THE IMPACT OF RELATIONSHIP MARKETING ON MARKETING PERFORMANCE OF SELECTED BANKS IN PORT HARCOURT

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Abstract

The study examined marketing on marketing performance of selected banks in Port Harcourt. To test relationship among the variables data from 65 respondents which comprise of the senior and junior staff of Banks in Port Harcourt. The study found a positive relationship between relationship between service quality and marketing performance. It also found a positive relationship between knowledge management and marketing performance and relationship marketing significantly associate with marketing performance. Based on the findings of the study, we recommended that management should ensure that quality product and service are delivered to customers, 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, bank managers should have all managerial competencies needed to manage customer to avoid declined patronage.

Table of Contents

Title Page    i

Cover Page ii

Declaration ii

Certification         iv

Dedication  v

Acknowledgements        vi

Abstract      viii

Table of Contents ix

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

1.5 Research 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

2.0 Introduction   8

2.1 Conceptual Framework     8

2.1.1 Concept of Relationship Marketing   9

2.1.2 Dimensions of Customer Relationship Management      13

2.1.3 Concept of Marketing Performance   18

2.1.4 Measures of Marketing Performance 19

2.1.5 Relationship Marketing and Marketing Performance of Commercial Banks        22

2.2 Theoretical Framework     26

2.2.1 Social Exchange Theory 26

2.3 Review of Related Empirical Studies    28

2.4 Summary of Literature Review   29

CHAPTER THREE       30

RESEARCH METHODOLOGY      30

3.1 Introduction   30

3.2 Research Design      30

3.3 Population of the Study    30

3.4 Sampling Techniques Used         30

3.5 Sample Size    31

3.6 Source of Data         31

3.7 Research Instrument for Data Collection       31

3.8 Validity and Reliability of Instrument  32

3.9 Techniques for Data Analysis     32

CHAPTER FOUR         34

DATA PRESENTATION AND ANALYSIS       34

4.1 Questionnaire and Analysis of Response       34

4.2 Presentation of Question/Items in the Questionnaire and Analysis of Responses   34

4.3 Hypotheses testing  39

4.4 Discussion of Findings      42

CHAPTER FIVE 44

SUMMARY, CONCLUSION AND RECOMMENDATION  44

5.1 Introduction   44

5.2 Summary       44

5.3 Conclusion     44

5.4 Recommendations   45

References  46

Appendix I 50

Appendix II          51

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

As our economy becomes more service and technology oriented, the dynamics of the sales process will changes. The ongoing nature of services and the growing complexity of technology will increasingly necessitate lengthy and involved relationships between buyers and sellers. Thus, the seller‘s focus will need to shift from simply landing sales to ensuring buyer satisfaction after the purchase. To keep buyers happy, vendors must maintain constructive interaction with purchasers which includes keeping up on their complaints and future needs.  Repeat  orders  will  go  to  those  sellers  who  have  done  the  best  job  or  nurturing  these relationship.  Information gathered through communication with customers can enable organizations to develop a marketing mix that is more likely to create customer satisfaction. With the increase in the competition organizations realize that what customer‘s value, is not always just lower prices, but also expects such as delivery, image and brand associations, the link with customers becomes increasingly important. When the market growth slows down or as the markets become more competitive, firms are more likely to attempt to maintain their market share by focusing on retaining the current customers. (Lee et al., 2001).

Customer Relationship Management (CRM) Service is a marketing strategy that ensures the acquisition and retention of most profitable customers using the most effective method. Thus, tremendous growth of services  sector  implies  the  role  of  marketing in  terms  of  vast  opportunities and  implications,  marketing opportunities arising from new technology, in franchising from fewer regulations and professional restrictions, in servicing physical goods and international markets (Lovelock, 1999). The rapid growth of services industry has changed the conditions of business. Customer retention has been advocated as an easier and more reliable source of superior performance (Reichheld and Sasser, 1990). It has now become common knowledge that the value of all customers is not same, the 80/20 rule prevails whereby we have learned that 20 percent of customers generate more than 80 percent of revenues for most companies, and it is not uncommon to find that an even lower percentage of customers can generate more than 80 to 90 percent of the revenues. Under such circumstances, it is not prudent for a company to allocate equal resources to all customers. Customer segmentation and program differentiation is needed in order to match revenue potential with service offerings. Those with higher revenue potential deserve a greater allocation of costs and service. Otherwise, competitors will seize the opportunity by offering better service and a greater allocation of resources for the high-end customers. At the lower-end, attempts should be made to achieve cost savings through the reallocation of efforts based on less-expensive resources. This can be done with the help of relationship marketing strategy strategy.  It is based on the idea that the happier a customer is with a relationship, the greater the likelihood that they will stay with an organization.

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 marketing’s performance among selected banks in Port Harcourt.

1.2 Statement of the Problem

This study was determined to examine the practice of relationship marketing performance of selected banks.

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 to market share and organizational profitability. It is a undoubted fact that loyal customers are seen as the most vital factor of an organization to achieve financial 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 marketing performance of selected banks in Port Harcourt.

  1. To examine the relationship between service quality and marketing performance of selected banks in Port Harcourt.
  2. To examine the Relationship information technology and marketing performance of selected banks in Port Harcourt.
  3. To ascertain the relationship between knowledge management and marketing performance of selected banks in Port Harcourt.
  4. To examine the extent customer orientation influence firm’s performance of selected banks in Port Harcourt.

1.4 Research Questions

The following research questions were proposed to guide the study.

1        To what extent is service quality associated with marketing performance of selected banks in Port Harcourt?

2        To what extent is information technology associated with marketing performance of selected banks in Port Harcourt?

3        To what extent is knowledge management associated with marketing performance of selected banks in Port Harcourt?

4        To what extent is customer orientation associated with firm’s performance of 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 service quality and marketing performance of selected banks in Port Harcourt.

Ho2: There is no significant relationship between information technology and marketing performance of selected banks in Port Harcourt.

Ho3: There is no significant relationship between knowledge management and marketing performance of selected banks in Port Harcourt.

Ho4: There is no significant relationship between customer orientation and firm’s performance among selected banks in Port Harcourt.

1.6 Significance of the Study

The study is expected to make recommendations to marketing organization managers on the critical role of relationship marketing in doing their business, particularly in highly competitive market as Port Harcourt, Rivers State.

It is to acknowledge that a study of this nature is carried out for.  it purpose but as a result of some associated benefits it will help employers to ascertain the need for carrying out effective relationship marketing planning in the respective organizations.

The findings of this study will also open up the future for young practicing marketers to enhance relationship marketing as a strategic marketing tool for improved organizational Performance. Most importantly, this study will improve literature on the subject matter.

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 of selected banks in Port Harcourt. The dependent variable is performance, measured by customer satisfaction and sales volume. While independent variable is relationship marketing measured by service quality, information technology, knowledge management and customer Orientation.

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 Banks in 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.

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