Umme Salma

Master’s in Business Administration An Assessment of relationship marketing as a tool to improve the competitiveness of Latvian wood selling companies Master’s Thesis Pre defense Aswathy Levan Scientific adviser: Dr. oec. Jevgenija Dehtjare 1 Topicality (1) Latvia has a significant presence in the wooden industry, particularly in timber and wood product exports. The use of innovative technology and effective relationship marketing can significantly impact the competitiveness of this sector. The role of innovative technology and relationship marketing is pivotal in Latvia's wooden industry, which accounted for approximately 7% of the country's total GDP in 2020. With global competition intensifying, understanding how technology and customer relationships drive growth is critical for sustaining Latvia's wooden business success. Figure 1: Production value of Furniture manufacturing in Latvia 2 RESEARCH AIM This research study aims to assess the relationship marketing as a tool to improve the competitiveness of Latvian wood selling companies The achievement of the following tasks as been set as goal. • To study previous studies on topic role of innovative technology and relationship marketing in different competitive markets • To conduct a survey among domestic wood selling company representatives in Latvia in order to identify the consumer preferences. • To identify the factors influencing consumer preferences when purchasing woods. • To conduct five wood business experts to identify the product development ideas according to consumer insights • To come up with a relevant conclusion and recommendations for the future studies of possibilities of relationship marketing in wood selling businesses. 3 THE OBJECT AND SUBJECT OF THE STUDY • Research object Major Wooden selling companies in Latvia • Research subject the relationship marketing as a tool to improve the competitiveness of Latvian wood selling companies. 4 RESEARCH QUESTION How does the adoption of relationship marketing techniques impact the competitiveness of Latvian wooden businesses? 5 RESEARCH METHODOLOGY Data Collection methods. Data Processing methods. Literature Analysis To identify the role of innovative technology and relationship marketing in competitive market of wooden business. Survey Analysis 1. 2. 3. Expert interview analysis Descriptive statistical analysis, reliability analysis in SPSS software factor analysis to understand major factors of relationship marketing which impact the competitiveness of wooden market Correlation analysis to analyze the relation between inclusion of relationship marketing and competitiveness Transcription analysis 6 LIMITATIONS 1. The study has been conducted in Riga, the capital city in Latvia. 2. Respondents to the survey were mostly representatives of wood selling companies. 3. The research employed just a small number of marketing aspects, with the only ones considered being relationship, and performed so without any issues. 7 RESULT (1) Demographic analysis 8 RESULT (2) Demographic analysis (2) Cronbach's Alpha Based on Standardized Items Cronbach's Alpha .967 N of Items .968 17 9 RESULT (3) Descriptive statistical analysis Statement Mean Std. Deviation Kurtosis Engages in long-term 4.0145 relationships with customers 0.97758 -0.051 Tailors products/services 4.1304 based on customer feedback 1.06981 1.167 0.99444 1.439 0.97234 1.589 Utilizes various communication channels 4.1594 effectively Has a dedicated CRM system 4.2319 in place Places a high priority on retaining existing customers 4.1739 1.01397 2.069 Measures customer satisfaction and acts on results 4.0000 1.02899 1.333 Focuses marketing efforts on 4.2754 building trust with customers 1.02733 2.686 10 RESULT (4) Result Summary Major Result Feasibility Assessment Communalities Prominent factors such as "Utilizes various communication channels," The dataset is highly "Proactively seeks appropriate for and resolves factor analysis based customer on KMO and complaints," and Bartlett's Test. "Tailors products and services based on customer feedback" demonstrate substantial loadings. Total Variance Explained Rotated Component Matrix Two distinct factors identified: "Strategic Initial two Relationship components Management" and account for 74.157% "Marketing of total variance. Innovation and Promotion." 11 RESULT (5) Hypothesis Testing - Regression Analysis Summary Objective: Investigate the association between competitiveness (dependent variable) and relationship marketing variables (independent variables) using ordinal regression analysis in Latvian wood selling enterprises. Case Processing Summary: Comprehensive outline of response distribution for relationship marketing characteristics, indicating a favorable perception of competitiveness in terms of price and innovation. Dataset of 69 replies considered complete for thorough analysis. Relationship marketing variables significantly contribute to competitiveness prediction. Goodness-of-fit statistics and pseudo R-squared metrics support model effectiveness. Emphasizes the impactful role of relationship marketing on competitiveness. 12 RESULT (6) Interview analysis Communication in Relationship Marketing | - Crucial role of efficient communication. Clear channels for information flow, comments, and issue resolution. Fosters trust and strengthens relationships. Exploration of communication methods' impact on client connections and business prosperity. | Technology and Digital Marketing Strategies | - Integration of technology vital for relationship marketing. Exploration of effective technologies and systems in wood trading. Use of digital innovations (communication platforms, data analytics) to enhance relationshipbuilding. | Competitive Advantage and Relationship Marketing | - Evaluation of competition among Latvian wood-selling firms. Relationship marketing as a potential distinguishing factor. Creation of a distinctive value proposition for competitive positioning. Exploration of how long-term relationships contribute to sustainable competitive advantage. 13 CONCLUSIONS • The survey findings show a high level of agreement among participants on several areas of relationship marketing and organizational competitiveness in Latvian wood-selling companies. Participants constantly exhibit favorable views, with mean scores continuously over 4. They notably emphasize the active participation of enterprises in creating long-term connections, response to consumer feedback, and effective communication tactics. • Factor 1, which focuses on strategic relationship management practices, includes components such as proactive complaint response and instructive marketing materials. Factor 2, referred known as marketing innovation and promotion, and encompasses factors associated with customized marketing campaigns and consumer referral incentives. • The ordinal regression study strengthens the significance of relationship marketing techniques in influencing the competitive advantage of Latvian wood-selling firms. The decision to use ordinal regression, based on the non-linear characteristics of survey variables, is appropriate for accurately capturing the intricate connection between competitiveness and relationship marketing aspects. This study enhances our comprehension of how relationship marketing influences the competitive environment in the wood-selling sector in Latvia. 14 RECOMMENDATIONS • To prioritize customer-centric activities, allocate resources towards conducting extensive market research to uncover and comprehend the varied demands and preferences of distinct client segments. • Deploy an optimized communication plan that integrates many platforms, including social media, email, and consumer feedback forums. This guarantees a smooth flow of information between the organization and its clients, resulting in enhanced customer connections and increased responsiveness to their needs. • Enhance relationship marketing by aggressively integrating advanced technologies and digital marketing strategies. Allocate resources towards implementing cutting-edge communication platforms and data analytics solutions to enhance consumer interaction and streamline relationship-building procedures. 15 Discussion 16