(searched for: doi:10.1108/ijbm-06-2014-0086)
FIIB Business Review; doi:10.1177/2319714521994510
Indian financial sector passed through various stages of development including pre-nationalization, post-nationalization and the recent one post-liberalization. In these stages, marketing was at hibernation mode, as the relationship between banking and marketing was not considered important. However, the recent developments in the Indian financial sector as well as changes in customer preferences towards financial services have aggravated a need for a stronger relationship between marketing and financial service institutions. This thought grew up after there was a realization of the sustainable structure. In light of the above development, authors have attempted to study and explore the marketing strategy of financial service institutions specifically for financial products and services to target retail customers. This exploratory research is carried out by interviewing around 285 employees (in sales and marketing in banks and NBFCs) in Delhi-NCR region through a structured questionnaire. A total of 24 factors were identified through the literature available on the topic (factors that affect the marketing strategy of financial services offered). Exploratory factor analysis was applied, and it was found that five most influential factors are devising a differential marketing strategy. This marketing strategy has been named as ‘PRISM’ (acronym of the strategies developed).
Journal of Service Theory and Practice, Volume 29, pp 438-461; doi:10.1108/jstp-10-2018-0235
Purpose The development of self-service technologies, while intended to better serve customers by offering them autonomy, has created situations in which individuals may require additional help. The purpose of this paper is to explore perceptions of chat as an assistance channel, to identify its perceived role in a customer service environment. Design/methodology/approach In all, 23 semi-structured interviews held with both chat and non-chat users assessed perceptions of chat in an assistance encounter. A thematic analysis was used. Findings The findings highlight a paradoxical perception of chat in a customer assistance context. On the one hand, customers perceive live chat as mainly beneficial in a customer service context, alleviating embarrassment, perceived threats and potential dissatisfaction linked to assistance requests. On the other hand, the elusive nature of a chat conversation interlocutor (human or artificial) adversely affects how customers interpret assistance from companies. Research limitations/implications This research underscores the perceived threats of assistance encounters and shows the ambivalent role of chat in such a context. It also highlights chat’s specific features that make it a relevant medium for assistance requests. Practical implications This study helps companies better understand customers’ perceptions of assistance requests and chat in that context. Companies can use the findings to develop better ways to address assistance needs and offer transparent and fully personalized human chat to provide an inclusive service. Originality/value This paper highlights the ambivalent role of chat as an assistance channel, easing assistance requests but also entailing a potential negative spillover effect, when negative chat perceptions of an artificial interlocutor have consequences.
International Journal of Bank Marketing, Volume 38, pp 627-641; doi:10.1108/ijbm-04-2019-0135
Purpose Allen and Meyer’s (1990) three component model of organizational commitment is now well accepted in the study of consumer–service provider relationships (Keiningham et al., 2015). Commitment profiling is a “person-centered approach” to commitment (Meyer et al., 2012) which examines groups of individuals who share similar commitment mindsets. The purpose of this paper is to apply commitment profile methodology to the analysis of customer–firm relationships in the context of financial services. Design/methodology/approach This method was applied with customer data collected as part of a nation-wide panel study of consumer financial service relationships in Canada. In total, 428 banking customers participated in this study. Findings This study identified five distinct bank customer commitment profiles (fully committed, affective commitment dominant, continuance commitment dominant, moderately committed and uncommitted) that varied in both size and behaviors and intentions. Research limitations/implications This is an exploration of commitment profiling as a technique to understand the ways in which consumers differ in terms of their commitment mindsets and behavior. It has application to a wide range of service relationships beyond financial services. Practical implications This has applications for market segmentation on the basis of customer commitment mindsets in many service sectors, but banking in particular. Since financial institutions have adopted various techniques to measure customer lifetime value (CLV), it would be appropriate to understand how various commitment profiles (segments) are linked to CLV. Originality/value While commitment profiling is a well-developed approach in understanding the nature of the firm–employee employment relationships, this is an early and exploratory attempt at applying this method in the context of a customer–financial service provider marketing relationship. This is a novel way of understanding bank customer segments in terms of their felt commitment to the financial institution with which they do business.
Social Sciences, Volume 8; doi:10.3390/socsci8060177
(1) Background: Contemporary enterprises are putting more and more emphasis on shaping lasting and effective relationships with clients. This is not an easy task, especially in the conditions of Marketing 4.0, which imposes on enterprises the need to holistically consider the needs as well as the skills and inventiveness of customers. It can be assumed that Clients 4.0 require both changes in the scope of business processes and shaping communication with their environment. That is why it is important today to skillfully and correctly determine the complexity of communication with Clients 4.0, as well as to determine the importance of communication with clients for the development of enterprises—especially those operating in innovative industries. (2) Methods: Empirical research was carried out on a sample of 100 innovative enterprises listed on the NewConnect market in Poland. The respondents were managers at various levels. Two indicators were constructed based on these assessments: Customer Relationships Importance Index (CRII) and Customer Communication Complexity Index (CCCI). (3) Results: It was determined that the complexity of communication of innovative enterprises with customers is at a high level. What is more, the importance of relationships with Customers 4.0 for the development of innovative enterprises is at a high level. It was also indicated that there is no correlation between the level of complexity of relationships with Customers 4.0 and the importance of these relationships for the development of innovative enterprises. (4) Conclusions: Based on the survey, it can be assumed that the relations with Clients 4.0 have the greatest share in shaping the development of innovative enterprises in the areas of minimizing the number of complaints, financial liquidity and efficiency of core business processes. It is also important that, in shaping the complexity of communication with Clients 4.0, enterprises mainly consider traditional phone calls and email account.
International Journal of Bank Marketing, Volume 37, pp 479-491; doi:10.1108/ijbm-10-2017-0210
Purpose The purpose of this paper is to examine the relationship between customer satisfaction measured as Extended Performance Satisfaction Index (EPSI) and the financial performance of the banking sector for seven European countries over the period 2004–2014. Design/methodology/approach Using panel models, this study finds a significant positive influence of EPSI on banking financial performance at the country level. Findings Findings suggest that the value of the customer satisfaction index is important in explaining the financial performance of the banking industry at the aggregative country level. The customer satisfaction index measured as EPSI has a strong positive influence on the financial performance of the banking industry for the various North European countries studied. It was shown that EPSI has a positive influence on both total assets and total equity, with a higher relative influence and stronger significance on the total assets of the banking sector than on total equity. Originality/value The study contributes to understanding the importance of measuring and maintaining customer satisfaction as a profitability driver in the banking industry, providing new cross-country evidence. It also contributes to the literature focussing on a group of countries that have not previously been studied.
Published: 1 January 2019
Management & Avenir; doi:10.3917/mav.108.0063
FIIB Business Review, Volume 7, pp 201-215; doi:10.1177/2319714518798410
Maintaining collaborative relationships of a business firm with the customer is very important in the contemporary competitive business scenario, besides the service rendered by it. Against this backdrop, the study was undertaken which aims to analyse the customer relationship management (CRM) practices and dimensions in the business. The past research studies were reviewed and the CRM frameworks given by the various authors, in particular of Sin, Tse, and Yim (2005, European Journal of Marketing, 11(12), 1264–1290), were critically examined. The research article based on the study revisited the four behavioural dimensions of CRM. A total of 225 respondents were conveniently contacted from banks and hotel establishments. In view of the challenges faced by the business organizations in the contemporary scenario, in particular in the service sector, this article identified and discusses ‘customer prospecting’ and ‘personalization’ as additional practices/dimensions that need to be incorporated to design a robust CRM framework which has been presented as revisited model. Structural equation modeling (SEM) had been used to validate the revisited model. These dimensions, though need to be ratified in the future research.
International Journal of Bank Marketing, Volume 36, pp 1073-1097; doi:10.1108/ijbm-12-2016-0182
Purpose The purpose of this paper is to enhance the understanding of consumer empowerment in the relationship between consumers and service providers. It draws on self-efficacy theory to conceptualize consumer empowerment and explain the impact on perceived performance risk in insurance decision making. Design/methodology/approach This study employs data collected from an online survey involving 487 consumers in Switzerland, who recently decided on an insurance service. A structural equation model quantifies both the psychological effects on consumers’ perception of insurance services and behavioral effects on their decision-making process. Findings Perceived consumer empowerment is conceptualized by perceived self-efficacy and perceived controllability. Both have a significant impact on perceived performance risk, while the former is partially mediated by the preference to delegate the decision to a surrogate. Moreover, customers’ involvement in the purchase process moderates both the direct and indirect effect of perceived self-efficacy on perceived performance risk. Research limitations/implications The results are based on consumers’ perceptions from a single country. Furthermore, consumers’ perceptions were surveyed with a time lag after the decision-making process. To increase rigor, perceptions should be collected during decision making. Practical implications Results show that consumer empowerment can be employed as a risk reduction strategy. Consumers with self-efficacy and controllability beliefs perceive significantly less performance risk; however, practitioners should consider that consumers are also motivated to make decisions independently rather than delegating their decisions. Furthermore, consumer empowerment depends on consumer will. For largely indifferent consumers, empowerment does not affect risk or decision delegation preference. Originality/value The study is among the few empirical works to examine the effects of consumer empowerment on the consumer-service provider relationship on an individual level. Furthermore, applying consumer empowerment in relationship marketing implies a shift in research focus to the question of how consumers construe decision-making situations rather than objectively measuring the state of consumer relationship.
Emotional Appeals in Advertising Banking Services pp 91-106; doi:10.1108/978-1-78756-299-820181011
Journal of Management Development, Volume 37, pp 114-126; doi:10.1108/jmd-12-2016-0313
Purpose The purpose of this paper is to analyze the balanced scorecard (BSC) for measuring the competitive advantage of infrastructure assets of state-owned port in Indonesia: Pelindo IV, Makassar, Indonesia. Design/methodology/approach This investigation adopts an explanatory and exploratory qualitative case study method to analyze the effectiveness of the BSC over the strategy management processes. For data collection, the researchers used semi-structured interviews, direct observation and document collection. Data collection was made for a six-month period, which allowed deep knowledge to be gained of the culture and management methods used in Pelindo IV Makassar Branch. Other data collected refer to the company’s documentation and reporting of online media publications. Detailed interview data were the main data sources, allowing the authors to obtain a detailed and holistic understanding of the experience, opinions, and attitudes of the interviewees. Interviews focus on asset management to determine the relationship between various factors. This study adopts an ideal BSC principle (four perspectives) in order to develop a strategic map for infrastructure assets of Pelindo IV. Findings The results showed that the management performance of Pelindo IV in the financial sector over the next five years was expected to increase by 3.5 times with the business profit reaching an amount of Rp.1.64 trillium in 2017. In the next five years, the target of the customer’s perspective set was zero complaints and zero claim with waiting time meeting the ideal standard, which is a maximum of one-hour service, and the number of containers were expected to witness an average growth of 30 percent per year; the growth ship traffic visit history showed that the flow of goods increased by 4 percent and the number of passengers was targeted to grow up to 30 percent. A historical growth rate of 6 percent was also expected both for the human resources and personnel scout. Originality/value In this paper, the Sobel test was used to test the significance of a mediation effect and balanced scorecard was used for measuring competitive advantage of infrastructure assets of state-owned ports in Indonesia. Previously, no research has been undertaken to examine the relationship between the location of the study and competitive advantage of infrastructure assets in the context of PELINDO IV, Makassar branch, Indonesia.
Journal of Product & Brand Management, Volume 26, pp 531-544; doi:10.1108/jpbm-07-2016-1285
Purpose The present state of the financial services industry suggests the need for banks to appeal to consumers’ emotions with the aim of improving their reputation; this study aims to explore how UK banks are using emotional appeals in their advertisements and how this shapes consumers’ attitudes towards their brands. Design/methodology/approach Qualitative and quantitative data collection and analysis in a two-stage study – Study 1 analysed the content of 1,274 UK bank advertisements to understand how the banks convey emotional appeals, whereas Study 2 elicited consumers’ perceptions of these advertising appeals and how they influenced their attitudes through semi-structured interview with 33 UK retail bank customers in London and Luton. Findings UK banks are using emotional appeals in their marketing communication strategies. The qualitative findings highlight the bi-dimensional nature of feelings towards the advertisements and how this relates to the brand. There is a lacklustre attitude towards the brands; there was no sense of pride in associating with any bank, even with though there are possibilities of switching; and consumers feel there is no better offer elsewhere as all banks are the same. Practical implications Bank brands should present distinct values about their services to the target audience, endeavour to build relationships with existing customers and reward loyalty. Importantly, financial brands need to engage in and highlight charitable activities and any corporate social responsibility as this can help to improve consumers’ attitudes as they often consider bank brands greedy and selfish. Originality/value Qualitative research methodology was adopted to better understand consumers’ attitudes towards UK retail bank brands.
Journal of Global Scholars of Marketing Science, Volume 27, pp 123-135; doi:10.1080/21639159.2017.1283795
International Journal of Bank Marketing, Volume 34, pp 388-410; doi:10.1108/ijbm-11-2014-0160
Purpose – The purpose of this paper is to develop a comprehensive integrated model which helps in explaining the impact of Customer Relationship Management (CRM) dimensions (complaint resolution, customer knowledge, customer empowerment and customer orientation) on customer loyalty and competitive advantage of a bank. The study also explores the mediating role of customer loyalty in the relationship between CRM and competitive advantage in retail banking. Design/methodology/approach – The research is based on a theoretical model which consists of four CRM dimensions and two exogenous variables. These have been used for establishing the hypotheses to analyze relationships between the variables constituting the CRM model. The data have been collected from 278 customers of a private bank. The data were analyzed using structural equation modeling (SEM). The scale was developed and purified through factor analysis (exploratory and confirmatory factor analysis). SEM was then used to examine the causal relationships and “model fit” of the proposed model. Findings – The results provide evidence that the four CRM dimensions have a positive effect on customer loyalty and competitive advantage of the bank. Among the CRM dimensions, customer knowledge is most influential of all the dimensions. Furthermore, customer loyalty acts as the mediator in the CRM model between CRM and competitive advantage. Research limitations/implications – Since, the study involved a single bank and therefore the results should be generalized cautiously. Only four CRM variables were included in the study; additional variables can be introduced in further studies involving different contexts. Practical implications – The study highlights and supports the need for mangers to devote additional resources toward developing a better CRM system. Therefore, mangers need to think beyond the technological aspects and should focus on these four dimensions, especially customer knowledge, to enhance the loyalty and competitiveness. Originality/value – The paper investigated hitherto unexplored relationships between customer-centric CRM dimensions instrumental in providing competitive advantage to a bank through mediational analysis. Thus, it contributes to the information on the implementation of CRM practices valuable for banking sector.