Online Relationship Marketing and Customer Loyalty Based on Signalling Theory

2021 ◽  
Vol 6 (1) ◽  
pp. 86-93
Author(s):  
Wenny Pebrianti ◽  
Wenseslaus Tanwira ◽  
Ahmadi Ahmadi
Keyword(s):  
Relationship Marketing ◽  
Customer Loyalty ◽  
Quantitative Methods ◽  
Banking Sector ◽  
Jel Classification ◽  
Security And Privacy ◽  
Online Trust ◽  
Mediating Role ◽  
Signalling Theory ◽  
Marketing Activities

Objective – The purpose of this study was to determine the effect of Online Relationship Marketing on customer loyalty which was examined from the perspective of signalling theory in the banking sector. Methodology/Technique – Signalling theory is used to identify the tendency of companies to build relationships with consumers by sending signals to consumers through a variety internet tools and applications to communicate transparency, security, and privacy to influence consumer perceptions, behavior, and interests. Data was analyzed using quantitative methods with the SEM-PLS method involving 384 samples. Findings – The results of this study indicate that Online Relationship Marketing activities, such as engagement and interactivity, have a significant direct effect on customer loyalty and online trust. Novelty - Online trust in this study has a significant effect on customer loyalty and has a partial mediating role. Type of Paper: Empirical. JEL Classification: M31, M39. Keywords: Engagement; Interactivity; Online Trust; Customer Loyalty; Signalling Theory Reference to this paper should be made as follows: Pebrianti, W; Tanwira, W; Ahmadi. (2021). Online Relationship Marketing to Customer Loyalty Based on Signalling Theory, Journal of Management and Marketing Review, 6(1) 86 – 93. https://doi.org/10.35609/jmmr.2021.6.1(9)

Enhancing Calculative Commitment and Customer Loyalty Through Online Relationship Marketing

2021 ◽  
pp. 1221-1241
Author(s):  
Sheena Lovia Boateng
Keyword(s):  
Relationship Marketing ◽  
Customer Loyalty ◽  
Online Trust ◽  
Calculative Commitment ◽  
Mediating Role ◽  
Customer Commitment ◽  
Confirmatory Factor ◽  
Path Modelling ◽  
Marketing Activities ◽  
Structural Path

This study examines the mediating role of online trust in enhancing calculative commitment and customer loyalty through online relationship marketing activities (engagement and interactivity). The study draws on signaling theory. Data were gathered from 429 retail bank customers in Ghana and analyzed using confirmatory factor analysis and structural path modelling. Findings suggest that engagement is assessed to be low by Ghanaian bank customers and presently has no influence on customer commitment, online trust, and customer loyalty. However, signals communicated through interactivity online is of great benefit to the banks in influencing customers' online trust, as well as their calculative commitment and loyalty. Further, though, website and email emerged as the most predominant technologies used in online relationship marketing (ORM), customers also expect banks to engage with them through social media, which has the potential to improve upon the current levels of ORM activities.

Enhancing Calculative Commitment and Customer Loyalty Through Online Relationship Marketing

2020 ◽  
pp. 50-76
Author(s):  
Sheena Lovia Boateng
Keyword(s):  
Relationship Marketing ◽  
Customer Loyalty ◽  
Online Trust ◽  
Calculative Commitment ◽  
Mediating Role ◽  
Customer Commitment ◽  
Confirmatory Factor ◽  
Path Modelling ◽  
Marketing Activities ◽  
Structural Path

This study examines the mediating role of online trust in enhancing calculative commitment and customer loyalty through online relationship marketing activities (engagement and interactivity). The study draws on signaling theory. Data were gathered from 429 retail bank customers in Ghana and analyzed using confirmatory factor analysis and structural path modelling. Findings suggest that engagement is assessed to be low by Ghanaian bank customers and presently has no influence on customer commitment, online trust, and customer loyalty. However, signals communicated through interactivity online is of great benefit to the banks in influencing customers' online trust, as well as their calculative commitment and loyalty. Further, though, website and email emerged as the most predominant technologies used in online relationship marketing (ORM), customers also expect banks to engage with them through social media, which has the potential to improve upon the current levels of ORM activities.

Online Relationship Marketing to Customer Loyalty Based on Signaling Theory (Evidence of Bank Customers in Indonesia)

2020 ◽  
Vol 11 (1) ◽  
pp. 127-127
Author(s):  
Wenny Pebrianti ◽  
Wenseslaus Tanwira ◽  
Ahmadi
Keyword(s):  
Relationship Marketing ◽  
Customer Loyalty ◽  
Financial Services ◽  
Signaling Theory ◽  
Cellular Communication ◽  
Place And Space ◽  
New Era ◽  
Online Trust ◽  
Marketing Activities ◽  
Relationship Of

The internet has changed people's way of life, especially in dealing a transaction. Indonesian banking entered a new era since 2000 when banks in Indonesia began implementing electronic banking or e-banking systems. Integrating cellular communication technology and banking financial services is changing people's lifestyles to be more flexible in making it easier for users to access banking financial services without being hindered by time, place and space. The same integration also occurs in relationship marketing strategies and cellular communication technologies that make it easy for companies to be able to reach and provide the best service to their consumers. This study wants to reveal the relationship of interactivity and engagement which is an activity of Online Relationship Marketing at a bank to be able to understand consumers in order to create customer loyalty with online trust as mediation.Based on the above background, the problem in this study is "Does Online Relationship Marketing activities such as engagement and interactivity affect customer loyalty either through online trust as mediation or not?" Keywords: engagement, interactivity, online trust, customer loyalty, signaling theory

scholarly journals Functional Characteristics Of Banking Websites And Customer Loyalty: The Mediating Role Of Online Trust

2015 ◽  
Vol 31 (3) ◽  
pp. 911 ◽  
Author(s):  
Sarra Berraies ◽  
Rached Chtioui ◽  
Karim Ben Yahia
Keyword(s):  
Customer Loyalty ◽  
Banking Sector ◽  
Structural Equations ◽  
Functional Characteristics ◽  
Online Trust ◽  
Mediating Role ◽  
Key Driver ◽  
The Relationship ◽  
Positive Effect

The aim of this paper is to analyze the relationship between the websites functional characteristics, online trust and customer loyalty in banking sector. Our research required the testing of twelve hypotheses with a sample of 286 Tunisian banks customers. The data were analyzed by structural equations modeling using the AMOS software. The results of our research highlighted the significant and positive effect of the websites functional characteristics on online trust among customers, which in turn has been proven to be a key driver of their loyalty to their banks. Our study pointed also the mediation role played by online trust between websites functional characteristics and customer loyalty.

scholarly journals Impact of Relationship Marketing on Customer Loyalty in Banking Sector of Pakistan

2021 ◽  
Vol 2 (2) ◽  
pp. 1-13
Author(s):  
NOUMAN SAEED ◽  
DR. NAIMAT ULLAH KHAN
Keyword(s):  
Relationship Marketing ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Customer Base ◽  
Intense Competition ◽  
Long Run ◽  
Turn Over ◽  
Positive Word Of Mouth ◽  
The Impact

This study is a contribution towards marketing literature by analyzing the impact of Relationship Marketing (RM) on Customer Loyalty. Every business organization tries to attract and retain customers for a longer period of time. In recent years an intense competition in banking sector of Pakistan is witnessed as the industry has stretched and become very competitive, where retaining customers in long run become important for every bank. Relationship marketing emphasizes on the continuity of long term relationship with the patrons. Numerous marketing strategies have been employed by banking sector to increase customer base, reduce turn over and to spread positive word of mouth of product and services. The aim of this study is to investigate the impact of relationship marketing practices such as (Trust, Commitment, Communication, Competence and Customer Satisfaction) on customer loyalty in Banking Sector of Pakistan. For this purpose, data is collected with the help of 150questionnaires across Pakistan. Statistical analysis is performed on the data using multiple regression analysis and reliability test. The results of the study show that all the five constructs of relationship marketing (mentioned above) have significant and positive relationship with customer loyalty. The factors are proved to be significant drivers of customer loyalty in banking sector of Pakistan. The study recommends that for retaining long-run customer loyalty, banks should consider relationship marketing as a core strategy. Hence, relationship marketing is important for banks to survive and excel in current intense competition.

Online relationship marketing and customer loyalty: a signaling theory perspective

2019 ◽  
Vol 37 (1) ◽  
pp. 226-240 ◽  
Author(s):  
Sheena Lovia Boateng
Keyword(s):  
Relationship Marketing ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Signaling Theory ◽  
Relationship Building ◽  
Equation Modeling ◽  
Content Type ◽  
Online Trust ◽  
Online Technologies

PurposeOnline technologies have, in recent times, revolutionized the process of relationship building between firms and their customers. Nonetheless, there is a limited focus and theorization when it comes to explaining the link between online relationship marketing (ORM) activities and their impact on firm relationship marketing (RM) objectives. Thus, the purpose of this paper is to examine the signaling role of ORM activities in generating online trust and customer loyalty, through the lens of the signaling theory.Design/methodology/approachData for the study were gathered through a survey of 429 Ghanaian retail bank customers. Results were analyzed using structural equation modeling techniques.FindingsThe paper highlights the signaling role of engagement and interactivity online in influencing banks’ RM outcomes per the signaling theory. It concludes that bank’s online relationship activities, over and above the online tools utilized, need to communicate appropriate and useful signals in order to positively influence online trust and loyalty among customers.Originality/valueThe study, in its uniqueness, utilizes the signaling theory to explain the role and impact of online RM activities in the banking industry.

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