Journal of Financial Services Marketing 6(4): 309-322. (2008) Internet in the EU Eurostat statistics, ec.europa.eu/eurostat. and Gay, J.H. For data analysis, SPSS 17.0 (www.spss.com) and SYSTAT 13.0 (www.systat.com) were used. The number of home banking users grew seven times between 2000 and 2007 and the service is offered by all Portuguese banks either through an online bank or in addition to their high street banking networks.90 However, the impact of the Internet upon Portuguese bank marketing and relationship building remains largely under-researched. At the same time, new technologies can be used to innovate in promoting and maintaining more personalised relationships. How Technology is Creating Winners or Losers. A first line of thought defends a positive effect of the Internet on the consolidation of relationships between banks and their customers, due essentially to the increase in the efficiency of communication that enables a reciprocal flow of information.73-74 The new means of contact favours interactivity between the parties and reduces possible asymmetries of information.8 The first argument is related to the increase in collaborative production between the customer and his or other bank75 and enables, one-to-one marketing,76 associated with better knowledge of customers ' needs,77 in the provision of products tailored to individual customers and in pro-active selling.78 Each relationship becomes unique and each individual customer constitutes a true market segment.77,79 The second argument is related to the reduction in the differences of access to information between customers and banks, which allows greater customer power and trust in the development of the relationship.8, Nevertheless, the same arguments are at the basis of an alternative view that considers that the introduction of Internet tools has a harmful effect on customer-bank relationship. New Jersey: Prentice-Hall International Editions. 61 Turnbull, P.W. Table 5 shows that the function of the use of Internet banking is predominant and is positively associated with the intensity of its use (0.84) and with the diversity of operations performed using it (0.84) and that there are no negative associations of the independent variable with the function. 80 Burnham, T., Frels, J. and Mahajan, V. (2003) Consumer switching costs: A typology, antecedents, and consequences.
The results show that the diversity of operations performed via Internet banking and the intensity of their use are related to the relationship approach (0.37), duration (0.31) and frequency of use (0.24). (1995b) Feeling the heat: Part II. (2007) Multibanco: Caixa Automtico MB, http://www .sibs.pt. A total of 153 questionnaires were collected and 114 validated. The duration of a relationship is, therefore, the first and a fundamental dimension in a true relationship approach.40-41 A second dimension -adaptability/personalisation - comes from the fact that exchanges are a critical factor in the relationship approach.42-43 These imply considerable effort and volume of resources,40,44 as a result of the required adaptation and personalisation of the relationship in order to meet the needs of the parties involved.41,45 The strengthening of the relationship arising from exchanges is therefore fundamental.13 This second dimension can also incorporate three more latent dimensions: customer retention, customer loyalty and database marketing. 53 Szmigin, I. and Carrigan, M. (2001) Wherefore customer loyalty?
Despite these positive aspects, new technologies can also be negative for the customer and create problems related to the reliability and security of transactions, accessibility to the service and customer, The relationship approach concept was first introduced by Berry35 and refers to all, marketing activities carried out by a company in order to establish, develop and, above all, maintain customer relationships.35-36 There is no consensus as to the definition of relationship marketing.37-39 The underlying principle of relationship marketing involves maximising the long-term benefits for both parties involved - customer and suppliers, resulting from a series of transactions (with a single transaction not being a determinant in itself), which allow a long-term relationship to be maintained. 42 Shani, D. and Chalasani, S. (1992) Exploiting niches using relationship marketing. To interpret the retained canonical function in a substantive way, three methods were used: (1) Canonical weights (or standardised coefficients - see Table 4), (2) Canonical loadings (or structural correlations -see Table 5) and (3) Canonical Cross-Loadings (see Table 6) . Irish Marketing Review 15(1): 24-37. 62 Schwartz, E. (1997) Webonomics. As for the function of the relationship approach, this is explained, in essence, by the variable, Function Canonical eigenvalue variables Canonical R2 Canonical opposed variables, Proportion Accumulated Proportion Accumulated, Standardised variance of the variables of the relational approach explained by the set of variables of the use of Internet banking, Standardised variance of the variables of the use of Internet banking explained by the set of variables of the relational approach, Canonical coefficients standardised for independent variables, Importance of quality of relationship - 0.53. Although Portugal traditionally had a preference for face-to-face channels and personal interaction, this is clearly changing.90 For example, between 2000 and 2004, a decrease from 85 to 76 per cent, related to the use of the personal channel was verified.90 In a remote electronic service setting/marketplace, consumers have modified their behaviour to accommodate it and learned to use a combination of IT channels to interact with their financial service providers. In an attempt to explore in full the relationships between the two concepts, a Multiple Regression Analysis was developed. Thus, new information and communication technologies (NICTs) became a key knowledge tool for the organisation within a relationship marketing strategy.
However, there is no consensus as to whether banking relationships are strengthened or weakened by the use of technology. New York: Harper and Row. The reliability of the variables to be integrated into each dimension was tested and validated by means of the analysis of the Alpha coefficient (or Cronbach's a). 90 Marktest. (2001) Planning for electronic commerce strategy: An explanatory study from financial services sector. New Jersey: Prentice-Hall. By identifying the intensity of the use of Internet banking, the diversity of places of access and the diversity of operations performed via Internet banking as factors of the use of Internet banking that individually intensify the relationship between the parties, the results of this study demonstrate how banks can have some control over the relationship, allowing, through the manipulation of these factors, the relationship to be intensified or ' altered' in accordance with the institution' s interests. 67 Mitussis, D., O'Malley, L. and Patterson, M. (2006) Mapping the re-engagement of CRM with relationship marketing. A factorial analysis was performed, INTERNET BANKING Frequency of use Intensity and degree of use Diversity of use (place of access or type of product) Duration of use BANKING RELATIONSHIP Duration/ Continuity Adaptability Equity Importance of the quality/commissions Commitment.
customers who are more likely to maintain a lasting and stable relationship with the supplier.
International Journal of Bank Marketing 23(7): 527541. (2002) Internet technology and costumer linking in Nordic banking. (1991) Banks and Small Business Borrowers. Journal of Financial Services Marketing 6(4): 323-332. The International Journal of Bank Marketing 20(7): 302-310.
The Influence of Relationship Quality on Customer Loyalty in the Dual-Banking System in the Northern States of Peninsular Malaysia, Customer Relationship Management in the Era of Social Web and Social Customer: An Investigation of Customer Engagement in the Greek Retail Banking Sector, Customer values and CSR image in the banking industry, Exploring nomological link between automated service quality, customer satisfaction and behavioural intentions with CRM performance indexing approach: Empirical evidence from Indian banking industry, Website Quality: Case Study on Local Government Bank and State Own Bank in Bekasi City, of scientific paper in Economics and business , author of scholarly article Joo F Proena, Marta Martins Silva, Teresa Fernandes, 2016 / Maria Abdul Rahman, Mona Fairuz Ramli, 2014 / Christos Giannakis-Bompolis, Christina Boutsouki, 2015 / Andrea Prez, Ignacio Rodrguez del Bosque, on topic "The impact of the Internet upon bank marketing". (1997) The Banking Revolution Salvation or Slaughter? (1999) Explaining and evaluating the implementation of organizational relationship marketing in the banking industry: Client's perception. 'Duration/continuity of the relationship ' (0.59), ' Customer adaptability' (0.56) and 'Importance of the quality of the relationship ' ( 0.53), the first two with positive correlations and the latter negative. On the contrary, the diversity of places of access can also reflect a customer preference for convenience and accessibility, with the customer being motivated to develop and maintain a relationship with the institution that best guarantees these conditions. From a managerial point of view, these findings have implications for the development of new relationship approaches based on technology. International Journal of Bank Marketing 17(2): 72-82. Journal of Services Marketing 17(1): 5367. This means that the financial institution has greater concerns in adapting to customers that use Internet banking intensively, which may mean that customers' needs are better met and, therefore, that there are more satisfied. 41 Ricard, L. and Perrien, J. and Sisodia, R.S. Czepiel, M.R.
(1987) Developing buyer-seller relationships. variables, since the objective of the research is to examine the impact of the use of Internet banking on banking relationships. Journal of Consumer Behavior 5: 117-129. This conclusion is sustained by the weak variance of the set of variables included in the dimensions of the relationship approach explained by each of the canonical functions (see Table 3) . San Francisco, CA: Jossey-Bass Publisher.
The performance of multivariate tests on the five functions simultaneously, particularly Wilks ' Lambda (0.029), indicates that the canonical functions, considered collectively, are statistically significant at a 5 per cent level of significance. 91 UMIC. 79 McKenna, R. (1995) Real-time marketing. From this analysis we can see that only one dimension of the use of Internet banking has a statistically significant impact on a unique dimension of the relationship approach: ' Intensity of use ' versus 'Bank adaptability'. Blattberg, R. Glazer and J.D.C. Journal of Financial Services Marketing 14(3): 218-231.
The determination of the number of functions followed three criteria sustained by the literature13: Criterion 1: Level of the function ' s statistical significance; Criterion 2: Magnitude of the canonical correlations; Criterion 3: Measure of the redundancy of the percentage of the variance common to the two sets of variables. (1997) Strategy and the new economics of information. Marketing Intelligence and Planning 18(1): 9-23. 18 Sproull, L.S. 56 Tyler, E. and Stanley, E. (1999) UK Bank-corporate relationships: Large corporate expectations of service. by examining the relationship between the dimensions of Internet banking and relationship marketing. (1998) Why it's time for us to save. The International Journal of Marketing 10(7): 25-29.
International Journal of Bank Marketing 18(5): 222-232. (2002) Developing relationship-led cultures A case in retail banking. In S. Berry and Upah (eds.) (1995a) Feeling the heat: Part I. International Journal of Banking. Journal of Euromarketing 15(1): 47-73. The study explores the way in which the various dimensions of the use of Internet banking and the relationship approach affect each other, seeking to understand, ultimately, the relationship between the two basic concepts. Journal of Technology Transfer 16(2): 38-42. Emerging Perspectives in Services Marketing. The International Journal of Bank Marketing 16(4): 170175.
8 Evans, P. and Wurster, T.S. The same logic can be used relative to the customer' s willingness to adapt to the bank.
84 Yap, K.B., Wong, D.H., Loh, C. and Bak, R. (2010) Offline and online banking - Where to draw the line when building trust in e-banking? (2006) Emerging perspectives on customer relationships, interactions and loyalty in Irish retail financial services. Finally, it is important to analyse the canonical cross-loadings (see Table 6) . However, Harden26 argues that the disappearance of the time, place and method factors deprive the traditional relationship of the characteristics that define it, since in virtual relationships, the connection between the company and its customers is diluted, with (social and commercial) exchanges mediated by computer. Journal of Financial Services Marketing 10(2): 140151. He is responsible for the PhD program in Business and Management Studies and for the Masters program in Services Management, both at the University of Porto. International Journal of Bank Marketing 14(4): 3644. In: J.A. This analysis allowed identifying which dimensions would better define each variable. (2003) Improving satisfaction with bank service offerings: Measuring the contribution of each delivery channel. The KMO measure of sampling adequacy (0.64) suggests a high degree of correlation between the variables of the identified groups.
(2005) Relationships. Journal of Marketing 58(3): 20-38. 35 Berry, L.L. is analyst of candidacies to financial funds from EC in the North Regional Direction of Agriculture and Fisheries. The Journal of Services Marketing 6(4): 43-52. International Journal of Bank Marketing 16(4): 161169. Dannenberg and Kellner10, consider it unlikely that the ' person-to-person' financial counselling done via the Internet will be materially different from that traditionally done ' face-to-face' in the various bank front-offices.
and Meuter, M.L. In all cases the correlation established is positive. (1998) Trust, ethics and relationship satisfaction. 50 Devlin, J. International Journal of Bank Marketing 15(3): 7382. 40 Dwyer, F.R., Schurr, P.H. Information Management & Computer Security 4(5): 7-14. 55 Bejou, D., Ennew, C. and Palmer, A. This article discusses the virtualisation of the interaction processes between banks and their customers and analyses the influence of the Internet on these relationships. func-tions are not worthy of interpretation.
81 Hollander, S. (1985) A historical perspective on the service encounter. 38 Fernandes, T. and Proena, J.F. In pursuing this objective, it would be interesting to explore the relationship on an historical basis, through the analysis of changes recorded in relationships since Internet banking was introduced through a longitudinal comparative research. 52 Adolf, R., Grant-Thompson, S., Harrington, R. and Singer, M. (1997) What leading banks are learning about big databases and marketing.
(2000) The internet and the service marketing: The case of Danish retail banking. R.B.
(1989) Using Multivariate Statistics, 2nd edn. 74 Glazer, R. (1991) Marketing in an information intensive environment: Strategic implications of knowledge as an asset. For each of these methods, two rotations were made (Varimax and Oblimin) and the analysis was performed twice, the first considering no constraint to the number of factors and the second limiting the number of factors.
33 Bitner, M.J., Brown, S.W. Beverley Hills, CA: Sage Publications, pp.
He has a PhD in Business from University of Porto and a Master of Science in Marketing from Instituto de Empresa, Madrid, Spain. research should include the perfecting of the modelling used. 85 Hewer, P. and Howcroft, J.B. (2000) Consumers' channel adoption and usage in the financial services indusry: A review of existing approaches. The questionnaire included 36 questions and was distributed to 340 individuals by email during one week. 97 Sawyer, A.G. and Ball, D. (1981) Statistical power and effect size in marketing research. and Sejo, O.H. 88 Pinho, P. (2008) Financial desintermediation and the measurement of efficiency in banking: The case of Portuguese banks. The results show that the relationship marketing approach is related to the intensity of use of Internet banking as well as to the diversity of operations performed there. 82 Czepiel, J.A. Journal of Marketing 51(2): 11-27. Marketing Management 4(3): 1933. (-, The customer makes every effort to maintain a good relationship with his bank, The customer is willing to adjust to bank requirements, The bank makes every effort to meet its customer's needs, The bank is always willing to resolve customer problems, The bank values its relationship with the customer, The bank invests as much in the relationship as the customer, The bank devotes as much effort to the relationship as the customer, The relationship is more beneficial for the bank The relationship is more beneficial to the customer, Importance of the quality of the relationship with the bank Importance of a personalised service Importance of a lasting relationship, The account manager has a special relationship with the customer Importance of the quality of the service Sensitivity to the conditions of credit and interest rates Importance of commissions, The customer requests new services from the bank Automatic renewal of products and services when they expire, Customer seeks information on conditions in other banking institutions before renewing his services with the bank (-, Percentage of banking operations performed via IB, Type of banking operations performed via IB Number of years as user. Although the second criterion confirms the first, the second function determines a frontier that separates the values of the canonical correl-ations from the subsequent functions, so that retaining it would depend on criterion 3, for which the Stewart-Love redundancy coefficient was used. International Journal of Bank Marketing 17(4): 182-191. (2000) Organizing for relationship marketing. 77 Blattberg, R.C., Glazer, R. and Little, J.D.
69 Sheth, J.N. 93 Eurostat.
This information is then used to tailor the offering, thus adding value for the customer and helping to create satisfaction and loyalty. (1990) Managing relationships with customers: A differential philosophy. Journal of Marketing Management, Special Issue on Marketing Myopia, 24(1-2): 153-168. 19 Loonam, M. and O'Loughlin, D. (2008) An observation analysis of e-service quality in online banking. 12 Mols, N.P. European Journal of Marketing 35(5/6): 661-689. For example, the self-service technologies such as ATMs introduced into the banking sector have become both well known and popular, since they were readily accepted by customers, who recognise their advantages in terms of efficiency, convenience and cost reduction.4-6 However, there is some doubt as to whether self-service technologies con-tribute favourably towards establishing lasting relationships between banks and their customers. 87 Liang, C. and Chen, H. (2009) How to lengthen, deepen and broaden customer-firm relationships with online financial services? 3 O'Loughlin, D. and Szmigin, I. 23 Rayport, F.J. and Sviokla, J.J. (1995) Exploiting the virtual value chain. by examining the relationship between the dimensions of Internet banking and relationship marketing.
The lack of human contact may lead to loss of trust,82-84 affecting loyalty and customer retention.85-86.
59 Proena, J. and deCastro, L. (2005) Stress' in business relationships: A study on corporate bank services. Journal of Financial Services Marketing 3(4): 344-358. and Hilgert, M.A. 44 Perrien, J., Filiatrault, P. and Ricard, L. (1992) Relationship marketing and commercial banking: A critical analysis. 49 Devlin, J. Considering the potential of Internet to be a double-edged sword in building (or weakening) relationships, the article seeks to add further insight into the debate.
Harvard Business Review 73(4): 8795. Note. Thus, the Internet may facilitate the building and maintaining of relationships with customers and could form a strategy marked by great interactivity in which the customer is given a relevant role.72 As such, the introduction of online banking poses considerable strategic and tactical challenges for financial service managers, challenging institutions to adapt to continuous technological change and to re-evaluate their relationship marketing strategies. There are various schools of thought on the type of influence that the Internet can have on the bank-customer relationship. 27 Barnatt, C. (1998) Virtual communities and financial services: On-line business potentials and strategic choice. The article begins with a brief literature review about Internet banking and relationship marketing and the state-of-the-art of.
The need for consumers to interact with their banks anytime, anywhere and in any way is met with Internet banking, which enables economies of time and costs. 92 Sibs. The improved customer access to information introduces greater vulnerability in the relationship since the control of this relationship is transferred to the customer,75 who now feels more confident and secure enough to risk changing banks in search of better returns.
(2003) Philosophising on the elusiveness of relationship marketing theory in consumer markets: A case for reassessing ontological and epistemological assumptions. 78 Berger, S. (2009) Self-service technology for sales purposes in branch banking: The impact of personality and relationship on customer adoption. Chicago, Il: American Marketing Association. (1997) Adding value to retail financial services. In this way, the customer intensifies the use of technology and a virtuous circle is developed. 64 Coupey, E. (2001) Marketing and the Internet. The information was gathered by a questionnaire addressed to a convenience sample of users of Internet banking aged over 18 recruited from a database of post-graduate students of the University of Porto.
and Sisodia, R.S. The multiple regression analysis was aimed at testing the relationship between the two, Table 5 : Correlations between the dimensions of the use of Internet banking and the relational approach and its respective linear combinations, Correlations between the dimensions of the use of internet banking and its canonical variables (Canonical Loadings) Duration of use 0.70, Correlations between the dimensions of the relational approach and its canonical variables (Canonical Loadings), Table 6 : Correlations between the dimensions of the use of internet banking and the relational approach and the linear combination of the set of opposed variables, Correlations between the dimensions of the use of internet banking and its canonical variables, Correlations between the dimensions of the relationship approach and its canonical variables, Importance of the quality of relationship - 0.23, concepts (relationship approach and use of Internet banking). (see Table 1). Ultimately, the research aims to obtain an answer to the question How does the use of the Internet by bank customers' relate to relational approaches developed by banks? International Journal of Bank Marketing 5(1): 1926.
Journal of Financial Services Marketing 13(1): 28-38.
Accounting and Finance, Special Issue on: Recent trends in Global Banking 1(2): 133-148. Retail banking is a good example of a sector in which the virtualisation of relationships is increasing. This is possible when technology is used at the customer interface to secure real-time interaction and to make this information available for subsequent interactions.68 Moreover, a better-informed customer may be more willing to reveal more personal information.
34 Joseph, M., McClure, C. and Joseph, B. European Journal of Marketing 30(5): 6780. 14 Reading, B. Journal of Financial Services Marketing 6(1): 68. Journal of the Academy of Marketing Science 28(1): 138-149. (1983) The management of corporate banking relationships. London: Western Business School. International Journal of Bank Marketing 16(4): 161-169. 51 Dawes, J. and Worthington, S. (1996) Customer information systems and competitive advantage: A case study of a top ten building society. 26 Harden, G. (2002) E-banking comes to town: Exploring how traditional UK high street banks are meeting the challenge of technology and virtual relationships. 28 Argyriou, E., Melewar, T. and Meadows, M. (2005) A relationship marketing perspective in electronic banking: Evidence from Greece. The first criterion determines that, for a degree of trust of 95 per cent, only function 1 is retained. 70 Sheth, J.N. 54 Diacon, S.R. 37 Shirvastava, S. and Kale, S.H.
Table 2 : Analysis of the canonical correlation, Function Canonical correlation Canonical correlation squared Statistic F Level of trust, Statistics Value Statistics Level of trust. (1999) Service quality in the banking sector: The impact of technology on service delivery. Journal of Business Research 2(45): 199-209. 32 Zineldin, M. (2000) Beyond relationship marketing: Tecnhologicalship marketing. London: Financial Times Pitman Publishing. Service Management Effectiveness. and the internet: The mediating role of a relationship banker. (1984) An Introduction to Multivariate Statistical Analysis. Of the seven dimensions resulting from the factorial analysis, three presented values for Cronbach's a under 0.6: ' Commitment', 'Customer adaptability ' and ' Duration/ Continuity of the relationship ' . 7 Heinen, J. 15, 2, 160-175. critical.1-3 There is a great deal of interaction between the customer and the bank, and technology plays a major role in that interaction. International Journal of Service Industry Management 13: 5-16. 96 Anderson, T.W. McKinsey Quarterly 3 (August): 187193. The regressions were developed using stepwise procedures that enabled identification of the independent variables while they reduced the effects of multicollinearity. As far as Portugal is concerned, Eurostat's numbers show that 30 per cent of Internet users have used online banking. (1983) Relationship marketing. His main research focus is on business relationships, particularly business-to-business service marketing.