Supplier-customer relationship management and customer loyalty: The banking industry perspective

Purpose - The purpose of this paper is to examine the impact of the relationship marketing underpinnings, namely: commitment; competence; communication and conflict handling on the one hand and customer loyalty on the other, as well as the mediation effects of trust and relationship quality. Design/...

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Main Authors: Ndubisi, Nelson Oly, Wah, Chan Kok, Ndubisi, Gibson C.
Format: Article
Language:English
Published: Emerald Group Publishing Ltd. 2007
Subjects:
Online Access:https://eprints.ums.edu.my/id/eprint/3779/1/Supplier-customer_relationship_management_and_customer_loyalty_The_banking_industry_perspective.pdf
https://eprints.ums.edu.my/id/eprint/3779/
http://dx.doi.org/10.1108/17410390710725797
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spelling my.ums.eprints.37792017-10-17T03:39:04Z https://eprints.ums.edu.my/id/eprint/3779/ Supplier-customer relationship management and customer loyalty: The banking industry perspective Ndubisi, Nelson Oly Wah, Chan Kok Ndubisi, Gibson C. HG1501-3550 Banking Purpose - The purpose of this paper is to examine the impact of the relationship marketing underpinnings, namely: commitment; competence; communication and conflict handling on the one hand and customer loyalty on the other, as well as the mediation effects of trust and relationship quality. Design/methodology/approach - Bank customers in Kota Kinabalu, Malaysia were surveyed using a questionnaire. Bank intercept technique was used in administering the instrument. A total of 220 customers provided the data for the study. Multiple regression analysis was used to measure the construct's relationship. Findings - The results show that relationship marketing strategies, namely: communication; commitment; competence; and conflict handling are directly and indirectly (through trust and relationship quality) associated with customer loyalty. Moreover, trust and relationship quality are directly associated with loyalty. Research limitations/implications - Although the study focuses on the banking industry in Malaysia, the outcome may be relevant to other service sectors. By identifying the relevant RM underpinnings in this sector, more researches adapting or replicating the present study in other sectors would help in pushing back the frontier of knowledge in the customer relationship management domain. Practical implications - This study unveils how firms can use the relationship marketing (RM) strategy to nurture and keep loyal customers and how to manage the supplier-customer relationship in the banking sector. Originality/value - Not much is understood about the actual influences of the underpinnings of relationship marketing on customer loyalty from empirical evidence. This research would help organisations in evaluating the results of investments and sacrifices of the firm in building relationships with its customers. Emerald Group Publishing Ltd. 2007 Article PeerReviewed text en https://eprints.ums.edu.my/id/eprint/3779/1/Supplier-customer_relationship_management_and_customer_loyalty_The_banking_industry_perspective.pdf Ndubisi, Nelson Oly and Wah, Chan Kok and Ndubisi, Gibson C. (2007) Supplier-customer relationship management and customer loyalty: The banking industry perspective. Journal of Enterprise Information Management, 20 (2). pp. 222-236. ISSN 1741-0398 http://dx.doi.org/10.1108/17410390710725797 10.1108/17410390710725797
institution Universiti Malaysia Sabah
building UMS Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sabah
content_source UMS Institutional Repository
url_provider http://eprints.ums.edu.my/
language English
topic HG1501-3550 Banking
spellingShingle HG1501-3550 Banking
Ndubisi, Nelson Oly
Wah, Chan Kok
Ndubisi, Gibson C.
Supplier-customer relationship management and customer loyalty: The banking industry perspective
description Purpose - The purpose of this paper is to examine the impact of the relationship marketing underpinnings, namely: commitment; competence; communication and conflict handling on the one hand and customer loyalty on the other, as well as the mediation effects of trust and relationship quality. Design/methodology/approach - Bank customers in Kota Kinabalu, Malaysia were surveyed using a questionnaire. Bank intercept technique was used in administering the instrument. A total of 220 customers provided the data for the study. Multiple regression analysis was used to measure the construct's relationship. Findings - The results show that relationship marketing strategies, namely: communication; commitment; competence; and conflict handling are directly and indirectly (through trust and relationship quality) associated with customer loyalty. Moreover, trust and relationship quality are directly associated with loyalty. Research limitations/implications - Although the study focuses on the banking industry in Malaysia, the outcome may be relevant to other service sectors. By identifying the relevant RM underpinnings in this sector, more researches adapting or replicating the present study in other sectors would help in pushing back the frontier of knowledge in the customer relationship management domain. Practical implications - This study unveils how firms can use the relationship marketing (RM) strategy to nurture and keep loyal customers and how to manage the supplier-customer relationship in the banking sector. Originality/value - Not much is understood about the actual influences of the underpinnings of relationship marketing on customer loyalty from empirical evidence. This research would help organisations in evaluating the results of investments and sacrifices of the firm in building relationships with its customers.
format Article
author Ndubisi, Nelson Oly
Wah, Chan Kok
Ndubisi, Gibson C.
author_facet Ndubisi, Nelson Oly
Wah, Chan Kok
Ndubisi, Gibson C.
author_sort Ndubisi, Nelson Oly
title Supplier-customer relationship management and customer loyalty: The banking industry perspective
title_short Supplier-customer relationship management and customer loyalty: The banking industry perspective
title_full Supplier-customer relationship management and customer loyalty: The banking industry perspective
title_fullStr Supplier-customer relationship management and customer loyalty: The banking industry perspective
title_full_unstemmed Supplier-customer relationship management and customer loyalty: The banking industry perspective
title_sort supplier-customer relationship management and customer loyalty: the banking industry perspective
publisher Emerald Group Publishing Ltd.
publishDate 2007
url https://eprints.ums.edu.my/id/eprint/3779/1/Supplier-customer_relationship_management_and_customer_loyalty_The_banking_industry_perspective.pdf
https://eprints.ums.edu.my/id/eprint/3779/
http://dx.doi.org/10.1108/17410390710725797
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score 13.211869