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ABSTRACT
The study has examined the impact of relationship marketing on firm’s performance among selected banks in Port Harcourt. The survey research design was employed. The population of this study constitutes management and staffs of selected Banks in Port Harcourt which was unknown. The judgmental sampling technique was used for selecting the sample. The sample size of this study was 45 respondents which comprise of the senior and junior staff of selected Banks in Port Harcourt which include First Bank, Access Bank, FCMB and Fidelity Bank. In this study both the primary and secondary data were used. A questionnaire on the impact of relationship marketing management on firm’s performance was used and administered for the collection of data from the respondents. The data collected were processed electronically using Statistical Packages for Social Sciences (SPSS). The statistical test used in the analysis of the data collected was the Chi-Square statistical tool. Findings amongst others revealed that direct marketing is associated with firm’s performance among selected banks in Port Harcourt. Relational Benefits is associated with firm’s performance among selected banks in Port Harcourt. Based on the findings of the study, we recommended that management should ensure that quality product and service are delivered to customers and management should also ensure that customers are serviced through electronic channels. This will allow the customer access their bank accounts, make transfers, internet banking, have access to self service at their convenient.
TABLE CONTENT
TABLE CONTENT 1
CHAPTER ONE 1
INTRODUCTION 1
1.1 BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF THE PROBLEM 3
1.3 OBJECTIVES OF THE STUDY 3
1.4 RESEARCH QUESTIONS 4
1.5RESEARCH HYPOTHESES 4
1.6 SIGNIFICANCE OF THE STUDY 5
1.7 SCOPE OF THE STUDY 5
1.8 LIMITATION OF THE STUDY 6
1.9 DEFINITION OF TERMS 6
CHAPTER TWO 8
REVIEW OF RELATED LITERATURE 8
2.1 CONCEPTUAL FRAMEWORK 8
2.1.1 CONCEPT OF RELATIONSHIP MARKETING 8
2.1.2 DIMENSIONS OF RELATIONSHIP MARKETING 15
2.1.3 CONCEPT OF FIRMS PERFORMANCE 16
2.1.4 MEASURES OF FIRMS PERFORMANCE 17
2.1.5 RELATIONSHIP MARKETING AND FIRMS PERFORMANCE 18
2.2 THEORETICAL FRAMEWORK 22
2.2.1 SOCIAL EXCHANGE THEORY 22
2.3 REVIEW OF RELATED EMPIRICAL STUDIES 24
2.4 SUMMARY OF LITERATURE REVIEW 25
CHAPTER THREE 26
RESEARCH METHODOLOGY 26
3.1 INTRODUCTION 26
3.2 RESEARCH DESIGN 26
3.3 POPULATION OF THE STUDY 26
3.4 SAMPLING TECHNIQUES USED 27
3.5 SAMPLE SIZE 27
3.6 SOURCE OF DATA 27
3.7 RESEARCH INSTRUMENT FOR DATA COLLECTION 27
3.8 VALIDITY AND RELIABILITY OF INSTRUMENT 28
3.9 TECHNIQUES FOR DATA ANALYSIS 28
CHAPTER FOUR 29
DATA PRESENTATION AND ANALYSIS 29
4.1 QUESTIONNAIRE AND ANALYSIS OF RESPONSE 29
TABLE 4.1: QUESTIONNAIRE ADMINISTRATION AND RETRIEVAL 29
TABLE 4.2: SHOWING AGE OF RESPONDENTS 30
TABLE 4.3: SHOWING SEX OF RESPONDENTS 30
TABLE 4.4: SHOWING EDUCATIONAL BACKGROUND OF RESPONDENTS 31
TABLE 4.5: SHOWING MARITAL STATUS OF RESPONDENTS 31
TABLE 4.6: SHOWING THE RESPONSE OF RESPONDENTS TO THE FIRST SET OF RESEARCH QUESTION. 32
TABLE 4.7: SHOWING THE RESPONSE OF RESPONDENTS TO THE SECOND SET OF RESEARCH QUESTION. 33
TABLE 4.8: SHOWING THE RESPONSE OF RESPONDENTS TO THE SECOND SET OF RESEARCH QUESTION. 34
TABLE 4.8: SHOWING THE RESPONSE OF RESPONDENTS TO THE SECOND SET OF RESEARCH QUESTION. 35
4.3 TEST OF HYPOTHESES: 36
4.4 DISCUSSION FINDINGS 38
CHAPTER FIVE 40
SUMMARY, CONCLUSION AND RECOMMENDATION 40
5.1 INTRODUCTION 40
5.2 SUMMARY 40
5.3 CONCLUSION 40
5.4 RECOMMENDATIONS 41
REFERENCES 42
APPENDIX I 46
APPENDIX II 47
QUESTIONNAIRE 47
QUESTIONNAIRE 49
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
As oureconomybecomesmoreserviceandtechnologyoriented,thedynamicsofthesalesprocess willchanges.Theongoingnatureofservicesandthegrowingcomplexity oftechnology willincreasingly necessitatelengthyandinvolvedrelationships betweenbuyersandsellers.Thus,theseller‘sfocuswillneedto shiftfrom simplylandingsales toensuringbuyersatisfactionafterthepurchase.Tokeep buyers happy, vendors mustmaintainconstructive interactionwithpurchaserswhichincludeskeepingupontheircomplaints and futureneeds. Repeat orderswill go to those sellers who have done the best job or nurturing these relationships…‖ Informationgatheredthroughcommunicationwithcustomerscanenableorganizationsto developamarketingmixthatismorelikelytocreatecustomersatisfaction.Withtheincreaseinthecompetition organizations realizethatwhatcustomer‘svalue,isnotalwaysjustlowerprices,butalsoexpectssuchas delivery,imageandbrandassociations, thelinkwithcustomers becomesincreasingly important.Whenthe marketgrowthslowsdownorasthemarketsbecomemorecompetitive, firmsaremorelikely toattemptto maintaintheir marketsharebyfocusingonretainingthecurrentcustomers.(Leeetal.,2001).
CustomerRelationshipManagement(CRM)Serviceisamarketingstrategythatensurestheacquisition andretentionofmostprofitablecustomersusingthemosteffectivemethod.Thus,tremendousgrowthof services sectorimplies the role of marketingin terms of vast opportunitiesand implications, marketing opportunitiesarisingfromnewtechnology,infranchisingfromfewerregulationsandprofessionalrestrictions, inservicingphysicalgoodsandinternationalmarkets(Lovelock, 1999). Therapidgrowthofservicesindustry haschangedtheconditions ofbusiness.Customerretentionhasbeenadvocatedasaneasierandmorereliable sourceofsuperiorperformance (ReichheldandSasser,1990).Ithasnowbecomecommon knowledgethatthe valueofallcustomersisnot same,the80/20ruleprevailswherebywehavelearned that20percentofcustomers generatemorethan80percentofrevenuesformostcompanies, anditisnotuncommontofindthataneven lowerpercentage ofcustomers cangeneratemorethan80to90percentoftherevenues. Undersuch circumstances, itisnotprudentforacompany toallocateequalresourcestoallcustomers.Customer segmentationandprogramdifferentiation isneededinordertomatchrevenuepotentialwithserviceofferings. Thosewithhigherrevenuepotentialdeserveagreaterallocationofcostsandservice.Otherwise,competitors willseizetheopportunity by offering better serviceandagreaterallocationofresourcesforthehigh-end customers.At thelower-end,attemptsshouldbemadetoachievecost savingsthroughthereallocationofefforts basedonless-expensive resources.Thiscanbedonewiththehelpofrelationship marketing strategystrategy. Itisbasedontheideathat thehappieracustomeriswitharelationship, thegreaterthelikelihoodthattheywillstaywithanorganization.
The ultimate aim of a Relationship marketing approach is for the customer to become a partner‘ of the organization, by contributing to marketing decisions through a one-to-one relationship.
Shani and Chalasani (1992) view Relationship marketing as an integrated effort to identify, maintain, and build up a network with individual consumers and to continuously improve the network for the benefits of all stakeholders, through interactive, personalized, and value-added contacts over a long period of time. From the foregoing therefore, the study is determined to examine the relationship between relationship marketing and firm’s performance among selected banks in Port Harcourt.
1.2 Statement of the Problem
This study was determined to examine whether the practice of relationship marketing influences the performance of marketing organizations.
In this competitive and globalize age, customer of each organization is a crucial assets which the organization needs to preserve and expand for its profitability (Hanley, 2008). Many market researchers highlighted that loyal customers have an important contribution in market share and organizational profitability. It isa undoubted fact that loyal customers can be seen as the most vital factor of an organization to achieve the it’sfinancial performance in the long-term. In addition, transforming indifferent customers into loyal ones and establishing a long-term relationship with customers is crucial for business success. It is therefore, necessary to establish and maintain customer loyalty as a key to promote competitive advantage in the market place. Consequently, the maintenance of significant customers is a vital target which organizational management needs to understand to strengthen customer loyalty for the market.
1.3 Objectives of the Study
The main objective of the study is to examine the impact of relationship marketing on firm’s performance among selected banks in Port Harcourt.
- To examine the extent to which relationship quality influence firm’s performance among selected banks in Port Harcourt.
- To examine the extent to which Relational Benefits influence firm’s performance among selected banks in Port Harcourt.
- To examine the extent to which internal marketing influence firm’s performance among selected banks in Port Harcourt.
- To examine the extent to which direct marketing influence firm’s performance among selected banks in Port Harcourt.
1.4 Research Questions
The following research questions were proposed to guide the study.
- To what extent is the term of relationship quality influence firm’s performance among selected banks in Port Harcourt?
- To what extent is the term of relational benefits influence firm’s performance among selected banks in Port Harcourt?
- To what extent is the term of internal marketing influence firm’s performance among selected banks in Port Harcourt?
- To what extent is the term of direct marketing influence firm’s performance among selected banks in Port Harcourt?
1.5 Research Hypotheses
The following hypotheses were formulated to guide the study:
Ho1: There is no significant relationship between relationship quality and firm’s performance among selected banks in Port Harcourt.
Ho2: There is no significant relationship between Relational Benefits and firm’s performance among selected banks in Port Harcourt.
Ho3: There is no significant relationship between internal marketing and firm’s performance among selected banks in Port Harcourt.
Ho4: There is no significant relationship between direct marketing and firm’s performance among selected banks in Port Harcourt.
1.6 Significance of the Study
Thestudyisexpectedtomakerecommendationstomarketing organizationmanagersonthe criticalrole of relationshipmarketing indoingtheirbusiness,particularlyinhighlycompetitivemarket as Port Harcourt, Rivers State.
It is to acknowledge that a study of this nature is carried out for some associated benefits it will help employers to ascertain the need for carrying out effective relationship marketing planning in the respective organizations.
The result/findings of this study will also open up the future for young practicing marketers to relationship marketing as a strategic marketing tool for better/improved organizational Performance. The study when completed will add to literature on relationship marketing.
1.7 Scope of the Study
The study is delimited under the following heading: content scope, geographical scope and unit of analysis.
Content Scope: The content scope of this study involves an investigation to ascertain the relationship between relationship marketing and firm’s performance among selected banks in Port Harcourt. The dependent variable is performance, measured by market share, sales volume and profitability. While independent variable is relationship marketing measured by relationship quality, relational benefits, direct marketing and internal marketing.
Geographical Scope:This study is delimited in Port Harcourt Rivers State with references to some selected commercial Banks.
Unit of Analysis: The unit of analysis in this research involves both senior and Junior staffs of selected Banksin Port Harcourt.
1.8 Limitation of the Study
In carrying out an investigation of this nature the researcher must of necessity be faced with some constraint the, include;
Time Constraint:The time frame provision for this study was too short.
Financial constraints: Usually, a study of this nature involved some level of expenditure therefore; finance was also a limiting factor.
Poor response:The poor response from the respondent and inability to access the entire population also was another constrain to the study.
1.9 Definition of Terms
Relationship marketing: Relationship marketing is a facet of customer relationship management (CRM) that focuses on customer loyalty and long-term customer engagement rather than shorter-term goals like customer acquisition and individual sales.
Marketing: The action or business of promoting and selling products or services, including market research and advertising.
Firm’s performance: The action or business of promoting and selling products or services, including market research and advertising.
Market share: The portion of a market controlled by a particular company or product.
Profitability: It is the ability of a business to earn a profit. A profit is what is left of the revenue a business generates after it pays all expenses directly related to the generation of the revenue, such as producing a product, and other expenses related to the conduct of the business activities.