This thesis’ contribution at the academic level provides an insight into business relationship longevity within the banking sector based on principles of effective
relationship management that have been identified and defined as part of this study. This fills a gap discovered within the existing literature whereby these factors have not been previously addressed collectively with this breadth and in the specific context of business-
This thesis also contributes to academia in that it has provided a dual perspective on the researched constructs by surveying both customers and bankers. This fills another gap particularly within the buyer–seller literature whereby the seller’s view is often underrepresented (Athanasopoulou 2009; Hocutt 1998; Rajaobelina & Bergeron 2009). Further to this, customer relational perceptions were investigated on two levels –
interpersonal and organisational. This provided an insight into the value customers place on their relationship with their banker against the value they place on their relationship with the bank.
This thesis continues its academic contribution by adding to the under-researched theory on key account management and strategic account management and has provided a banking context-specific concept called value account management, which draws upon both key/strategic account management theory. This then led to the further contribution to the extant literature on value, what it is and how it is co-created within the relational dyad. This contribution is important as the existing theory is quite scarce in this area (Payne et al. 2008).
It also adds to the extant literature on relational phases in adding the recovery phase of the relationship life cycle. This stage was not observed throughout the literature review. However, it is an important part of relationship management particularly where a relationship is in decline and at least one of the relational partners sees reason to save it. The measures utilised within this study have largely been adapted (where possible) from previous studies. However, the researcher developed alternative measures where pre- existing measures were unavailable or considered contextually inappropriate. All the measures were considered reliable in terms of their Cronbach Alpha scores (save for the crucial stages construct measures at the relationship manager level). Thus future researchers will be able to replicate the constructs and measures presented in this thesis with confidence.
Also, the fact that a quantitative survey questionnaire delivered over the internet means that this study can be replicated with relative ease as very little researcher involvement is required other than to provide periodic reminders (to complete the survey) to the respondent groups.
This thesis also makes a contribution to the theory on relationship marketing in providing an Australian business-banking case study, the results of which can be compared with similar international studies within this field of research and in particular the Nordic and North American relationship marketing schools of thought.
8.2.2 Practical Implications
At the practical level, this thesis provides banks/financial institutions with an
understanding of customer perceptions on relationship longevity and their considerations on the building and maintenance of the same.
It also provides a case study of one of the four major Australian banks, which may be replicated amongst the other major Australian banks and quite possibly other financial institutions in general. Furthermore, international banks may find this thesis of interest with respect to their relationship marketing strategies as well as comparing their demographic profile against the Australian demographic profile. This would be an important consideration should international banks wish to enter the Australian market. Furthermore, the thesis provides financial institutions with an insight into the psyche of their own relationship staff and thereby a basis from which to develop appropriate hiring strategies. These strategies will subsequently enable a selection of suitable relationship staff, providing that they possess the traits and acumen required, to build long-term value-adding relationships. This relates to the soft skills that relationship staff should have such as heightened levels of emotional intelligence, heightened levels of integrity and perceived integrity, heightened levels of benevolence and perceived benevolence and heightened levels of perceived trustworthiness in general.
These skills are arguably the most difficult to learn and acquire so it is important that staff with these attributes are selected at the outset. Technical skills can then be acquired through training.
This thesis provides insight into the development of effective value account management strategy and considerations for senior management through to frontline bankers. It promotes a collaborative approach at different management levels in terms of defining and then identifying value accounts relative to the financial institution’s strategy while ensuring that the role of the relationship manager is also clear and complimentary to the effective management of the strategic customer relationships within their portfolio.
The results of this thesis provide businesses and organisations looking to commence a relationship with a financial institution, with an understanding of what financial
institutions look for in customers and what they define as a valuable account, thereby providing some insight into how customers can seek to maximise their relationships with their banking partners.
Businesses already engaged in banking relationships will now have a better insight into how a banker’s trust in a customer can affect the relationship and that it is not just the customer’s trust in the banker that has a bearing on the relationship. The thesis adds further reinforcement to the premise that banking relationships (and business relationships in general) are a two-way street governed by reciprocity. Therefore, in order to establish and maintain a quality, long-term value-adding relationship, all parties to the relationship need to be satisfied with the same and enjoy interdependence rather than dependence on behalf of one and not the other.