Effect of Relationship Marketing Strategy on Performance of Selected Nigerian Deposit Money Banks in Lagos State, Nigeria

Abstract

Relationship marketing has been identified as a crucial driver of performance in the banking industry. Despite its significance, limited empirical attention has been given to how relationship marketing dimensions such as trust, commitment, and conflict handling affect the performance of deposit money banks in Nigeria. Therefore, this study investigated the effect of relationship marketing strategy on the performance of selected Nigerian deposit money banks in Lagos State.. The study adopted a cross-sectional survey research design. The population comprised a total of 63,956 employees from selected fourteen (14) licensed deposit money banks in Lagos State, Nigeria.  Using the Taro Yame formula, a sample of 443 respondents was determined and selected through a stratified random sampling technique. A structured questionnaire was the main instrument for data collection. Descriptive statistics were used to summarize responses on demographic and perception variables, while Multivariate Analysis of Variance (MANOVA) was employed to test the hypotheses at a 5% level of significance. Findings revealed that trust had a positive and significant effect on customer satisfaction (p = 0.034), market competitiveness (p = 0.026), and operational efficiency (p = 0.003). Similarly, commitment had a positive significant relationship with customer satisfaction (p = 0.001), market competitiveness (p < 0.001), and operational efficiency (p < 0.001). In addition, conflict handling showed a strong positive significant effect on customer satisfaction (p < 0.001), market competitiveness (p < 0.001), and operational efficiency (p < 0.001). The results indicated that effective trust-building, strong employee and management commitment, and efficient conflict resolution mechanisms collectively enhance the overall performance of deposit money banks. The study concluded that relationship marketing dimensions (trust, commitment, and conflict handling) are significant predictors of organizational performance among Nigerian deposit money banks. It further concluded that banks with higher levels of customer trust, greater commitment, and proactive conflict management practices tend to achieve superior customer satisfaction, stronger market competitiveness, and improved operational efficiency. The study recommended that bank management should strengthen relationship marketing strategies by building trust-based customer relations, fostering staff commitment, and implementing effective conflict handling systems to sustain competitive advantage in the banking sector.