Taking the customer into account: Transcending the construction of the customer through the promotion of self-accounting

The importance that businesses have accorded their customers during the past thirty years has not, as yet, been fully matched by the development of accounting for the customer. A range of customer-related techniques has emerged, including customer profitability analysis, the balanced scorecard and several strategic management accounting approaches. In large part these can be characterised as attempts to construct the customer in a very conventional manner, one which serves the interests of business rather than customers. Similar emphases can also be identified in the marketing management literature, which in recent years has shown worrying signs of becoming focused on the adoption of a form of hard number accounting. The purpose of this paper is to provide a review and critique of extant customer accounting techniques and approaches, as well as identifying some of the fundamentals of a more appealing attempt at ‘taking the customer into account’.     

Customer satisfaction with socially responsible investing initiatives: The influence of perceived financial and non-financial quality

During the last decade, socially responsible investment (SRI) initiatives have grown to become a mainstream financial service in many countries. However, to date, only a few studies focus on understanding the final investor of such initiatives. This article focuses on one particularly overlooked aspect of SRI behavior; that of customer post-purchase satisfaction. A theoretical model of satisfaction with SRI-profiled mutual funds is developed and tested. The results indicate that perceived financial performance of the SRI-profiled mutual fund is the most important predictor of customer satisfaction. However, perceived environmental, social and governance (ESG) performance also had a positive impact on satisfaction for the SRI mutual fund. On the basis of these results, it is argued that although ESG quality is important to customers, marketers of SRI initiatives should primarily focus on the conventional quality attributes such as financial performance, as a good ESG record alone is unlikely to generate customer satisfaction.     

The Impact of the Change to International Accounting Standards on Debt Covenants: A UK Perspective1

This paper examines the impact on covenants in the debt contracts of companies of the impending change to international accounting standards (IAS). The primary focus of the paper is the UK debt market, but comparisons are drawn with other EU countries that will also be affected by the adoption of IAS. Existing evidence of the nature of debt covenants and the impact of accounting regulation change on such covenants is briefly reviewed. It is argued that the adoption of IAS will have a significant impact both on reported earnings and on balance sheet values. Moreover, it is argued that the adoption of IAS will increase the volatility of earnings. It is further argued that, as a consequence of these effects, there will be a significant impact on debt covenants given the widespread use of rolling GAAP. A number of cases and hypothetical examples are provided to illustrate the impact of the adoption of IAS.     

Accounting information systems and learning theory: an integrated approach to teaching

A background to the adoption of computing in accounting education is discussed. There has been considerable pressure by the accounting profession for information technology to be taught in tertiary accounting courses. While accommodating these expectations, accounting academics have been concerned that such teaching should focus on conceptual understanding, rather than training. Research on effectiveness of computers and the learning of accounting concepts has been considered and found to be inconclusive and conflicting. It has been argued that an understanding of learning theory is necessary to enhance the effectiveness of teaching computerized accounting. An approach to teaching computerized accounting information systems and integrating learning theories is presented via a practical example: the objectives of teaching computerized accounting and reasons for adopting the SYBIZ Rev L software package are presented. The chosen approach in developing the teaching and learning material is outlined and linked to learning theory. It is argued that computers in accounting education should not merely be treated as a fait accompli, but be recognized as a part of a process which we should understand and influence. Research needs to continue on a number of methodological fronts. Suggestions are given for more specific empirical research, as well as suggestions on how to incorporate the findings of other related disciplines.     

Individual psychology of risk-taking behaviours in non-adherence

This paper presents some theoretical considerations based on the theories of risk about non-adherence in the field of health care. Traditional models as the Health Belief Model and the Theory of Reasoned Action are presented and criticized. In order to enable the use of other theoretical frameworks, it is argued that non-adherence can be studied within the general frame of risk-taking. The behavioural decision theory is presented and it is argued that cognitive biases like unrealistic optimism play a major role in non-adherence as in risk-taking. It is also argued that these cognitive biases depend on self-related motivation factors. Results of a pilot study involving 16 patients are presented. These results only partly support the theoretical analysis and underline that it would be necessary to take mood factors into consideration in further research.     

Effects of the risk sources and user involvement on e-commerce adoption: application to tourist services

Past research has focused on the dimensions (consequences) of perceived risk and the effect of global risk on e-commerce adoption by consumers. This paper uses a new approach to examine the influence of perceived risk on e-commerce adoption and, on the basis of the Theory of Planned behaviour (TPB), develops an integrative model that includes the effect of three risk sources (i.e. technology, vendor and product) on the attitude towards the website use and online purchasing intention of users. In addition, this study examines how involvement, one of the main determinants of consumer behaviour, affects the role of these sources of perceived risk in e-commerce adoption. The results obtained in a sample of 1083 users of tourist services suggest that technology risk is the main determinant of online purchasing intention, which is also influenced by the variables from the TPB model. For its part, the technology risk and vendor risk have a negative influence on attitude towards the website use. In addition, both types of risk have a higher negative effect on attitude in the case of high-involvement users, supporting the moderating influence of involvement on e-commerce adoption. From a practical point of view, the findings of this research help managers to implement actions aimed at reinforcing the users’ trust in their websites and, consequently, at fostering the online purchase.     

An observation analysis of e-service quality in online banking

This study focuses on observing customer perceptions of internet banking and e-service quality from a user-based perspective within an Irish context. The study involves an observational study of a purposive sample of 20 consumers based upon their perceptions of the Bank of Ireland website using unstructured and structured observation techniques. Respondents moved from basic to higher order gratifications according to IT experience and internet usage. While information and transaction gratifications were deemed key to online banking, enjoyment gratifications held limited associations, thus emphasising its functional nature. User group categorisations had a direct impact on online behaviour in terms of time spent evaluating in addition to the level of customer pro-activity. The paper highlights the value of the uses and gratifications categorisations system, which provides a key platform to the study of e-service quality and offers e-banking providers a more effective system of serving individual customer e-service needs. Online banking providers can make the process of using e-banking more enjoyable by enhancing website interactivity and creating unique online experiences. Future e-banking penetration and the success of complex financial product adoption will be dependent on proactive online marketing campaigns coupled with increased website responsiveness. This paper adopts a unique perspective by exploring e-service quality from the user-based approach by assessing the uses and gratifications sought by online users, and subsequently examines their impact on effective web design and the e-service dimensions deemed focal to premium usage.     

Does trust in the bank build trust in its technology-based channels?

Trust appears as an important factor for the adoption of technology-based distribution channels. This paper investigates the construct of trust and its antecedents in the context of technology-based distribution channels, such as ATMs, the internet and phone banking. Specifically, it tests the role of trust in the bank in building trust in these channels. It reports findings from a retail bank customer survey, which revealed two dimensions of trust, affective and cognitive trust, and the significant role of three variables in forming trust in these channels: trust in the company, reputation of the company and disposition to trust. Implications of further research on understanding the antecedents of trust towards channels as well as managerial recommendations on how to build such trust are discussed.     

Quantifying equilibrium network externalities in the ACH banking industry

We seek to determine the causes and magnitudes of network externalities for the automated clearing house (ACH) electronic payments system. We construct an equilibrium model of customer and bank adoption of ACH. We structurally estimate the parameters of the model using an indirect inference procedure and panel data. The parameters are identified from exogenous variation in the adoption decisions of banks based outside the network and other factors. We find that most of the impediment to ACH adoption is from large customer fixed costs of adoption. Policies to provide moderate subsidies to customers and larger subsidies to banks for ACH adoption could increase welfare significantly.     

Technology's Effect on Property–Casualty Insurance Operations

The post-Glass–Steagall era has presented insurers with new opportunities and risks during a time when information flows and business processes are being impacted by changing technology. In this article, we explore how insurers use and perceive current technology to carry out their operations by reporting results from a sample of insurers that includes some of the nation's largest property and casualty insurers. We find among insurers in our sample that an online channel is having a significant impact on customer retention and revenue enhancement, but a lesser impact on cost reduction. Interestingly, about two-thirds of our sample has experienced an increase in their overall number of transactions following the adoption on an online channel. Moreover, while the Internet is perceived as giving marketing benefits it is not being used as a substitute for agents. We find that 65 percent of respondents have used technology to integrate customer data across functional areas and another 23 percent plan to do so in the next 3 years. Nearly 71 percent of respondents have or plan to adopt service-oriented architecture in their technology infrastructure.     

Key account management in financial services: An outline research agenda

The forces of deregulation and technological development have created a highly competitive environment in financial services. Despite the quest for business-to-business service efficiency, most financial services companies know that they must not lose sight of the importance of relationship quality. As a result, there is growing interest in key account management (KAM) in these companies. Research on KAM in general is limited and little has been undertaken in financial services. There are several reasons why KAM practice in financial services may be distinctive: the regulatory environment; the sector's size and diversity; the high degree of intermediation; product diversity and complexity; uncertainty of product performance; the problem of measuring profitability; the challenges of interactive marketing using both traditional face-to-face and complementary direct marketing techniques; and the role of technology in delivery. A research agenda for KAM in financial services is proposed. It is argued that more knowledge in this area would be of benefit to customer relationship management (CRM) research and to practising managers implementing KAM.     

Medicare in the 21st century.

The authors provide an overview of the Medicare program in terms of how the current program operates, the current issues it faces that may shape possible options for reform, and the implications of these features and issues for employment-based health plans. Current issues include adoption of a premium support model, changes in the eligibility age for Medicare benefits, Medigap insurance, benefits covered and customer service.     

Understanding the intention to use mobile banking by existing online banking customers: an empirical study

The Indian banking sector can take advantage of the proliferation of smartphones as well as the government’s encouragement of cashless transactions to accelerate the use of mobile and online banking. The purpose of this study is to understand the initial acceptance of mobile banking by existing online banking users. Few studies have focused on online banking users’ behavioural intention to use similar services (such as mobile banking) in India. To this end, a theoretical model was developed using the technology acceptance model, which was extended to cover the adoption factors that influence users of online banking to use mobile banking. These adoption factors comprise perceived ease of use, perceived security, mobile self-efficacy, social influence and customer support. The dependent variable is customers’ behavioural intention to use mobile banking. A partial least squares structural equation modelling analysis was used to test the theoretical model with sample data from 420 online banking customers of various public, private, foreign and co-operative banks in India. The study found that the adoption factors had a significant impact on customers’ behavioural intention to use mobile banking. The findings of this study provide insight into digital banking channels, contribute to existing research on digital banking adoption and will educate banks and financial institutions on the adoption of mobile banking in India.

     

Health information technology and patient outcomes: the role of information and labor coordination

Health information technology (IT) adoption, it is argued, will dramatically improve patient care. We study the impact of hospital IT adoption on patient outcomes focusing on the role of patient and organizational heterogeneity. We link detailed hospital discharge data on all Medicare fee‐for‐service admissions from 2002–2007 to detailed hospital‐level IT adoption information. For all IT‐sensitive conditions, we find that health IT adoption reduces mortality for the most complex patients but does not affect outcomes for the median patient. Benefits from health IT are primarily experienced by patients whose diagnoses require cross‐specialty care coordination and extensive clinical information management.     

On the potential for Twitter to add value in retail bank relationships

It is argued that research within financial services marketing has omitted to pay sufficient attention to social media in banking contexts generally and its potential impact on retail bank relationships in particular. At a general level, this research study explores the advent of social media and the manner of its deployment in financial services. Specifically, this article reports on the deployment of Twitter in bank–customer communications. Accordingly, a content analysis of 400 Tweets sent from a range of financial service providers to their customers was conducted. A literature-based model allowed for the classification of these Tweets as either customer acquisition, engagement or retention-oriented. Findings indicate that Twitter is mainly used for customer engagement, but scope is identified for their more meaningful deployment in relation to customer acquisition and retention.     

Strategic online banking adoption

In this paper we study the determinants of banks’ decisions to adopt a transactional website for their customers. Using a panel of commercial banks in the United States for the period 2003–2006, we show that although bank-specific characteristics are important determinants of banks’ adoption decisions, competition also plays a prominent role. The extent of competition is related to the geographic overlap of banks in different markets and their relative market share in terms of deposits. In particular, banks adopt online banking services earlier in markets where their competitors have already adopted this technology. This paper is one of the first to construct local banking markets using the geographic market definitions delimited by the CASSIDI® Database compiled at the Federal Reserve Bank of St. Louis.     

Towards understanding attitudes of consumers who use internet banking services

Increasingly technology is being employed to replace or substantially diminish personal interaction in service provision. Research is beginning to shed light on the impact of this phenomenon on service provision and the behavioural response of customers. More, however, remains to be done by way of investigating and establishing the extent to which this means of service provision is effective in maintaining mutually beneficial customer-service provider relationships. This paper explains and discusses findings of a study undertaken for the purpose of illuminating reasons for using internet banking services, and establishing whether or not regular use of these services necessarily implies loyal patronage and that the customer has a sense of relationship with the service provider. Significantly, it was found that regular use does not necessarily imply willing or satisfied use, or that the customer has a sense of relationship with the service provider. Managerial implications of the findings are also considered.     

Personal UK e-finance player Moneynet uses technology to monitor and increase online business

Moneynet, launched in 1997, is the first UK website to provide an interactive, comprehensive and independent guide to products available in the personal finance market. The paper indicates how organisations such as Moneynet are now able to use a unique, patented technology enabling them to see, in real-time if required, just how well their website is performing and what kind of experience visitors (120,000 monthly in this case) to their site are having so that continuous improvements, based upon visitors actual experiences, can be made. Also outlined is how this technology enables Moneynet accurately to determine click-through fees owed and not rely upon questionable or conflicting data via third parties; this facility also results in significant reduction of click-through fees. The paper describes the provision of additional data and statistics including new versus repeat visitors, and reports on both visitors and campaign analysis. The conclusion indicates enhanced customer experience, increased online sales and increased revenues.     

An investigation of Customer Accounting systems as a source of sustainable competitive advantage

This study examines whether using customer accounting systems for resource allocation purposes is a source of sustainable competitive advantage. Based on a longitudinal data set comparing the performance of firms that adopt customer accounting and their industry benchmarks, we find that financial performance increases post adoption, leading to significant abnormal positive performance vis-à-vis average industry benchmarks (4–5%-points ROA difference) in the first two years following the adoption. However, we also show that this effect deteriorates over time, suggesting that the adoption of management accounting systems is a source of temporary rather than sustainable competitive advantage. The results are robust to other strategic events around the time of adoption, different matching of peers, and the influence of other factors that could be expected to influence firm performance. We discuss the implications of these findings for management accounting research and practice.     

Perceptions and attitudes toward corporate website presence and its use in investor relations in the Jordanian context

This study reports the results of semi-structured interviews conducted to explore the factors affecting Jordanian listed firms' decisions on whether or not to have a corporate website and, if so, whether or not to use it in investor relations activities. Corporate interviewees noted that the decision to have an online presence was motivated by a desire to enhance the company's image and reputation, and the need to re-brand the company was often a key event triggering website adoption. Particularly important here were international influences, whether international partners, shareholders or competitors. However, in all cases, top management support was essential and played a key role in influencing the ways in which companies use their website both in general and for investor relations activities in particular. Results also revealed that the key factor explaining the lack of a corporate website was the attitude or belief of management. Of key importance was their belief that stakeholders, including Jordanian stock market participants, are not yet ready or willing to use the internet to acquire information about the company. Some interviewees similarly concluded that there is no demand for investor relations information on corporate websites because the Jordanian Securities Commission publishes all listed companies' annual reports on its own website. Other factors explaining the lack of a corporate website were management change, absence of competition and having been listed on the Jordanian stock exchange for a long period. This research extends our understanding of disclosure on the internet by considering a different research setting, namely Jordan, and also by extending the theoretical framework used.