Page 1 of 7
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 07
August 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 320
Effectiveness of Relationship Marketing Orientation of
Commercial Banks – A Study on Gender Differences
Ramya Krishnan M, Dr. M.A.Joseph,
Assistant Professor, Department of Commerce, Mary Matha Arts and Science College, Affiliated
to Kannur University, Wayanad, Kerala
(e-mail: ramyakrishnanm@rediffmail.com)
Associate Professor, Department of Commerce and Management Studies, University of Calicut,
Calicut University Campus, Kerala
(e-mail: jsphma@gmail.com)
Abstract
Like any other business, the success
of banking business also depends solely on
the quality of product or service and
customer-organization relationship.
Customers’ active participation and attitude
is also essential to project success, as
quality of service depends upon the
customers’ disclosure of his/her exact
requirements, co-operation, prompt decision
and action at every stage. As the customers’
attitude and perception are changing day by
day, banks have to respond to these changes
in a desired manner. It can be possible
through a relationship oriented approach.
Today banks have realized the need to
change their focus from transaction
marketing to relationship marketing.
Therefore many banks are following
relationship oriented marketing strategy to
increase their customer base. But the
question is whether the present strategies
are effective or not. This paper aims to
analyse the effectiveness of the relationship
marketing orientation among the male and
female customers of commercial banks in
Kerala. The present study is designed as a
descriptive one based on both secondary
and primary data. The findings of the study
revealed that the relationship marketing
orientations of commercial banks are only
moderately effective and the present
strategies are more effective on male
customers than female customers
Key Words:
Relationship Marketing; Customer
Satisfaction; Customer Loyalty;
Effectiveness of Relationship Marketing
Orientation; Future Switching Intention;
Gender Differences.
Introduction
Relationship Marketing is an old
idea but a new focus now at the forefront of
services marketing practice. The impetus
for its development has come from the
Page 2 of 7
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 07
August 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 321
maturing of services marketing with the
emphasis on quality, increased recognition
of potential benefits for the firm and the
customer and technological advances. The
key to success in service business now lies
with concentrating on and retaining existing
customers. The phrase “Relationship
Marketing” appeared in the service
marketing literature for the first time in 1983
in a paper by Berry. Berry defined
relationship marketing as “attracting,
maintaining and – in multi service
organizations – enhancing customer
relationships”. He stressed that the
attraction of new customers should be
viewed only as intermediate step in the
marketing process. Solidifying the
relationship, transforming indifferent
customers in to loyal ones and serving
customers as clients also should be
considered as marketing. Relationship
Marketing emphasizes long-term
relationships between providers and
customers, rather than individual
transactions. Relationship based marketing
and resulting long-term retention of
customers’ attention leads to significantly
improved financial and market performance.
Relationship marketing represents a new
opportunity for organizations to gain a
competitive edge in the turbulent business
environment. Relationship marketing is
characterized by reciprocal, interdependent,
committed, and long-term relationships
between sellers and buyers. The role of
relationship marketing is to identify,
establish, maintain, and enhance
relationships with customers and other
stakeholders, at a profit, so that the
objectives of all other parties involved are
met; and that this is done by a mutual
exchange and fulfilment of promises.
Relationship marketing with in a
banking industry is becoming increasingly
important. In particular, competition is
driving banks to look at forms of defensive
marketing rather than offensive marketing
strategies. Maintaining and enhancing
relationships with customers is one way
banks have sought to use defensive
marketing and increase customer retention.
Today banks have realized the need to
change their focus from transaction
marketing to relationship marketing.
Therefore many banks are following the
relationship oriented marketing strategy to
increase their customer base. But the
question is whether the present strategies are
effective to build customer loyalty and
thereby to reduce the defection rate. In this
scenario, a study on the effectiveness of
relationship marketing orientation of
commercial banks will be significant. The
main focuses of this paper are (1) to
examine the level of satisfaction and loyalty
among the commercial bank customers (2)
to investigate the effectiveness of
relationship marketing orientation of
commercial banks (3) to analyse the future
switching intention of bank customers and
(4) to study the gender differences in the
level of satisfaction and loyalty,
effectiveness of relationship marketing
orientation and future switching intention.
Page 3 of 7
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 07
August 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 322
Methodology
This study is designed as a descriptive one
based on both secondary and primary data.
Customers of commercial banks are the
informants of the study. Primary data has
been collected from 300 sample customers
of selected commercial banks operating in
Kerala state using a structured and pre-tested
questionnaire. Simple mathematical tools
like mean, standard deviation, percentages
etc have been used for summarizing the
classified primary data. To test the statistical
differences, chi-square test and independent
samples t-test are also used. Lickert’s five- point scaling technique is followed by
keeping neutrality in the middle (Very high
5, High 4, Moderate 3, Low 2 and Very low
1) for quantifying the various qualitative
aspects of the study such as the level of
satisfaction, level of loyalty, relationship
quality and effectiveness of relationship
marketing orientation.
Results and Discussion
Customer Satisfaction in Commercial
Banks
The customer satisfaction is a key
variable which determines the success and
even the existence of a service provider. The
customers will be retained with the bank
only if they are satisfied with the services
provided to them. Table 1 shows the level of
customer satisfaction among male and
female bank customers. It can be noted
from the table that the customers are highly
satisfied with majority of the products and
services of the banks. The factor which
gives most satisfaction to the customers is
Employees’ behaviour and the factor which
gives least satisfaction to the customers is
Interest rate charged by the banks. Result of
the analysis also shows that male customers
are more satisfied with various products and
services of the banks than the female
customers.
Table 1
Customer satisfaction with regard to
various factors
Satisfaction
with regard
to
various
factors
Male Female Total
Mea
n
S.D. Mea
n
S.D. Mea
n
S.D.
Deposit
schemes 3.83 0.74 3.83 0.76 3.83 0.75
Loan
schemes 3.52 0.93 3.23 0.66 3.37 0.80
Interest rate
charged 3.16 0.79 3.15 0.87 3.15 0.83
Employees’
behaviour 3.98 0.68 4.01 0.88 3.99 0.78
Physical
facilities 3.80 0.72 4.02 0.65 3.91 0.69
E-banking
services 4.07 0.78 3.41 0.80 3.74 0.79
Complaint
Redressal
System
3.37 0.95 3.42 0.78 3.40 0.87
Customer
Awareness
Programmes
3.45 0.70 3.56 0.72 3.50 0.71
Overall
Score 3.65 0.79 3.58 0.77 3.61 0.78
(Source: Survey Data)
Customer Loyalty in Commercial Banks
The central thrust of the marketing activities
of a firm is often viewed in terms of
development, maintenance or enhancement
