INVESTIGATING INTERNAL MARKETING PRACTICES IN BANKS: AN APPLICATION OF MULTIVARITATE STATISTICAL ANALYSIS

Abstract

The aim of this research is to test the validity of the dimensions of internal marketing and its impact on the performance of an organization. Internal marketing is a process in which employees are treated as internal customers and jobs are treated as products. A non-probabilistic sampling technique comprising of a hundred customers and a hundred commercial bank employees was used to take a sample for this research. Study setting was non-contrived; data collection method was primary through two structured questionnaires: one for the employees and the other for customers. Factor analysis was used to find out the underlyingdimensions of internal marketing and to check the validity of construct. MLR was used to test the hypotheses. The result revealed that out of six independent variables: motivation, strategic reward, training, understanding and differentiation, had significant while interfunctional coordination, and dissemination of information had insignificant causal relationship with organizational performance.