۱- Introduction

۲- Literature review and hypotheses

۳- Method

۴- Results

۵- Discussion and conclusion

References

Abstract

Purpose – Online technologies have, in recent times, revolutionized the process of relationship building between firms and their customers. Nonetheless, there is a limited focus and theorization when it comes to explaining the link between online relationship marketing (ORM) activities and their impact on firm relationship marketing (RM) objectives. Thus, the purpose of this paper is to examine the signaling role of ORM activities in generating online trust and customer loyalty, through the lens of the signaling theory.
Design/methodology/approach – Data for the study were gathered through a survey of 429 Ghanaian retail bank customers. Results were analyzed using structural equation modeling techniques. Findings – The paper highlights the signaling role of engagement and interactivity online in influencing banks’ RM outcomes per the signaling theory. It concludes that bank’s online relationship activities, over and above the online tools utilized, need to communicate appropriate and useful signals in order to positively influence online trust and loyalty among customers.
Originality/value – The study, in its uniqueness, utilizes the signaling theory to explain the role and impact of online RM activities in the banking industry.

Introduction

It has become increasingly important for firms to build relationships with their customers and other key stakeholders in the industries within which they operate. This can be attributed, in part, to the advent of new forms of technology, and their ability to alter the nature of relationships and the way they are developed between firms and their stakeholders (Verma et al., 2016; Guo, 2014). Relationship marketing (RM) as a strategy contributes immensely to the firm’s value proposition within the marketplace. It fosters partnerships, which ultimately lead to profitable exchanges that help firms to acquire, retain and adequately satisfy their customers (Kanagal, 2009). But, technological advances are affecting customer expectations (Armistead and Kiely, 2003). Their needs and wants are constantly evolving, and as a result, marketers must frequently evaluate their methods to keep up with emerging trends. Although, businesses all over the globe are leveraging new and emerging technologies like e-mails (Huang and Shyu, 2009), Web 2.0 tools (Mitic and Kapoulas, 2012) and mobiles in enhancing existing relationships, as well as creating new channels of interaction with their customers, there is the need for extensive research regarding this phenomenon. Researchers such as Ghazi et al. (2013) and Huang and Shyu (2009) opine that there is limited research on firms’ RM activities online and how it influences other RM outcomes. For instance, some scholars (Fam et al., 2004) have postulated the relevance of studying the incorporation of firms’ RM activities online with other organizational practices and outcomes, to the advancement of existing knowledge on the role and potential of internet technology in RM. Furthermore, there is also a need for more theorization in understanding the relationship between the online variables and the RM constructs. That conceptual link tends to be silent in extant online relationship marketing (ORM) research.