Effectiveness of Relationship Marketing Strategy; A Study of Financial Services Organization in Nuwara-eliya District

Abstract

Relationship marketing is the on-going process of identifying and creating new value with individual and corporate customers. It involves the understanding, monitoring, focusing and management of on-going collaboration between suppliers and selected customers for mutual value creation and sharing through interdependence and organizational alignment. Relationship marketing has emerged as one of the dominant drivers in business strategy circles. There are various relationship strategies and techniques used by marketer to increase marketing effectiveness. Relationship marketing is one of the strategies for improving marketing effectiveness. The present study focuses on “Effectiveness of Relationship Marketing Strategies; A study of financial services organization in Nuwara-Eliya district*' The main objective of this study is to examine the effectiveness of relationship marketing strategies on financial services organizations. This study utilized 100 financial organizations' customers and data were collected through judgment sampling method from the financial services organizations' customers such as banks, insurance and leasing companies in Nuwara-Eliya district. Customer perspective (Trust and Communication) and Organizations perspectives (information technology) are considered as independent variables and effectiveness of relationship marketing such as competitive advantage and customer satisfaction are considered dependent variables of this study. Data were analyzed by using the SPSS 17 Package in this study. The results of the study indicated that the positive relationship was observed among trust and communication in customer perspective variables, and the effectiveness (§= 0.369, p<0.01 and § — 0.273, p<0.01 respectively). In the organization perspective variables, Positive relationship was observed among the inter organization information system, customer relationship management, and database and the effectiveness (§ =0.203, p<0.01, §=0.561, p<0.01and § =0.468. p<0.01 respectively). Finally, the results indicated correlation of customer perspectives and effectiveness has higher relationship than the organizations perspectives and effectiveness