(Gronroos, ), the amount of published research on relationship marketing began to increase after. Berry formally introduced the concept in In addition . Concepts as Relationship Value Determinant", Journal of Marketing Research and Case Studies,. Vol. An empirical validation of a model presenting the impact of the first concept on the Accordingly, Morgan and Hunt. enormous emphasis on a concept that was not even in the marketing vernacular . marketing, Morgan and Hunt () identify “relationship benefits” as a key.
The benefits of relationships are seen to be the creation of competitive barriers, the reduction of inter-firm transaction costs and the greater incidence of inter-firm innovations Dyer,; Dyer and Singh, ; Dyer and Nobeoka, ; Dyer and Chu, Overall, this view has received the least attention in the competitive advantage literature The concept of sustainable competitive advantage has received a number of criticisms.
Some authors propose that the link between competitive advantage and performance is not easily identified due to vagaries of the terminology used and the lack of support for the hypothesised link between competitive advantage and performance Arend, ; Coff, ; Durand, ; Powell, ; Prior, To cope with this problem, the author has developed an alternative archetype of 3 competitive advantage. It is based on the notion that competitive advantages directly result in damage to competitors and, as such, this damage should be seen as an area to look for evidence of competitive advantage rather than in performance indicators Prior, Advantages are seen to either be innovation-based, efficiency-based or monopoly-based.
Efficiency-based Ricardian advantages result from learning curve effects and economies of scale, and ultimately lead to the ability to produce products for lower cost per unit thus denying competitors the opportunity to either be as profitable or to exploit lower cost positions in the market. Monopoly-based advantages are a result of securing a market position that leads to domination of the sources of supply or of customers, thus denying competitors access to these.
An Alternative View of Relationship-based Competitive Advantage The majority of attempts to conceptualise relationship-based competitive advantage have focussed on only a handful of variables as discussed during the introductory paragraphs.
The study of only one or two variables, however, does not allow for the complex nature of inter-firm relationships. In response to this narrowness, Jap and Wilson have both created models that attempt to encompass the variety of different influences on relationship-based competitive advantage.
Their models, however, suffer from a lack of fluidity and do not entirely achieve the goal of being holistic models since key variables are ignored. It is apparent that traditional notions of firm borders have informed these models. Also, they encompass crude measures of competitive advantage. Using the theoretical underpinnings proposed in the IMP school of relationship marketing, and the alternative conceptualisation of competitive advantage discussed in the previous section, Figure 1 illustrates an alternative view of relationship-based 4 competitive advantage.
Figure 1 is based on an integration of individually studied variables with the BRA framework. It is argued that factors such as trust, commitment, mutual goals, power and social bonding heavily influence actor bonds.Relationship Marketing Will Build Your Business
Activity links are argued to be influenced by inter-firm knowledge exchange and transaction costs. Resource ties, on the other hand, are seen to result from idiosyncratic relationship investments and inter-firm governance structures. An Alternative View of Relationship-based Competitive Advantage Commitment Mutual Trust goals Power Actor Bonds Social bonding Transaction costs Monopoly- Activity Links based advantages Information exchange Idiosyncratic investments Resource Ties Governance Conclusion Overall, this alternative model of relationship-based competitive advantage is a new step forward in holistically conceptualising the incidence of relationship-based competitive advantage.
The model is limited, however, in its broad measurability due to its many facets. It is also limited in its ability to account for network ties. Future research on this model would involve including these factors, empirically testing the model and to further integrate relationship dynamism.
European Journal of Marketing 30, Strategic Management Journal 14, Strategic Management Journal 24, Expectations, Luck and Business Strategy. Management Science 42, Journal of Management 17, Journal of Business Research 59, Journal of Services Research 6, Concepts and Tools, Oxford: Strategic Management Journal 13, Quarterly Journal of Economics 91, Service Industries Journal 26, Organisation 6 Science 10, The McKinsey Quarterly Management Science 35, A Critique of Powell.
Strategic Management Journal 23, Evidence from the Auto Industry. Strategic Management Journal 17, Strategic Management Journal 18, Organisation Science 14, Strategic Management Journal 21, Academy of Management Review 23, Strategic Management Journal 11, International Journal of Research in Marketing 13, Journal of Marketing 55, Strategic Management Journal 8, Academy of Management Journal 21, Industrial Marketing Management 26, International Journal of Management Reviews 2, Collaboration Processes in Buyer-Supplier Relationships.
Journal of Marketing Research 36, The level of trust between exchange partners is an important criterion for understanding the strength of marketing relationships and has been defined in a variety of related ways. As Wilson suggests trust is a fundamental relationship model building block and is included in most relationship models. Trust has been defined in diverse ways in the relationship marketing literature.
Morgan and Hunt identifies trust as a key construct in their model of relationship marketing. For the operationalization purpose definition of Morgan and Hunt was taken because it has considered the exchange and confidence which would be important in relationship marketing as a base.
Definitions of Key Concepts Relationship marketing refers to the relationship commitment and trust Morgan and Hunt, Morgan and Hunt regard relationship commitment as the keystone of relationship marketing. Sample and Data Collection It was decided to employ a survey to collect data as the questionnaire method is more appropriate. Data for this study was drawn from the questionnaire. Questionnaire consists of two parts.
Part one was covered the two dimensions of relationship marketing; relationship commitment and customer trust. Part two comprised of the background information about the respondents. This includes Gender, length of relationship with the salesperson, ownership of the specific bank which customer deals with, designation of customer, visits per month and the educational qualifications. Before distributing the final questionnaire researcher did a pilot survey with thirty 30 customers fifteen 15 each from two 2 state banks and private banks.
After the pilot survey certain modifications were carried out according to the findings. Pilot survey was conducted to check whether the questionnaire was understandable or needs improvements etc.
It was decided to restrict the study to local banks. Thus two state banks and five private banks were selected. It was decided to select both state banks because the largest proportion of salespersons attached to these two banks. Five major private banks were selected to make the sample representative and also because of the growing competition in the sector.
From these seven banks a random sample of customers were selected. A total of customers returned the questionnaire and all were suitable for the analysis. Hence it can be clearly seen that sample was evenly distributed among state and private banks.
The analysis was performed by SPSS Linear regression technique has been used to test relationship between variables and test the hypothesis. Table 1, shows the reliability test with all values grater than threshold of 0. Hence it can be conclude that the items reliably measure the defined constructs and variables.
Survey data Comparison between two types of banks for Relationship Marketing Orientation As the descriptive statistics in table 2 shows a significant difference between state and private banks in relationship marketing, it was decided to examine whether the differences are significant or not. For this purpose independent sample T-test was performed. This test is used when there are two experimental conditions and different subjects were assigned to each condition.
As Table 2 shows there is significant relationship between relationship marketing and the ownership of bank. Hence it can infer that relationship marketing is well practiced by private banks than in state banks.
Hence this research has further underlined the importance of the personal relationship by revealing that customers considered their banking relationship to be with their relationship manager rather than with the bank they represented Tyler and Stanley, Thus by looking at relationship marketing in a different innovative angle can be used for the training of the corporate staff in the bank, making the staff aware of the true meaning of the relationship marketing with its essence etc.
Consequently focus of the study is to fill the empirical gap in the banking sector as well. Furthermore the relationship marketing practice in private banks with the state banks can be compared.
According to the study it has been found that private banks are more relationship oriented than public banks. Hence this can be further discussed in future research. And also according to the findings the CEO and top mangers in organizations always preferred to visit private banks than state banks. This will further question the relationship marketing orientation of state banking sector in sri lanka.
Another important piece of information is that the majority of customers who deals with the banks are males and most of the female like to visit their bank only once a month. This will shed light for future research as to find out any possible impact of gender involvement in banking in Sri Lanka.
There is an immense competition in the banking sector because of the growing nature of the industry. The validity of bank-corporate client partnership strategy depends on how effectively it is implemented. For that training of salesperson is a must. Thus findings of this research will be helpful to prepare training manuals, training guidance as well as training programs. Because of this, possibility of drawing generalization from the findings of the present study is limited.
However, this can be further expanded into fields such as insurance and leasing. An examination of current marketing practices", Journal of Marketing Management, 13,