The Impact of Internal Marketing on Customer Orientation in the Banking Industry

Abstract

The connectivity between internal marketing and customer orientation especially in a banking industry cannot be over emphasized. The unsatisfactory output of some banks’ employees cannot be divergent from the input of the affected banks. The present paper explores neglect of customer orientation often displayed by many Nigerian banks’ employees with a view to analysing its impact on internal marketing practices of those banks. In other words, this paper therefore seeks to determine the relationship between internal marketing and customer orientation. Relevant data were gathered from Banks’ Frontline Employees and the Management Staff from four (4) branches of the existing banks in major business areas in Lagos State, South-West Nigeria. These areas include Victoria Island, Ikeja, Ikoyi, Apapa, Idumota, Yaba, Isolo/Oshodi and such other business areas. Meanwhile, the paper computed the required sample size for the two groups of population using the Yamane’s (1968) sample size determination method leading to an estimate of sample sizes 341 and 253 from the frontline employees and management staff of the banks respectively. The data obtained are subjected to statistical analysis using Partial Least Square-Structural Equation Modelling (PLS-SEM). The PLS-SEM which is an alternative technique for covariance based SEM is confirmatory statistical analysis software adopted to analyse the relationship between the internal marketing and customer orientation. The outcome of this paper reveals that internal marketing has a statistically and practically significant effect on customer orientation which therefore suggests that internal marketing has great impact on customer orientation. The contribution of this paper to the body of knowledge and research is that more than ever before the bank management should take into cognizance the roles played by employees thereby putting all effort in place to increase job satisfaction.