The Components of Relationship Marketing Orientation

RMO is a multi dimensional construct consisting of six components: 1) 2) 3) 4) 5) 6) Trust; Bonding; Communication; Shared value; Empathy; and Reciprocity. Trust Trust is defined as willingness to relay on an exchange partner in whom one has confidence. For the purpose of the present study, the researcher conceptualizes trust as the dimension of a banking relationship that determines the level to which each party feels he/she can rely on the integrity of the promises offered by the other party. The researcher theorizes that the higher the level of trust between banker and customer, the greater the probability of long term relationships. In banking context mutual trust is the basis of long term relationship between baker and customer. Customers will approach those bankers on whom they have trust. They seek advice from bank staff only if they trust them. A banker can sell more products to a customer only when both the parties trust each other. When a bank faces a crisis, customers will stand with it only when they have high degree of trust in their bank. Say for eg. When unfavorable news spread against ICICI Bank during the recent financial crisis, some depositors have withdrawn money from the bank but majority of their customers simply believed that their bank will survive any crisis. Such a belief in the bank shows the level of trust. Statements 1. We believe that mutual trust is a pre requisite in financial services 2. My bank is committed to keep the promises made to our customers. 3. Our customers feel free to complain, when they experience a problem. 4. My staff believes that our valuable customers will respond positively to the offers made by us. 5. Our valuable customers take advice of our staff in major financial decisions. 6. We believe that our customers will support us whenever we face a difficulty. 7. Our customers have the confidence that our technology based services will not cheat them at any time. Clearly Some what Not Representative Representative Representative

8. Me and my customers trust each other. 9. Our customers believe that we will support them when ever they are in trouble. 10. Our customers will approach us when ever they are in need of a financial service or product.

Bonding Bonding is defined as the dimension of a business relationship that results in two parties (banker and customer) acting in a unified manner towards a desired goal. In this context, bonding is referred to as the close relationship between a banker and his/her customers. In this study the researcher proposes to examine the social bonds rather than structural bonds. Researchers have found that stronger personal bonds among buyers and sellers lead to greater commitment to maintain long term relationship. Statements 1. My bank and our customers try very hard to establish long term relationship. 2. Visit by key customers to the branch creates happiness among our staff. 3. A regular customers delayed visit to the branch will be easily noted by us. 4. Our valuable customers will inform us the major events in their family/business/work place. 5. We are trying our level best to provide the most suitable product/service/advice to our customers. 6. Our staff takes maximum effort in helping our customers. 7. Most of our customers have an emotional bonding with our staff. 8. I take personal interest in establishing long term relationship with customers. Clearly Representati ve Some what Representative Not Representative

Communication Communication is defined as the formal as well as informal exchanging and sharing of meaningful and timely information between a banker and customers. Communication, especially timely communication, fosters trust by assisting in solving disputes and aligning perceptions and expectations. Anderson and Narus (1990) stress the crucial role that communication plays in the formation of cooperation and trust in partnerships. Statements 1. Our customers feel free to communicate with us 2. Our front line staff are ready to listen to our customers and respond positively. 3. Our bank management encourages us to communicate with our customers and always highlights its importance. 4. Our staff are well trained in communicating with customers. 5. We are effectively utilizing our electronic communication facilities. 6. The mode of communication with a customer is chosen after identifying the preference of the customer. 7. We can show the discontent towards each other through communication. 8. We believe that communication is a basic requirement for establishing close relationship with customers. 9. Our e- communication devices are extensively used for cross selling. Clearly Some what Not Representative Representative Representative

Shared Value Shared value is defined as the extent to which partners have beliefs in common about what behaviors, goals, and policies are important or unimportant, appropriate or inappropriate, and right or wrong. Evans and Laskin define relationship marketing as a process where by a firm builds long term alliances with both prospective and current customers so that both

buyer and seller work towards a common set of specified goals. Therefore the researcher theorizes that a banker and customers have common goals or values, they will be more committed to their relationships. Statements 1. Our bank and staff believe in mutual development through sharing values and common goals. 2. My bank and our customers share the same values. 3. Our customers and the bank believe that the policies and procedures adopted by our bank are playing an important role in establishing long term relationship with customers. 4. My bank and our customers respect each other. 5. My bank and our customers do not want to cheat each other. 6. My branch staff and our staff believe in Give and Take Respect 7. Clearly Some what Not Representative Representative Representative

Empathy Empathy is a dimension of a business relationship that enables the two parties (banker and customer) to see a situation from other partys perspective. Empathy is defined as seeking to understand somebody elses desires and goals. In banking and financial services, empathy helps to understand the real needs of a customer and at the same time the customer can understand the position of the banker. Empathetic abilities of the front line employees of a bank can help in identifying profitable customers and succeed in cross selling. Statements 1. Our staff and customers care about each others feelings. 2. Me and my staff always try to understand the desires and goals of our valuable customers. 3. Our customers can understand the limitations of a staff/branch in extending favor to them. Closely Representativ e Some what Representativ e Not Representat ive

4. Our management always stresses the need for empathetic attitudes customers. 5. Our customers say that we are caring them like their family members. 6. Our branch takes special care in speedy sanctioning of loans when the customer is in urgent need. 7. Our front line employees can easily identify the real needs of customers, even without a detailed interaction

Reciprocity

Reciprocity is the dimension of a business relationship that causes either party to provide favors or make allowances for the other in return for similar allowances or favors to be received at a later date. In the context of our present study, reciprocity is the natural tendency of a banker /customer to do some favorable actions towards the other party as a consideration for his/her good deeds in the past. For eg. Speedy sanctioning of loans to a prompt customer, cross buying by the customer considering the quality of services etc. Statements identified 1. If we are able to help our customers when they face some difficulties, they will do more business with us in future. 2. My bank and our customers know the need for mutual dependence. 3. When a good customer is in difficulty we are responsible to help him/her. . 4. A customer who is provided exceptionally good services will reciprocate by cross buying from us. 5. We believe that customers will reward all good efforts by our bank. Clearly Some what Not representative representative representative