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Archives of Business Research – Vol. 9, No. 6

Publication Date: June 25, 2021

DOI:10.14738/abr.96.10352. Pathmananathan, P. R., & Aseh, K. (2021). Analysis of Factors That Influences Customer Retention in Unit Trust Industry. Archives

of Business Research, 9(6). 153-167.

Services for Science and Education – United Kingdom

Analysis of Factors That Influences Customer Retention in Unit

Trust Industry

P. Ravindran Pathmananathan

Unies Group

Khairi Aseh

Unies Group

ABSTRACT

Relationship Marketing has been perceived as an incredible method to fabricate a

restrictive long haul relationship with their customers in the present powerful

worldwide commercial center. Service quality is becoming increasingly important

to a growing number of businesses. A unit trust's prosperity relies upon the skill

and experience of the organization that oversees it. The aim of this research is to

emphasise the significance of service quality in unit trust industry. This research

was conducted using a questionnaire that was distributed to 200 customers of unit

trust agents in Penang. It can be concluded that relationship marketing is

essentially corresponded with service quality and consumer loyalty as well as client

retention.

Keywords: Relationship Marketing, Unit Trust, customer, service quality, satisfaction,

retention

INTRODUCTION

In every single significant industry today; business isn't tied in with creating, selling and

conveying items as a customary business does (Brito, 2011; Gilbert and Choi, 2003). This was

surely the customary and demonstrated strategy for business for a significant period of time.

In the present time, it is the point at which the supporters of the customary 4Ps marketing

approach for example value, item, spot and advancement, who depended on twigging at least

one of the promoting blend components have had undesirable encounters of regarding clients

as a 'group' of homogeneous market (AMS,2018; Ahmad, 2000). This is on the grounds that the

age of today are no more the age where individuals who can be bunched effectively or credited

with a specific attributes or purchaser conduct as how it was done previously. It has turned into

a situation where purchaser reaction and practices are no more in the scope of consistency that

can aid any promoting system.

It is an immediate impact of this developing enthusiasm for showcasing a relationship that the

dive of much scholarly research has been coordinated towards building up an unmistakable

comprehension of what comprises a viable promoting relationship. Every one of these explores

has attempted to unyield and observationally inspect the procedures by which such

connections are created and kept up. Without a doubt, answers to these examination issues can

possibly profit advertisers' relationship showcasing endeavors (Watson and Johnson, 2010;

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Archives of Business Research (ABR) Vol. 9, Issue 6, June-2021

Services for Science and Education – United Kingdom

Foster and Cadogan, 2000). These exploration answers are as of now being used to assist

developing clients to the organizations.

Overview of Unit trust

A unit trust is an unincorporated common store structure that enables assets to hold resources

and give benefits that go directly to singular unit proprietors as opposed to reinvesting them

once again into the reserve. This is a type of speculation for some, these days as the good

premium have pulled in the majority to put resources into them. How does this reserve work?

The venture subsidize is set up under a trust deed. With this setup, the speculator is successfully

the recipient under the trust (Choong and Thim, 2012; Farah et al., 2018).

A unit trust is a sort of aggregate venture bundled under a trust deed. Unit trusts give access to

a huge scope of securities. These are offered in Guernsey, Jersey, Fiji, Ireland, New Zealand,

Australia, Canada, Namibia, Kenya, Singapore, South Africa, the UK, the Isle of Man and Malaysia.

The accurate meaning of what a unit trust is in these wards fluctuates. In Asia, a unit trust is

basically is equivalent to a shared reserve (Choong and Thim, 2012). In Canada, be that as it

may, a unit trust is an unincorporated store that is set up explicitly to enable salary to course

through to unit holders - in spite of the fact that these speculations are all the more normally

called pay trusts (Abdullah, 2009).

Malaysian unit trust showcase developed as early year 1959 where the pioneer of this market

was built up by an organization called Malayan Unit Trust Ltd. On 6 May 1960, this organization

expected its name to Singapore Unit Trusts Limited (SUT). SUT turned into a part organization

of the Permodalan National Berhad (PNB) Group subsequent to being obtained by PNB

International Limited (Labuan) in 2000, (an entirely possessed auxiliary of PNB). PNB, a

definitive investor of SUT, is one of the biggest resource supervisors in Malaysia with financial

specialists surpassing 11.6 million unit holders and absolute assets under administration of

more than RM 255 billion. The improvement of unit trust assets in Malaysia has experienced

into four stages that are The Formative Years 1959 – 1979, the Period from 1980 – 1990, the

Period from 1991 – 1999 and the Period from Current to Present (Abdullah, 2009).

Objectives

1. To highlight how service quality lead to customer satisfaction and thus ultimately

customer retention.

2. To present a detailed critique on how customer satisfaction leads to customer retention.

3. To evaluate how relationship marketing is important in increasing customer satisfaction

in the unit trust industry.

LITERATURE REVIEW

Relationship Marketing

Relationship marketing was at first introduced by Berry (1983) to uncover a long haul and

enduring technique to promoting. It featured a long haul thought, focusing on conservation of

clients. It depends on holding clients who will offer long haul focal points and will be

advantageous. The relationship promoting depends on protecting a client as opposed to getting

the most recent business (Oluwaseun, 2018; Congram, 1987). In the scholarly field, various

renowned meetings just as some exceptional issues of critical diaries have added to the present

dimension of importance of relationship showcasing. Outstanding is a progression of