A Study on Electronic Marketing and Customer Loyalty of Small and Medium Enterprises in Rwenzori Region

Small and medium enterprises (SMEs) have continued to face customer retention challenge which has been escalated by the changing customer product information needs. This study was conducted to examine the relationship between electronic marketing and customer loyalty among service firms in Rwenzori region. The study took a cross-sectional design which was quantitative in nature. Out of 170 small and medium enterprises operating in Kabarole, and Kyenjojo districts a sample of 118 was determined in accordance with Krejcie & Morgan sample determination table. Data was collected using questionnaires which were self-administered physically by the researchers. Necessary instrument validity and reliability checks were conducted and later subjected data to parametric assumptions’ test which informed the choice of data analysis methods. 110 out of 118 questionnaires distributed were returned but only 78 were error free constituting a 71 percent response rate. Study findings indicate that electronic marketing has a positive and significant relationship with Customer loyalty among service firms in these two districts in Rwenzori region (r = .480, p<.01; r = .616, p< .01; and r = .539, p< .01). This finding implies that the more firms accept, use and adopt latest communication technologies, the more the repurchase effects on the side of their customers. Since customer behaviour differ across industries and in different buying context, future studies should look at antecedents and consequences of customer loyalty in none service setting.