Matsidiso N. Naong

Relationship marketing (RM) concept seems to be best understood and embraced more by big business, while amongst myriad of small businesses it seems less prominent. This paper explores the need for RM as a determinant to hair salon’s competitiveness and growth. Hair industry in SA is declared a multi-billion dollar industry, their stagnation prompted this study. This paper contends that relationship building with customers has a profound effect on the inclination of a customer to return to the business. With the key variables of the relationship marketing model as the main determinants are namely service quality, customer satisfaction and customer retention. Increased practice of RM within this industry will enable owners to embrace entrepreneurial activities imperative for competitiveness, value creation and sustainability.