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Impacts of relationships on customer retention in the banking industry

โœ Scribed by Steven D. Hanson; Lindon J. Robison; Marcelo E. Siles

Publisher
John Wiley and Sons
Year
1996
Tongue
English
Weight
604 KB
Volume
12
Category
Article
ISSN
0742-4477

No coin nor oath required. For personal study only.

โœฆ Synopsis

A survey of rural Michigan banks found that building good customer relationships is an important goal. The financial success of eforts to build relationships depends on the customer loyalty associated with friendly relationships. Customer loyalty was investigated in a survey of financial institution customers located in rural areas. Compared to unfriendly relationships, friendly relationships increased the interest rate dLfferentia1 on deposited funds required for a customer to switch institutions by 74 basic points. 01996 John Wiley & Sons, Inc.

Banks have traditionally advertised to help promote their services, products, cost savings, investment returns, and financial strength. These advertising motives tend to focus on marketing strategies that promote bank services. An alternative bank advertising goal is to build positive relationships with customers. Besides using advertising to improve customer relationships, bank personnel ....

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