International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Customer Relationship Termination and Marketing Effectiveness in Commercial Banks
Hellen W. Kabue, Jane W. Gathenya, John M. Kihoro

It is not all customers who contribute value to the firm’s success. Firms often experience customers who are not profitable or are difficult to work with, thus the need to consider customer relationship termination as a valid strategic marketing option of managing relationships. It is evident that relationship ending, is not well understood and appreciated by both organizations and customers. Existing literature lacks sufficient empirical evidence that ending relationships is beneficial to the firm. The findings of this study indicate a statistically significant positive association, between relationship termination and marketing effectiveness in commercial banks. The results also indicated that most banks are reluctant in terminating relationships with these low value customers and that most customers would not recommend relationship termination. The results suggest that with efficient implementation and termination of non-profitable customers’ relationships marketing effectiveness is enhanced.

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