Impact of Relationship Quality on Retention – A study with reference to Bank Customers

Main Article Content

Nataraj Balasubramanian
Rajendran R


The purpose of this research is to investigate the impact of Relationship Quality (RQ) on retention in the context of retail banking. Relationship quality refers to the customer’s perception about the overall relationship with the organization. The banks are now facing cut throat competition, therefore in order to sustain in business retaining the customers is considered as a prime issue. The present study attempts to explore the association between relationship quality and retention. The research also attempts to investigate the moderating effect of the variables like age, gender, duration of relationship and type of bank on the association between relationship quality and retention. A structured questionnaire was designed for the study. The study population includes existing bank customers of Chennai, India. Questionnaire survey method was adopted for the research study. Multistage random sampling method was used to select the sample respondents. The collected responses were then analyzed using Partial Least Square – Structural Equation Modelling. Results of the study revealed that relationship quality has a significant positive impact on retention. The antecedent commitment displayed a stronger impact on relationship quality when compared to other two antecedents namely satisfaction and trust. Further the variables age and type of bank moderated the association between relationship quality and retention. This research can be used in the banking sector to understand the retention behavior of the customers. Retaining existing customers is one among the key strategies of the banks to gain business advantage. In order to retain the customers, managers should focus on increasing the quality of relationship with the bank customers.

Article Details

Author Biography

Rajendran R, Assistant Professor(S.G),Department of Business Administration, Annamalai University, Chidambaram, Tamil Nadu, India

Dr. Rajendran is working as an Assistant Professor (S.G) in Department of Business Administration, Annamalai University. He has completed his Ph.D and actively involved in research right from the year 2000. He has published several research articles in reputed journals and also guiding several research scholars.