Relationship marketing practice in relation to different bank ownerships: a study of banks in Hong Kong

Abstract

Examines relationship marketing’s (RM) present practices in the banking industry in Hong Kong. Banks in Hong Kong were classified into three categories by reference to their different ownership (Chinese, non‐Chinese and merged). Statistics show that there were differences between RM practices among the different ownership of banks. Non‐Chinese banks were more proactive in applying RM elements and on a more tactical basis. On the other hand, findings suggested that there were no significant differences between different ownerships of a bank toward the perception of guanxi (Chinese personal relationship). However, it was reported that guanxi is more in‐depth and more relevant than RM to Chinese business relationships. The research findings imply that different ownership of a bank may exert a different emphasis on RM practices. Also, the study alerts academic and practitioners that RM practices are not yet fully implemented in the banking industry and it is important to develop a more systematic and comprehensive approach to maintain a bank’s competitive advantage.