Determinants of Performance in
Retail Banking: Perspectives of Customer
Satisfaction and Relationship Marketing
Vimi Jham
tnstitute of Management Technology, India
Kaleetn Mohd Khan
Stamford University, Bangladesh
Abstract
Satisfaction with banking services is an area of growing interest to researchers
and managers. Building on the synthesis of existing literature
on satisfaction and relationship marketing, this study explores the satisfaction
variables within the banking industry. The key findings of an
empirical research are based on the data collected from 555 customers.
Systematic methodology, including design and validation of questionnaire,
factor analysis and regression analysis were utilised to enhance
reliability ofthe findings. The study reinforces that customer satisfaction
is linked with performance of the banks. The authors demonstrate how
adaptation of satisfaction variables can lead to better performance.
Relationship Marketing and Customer Satisfaction
-An Overview
Relationships are as old as mankind. Traders and businesspeople of
yesteryears relied on relationship for their success. In the early 1990s, the
concept of relationship marketing was formally introduced into the field
of services marketing. It was established that building closer relationship
with customers resulted in better returns to companies (Reichheld, 1993).
Higher cost of the acquisition of customers has shifted the emphasis
to building and maintaining long-term customer relationships to improve
profitability (Ennew and Binks, 1996).
Today, banks have moved away from a transactional-based marketing
approach to a relationship-based approach that has at its core the
recognition of the lifetime value ...