The Effect of Relationship Quality on Customer Loyalty: Evidence from Selected Banks in Kenya (Published)
One of the key marketing strategies implored by Banks is to create emotional connectivity with its customers and ultimately build a strong base of loyal clients. Loyalty will enable the banks to woo new customers through referrals whilst retaining existing ones and thus maintain a huge customer base. The banking industry in Kenya has undergone a revolution such that most bank customers are multi banked and therefore, majority of them may not have allegiance to specific banks. Available literature indicates that relationship quality has a direct effect on customer loyalty. In light of this fact, this paper examines the effect of relationship quality on customer loyalty based on a study of selected banks in Kenya. The main objective of the research was to develop and test a model that examines effect of relationship quality on customer loyalty. The study adapted a positivist approach because of the use of quantitative data. The study further utilized explanatory research design. A questionnaire was used to collect data from a sample of 309 bank customers in Nairobi, Mombasa, Nakuru, Kisumu and Eldoret who maintained bank accounts in the Kenya Commercial Bank, Cooperative Bank, NIC Bank, Diamond Trust Bank, African Banking Corporation and K-Rep (renamed Sidian) Bank. Correlation analysis was used to establish the relationship among the variables. Multiple and moderated regression analysis was used to test the hypotheses at α=.05 level of significance. Model effect size was measured using R-square. The results indicated that relationship quality and the dimensions in the study that is, commitment, communication and conflict handling, were significant in affecting customer loyalty, this is consistent with previous studies. Based on the findings it is imperative for the Banking industry to offer more personalised service, be more innovative, enhance the aspect of CRM (Customer Relationship Management) and embrace technology more at all service points as a tool to understand their customer’s holistically and provide timely information on the touch of a button. The study contributes to knowledge and theory through additional research in the field of relationship quality and customer loyalty.
This study examined the influence of corporate governance on return on assets of quoted banks in Nigeria. The study used secondary data from 2013 to 2017.Data sourced from selected Annual Report and Accounts of three Quoted banks by the Nigerian Stock Exchange. The study utilised both Descriptive Statistics and Ordinary Least Square-Multiple Regression method with the aid of using E-view 9 to analyse the data. The results shown that, the corporate governance has significant influence on return on assets as (F-statistics = 23.46, P <0.05). The results further indicate that, the proportion of shareholders more than 10,001 share, board of composition size and bank size exerts a positive and considerable relevance to return on assets of quoted banks in Nigeria and bank size has significant influenced on return on assets with (β=2.09, t=3.94, p<0.05). Findings suggest that board of directors size of quoted banks in Nigeria should not be too large and must be meeting regularly to effectively and efficiently carry out their oversight functions and responsibilities