limited?
Below 1year [ ] 1-5years [ ] 6-10years [ ] 11 and above [ ]
4. What kind of customer relationship exists between you and the company?
Corporate customer [ ] Individual customer [ ] others [ ]
5. How often do personnel of intravenous infusions limited visit your organization?
Frequently [ ] Always [ ] Once a while [ ] Never [ ]
6. Why do personnel from intravenous infusions limited visit or contact you?
To explain new product features and uses [ ]
To find out if there are any problems associated with the use of intravenous infusions
limited products [ ]
To introduce new products [ ]
Others [ ]
7. When you express dissatisfaction, at what rate does intravenous infusions limited respond
to your complaint?
Very quickly [ ] Quickly [ ] Not quickly [ ]
8. Are you satisfied with the way intravenous infusions limited reacts to your complaints?
Yes [ ] No [ ]
9. Does your relationship with intravenous infusions limited influence your decision?
Yes [ ] No [ ]

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10. Are you satisfied with intravenous infusions Limited’s relationship with you?
Yes [ ] No [ ]
11. How would you describe the attitude of intravenous infusions limited delivery men?
Very friendly [ ] Friendly [ ] Not friendly [ ]
12. What suggestions can you make to improve your relationship with intravenous infusions
limited?
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………
13. Have you ever thought of switching to any other pharmaceutical company to do
business?
Yes [ ] No [ ]

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A SAMPLE OF QUESTIONNAIRE FOR MANAGEMENT AND NON-
MANAGEMENT STAFFS
DEPARTMENT OF MARKETING
This study entitled “Assessing the role of relationship marketing on customer retention in the
pharmaceutical industry; A study of intravenous infusions limited” is in partial fulfillment of the
requirement for the award of higher national diploma (marketing) in Koforidua Polytechnic. The
researchers would be most grateful if you could provide candid responses to itemized questions
that follow. Any information offered would be kept confidential and used only for the above
purpose of the study.
Thank you for your cooperation.
Instruction: please tick [√ ] the answer that most suits you and comment in your own words
where appropriate.
1. Gender: Male [ ] Female [ ]
2. Age: Below 20years [ ] 21-30years [ ] 31-40years [ ] 41-50years [ ]
51years and above [ ]

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3. What is your current position? …………………………………………………..
4. For how long have you been working with intravenous infusions limited?
………………………………………………………………………………………….
5. Does the company believe in building mutually beneficial long-term relationships with
customers?
Yes [ ] No [ ]
6. How long has intravenous infusion limited been practicing the building of mutually
beneficial long-term relationship with customers?
1-5years [ ] 6-10years [ ] 11-15years [ ] 16-20years [ ] 21years and above [ ]
7. What are some of the benefits or achievement the company has achieved as a result of
practicing this long-term relationship with customers?
Higher sales [ ] customer loyalty [ ] Goodwill [ ] All the above [ ]
Others , please state:……………………………………………………………………
8. What are the major challenges hindering the effective practice of establishing long-term
beneficial relationship with customers?
Managerial problems [ ] Communication problems [ ] Financial problems [ ]
All the above [ ] others, please state:………………………………………………..
9. Is the company doing something to curb this problem?
Yes [ ] No [ ]
10. What measures and mechanisms has the company put in place to ensure the building of
mutually satisfied long-term relation with key parties ?
………………………………………………………………………………………………

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………………………………………………………………………………………………
………………………………………………………………………………………………
11. How often does you personnel visit or contact customers?
Frequently [ ] Always [ ] Once a while [ ] Never [ ]
12. Why does your company visit or contact customers?
………………………………………………………………………………………………
………………………………………………………………………………………………
13. What is the level of customer satisfaction in intravenous infusions limited?
High [ ] Medium [ ] Low [ ]
14. When your customers express dissatisfaction, at what rate does your company respond to
their complaints?
Very quickly [ ] Quickly [ ] Not quickly [ ]

PROJECT WORK ALL

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