RELATIONSHIP MARKETING THEORY: A CRITICAL ANALYSIS AND FUTURE DIRECTIONS FOR SUSTAINABLE CUSTOMER ENGAGEMENT

Abstract

Relationship marketing theory, emphasizing trust, commitment, and customer loyalty, has transformed marketing by prioritizing long-term customer engagement over transactional exchanges. This paper critically analyzes relationship marketing’s theoretical foundations, applications, and limitations, with a focus on its relevance in Nigeria’s emerging market. Drawing on social exchange theory, service-dominant logic, and customer relationship management models, the study evaluates how relationship marketing enhances customer retention, brand equity, and satisfaction. Empirical evidence suggests that strategies like loyalty programs in Nigeria’s telecommunications sector increase retention by up to 5%, boosting profitability. In Lagos, firms leverage digital tools like WhatsApp to engage millennial consumers, but face challenges such as unreliable internet and data privacy concerns under Nigeria’s Data Protection Regulation 2019. The paper identifies limitations, including high implementation costs, overemphasis on long-term relationships, and cultural misalignment in Nigeria’s collectivist context. Through a critical literature review and contextual analysis, the study proposes strategies for sustainable relationship marketing, emphasizing localized approaches and ethical data practices. Findings highlight the need for hybrid digital-physical engagement models to address infrastructural deficits. The paper contributes to marketing scholarship by offering insights into adapting relationship marketing for emerging markets and recommends future research on integrating artificial intelligence to enhance personalization while ensuring ethical compliance