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The influence of relationship marketing orientation on brand equity in banks

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  • Yoganathan, Dhanushanthini
  • Jebarajakirthy, Charles
  • Thaichon, Paramaporn

Abstract

During the last few decades, business philosophy has shifted from marketing orientation to Relationship Marketing Orientation (RMO). Service-oriented organizations, such as banks, increasingly apply RMO to enhance their brand management practices, such as brand loyalty and brand image. This in turn creates an identity for their brand name and adds value to it. The main purpose of this study is to investigate the influence of RMO on Brand Equity in the banking industry. This study also examines the influence of the dimensions of RMO (trust, bonding, communication, shared values, empathy and reciprocity) on the development of Brand Equity in banks. Social exchange theory underpins this examination of the relationship between RMO and Brand Equity. The sample comprised 1400 commercial bank customers from Sri Lanka, and the surveys were administered for data collection. There were two main stages to the analysis: testing the measurement model using confirmatory factor analysis and testing the hypotheses. The findings revealed that RMO positively influenced the development of Brand Equity in banks. Of the dimensions of RMO examined here, Trust, Communication, Shared Values and Empathy significantly enhanced Brand Equity. The implications of these findings for theory and practice have been suggested. The findings of this study have practical applications for enhancing the Brand Equity of banks and other financial institutions by strengthening their relationship marketing practices. This study also suggests some insightful directions for future research.

Suggested Citation

  • Yoganathan, Dhanushanthini & Jebarajakirthy, Charles & Thaichon, Paramaporn, 2015. "The influence of relationship marketing orientation on brand equity in banks," Journal of Retailing and Consumer Services, Elsevier, vol. 26(C), pages 14-22.
    • Handle: RePEc:eee:joreco:v:26:y:2015:i:c:p:14-22
    DOI: 10.1016/j.jretconser.2015.05.006
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    References listed on IDEAS

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    2. Nestor Shpak & Ihor Kulyniak & Maryana Gvozd & Yuliya Malynovska & Włodzimierz Sroka, 2020. "Estimation of the Marketing Activity of Banking Structures," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(1), pages 229-242.
    3. Roudaina Houjeir & Ross Brennan, 2016. "Trust in cross-cultural b2b financial service relationships: The role of shared values," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 21(2), pages 90-102, June.
    4. Suraya Akmar Binti Mokhtaruddin & Che Aniza Binti Che Wel & Syed Shah Alam & Nor Rahimy Binti Khalid, 2018. "The Influence of Relationship Marketing Orientation (RMO) on Customer Retention in Travel Agency Services," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(2), pages 713-724, February.
    5. Casper Ferm, Lars-Erik & Thaichon, Park, 2021. "Value co-creation and social media: Investigating antecedents and influencing factors in the U.S. retail banking industry," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    6. Hamidreza Koosha & Amir Albadvi, 2020. "Allocation of marketing budgets to maximize customer equity," Operational Research, Springer, vol. 20(2), pages 561-583, June.
    7. Wongsansukcharoen, Jedsada, 2022. "Effect of community relationship management, relationship marketing orientation, customer engagement, and brand trust on brand loyalty: The case of a commercial bank in Thailand," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    8. Nasim Khoshbahar Azar & Hormoz Mehrani, 2017. "The Effect of Relationship Marketing Orientation on Brand Equity (Case Study: Privileged Branches of Sepah Bank in Tehran)," International Review of Management and Marketing, Econjournals, vol. 7(5), pages 153-163.
    9. Hani, Umme & Akter, Shahriar & Wickramasinghe, Ananda & Kattiyapornpong, Uraiporn, 2021. "How does relationship quality sustain the rich world’s poorest businesses?," Journal of Business Research, Elsevier, vol. 133(C), pages 297-308.
    10. Esen ŞAHİN & Melis ATTAR & Aboobakr NIAVAND, 2020. "The Influence of Advertising on Brand Equity of Chabahar Free Zone Tourism Destination (Iran)," Istanbul Management Journal, Istanbul University Business School, vol. 0(88), pages 21-55, June.
    11. Anja Plumeyer & Pascal Kottemann & Daniel Böger & Reinhold Decker, 2019. "Measuring brand image: a systematic review, practical guidance, and future research directions," Review of Managerial Science, Springer, vol. 13(2), pages 227-265, April.
    12. Lecuyer, Charlotte & Capelli, Sonia & Sabadie, William, 2021. "Consumers’ implicit attitudes toward corporate social responsibility and corporate abilities: Examining the influence of bank governance using the implicit association test," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    13. Gupta, Amit Kumar, 2021. "Innovation dimensions and firm performance synergy in the emerging market: A perspective from Dynamic Capability Theory & Signaling Theory," Technology in Society, Elsevier, vol. 64(C).

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