Abstract
This paper examines the factors that small-to medium-sized enterprises (SMEs) in Hong Kong consider when selecting a banking partner, and the extent to which they use different banks (share of wallet). The findings are contrasted with those from another study of Australian business. The results show that firms in both countries view a bank's willingness to accommodate their banking and credit needs as being important. Hong Kong firms appear to give this factor higher priority when making their bank selection, while Australian firms appear to place higher emphasis on long-term relationships. Australian firms appear to have a more stable relationship with their primary bank as compared to the firms in Hong Kong where switching behaviours are found to be common. While 'guanxi' is often seen as critical in maintaining a business relationship in the Asian context, this study suggests it has limited impact for SMEs in Hong Kong in increasing share of wallet. The findings offer marketing implications for banks that are operating, or are planning to operate, business banking in both places.
Original language | English |
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Pages (from-to) | 204-213 |
Number of pages | 10 |
Journal | Journal of Financial Services Marketing |
Volume | 9 |
Issue number | 3 |
DOIs | |
Publication status | Published - 2005 |
Externally published | Yes |
Keywords
- bank selection
- SMEs
- share of wallet
- relationship marketing
- content analysis