Marketing Strategies Used by Franchise Small Businesses to Retain Customers Hilda Jordan Arline Walden University
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Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2016 Marketing Strategies Used by Franchise Small Businesses to Retain Customers Hilda Jordan Arline Walden University Follow this and additional works at: https://scholarworks.waldenu.edu/dissertations Part of the Advertising and Promotion Management Commons, and the Marketing Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact [email protected]. Walden University College of Management and Technology This is to certify that the doctoral study by Hilda Arline has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. Annie Brown, Committee Chairperson, Doctor of Business Administration Faculty Dr. Lisa Kangas, Committee Member, Doctor of Business Administration Faculty Dr. Patsy Kasen, University Reviewer, Doctor of Business Administration Faculty Chief Academic Officer Eric Riedel, Ph.D. Walden University 2016 Abstract Marketing Strategies Used by Franchise Small Businesses to Retain Customers by Hilda Jordan Arline MBA, Strayer University, 2010 BS, Elizabeth City State University, 1995 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University August 2016 Abstract Franchised small businesses will not survive their first 5 years if they cannot implement marketing strategies that appeal to their customers. The purpose of this multiple case study was to explore the marketing strategies that successful franchise small business leaders used to retain customers. The population comprised 4 business leaders at franchise small businesses in North Carolina. Competitive advantage theory and blue ocean theory grounded this study. Data were collected using semistructured face-to-face interviews and review of company marketing materials. Data were thematically analyzed, and 6 themes emerged: personalization of customer service, market segmentation, innovative advertising, networking, brand identity, and loyalty programs. Market segmentation and innovative advertising are fundamental strategies for retaining customers within the target market, whereas personalization of customer service can help build positive relationships with customers. These findings could improve customer loyalty and customer satisfaction, which might increase the number of successful small businesses in the United States. The implications for positive social change include the potential for business leaders to develop effective marketing strategies to retain customers, which may benefit customers through an increase in job opportunities in the local business community. Marketing Strategies Used by Franchise Small Businesses to Retain Customers by Hilda Jordan Arline MBA, Strayer University, 2010 BS, Elizabeth City State University, 1995 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University August 2016 Dedication I dedicate my doctoral degree to my late mom Donnie Pencie (Sister) Nowell Jordan. The person who stuck by me, supported me, and whom I found comfort in knowing she was right there by my side. I will always love you, momma. I also dedicate my doctoral degree to Christopher Arline for his love and support throughout this challenging journey. Lastly, I dedicate this degree to Chardonnay Hurdle, Esther Jordan, LuAnn Riddick a formal supervisor and friend, Willie and Lartrice Brown, and my family. I would like to thank all of you for believing in me when sometimes I did not believe in myself. Acknowledgments I first acknowledge and thank God for his wisdom and his power for without him this would not have been possible. I acknowledge my chair, Dr. Annie Brown, who has been the best chair a student could ask for. She has been an amazing inspiration throughout this challenging process. I also acknowledge Dr. Freda Turner and Dr. Gene Fusch and my committee members, Dr. Lisa Kangas and Dr. Patsy Ann Kasen, who have all been the best team a student could ask for when taking on such a challenging and demanding deliverance of doctoral work. In addition, I thank Dr. Alecia Brooks for her wonderful networking and coaching support. I thank all of you for your professional guidance and feedback throughout this process. It was not easy, but it was worth it. Table of Contents List of Tables .......................................................................................................................v Section 1: Foundation of the Study ......................................................................................1 Background of the Problem ...........................................................................................1 Problem Statement .........................................................................................................2 Purpose Statement ..........................................................................................................3 Nature of the Study ........................................................................................................3 Research Question .........................................................................................................4 Interview Questions .......................................................................................................5 Conceptual Framework ..................................................................................................5 Operational Definitions ..................................................................................................6 Assumptions, Limitations, and Delimitations ................................................................8 Assumptions ............................................................................................................ 8 Limitations .............................................................................................................. 8 Delimitations ........................................................................................................... 9 Significance of the Study ...............................................................................................9 Contribution to Business Practice ......................................................................... 10 Implications for Social Change ............................................................................. 10 A Review of the Professional and Academic Literature ..............................................11 Overview of Marketing Theory ............................................................................ 12 Marketing Challenges Faced by Business Organizations ..................................... 15 Marketing Strategies of Business Organizations .................................................. 23 i Promoting Brand Image ........................................................................................ 30 Overview of Advertising in Business Operations ................................................. 32 Advertising Strategies of Business Organizations ................................................ 34 Customer Relationship Marketing ........................................................................ 40 Social Identity and Consumer Behavior ............................................................... 44 Previous Qualitative Research .............................................................................. 48 Gaps in Research................................................................................................... 50 Transition .....................................................................................................................53 Section 2: The Project ........................................................................................................54 Purpose Statement ........................................................................................................54 Role of the Researcher .................................................................................................55 Participants ...................................................................................................................58 Research Method and Design ......................................................................................60 Research Method .................................................................................................. 60 Research Design.................................................................................................... 61 Population and Sampling .............................................................................................64 Ethical Research...........................................................................................................67 Data Collection Instruments ........................................................................................68 Data Collection Technique ..........................................................................................72 Data Organization Technique ......................................................................................75