Online relationship marketing and customer loyalty: a signaling theory perspective
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Date
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
International Journal of Bank Marketing
Abstract
Purpose
Online technologies have, in recent times, revolutionized the process of relationship building between firms and their customers. Nonetheless, there is a limited focus and theorization when it comes to explaining the link between online relationship marketing (ORM) activities and their impact on firm relationship marketing (RM) objectives. Thus, the purpose of this paper is to examine the signaling role of ORM activities in generating online trust and customer loyalty, through the lens of the signaling theory.
Design/methodology/approach
Data for the study were gathered through a survey of 429 Ghanaian retail bank customers. Results were analyzed using structural equation modeling techniques.
Findings
The paper highlights the signaling role of engagement and interactivity online in influencing banks’ RM outcomes per the signaling theory. It concludes that bank’s online relationship activities, over and above the online tools utilized, need to communicate appropriate and useful signals in order to positively influence online trust and loyalty among customers.
Originality/value
The study, in its uniqueness, utilizes the signaling theory to explain the role and impact of online RM activities in the banking industry.
Description
Citation
Sheena Lovia Boateng, (2019) "Online relationship marketing and customer loyalty: a signaling theory perspective", International Journal of Bank Marketing, Vol. 37 Issue: 1, pp.226-240, https://doi.org/10.1108/IJBM-01-2018-0009