Customer Relationship Management, Innovation Capabilities and Radio Listeners’ Loyalty

Abstract

The purpose of the study was to examine the relationship between customer relationship management, innovation capability and customer loyalty in Uganda’s radio broadcasting industry, focusing on Kampala district. The study objectives were four: to asses the level of listeners’ loyalty in Kampala city; to establish the relationship between multi-dimensional customer relationship management and radio loyalty in the radio industry; to explore the relationship between multi-dimensional customer relationship and innovation capability in the radio industry and to establish the relationship between innovation capability and radio loyalty in the radio industry. The sample size was 312 respondents of these 207 responded giving a response rate of 66.3 percent. The findings indicated that the level of listeners’ loyalty was moderately low. Positive and significant relationships were found between the three relationship objectives of the study. These results imply that one, since the loyalty is moderately low listeners intend to switch from one station to another frequently and two, the more a radio station practices CRM the more likely it will develop its innovation capability. Furthermore, the multi-dimensional elements of CRM had significant and positive relationships with innovation capability and listeners’ loyalty. It was recommended that radio stations use CRM technologies according to its appropriateness to the target audience and ensure that their staff embrace CRM and are trained to embrace it. Radio stations can enhance the growth of listeners’ loyalty by developing appropriate innovation capabilities. The impact of presenters/DJs should be a source of competitive advantage.