Talk
Internal marketing strategy on services quality and customer satisfaction in the banking sector: A case study in Dubai
Luisa Martinez (Martinez, L.M.); Cristina Ribeiro (Ribeiro, C.); Filipe R. Ramos (Ramos, F.R.);
Event Title
5th Theory and Applications in the Knowledge Economy (TAKE)
Year (definitive publication)
2021
Language
English
Country
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Abstract
Internal marketing consists in training and motivation processes developed with employees so that they could serve customers properly (Kotler & Keller, 2016). Organizations’ priority is not only to produce and sell goods and services, but to provide a level of satisfaction (within the service). Consequently, customers’ satisfaction and loyalty may be achieved (Brum, 2010). Moreover, Grönroos (2000) emphasizes that internal marketing contributes positively to employees’ dedication and loyalty. Conversely, internal marketing – as a fundamental aspect of the leadership strategy – is not always correctly implemented (Ahmed, 2000; Mitchell, 2002). Additionally, Bohnenberger et al. (2019) stated that internal marketing assumes itself as an advanced human resource management strategy. Particularly in service companies, this strategy must be implemented across all employees, from collaborators to the company’s CEO (Balta, 2018). The main objective would be to treat employees as ‘internal customers’, so that they can experience a customer-oriented service and, consequently, guarantee the satisfaction of ‘external customers’ (Lings, 2004; Lings & Greenley, 2010). The aim of this research is to analyze the impact of the internal marketing strategy on service quality in the banking sector. Based on Bekin’s model (1995), we seek to verify the extent to which attitude – as a line of action of internal marketing – influences employees in customer orientation and, consequently, in customer satisfaction. Therefore, the following topics are identified as the main research objectives: (i) the influence of the internal marketing strategy on employees’ performance as service providers and, consequently, on customer satisfaction; and (ii) the characterization of the aforementioned influence (i.e., the level of involvement, commitment, employee appreciation, or the level of their qualification). To implement this research study, a bank in Dubai was selected (only one branch). Due to the multiculturality of this specific market (the banking sector), the chosen location is truly appropriate, as Dubai is one of the most culturally diverse places on the planet, reinforcing the relevance of this research (Duckett, 2019). Two questionnaires were applied: (i) bank collaborators and (ii) bank customers. Twenty-four collaborators (total number of the branch employees) answered the first questionnaire. Forty-four customers answered the second questionnaire (out of 80 customers in total). For the collaborators questionnaire, the following validated scales were applied: (i) the internal marketing scale from Park and Tran (2018); and (ii) the Multi-Factorial Scale of Motivation at Work (Multi-Moti) that assesses four dimensions related to motivation at work, namely: work organization, performance, achievement and power and involvement (Ferreira et al., 2006). For the customers questionnaire, the SERVQUAL model was applied (Parasuraman et al., 1988; Yan & McLaren, 2010). Data analysis is still ongoing, but preliminary findings show that employees have a positive opinion regarding the different internal marketing initiatives considering this branch. This research contributes to the development of human resource management and internal marketing as to successfully achieve a ‘service-profit chain’ system, the organization must create a positive environment in which all employees are satisfied and motivated. Internal marketing reveals to be a crucial tool in this process, that must be taken into account by managers and marketers.
Acknowledgements
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Keywords
internal marketing,human resource management,satisfaction,motivation,services quality,banking sector