Determinants of relationship quality: an artificial neural network analysis. Converting verbal scales to interval scales using correspondence analysis. Relationship marketing. Buy your private banker for a mere R, Customer retention: does employee retention hold a key to success? Relationship marketing: towards a new paradigm. Creaming the crop: local banks gear up for a fervent light for high net worth individual retail banking business.
Read and print from thousands of top scholarly journals. Already have an account? Log in. APA Abratt, R. Relationship marketing in private banking in South Africa. International Journal of Bank Marketing, 17 1 , Report bugs here. Please share your general feedback. You can join in the discussion by joining the community or logging in here.
You can also find out more about Emerald Engage. Visit emeraldpublishing. Statistic df Sig. These methodologies involved calculation of a Tolerance test and variance inflation factor VIF Ahsan et al. The results of theses analysis are presented in table no Thus the measures selected for assessing independent variable in this study do not reach levels indicate of multi-collinearity and also the acceptable Durbin Watson range is between 1. In this analysis Durbin Watson value of 1.
In this study ,Relationship marketing is considered as independent variable or predictor variable, and the customer loyalty is considered as dependent variable.
Table No 06 presents the results of the regression analysis. Trust and communication in the relationship marketing contribute significantly to customer loyalty. And also customer loyalty is not contributed significantly by commitment and conflict handling in the relationship marketing. Accepted Regression H2 There is a significant impact of commitment on customer Rejected Regression loyalty. H3 There is a significant impact of communication on customer Accepted Regression loyalty.
H4 There is a significant impact of conflict handling on Rejected Regression customer loyalty. It is very important that the relationship marketing in the private commercial banks in Jaffna peninsula contributes to the customer loyalty.
Mainly trust and communication dimensions in the relationship marketing contribute to the customer loyalty. Therefore the private commercial banks should strive to earn customers trust.
Furthermore, Effective communication predisposes customers to stay with a provider of banking services. Loyalty can also be nurtured by providing timely and reliable information. In contrast, customer loyalty is not significantly contributed by the commitment and conflict handling in the relationship marketing in this study.
At the same time mean value of both dimensions are in a low level compare with the mean value of trust and communication dimensions in this study. Therefore, the banks should have proper strategy to handle the conflict. By trying to avoid potential conflict, trying to solve manifest conflicts before they create problems and holding the ability to openly discuss solutions when problems arise. Furthermore, the commitment is another critical factor to building the customer loyalty.
So that banks should concentrate on customer commitment through offering the personalized and flexible services. Lastly, in the moderating effect of personal demographic variables, banks should concern the age wise segmentation.
Persons who are 56 and more than 56 years old have lowest level of customer loyalty. Lack of knowledge in the banking technological aspects might be the reason for the least level of loyalty among customers who are 56 and more than 56 years old.
Several strategies have been attempted to retain customers Afsar et al. Nguyen, recommended the strategies to develop the capability of relationship marketing in the banking sector especially in the Asian context.
Strategy development: It is imperative to develop an overall approach to managing customers. There is a need to link back to the overall corporate and marketing strategy of the company. Customer information strategy CRM : There is a need for detailed data identification, collection, analysis and interpretation of customer information to enable the detailed strategy to be implemented with confidence in the banking sector 3.
Reduce the customer list: There is a need to differentiate customers by value which will allow a firm to priorities its marketing efforts, allocating more resources to high value customers, while minimizing the resources applied to low value customers 4.
Planning and internal marketing: There is a need to draw together all the analyses of the different departments to produce a case for changing the way to manage customers plus the associated investment and profit implications, and developing a project plan to manage and monitor 5.
Technology: it can be used to speed up the routine aspects of business, freeing up people for more complex issues and increasing their job satisfaction. Consumers are happy because of the increased speed of response and the capability to access information as required. For the purpose of practicability and manageability, Convenience sampling method has been adopted to select respondents. The other data collection methods had not been considered.
In this study, relationship marketing contributes significantly to customer loyalty and predicts 30 percent of the variation found. Remaining 70 percent of the variation should be found.
Due to that, an important future research direction is to find out the key factors to determine the relationship marketing in the banking sector in Jaffna peninsula through the factor analysis. Furthermore, relationship marketing research may include other less widely acknowledged relationship marketing variables, for example, friendship, recognition, thoughtfulness, understanding, benevolence, competence, and time to listen.
In the customer loyalty side, within the loyal category there are satisfied and un-satisfied customers. The satisfaction is not an essential requirement for loyalty. Sometimes unsatisfied customers are also loyal due to attachment and commitment with the supplier. These hurdles are called switching cost. Therefore, future study direction is to examine the mediating role of customer satisfaction between relationship marketing and customer loyalty.
Abeysekera, N. In analyzing client activity, banks today are more mindful of trends rather than simple shifts in volumes. Smartphone systems automatically generate market news on customer financial performance, new ventures and generate possible avenues for new banking solutions. Customer reporting as a result of a focus on relationship marketing has evolved to be more user friendly and need based.
On a separate note, an interesting theory by Leo YM Sin et al states that there are six dimensions or prerequisites to implementing relationship marketing.
Trust Morgan and Hunt argued that trust is the willingness to rely on an exchange partner in whom one has confidence. A bank in which a client has confidence definitely stands ahead of competition. Trust is the foundation of business management. Going into business would require looking for one or group to trust; business cannot go well without trust, this is why I believe that business prosperity is not based on what you know but who you know.
Thus business success is dependent on connection. A customer complained that his bank revealed personal and private information on the loan he took from the bank to the members of his extended family. This extended family used the information to mock and gossip, saying that he was using borrowed money to build a house.
He told his friends who wanted to open accounts in that bank that the said bank could not be trusted. He actually threatened to sue his bank if necessary steps were not taken to rebuke the branch officer that did this.
Bond As in any relationship, the one between a customer and a business provider in this case, a bank requires a bond that unites them together. Callahan and Lasry refer to it as the dimension of a relationship that result in two parties customer and supplier or buyer and seller acting in a unified manner towards a desired goal.
Marketing Communication Several relationship marketing scholars agree that communication is a fundamental aspect of relationship development.
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