THE ROLE OF RELATIONSHIP INVESTMENT IN RELATIONSHIP MARKETING IN NONPROFIT ORGANIZATIONS

• Main Authors: Tanti Handriana, Dr., SE., M.Si., Basu Swastha Dharmmesta, Bernardinus Maria Purwanto
• Format: Article PeerReviewed
• Language: English; Indonesian
• Published: The Institute for Business and Finance Research, LLC 2015
• Subjects: HF5410-5417.5 Marketing. Distribution of products; HG4530 Investment companies. Investment trusts. Mutual funds; HV40-69 Social service. Social work. Charity organization and practice
• Online Access: http://repository.unair.ac.id/58283/1/Tanti%20Handriana_Karya%20Ilmiah%20002_IJMMR-V8N2-2015.pdf; http://repository.unair.ac.id/58283/2/Tanti%20Handriana_Peer%20Review%20002.pdf; http://repository.unair.ac.id/58283/; http://www.theibfr.com/ijmmrsample.htm
• Institution: Universitas Airlangga

This study analyzes the role of relationship marketing investments for organizations in establishing relations with donors, through the mediating variables of trust, relationship commitment and donor’s gratitude. Relationship investment and efforts made by organizations to establish relationships with partners was instrumental in realizing the long-term relationship. This research was conducted on philanthropy organizations in Indonesia, with 507 donor respondents. By using Structural Equation Modeling (SEM), the analysis shows that relationship marketing investment had a significant effect on commitment and gratitude, but not significant effect on trust. Relaionship Marketing Investment effect trust indirectly through the gratitude variable. The effect of gratitude is not significant on intention of donors to redonate in philanthropy organizations. The gratitude variable seems to effect intention to redonate indirectly, through a mediating variable, trust. So donor’s gratitude has a direct effect on trust, and trust has a direct effect on relationship commitment. Trust and commitment have a significant effect on intention of donors to redonate. Overall, telationship marketing investment plays an important role on the relation between philanthropy organizations and donors, through the strategic role of trust and relationship commitment variables.