Relationship marketing and the management of corporate image in the bank‐SME relationship

Abstract

PurposeThis study analyzes the nature of relationships between banks and small and medium‐sized enterprises (SMEs) by drawing on the theory of relationship marketing (RM) and the concept of corporate image (CI). More specifically, the main purpose of this study is to investigate the relationship between a bank and its SME customers and to examine how the bank's management of customer relationships influences its CI.Design/methodology/approachA dyadic approach was adopted in this study. Hence, data were gathered via interviews with three bank managers employed in the same bank. An additional 17 interviews were performed with the case study bank's SME customers.FindingsThis study indicates that the bank's image will be dependent on the way the bankers manage the relationships with their SME customers. The ability of bankers to understand and meet the SMEs' specific needs highly influences their relationships, which subsequently affects the image of the bank as perceived by their SME customers. Hence, CI reflects the SMEs' overall perceptions of how well the bank has been able to manage the relationship.Originality/valueAlthough there is a clear theoretical and practical understanding of the importance of RM strategies within banking and the effect of CI on the performance of banks, few studies have taken into consideration the dynamic link between these two concepts and their effect on bank‐SME relationships.