AN INTERNATIONAL BANKING STUDY ON THE INFLUENCE OF DEMOGRAPHIC VARIABLES ON RELATIONSHIP MARKETING

The purpose of this study was to use a self-developed questionnaire to conduct a study among banking clients and bank managers to identify the influence of demographic variables on relationship banking. Primary data has been collected from respondents in South Africa, Canada and the United Kingdom (UK). Convenient sampling was used to select the sample which consisted of 637 banking clients and 67 bank managers. The research instruments to be tested were two similarly structured questionnaires in the form of a 7-point Likert-type scale, one distributed to banking clients and the other to bank managers. Quantitative statistical data analysis was conducted by using the computer programme Statistica Version 9. Descriptive statistics were computed and the reliability of the research instrument was assessed by means of Cronbach Alpha reliability coefficients. A confirmatory factor analysis (CFA) considered validity and linear modelling was performed. The empirical results show that, in addition to the personalisation of banking products and/or services and the fees charged by banks, various demographic characteristics of respondents also influence banks’ relationship marketing. This study is of significant value to South African retail banks to consider the relationship marketing strategies of successful banks in Canada and the UK. This study also adds value to the field of relationship marketing as a valid and reliable measuring instrument is developed for future relationship marketing research. The research offers practical strategies to banks on how to personalise offerings, develop fair fee structures and relate to different categories of clients differently. These implemented strategies will ultimately improve bank-client relationships.