Relational benefits and customer satisfaction in retail banking

Abstract

Purpose

The purpose of this paper is to investigate the impact of relational benefits on customer satisfaction in retail banking. This paper presents a causal model that identifies a connection between the relational benefits achieved through a stable and long‐term relationship with a given bank and customer satisfaction with retail banking.

Design/methodology/approach

Based on a theoretical framework regarding the relationship between relational benefits and customer satisfaction, an empirical study using a sample of 204 bank customers was conducted, and the theoretical model is tested. Multi‐item indicators from prior studies were employed to measure the constructs of interest, and the proposed relationships were tested using structural equations modeling methods.

Findings

The results show that confidence benefits have a direct, positive effect on the satisfaction of customers with their bank. However, special treatment benefits and social benefits did not have any significant effects on satisfaction in a retail banking environment.

Research limitations/implications

This study was conducted in a retail banking setting, and may not be generalized in other service sectors. It has also focused on the relationship between relational benefits and satisfaction, while other factors that may have an influence on consumer satisfaction have not been considered.

Practical implications

The findings suggest that banks can create customer satisfaction through relational strategies that focus on building customer confidence. Therefore, frontline employees should be committed to establishing and maintaining confidence benefits for customers.

Originality/value

Interest in the subjects of relational benefits and customer satisfaction has been growing among marketing researchers and practitioners. The present study provides useful information on the relationship between customer satisfaction and specific relational benefits in retail banking.

Citation

Molina, A., Martín‐Consuegra, D. and Esteban, Á. (2007), "Relational benefits and customer satisfaction in retail banking", International Journal of Bank Marketing, Vol. 25 No. 4, pp. 253-271. https://doi.org/10.1108/02652320710754033