The Profiles of Bprs’ Clients

This chapter addresses the second research question to explore the relationship characteristics of the clients and possible threat of discontinuity of bank-client relationships driven from exogenous factors such as external shocks and competitor moves and endogenous factors such as dissatisfaction. This exploratory study is a starting point to further discuss an explanatory analysis of the client intention model in Chapter 8. Discussions in this chapter follow the course of relationship duration logic. It mainly focuses on (a) the start of a relationship through the first credit contract; and during the development stage of a relationship some events may occur such as (b) a possible threat to the bank-client relationship in terms of a disruption in the supply of credit e.g. credit tightening, loan rate volatility, etc., from the peak of the 1998 economic crisis; (c) issues in conjunction with exclusiveness, repeated loans, and monitoring; (d) incentives to protect possible credit risks through credit rationing, compulsory savings, and collateral; (e) various sources of value of bank-client relationships; ultimately approaching to a point in time of dissolution issues i.e.; (f) client re-joiners who have switching experiences, intention to leave and related threats from competitors’ luring tactics, preventive measures, and a satisfactory level of BPR services. The intention to leave issue is a salient characteristic in this chapter. These discussions are organized into five sections. They are section 6.1 Ownership, Management, and the Duration of Relationships; section 6.2 The Implications of the Peak of the 1998 Economic Crisis upon BPRs’ Clients; section 6.3 Bank – Client Relationships; section 6.4 Relationship Marketing: Intention to Leave the Relationship; and section 6.5 Conclusion.