THE EFFECT OF SERVICE QUALITY ON CUSTOMER RETENTION: THE MEDIATING ROLE OF DRIP MARKETING IN TRAVEL AGENCIES

Abstract

This research investigates the relationship between service quality and customer retention in travel agencies in the Kurdistan Region of Iraq, emphasizing the mediating role of drip marketing. grounded in relationship marketing theory. A quantitative approach, via a survey questionnaire, was employed for data collection; hence, a cross-sectional design was used to gather data from 353 managers of travel agencies in KRI via purposive sampling. This paper employed partial least squares structural equation modeling (PLS-SEM).  Thus, this paper finds that service quality (tangibility, assurance, and empathy) has a significant positive influence on customer retention. On the other hand, drip marketing mediates between service quality (tangibility, reliability, responsiveness, assurance, and empathy) and customer retention. The study's findings contribute to the literature on customer retention and service quality in the travel and tourism sector. This paper contributes to the existing literature on service quality, customer retention, and drip marketing. The study findings can assist traditional travel agencies in reforming their marketing strategies by using drip marketing tools based on the AIDAS model to enhance customer retention and compete with Online traditional agencies. This indicates that in the Kurdistan Region of Iraq, travel agents should not focus only on Traditional and Online travel agencies. Instead, they should consider adopting hybrid travel agencies that combine elements of both models. This study extends relationship marketing theory to the question of how agencies convert new customers into loyal advocates.