Credit lender–borrower relationship in the credit card market – Implications for credit risk management strategy and relationship marketing |
| |
Institution: | 1. Manchester Metropolitan University, United Kingdom;2. Uppsala University, Sweden;3. University of Richmond, United States;1. University of Sussex, United Kingdom;2. East Carolina University, United States;1. Department of Management, Inje University, Gimhae City, South Korea;2. Fund and Pension Division, Korea Capital Market Institute, Seoul, South Korea;3. Yonsei School of Business, Yonsei University, Seoul, South Korea;1. School of Business and Economics, Loughborough University, Loughborough, LE11 3TU, United Kingdom;2. Business School, University of Glasgow, Glasgow G12 8QQ, United Kingdom |
| |
Abstract: | Lehman Brothers filed for bankruptcy in 2008, precipitating the international financial crisis. Many questioned the banks’ risk-taking credit system. Understanding credit risk and how the credit system functions may provide knowledge on managing credit, to avoid another such international crisis. We study the credit card field and present a pricing decision model for managing credit risk. Recent credit lenders’ portfolio re-pricing practices call for immediate attention to the credit lender–borrower relationship and relationship marketing. A literature review and recent phenomena in the credit card industry reveal that the lenders’ re-pricing strategy negatively affects the credit lender–borrower relationship and relationship marketing. Thus, we introduce a pricing decision model incorporating the lenders’ re-pricing strategy and the credit lender–borrower relationship. Further, we discuss the implications of, and the role of marketing in, credit risk management and the implications of relationship marketing for credit lenders in foreign markets, including the US market. |
| |
Keywords: | Credit lender–borrower relationship Credit risk management Delinquency management practice Pricing decision model Relationship marketing |
本文献已被 ScienceDirect 等数据库收录! |
|