ABSTRACT
Relationship marketing was first desired in a
form of relationship marketing development for direct response marketing
campaigns which emphasis customer’s retention and satisfaction rather dominate
focus on sales transactions. It is using in the banking industry her become
imperative. Against this back drop that this research work aimed at assessing
the impact with UBA and Zenith bank Plc as case study. A dummy regression
technique was used to analyze the data of this research, the result showed that
if the bank employ customer relationship marketing, there will be about 25%
increase in sales volume, 7% increase in share growth and average increment of
22% in SV, SG and profitability (P<0.01) and (P<0.05). Customer
Relationship Marketing to should be sustained and enhanced by the banks to ensure
growth.
TABLE
OF CONTENTS
Title page i
Declaration
ii
Certification iii
Dedication iv
Acknowledgement v
Table of content vii
List of tables
Abstract
CHAPTER
ONE
INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of Problem. 2
1.3 Objectives of the Study 3
1.4 Research Questions 3
1.5 Research Hypotheses 4
1.6 Significance of the Study 4
1.7 Scope
of the Study 5
1.8 Operational Definition of Terms 7
CHAPTER
TWO
REVIEW
OF RELATED LITERATURE
2.1 The Nature and Meaning of Marketing 8
2.2 Theories and Models 10
2.2.1
Customer
Relationship Marketing Theory 10
2.2.2
Components of Customer Relationship
Marketing. 13
2.3
Quality
and Service Delivery:- 13
2.3.1
Moral dependency and interaction
2.3.2
Long Term Relationship Between
the Bank and
the Key Partners
15
2.3.3
Customer Retention 16
2.3.4 Customer Examined 18
2.4 Customer Relationship
Marketing in the Banking Sector
2.5 Conceptual Framework 20
2.5.1 Impact of Customer Relationship
Marketing on the Banking Sector 20
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design 22
3.2 Area of the Study 23
3.3 Population of the Study 24
3.4 Sample Size and Sampling Techniques 25
3.5 Method of Data Collection 26
3.6 Method of Data Analysis 27
3.6.1 Regression Analysis 27
3.7 T-test Distribution 28
CHAPTER FOUR
DATA ANALYSIS AND DISCUSSION
4.1 Socio Economic Characteristics 29
4.2 Impact of Customer Relationship Marketing on
Bank Growth 34
4.3 Justification of Research Objectives and
Research Questions 37
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary 39
5.2 Conclusion 39
Bibliography 40
Appendix
LIST
OF TABLES
Table
4.1 Response Rate Questionnaire 29
Table
4.2 Distribution of the Respondents
According to Sex 30
Table
4.3 Distribution of Respondents
According to their Age 30
Table
4.4 Distribution of Respondents Based on Qualification 31
Table 4.5 Distribution of Respondents According to their Year of Experience 32
Table 4.6 Opinion of Staff and management on impact of
customer relationship marketing on bank growth 33
Table
4.7: Regression Analysis of Impact on
Customer Relationship Marketing on Sales Volumes 34
Table
4.8: Regression Analysis of Impact on
Customer Relationship Marketing on Share Growth 35
Table
49: Regression Analysis of Impact on
Customer Relationship Marketing on Profits 36
Table 4.10a. T – test for effect of Customer Relationship marketing and Customer loyalty 38
Table 4.10b. T – test for effect of Customer Relationship
marketing and Customer loyalty 38
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Relationship marketing was
first defined as a form of marketing development fit direct
response marketing campaigns/ which emphasizes customers retention and satisfaction
rather than a dominant focus on sales transitions (Kotler 2000). As a practice/ relationship marketing differs from
other forms of marketing in that It recognizes the long-term value of customer
relationships and retains communication beyond intrusive advertising arid sales
promotional messages (Kotler & Armstrong, 2006).
With the growth of the
internet and mobile platform, relationship marketing Has continued to evolve and
move forwards as technology opens more collaborative and social communication channels. These include
tools for managing relationships with customers
that goes beyond simple demographic and customer service data. Relationship marketing extends to include
in-bound marketing efforts, (a combination of search optimization and strategic content), the action,
PR, social and application development Relationship marketing is a broadly
recognized widely -strategy for
managing and nurturing sales prospects (Anuforo & Boniface, 2014).
Relationship marketing is marketing activities that are aimed at developing and managing (long-term treatment relationship with large customers. In
Relationship marketing, customer profile, buying patterns a history of contacts are maintained in
a sales database, and an account to fulfill their needs
and maintain the relationship.
In 2006 to 2008/ research priorities were given the title “'The Connected Customer" to reflect the increasing importance of
understanding how customers and the firm
interact before making key marketing
decision.
1.2 Statement of Problem.
In recent years the concept
of relationship marketing has developed well beyond it original function as
merely using customer's database to manage business activities in making profits. It is
transcended to a more integration of technologies and business processes used to satisfy
needs of customer during any given interaction (Bose, 2002). A relationship market role
in the marketing and overall strategy of an organizations strategic mix has become significant in the
banking sector/ so research into this arena becomes
increasingly important.
In the global literature sense/ a number of studies have been done in the
more developed economics "on the various aspects of relationship
marketing. However, in the developing geographical like Abia State in Nigeria not
much have been done. This therefore, gives the justification for this research
to be conducted to help the literature gap existing and also to equip bankers
on how to retain customers.
1.3 Objectives of the Study
The main objectives is to evaluate
the effect of relationship marketing on the performance of some selected banks
in Abia State. Other specific objectives include to:
i.
To examine the
effect of relationship on bank sales volume.
ii.
To analyze the effect of relationship on market share
growth in the banking sector.
iii.
To analyze the effect of relationship on the
profitability of bank marketing in Abia State.
iv.
To determine the relationship between relationship
marketing and customer loyalty in the banking sector.
1.4 Research
Questions
1.
What is the effect of relationship marketing on the
banks sales volume?.
2.
What is the effect of relationship marketing on market
share growth of the selected banks?.
3.
What is the effect of relationship marketing to bank
profitability in Abia State?.
4.
Does relationship marketing enhance customers loyalty
in the banking sector.
1.5 Research
Hypotheses
The hypothesis of the study
are:
Some hypothesis will be stated to guide the
study they are:
H01: Relationship
marketing is not significant in determining the sales volume in the banking
sector.
H02: Relationship marketing is not significant in
market share growth.
H03: Relationship marketing is not significant in
determining profitability in the banking sector.
H04: Relationship marketing is not significant in
determining customers loyalty in the bank sector.
1.6 Significance
of the Study
Relationship marketing has
become one of the diverse ways a bank can use to satisfy and retain customers.
And this study, as a results will be of immense significance to some groups of
people as highlighted below.
1.
The bank management will see the study as source of
information input for making marketing decisions. This will be especially in
the areas of how to identify, target, satisfy and retain customers over a
period of time.
2.
Bank customers will also see the study as source of
information during their service evaluation process. Thus, it choice from the
numerous banks in the state.
3.
The researcher will see the study as source of data for related study.
Such will serve as literature in their research process.
4.
The student, lecturers and other people in the
academics will see the study as source of knowledge for the teaching and
learning purposes. Such will help to add to their classroom knowledge of
marketing.
1.7 Scope of
the Study
Geographical
Scope
This work covers the use of
two banks, which are UBA and ZENITH BANK. The banks to be used are located in Aba
and Umuahia town all in Abia State. However, Abia State is one of the states in
South-East geopolitical zone of Nigeria. It was created on August 27, 1991,
with the capital in Umuahia. It comprises seventeen Local Government Area. The
state shares common boundaries to the North with Ebonyi State, to the South and
South-West with Rivers States and to be East and South-East with Cross Rivers
and Akwa Ibom States respectively. To the West is Imo State and to the
North-West is Anambra State.
According to NPC (2007),
Abia State has a population of 2, 833, 999 of which 1,515,576 were men and
1,318,424 were women. The state covers an area of about 5,243.7sq which is
approximately 5.8 percent of the total land area of Nigeria; it lies within approximately
latitudes 4040 and 60140 North, and
longitudes 70100 and 80 East (Onuoha 2002). Abia State
has two main urban centers, namely, Umuahia and Aba. Umuahia, the State Capital
has become the administrative, educational and cultural center of the State. In
addition the city is located at the center of an extensive agricultural region
which covers most of the central part of the state. It is also strategically
located along a well established North-South trading and transportation route
William (2001).
According to Onuoha (2002),
Umuahia is one of the consistently surplus producing including marketing of
food grain. It is one of the pilot learning of improving productivity and
market success (IPMS) of Nigerian farmers project which is currently working in
improving the productivity and marketing success of Nigerian farmers through
value chain development and knowledge management approaches. The diversified
agro-ecology of the state creates an opportunity for the production and
marketing of different crops such as cereals, pulses, oil crops, vegetables, species
and perennial crops.
1.8 Operational
Definition of Terms
·
Customer: This is the final user of
the service of the bank.
·
Bank: This is the financial institution that accepts deposits and pays
money to the customers and other members of the public.
·
Relationship Marketing: This is the marketing
strategy directed towards the identification, satisfaction and retention of the
customer at profit.
·
Customer Patronage: This is the purchase and
usage of bank services by the customer.
·
Customer Satisfaction: This is the psychological
benefit derived from the patronage of bank services.
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