Abstract
Information and communication are critical to developing customer relationships. Thus, new information and communication technologies (NICTs) became a key knowledge tool for the organisation within a relationship marketing strategy. Retail banking is a good example of a sector in which the virtualisation of relationships is increasing. However, there is no consensus as to whether banking relationships are strengthened or weakened by the use of technology. This article discusses the virtualisation of the interaction processes between banks and their customers and analyses the influence of the Internet on these relationships. A questionnaire was distributed by mail to 340 Internet banking services’ users. A principal components analysis and a multiple regression analysis were conducted in order to discuss the relationship between the identified dimensions of Internet banking and relationship marketing. The research finds three factors related to the use of Internet banking which strengthen the relationships between banks and their customers: the intensity of Internet use, the diversity of access locations and the diversity of Internet applications. From a managerial point of view, these findings have implications for the development of new relationship approaches based on technology.
Similar content being viewed by others
References
Colgate, M. and Stewart, K. (1998) The challenge of relationship in services – A New Zealand study. International Journal of Services Industry Management 9 (5): 454–468.
Devlin, J. (2000) Adding value to financial services. International Journal of Bank Marketing 18 (5): 222–232.
O'Loughlin, D. and Szmigin, I. (2006) Emerging perspectives on customer relationships, interactions and loyalty in Irish retail financial services. Journal of Consumer Behavior 5: 117–129.
Brynjolfsson, E. (1996) The contribution of information technology to consumer welfare. Information Systems Research 7 (3): 281–300.
Kapoulas, A., Murphy, W. and Ellis, N. (2002) Say hello, wave goodbye: Missed opportunities for electronic relationship marketing within the financial services sector? The International Journal of Bank Marketing 20 (7): 302–310.
Lang, B. and Colgate, M. (2003) Relationship quality, online banking and the information technology gap. International Journal of Bank Marketing 21 (1): 29–37.
Heinen, J. (1996) Internet marketing practices. Information Management & Computer Security 4 (5): 7–14.
Evans, P. and Wurster, T.S. (1997) Strategy and the new economics of information. Harvard Business Review 75 (5): 71–82.
Kara, A. and Kaynak, E. (1997) Markets of a single customer: Exploiting conceptual developments in market segmentation. European Journal of Marketing 31 (11/12): 873–895.
Dannenberg, M. and Kellner, D. (1998) The bank of tomorrow with today's technology. International Journal of Bank Marketing 16 (4): 161–169.
Jayawardhena, C. and Folly, P. (2000) Changes in the banking sector – the case of internet banking in UK. Internet Research: Electronic Networking Applications and Policy 10 (1): 19–30.
Mols, N.P. (2001) Organizing for the effective introduction of new distribution channels in retail banking. European Journal of Marketing 35 (5/6): 661–689.
Ricard, L., Préfontaine, L. and Sioufi, M. (2001) New technologies and their impact on French consumer behavior: An investigation in the banking sector. International Journal of Bank Marketing 19 (7): 299–311.
Reading, B. (1998) Why it's time for us to save. The Sunday Times, 11 December.
Bauer, C. and Colgan, J. (2001) Planning for electronic commerce strategy: An explanatory study from financial services sector. Logistics Information Management 14 (1/2): 24–32.
Durkin, M.G. and Howcroft, B. (2003) Relationship marketing in the banking sector: The impact of new technologies. Marketing Intelligence & Planning 21 (1): 61–71.
Reisman, L. and Zhao, L. (1991) A taxonomy of technology transfer transaction types. Journal of Technology Transfer 16 (2): 38–42.
Sproull, L.S. and Goodman, P. (1990) Technology and Organizations: Integration and Opportunities, Technology and Organizations. San Francisco, CA: Jossey-Bass Publisher.
Loonam, M. and O'Loughlin, D. (2008) An observation analysis of e-service quality in online banking. Journal of Financial Services Marketing 13 (2): 164–178.
Kolodinsky, J.M., Hogarth, J.M. and Hilgert, M.A. (2004) The adoption of electronic banking technologies by US consumers. The International Journal of Marketing 22 (4): 238–259.
Dimitriadis, S. and Kyrezis, N. (2008) Does trust in the bank build trust in its technology-based channels? Journal of Financial Services Marketing 13 (1): 28–38.
Daniel, E. (1999) Provision of electronic banking in the UK and the Republic of Ireland. International Journal of Bank Marketing 17 (2): 72–82.
Rayport, F.J. and Sviokla, J.J. (1995) Exploiting the virtual value chain. Harvard Business Review 73 (6): 75–85.
Baldock, R. (1997) The virtual bank: Four marketing scenarios for the future. Journal of Financial Services Marketing 1 (3): 260–268.
Walsh, S. (2002) Integrating the activities required to recruit and retain profitable customers in contemporary retail banking. Irish Marketing Review 15 (1): 24–37.
Harden, G. (2002) E-banking comes to town: Exploring how traditional UK high street banks are meeting the challenge of technology and virtual relationships. Journal of Financial Services Marketing 6 (4): 323–332.
Barnatt, C. (1998) Virtual communities and financial services: On-line business potentials and strategic choice. International Journal of Bank Marketing 16 (4): 161–169.
Argyriou, E., Melewar, T. and Meadows, M. (2005) A relationship marketing perspective in electronic banking: Evidence from Greece. Journal of Euromarketing 15 (1): 47–73.
Waite, K. and Harrison, T. (2002) Consumer expectations on online information provided by websites. Journal of Financial Services Marketing 6 (4): 309–322.
Mols, N.P. (2000) The internet and the service marketing: The case of Danish retail banking. Journal of Internet Research 10 (1): 7–18.
Nielsen, J.F. (2002) Internet technology and costumer linking in Nordic banking. International Journal of Service Industry Management 13: 5–16.
Zineldin, M. (2000) Beyond relationship marketing: Tecnhologicalship marketing. Marketing Intelligence and Planning 18 (1): 9–23.
Bitner, M.J., Brown, S.W. and Meuter, M.L. (2000) Technology infusion in service encounters. Journal of the Academy of Marketing Science 28 (1): 138–149.
Joseph, M., McClure, C. and Joseph, B. (1999) Service quality in the banking sector: The impact of technology on service delivery. International Journal of Bank Marketing 17 (4): 182–191.
Berry, L.L. (1983) Relationship marketing. In S. Berry and Upah (eds.) Emerging Perspectives in Services Marketing. Chicago, Il: American Marketing Association, pp. 25–28.
Morgan, R. and Hunt, S. (1994) The commitment-trust theory of relationship marketing. Journal of Marketing 58 (3): 20–38.
Shirvastava, S. and Kale, S.H. (2003) Philosophising on the elusiveness of relationship marketing theory in consumer markets: A case for reassessing ontological and epistemological assumptions. Australasian Marketing Journal 11 (3): 61–72.
Fernandes, T. and Proença, J.F. (2008) The blind spot of relationships in consumer markets: The consumer proneness to engage in relationships. Journal of Marketing Management, Special Issue on Marketing Myopia, 24 (1–2): 153–168.
Eiriz, V. and Wilson, D. (2006) Research in relationship marketing: Antecedents, traditions and integration. European Journal of Marketing 40 (3/4): 275–291.
Dwyer, F.R., Schurr, P.H. and Sejo, O.H. (1987) Developing buyer-seller relationships. Journal of Marketing 51 (2): 11–27.
Ricard, L. and Perrien, J. (1999) Explaining and evaluating the implementation of organizational relationship marketing in the banking industry: Client's perception. Journal of Business Research 2 (45): 199–209.
Shani, D. and Chalasani, S. (1992) Exploiting niches using relationship marketing. The Journal of Services Marketing 6 (4): 43–52.
Wynant, L. and Hatch, J. (1991) Banks and Small Business Borrowers. London: Western Business School.
Perrien, J., Filiatrault, P. and Ricard, L. (1992) Relationship marketing and commercial banking: A critical analysis. The International Journal of Marketing 10 (7): 25–29.
Teas, K.R., Dorsch, M.J. and McAlexander, J.H. (1988) Measuring commercial bank customers’ attitudes towards the quality of the financial services marketing relationships. Journal of Professional Services Marketing 4 (1): 75–95.
Moriarty, R.T., Kimball, R.C. and Gay, J.H. (1983) The management of corporate banking relationships. Sloan Management Review 24 (3): 3–16.
Bennett, H. and Durkin, M.G. (2002) Developing relationship-led cultures – A case in retail banking. The International Journal of Bank Marketing 20 (5): 200–211.
Devlin, J. and Ennew, C. (1997) Understanding competitive advantage in retail financial services. International Journal of Bank Marketing 15 (3): 73–82.
Devlin, J. (1998) Adding value to services offerings: The case of UK retail financial services. European Journal of Marketing 32 (10/12): 1091–1109.
Devlin, J. (1997) Adding value to retail financial services. Journal of Marketing Practice: Applied Marketing Science 3 (4): 251–267.
Dawes, J. and Worthington, S. (1996) Customer information systems and competitive advantage: A case study of a top ten building society. International Journal of Bank Marketing 14 (4): 36–44.
Adolf, R., Grant-Thompson, S., Harrington, R. and Singer, M. (1997) What leading banks are learning about big databases and marketing. McKinsey Quarterly 3 (August): 187–193.
Szmigin, I. and Carrigan, M. (2001) Wherefore customer loyalty? Journal of Financial Services Marketing 6 (1): 6–8.
Diacon, S.R. and Ennew, C. (1996) Ethical issues in insurance marketing in UK. European Journal of Marketing 30 (5): 67–80.
Bejou, D., Ennew, C. and Palmer, A. (1998) Trust, ethics and relationship satisfaction. The International Journal of Bank Marketing 16 (4): 170–175.
Tyler, E. and Stanley, E. (1999) UK Bank-corporate relationships: Large corporate expectations of service. International Journal of Bank Marketing 17 (4): 158–170.
Rexha, N., Kingshott, R.P. and Aw, A.S. (2003) The impact of the relational plan on adoption of electronic banking. Journal of Services Marketing 17 (1): 53–67.
Proença, J. and deCastro, L. (2000) Cross boundary relationships in Portuguese banking and corporate financial services. International Journal of Bank Marketing 18 (7): 338–356.
Proença, J. and deCastro, L. (2005) Stress’ in business relationships: A study on corporate bank services. International Journal of Bank Marketing 23 (7): 527–541.
Proença, J. and deCastro, L. (2004) Business relationships dynamics and (in) stability – A comparative case study in corporate banking. Journal of Customer Behaviour III (3): 185–256.
Turnbull, P.W. and Gibbs, M. (1987) Marketing bank services to corporate customers: The importance of relationships. International Journal of Bank Marketing 5 (1): 19–26.
Schwartz, E. (1997) Webonomics. London: Penguin Books.
Stroud, D. (1998) Internet Strategies: A Corporate Guide to Exploiting the Internet. London: Macmillan Business.
Coupey, E. (2001) Marketing and the Internet. New Jersey: Prentice-Hall.
Sisodia, R. and Wolfe, D. (2000) Information technology: Its role in building, maintaining and enhancing relationships. In: J.N. Sheth and A. Parvartiayar (eds.) Handbook of Relationship Marketing. Beverley Hills, CA: Sage Publications, pp. 525–563.
O'Malley, L. and Mitussis, D. (2002) Relationships and technology: Strategic implications. Journal of Strategic Marketing 10 (3): 225–238.
Mitussis, D., O'Malley, L. and Patterson, M. (2006) Mapping the re-engagement of CRM with relationship marketing. European Journal of Marketing 40 (5/6): 572–589.
Gordon, I. (2000) Organizing for relationship marketing. In: J.N. Sheth and A. Parvatiyar (eds.) Handbook of Relationship Marketing. Thousand Oaks, CA: Sage Publications, pp. 502–523.
Sheth, J.N. and Sisodia, R.S. (1995a) Feeling the heat: Part I. Marketing Management 4 (2): 8–23.
Sheth, J.N. and Sisodia, R.S. (1995b) Feeling the heat: Part II. Marketing Management 4 (3): 19–33.
Colgate, M. and Smith, B. (2005) Relationships and the internet: The mediating role of a relationship banker. Journal of Financial Services Marketing 10 (2): 140–151.
Geiger, S. and Martin, S. (1999) The internet as a relationship marketing tool – Some evidence from Irish companies. Irish Marketing Review 12 (2): 24–27.
Naude, P. and Holland, C. (1996) Business to business relationships. In: F. Buttle (ed.) Relationship Marketing: Theory and Practice. London: Paul Chapman.
Glazer, R. (1991) Marketing in an information intensive environment: Strategic implications of knowledge as an asset. Journal of Marketing 55 (October): 1–19.
Carrington, M.S.T.J., Langguth, P.W. and Steiner, T.D. (1997) The Banking Revolution – Salvation or Slaughter? How Technology is Creating Winners or Losers. London: Financial Times Pitman Publishing.
Peppers, D., Rogers, M. and Dorf, B. (1999) Is your company ready for one-to-one marketing? Harvard Business Review 77 (1): 151–160.
Blattberg, R.C., Glazer, R. and Little, J.D. (1995) Marketing in the information revolution. In: R.C. Blattberg, R. Glazer and J.D.C. e Little (eds.) The Marketing Information Revolutions, Chapter 1 Boston, MA: Harvard Business School Press.
Berger, S. (2009) Self-service technology for sales purposes in branch banking: The impact of personality and relationship on customer adoption. International Journal of Bank Marketing 27 (7): 488–505.
McKenna, R. (1995) Real-time marketing. Harvard Business Review 73 (4): 87–95.
Burnham, T., Frels, J. and Mahajan, V. (2003) Consumer switching costs: A typology, antecedents, and consequences. Journal of the Academy of Marketing Science 31 (2): 109–121.
Hollander, S. (1985) A historical perspective on the service encounter. In: J.A. Czepiel, M.R. Solomon and C.F. Surprenant (eds.) The Services Encounter: Managing Employee/customer Interaction in Service Businesses. Lexington, KY: Lexington Books, pp. 49–64.
Czepiel, J.A. (1990) Managing relationships with customers: A differential philosophy. In: D.E.Bowen, R.B. Chase and T.G. e Cummings (eds.) Service Management Effectiveness. Oxford: Jossey Bass.
Czepiel, J.A. (1990) Service encounters and service relationships: Implications for research. Journal of Business Research 20: 13–21.
Yap, K.B., Wong, D.H., Loh, C. and Bak, R. (2010) Offline and online banking – Where to draw the line when building trust in e-banking? International Journal of Bank Marketing 28 (1): 27–46.
Hewer, P. and Howcroft, J.B. (2000) Consumers’ channel adoption and usage in the financial services indusry: A review of existing approaches. Journal of Financial Services Marketing 3 (4): 344–358.
Wong, D.H., Rexha, N. and Phau, I. (2008) Re-examining traditional service quality in an e-banking era. International Journal of Bank Marketing 26 (7): 526–545.
Liang, C. and Chen, H. (2009) How to lengthen, deepen and broaden customer–firm relationships with online financial services? Journal of Financial Services Marketing 14 (3): 218–231.
Pinho, P. (2008) Financial desintermediation and the measurement of efficiency in banking: The case of Portuguese banks. International Journal of Banking, Accounting and Finance, Special Issue on: Recent trends in Global Banking 1 (2): 133–148.
Patrício, L., Fisk, R. and Cunha, J. (2003) Improving satisfaction with bank service offerings: Measuring the contribution of each delivery channel. Managing Service Quality 13 (6): 471–482.
Marktest. (2006) Relatório Basef Banca: 2a vaga 2000–2006, www.sibs.pt.
UMIC. (2008) Digital business Conference Lisbon’08, www.umic.pt.
Sibs. (2007) Multibanco: Caixa Automático MB, http://www.sibs.pt.
Eurostat. (2008) Internet in the EU – Eurostat statistics, ec.europa.eu/eurostat.
Tabachnick, B.G. and Fidell, L.S. (1989) Using Multivariate Statistics, 2nd edn. New York: Harper and Row.
Johnson, R.A. and Wichern, D.W. (1992) Applied Multivariate Statistical Analysis, 3rd edn. New Jersey: Prentice-Hall International Editions.
Anderson, T.W. (1984) An Introduction to Multivariate Statistical Analysis. Chichester, UK: John Wiley & Sons.
Sawyer, A.G. and Ball, D. (1981) Statistical power and effect size in marketing research. Journal of Marketing Research 18 (August): 275–290.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Proença, J., Silva, M. & Fernandes, T. The impact of the Internet upon bank marketing. J Financ Serv Mark 15, 160–175 (2010). https://doi.org/10.1057/fsm.2010.12
Received:
Revised:
Published:
Issue Date:
DOI: https://doi.org/10.1057/fsm.2010.12