Relationship marketing: customer commitment and trust as a strategy for the smaller Hong Kong corporate banking sector

Abstract

After the Chinese takeover of Hong Kong its smaller banks carved out a niche for themselves in the corporate market by embracing relationship marketing as a way of doing business. Examines the commitment‐trust dimension of the relationship marketing paradigm in the Hong Kong’s corporate banking sector. The findings show that the Hong Kong banks’ marketing strategy and a long‐term orientation were positively correlated with customer commitment and trust; communications and relational norms were positively correlated with trust; relationship benefits were positively correlated with customer commitment; and the banks’ reputation was negatively correlated with trust and commitment. To continue to be successful in the corporate sector, smaller banks must invest in the long‐term relationship marketing infrastructures to support a customer‐oriented approach. To enhance the corporate customers’ confidence further, the banks must develop parallel communication channels with their customers, show flexibility in their dealings and maximize mutual relationship benefits by minimising drastic recovery actions.

Citation

Adamson, I., Chan, K. and Handford, D. (2003), "Relationship marketing: customer commitment and trust as a strategy for the smaller Hong Kong corporate banking sector", International Journal of Bank Marketing, Vol. 21 No. 6/7, pp. 347-358. https://doi.org/10.1108/02652320310498492