Relationship marketing: customer commitment and trust as a strategy for the smaller Hong Kong corporate banking sector

Abstract

After the Chinese takeover of Hong Kong its smaller banks carved out a niche for themselves in the corporate market by embracing relationship marketing as a way of doing business. Examines the commitment‐trust dimension of the relationship marketing paradigm in the Hong Kong’s corporate banking sector. The findings show that the Hong Kong banks’ marketing strategy and a long‐term orientation were positively correlated with customer commitment and trust; communications and relational norms were positively correlated with trust; relationship benefits were positively correlated with customer commitment; and the banks’ reputation was negatively correlated with trust and commitment. To continue to be successful in the corporate sector, smaller banks must invest in the long‐term relationship marketing infrastructures to support a customer‐oriented approach. To enhance the corporate customers’ confidence further, the banks must develop parallel communication channels with their customers, show flexibility in their dealings and maximize mutual relationship benefits by minimising drastic recovery actions.

Continuous mobile banking usage and relationship commitment – A multi-country assessment

“…To achieve consumer commitment, a company's strategy must be consumer centric, long term, and based on mutual relationship benefits (Adamson et al, 2003). Thus, the stronger the level of consumer commitment to a service provider, the less likely it is that either relationship partner will voluntarily dissolve the relationship (Hocutt, 1998).…”

Do we bank on regulation or reputation? A meta-analysis and meta-regression of organizational trust in the financial services sector

“…Deb and Chavali, 2010;Kim Shin and Lee, 2009). Most of this research investigates trust from a business to consumer relationship perspective, with only one concerning business-to-business transactions (Adamson, Chan and Handford, 2003). Work on retail banking argues that trust is the most significant foundation for relationship marketing (Ndubisi, 2006;Kharouf and Sekhon, 2009).…”

A model of customer retention of dissatisfied business services customers

“…Dwyer et al (1987) and Kim et al (2004) contended that strong interpersonal relationships between frontline service personnel and customers diminish mobility. Adamson et al (2003) found empirical support for this contention in a small-business context, and Jones et al (2000) demonstrated that strong interpersonal relationships positively influence the repurchase intentions of dissatisfied customers. Gwinner et al (1998) argued that customers who perceive core service attributes as being less than optimal might remain in a relationship if they are receiving important relational benefits.…”