Predictors of equity in relationships between financial services providers and retail customers

Relationship marketing has been embraced in a wide range of industries, including financial services. Despite considerable study and widespread application, it appears that many services marketers have accepted the concept of relationship marketing with little examination of the basis for genuine, quality relationships. Based on a review of the social psychology and relationship marketing literature, the authors offer a consumer-focused approach to defining the principles of relationship marketing, and examine the conditions under which services marketers can expect to form relationships with their customers. Also presented are empirical findings on the predictors of the level of equity which resides in relationships between financial services providers and their retail customers. The research reveals that the affective dimensions of the service encounter best predict quality relationships. The implications for financial services marketers are discussed.