Exploring the concepts and practices of relationship marketing within Taiwanese banks.

Abstract

Relationship marketing (RM) is a concept developed in the Western literature which came to prominence in the 1980s. Few studies have, however, considered RM is an Eastern context and in particular the connection RM has with guanxi, the personal relationship or connections found in Chinese based cultures. This thesis adopts a broad perspective of RM from Western theories to explore the concepts and practices in Taiwanese banks. Using the existing definitions of RM, a number of RM components have been identified in this research which include the aims of RM (creation, enhancement, and maintenance), the RM mix (interaction, emotional contents, customer lifetime values, and customisation), and the outcomes of RM (long-term relationships, profitable relationship, customer share, and relationship termination). This research used in-depth interviews in order to investigate what Taiwanese banks understand about RM and how they implement RM to build customer relationships. 34 interviews were conducted with senior bank managers from 17 Taiwanese banks. All interviews were taped and transcribed. Template analysis was used to analyse the data. The findings suggest that Taiwanese banks have embraced these components when implementing RM. More importantly, guanxi, which is deeply embedded in Chinese culture, also has an influence on both concepts and practices of relationship marketing. As such, Western marketers, who have an understanding of the role of guanxi, could be more effective in implementing RM in Chinese-based economies. One of the key contributions of this thesis is on the development of the RM A.M.O. (RM's Aims, Mix, and Outcomes) framework which provides an overview of RM and the capability of the components. Also, acquiring market share, developing customer share and retaining relationships instead of relationship termination should be considered as part of relationship marketing practices.