Relationship between Market Efficiency and Performance: The Nigerian Banking Sector

Abstract

This research investigates the relationship between Market Efficiency and Performance in the Nigerian Banking Sector. Conducted in honour of Rt. Rev. Prof. Obeka Samuel Sunday, Vice Chancellor of Wesley University, Ondo, known for his contributions to academic performance, innovation, and efficiency in university management, the study had two objectives: to determine the relationship between commercial banks' product marketing strategies and their performance, and between marketing efficiency and their performance. Correspondingly, two hypotheses were formulated: that there is no significant relationship between product marketing strategies and commercial banks' performance, and no significant relationship between marketing efficiency and commercial banks' performance in the Nigerian banking sector. A survey research design was employed, using primary data from a self-developed "Bank Market Efficiency Questionnaire (BMEQ)," validated through expert review and a pilot study (Cronbach's Alpha ensured psychometric properties), and secondary data. Stratified random sampling selected 332 bank employees (from a population of 14,084) by gender and department, while commercial banks were chosen via systematic random sampling. Data were coded and analysed using descriptive and inferential statistics via SPSS version 21.0. Key variables included marketing strategies, marketing efficiency, and commercial bank performance in Nigeria. The main finding was a significant relationship between product marketing strategies and bank performance in the Nigerian banking sector. Two recommendations were proffered: management should utilise these findings to enhance bank market efficiency and performance, and implement proper internal marketing strategies to boost employee satisfaction, retention, and attraction.