Abstract:
Banking industries in Sri Lanka are very competitive, and it is difficult for retail banks
to provide unique banking services as required by customers. To overcome this
challenge, banks, which can be classified as service firms, can benefit from superior
relationship marketing, because customers focus on the service aspect and
interaction with the service provider when evaluating a service firm. This study is an
attempt to investigate the impact of relationship marketing on customer retention of
listed licensed commercial banks in Jaffna district. This research focused on
primary data collection method which information drawn from 8 licensed
commercial banks on basis of convenience sampling method. This study considered
relationship marketing as the independent variable which measured by trust,
promise, commitment, communication, rewarding and responsiveness. The customer
retention is considered as dependent variable. Two hypotheses were tested using
correlation and regression analysis through SPSS software (16.0 version).The results
of this study revealed that the relationship marketing has significantly correlated
with customer retention. Further some relationship marketing variables like
responsiveness and rewarding have significantly (p<0.05) impact on customer
retention. Furthermore, the finding of the study can be considered as helpful for some
persons or institution. Although this study supports the number of earlier studies, it
could not provide the conclusive evidence on some important issues.
