The Importance of Customer Relationships and the Need for Competitive Analysis in the Banking Sector

Abstract

Customer relationships are a fundamental aspect of the financial-banking sector due to the competitive nature of the industry. Maintaining existing customers is more cost-effective than acquiring new ones, making customer satisfaction a key priority for financial institutions. This paper examines the importance of banking relationships, factors influencing customer behaviour, and the purchasing decision process of individual customers. The study highlights the role of service quality in building customer trust and explores the psychological, economic, cultural, and social factors affecting financial decision-making. Furthermore, the paper outlines the stages of the consumer purchasing process and their implications for financial marketing strategies.