Product innovation in banking: How marketing works

Many benchmarking initiatives are driven by an academic or government desire to understand the position of industry sectors relative to each other or to those of other nations. In contrast, for managers striving to compete and drive their businesses forward, this generalised approach is secondary to their need for tools which are applicable in their own company and which give them direct benefits.

Observing that benchmarking has proved very powerful in manufacturing, the Chartered Institute of Marketing (CIM) invested in research to establish a similar approach in marketing. Benchmarking was defined as a system which incorporates three essential elements: measurement, processes, and a defined, measured, aspirational 'benchmark'.

This paper describes a unique benchmarking tool designed specifically for marketing processes (CIMBA), developed by the CIM. It enables both marketers and senior executives in non-marketing functions to identify the role of marketing in their organisation and to measure the processes which convert marketing strategy into reality.

The system is driven by a model of best practice, tailored to each organisation's situation through their particular critical success factors. Analysis is software-based to provide easy manipulations of the data. CIMBA provides the measurements and the means to broker partnerships between carefully matched companies, even across sectors, if they have gone through a CIMBA assessment.     

The adoption of direct banking services

The adoption of new products and services is of increasing importance to many industries. This is especially so for those organisations that are marketing technological innovations. In this paper a model of the perceived innovation attributes and the personal characteristics of adopters and non‐adopters was developed, based on literature and consumer research. These are then tested using a questionnaire concerned with the UK market for direct banking services. The results are presented in detail which indicate that the model presented is an excellent predictor of adoption behaviour. From these results a number of interesting implications have been highlighted for marketing practice.     

Predicting Internet banking adoption in India: a perceived risk perspective

The emergence of Internet banking has transformed the banking systems across the globe. As a channel to market, Internet banking allows geographical constraints to be overcome by offering various products and services at lower customer costs. An understanding of the factors influencing customer adoption of Internet banking is both relevant and timely. This study integrates technology acceptance model and perceived risk theory in understanding Internet banking acceptance among Indian bank account holders. Specifically, this study categorizes perceived risk as external risk and internal risk, and examines its influence on customer beliefs and adoption of Internet banking. Using two-step predictive analytics of structural equation modeling and artificial neural network analysis, the 270 responses reveal that both external risk and internal risk inhibit customer acceptance of Internet banking. More importantly, neural network analysis reveals that perceived ease of use and external risk are two important factors determining how well Internet banking is accepted by customers. The implications of the study findings and future research directions are presented.     

Attitudes of marketing professionals toward ethics in marketing research: A cross-national comparison

The study reported here examines, in the context of Crawford's (1970) items, differences in research ethics attitudes among marketing professionals in Australia, Canada, Great Britian, and the United States. The study results indicate the lack of significant differences in research ethics attitudes among marketing professionals in the four countries. This finding is interpretable as implying the generalizability of the results of previous research ethics studies involving domestic (United States) marketing professionals as respondents. Ishmael P. Akaah is Associate Professor of Marketing at Wayne State University. He received his M.B.A., M.A., and Ph.D. degrees from The Wharton School, University of Pennsylvania. His articles have appeared in the Journal of Marketing Research, Journal of Advertising Research, Journal of Health Care Marketing, Journal of Business Research, International Marketing Review, Journal of Global Marketing, Journal of Business Logistics, Journal of the Academy of Marketing Science, Journal of Direct Marketing, Journal of Business Ethics, Savings and Development, Eastern Africa Economic Review, Journal of Information and Optimization Sciences, and Proceedings of the American Marketing Association.     

Controlling product returns in direct marketing

Many direct marketers offer price refunds to unsatisfied consumers, but as a result some consumers order products with no intention of keeping them. We show that such inappropriate returns can be controlled in a profitable way by imposing nonrefundable charges and that these charges increase with the value of the merchandise ordered. Data collected from clothing mail-order catalogs is consistent with our theory. The shipping and handling charges of these catalogs are usually nonrefundable and increase with the value of the merchandise ordered, even when the actual shipping and handling costs are constant.     

Internal marketing: a qualitative study of culture change in the UK banking sector

This paper discusses the findings of a qualitative study carried out in the UK retail-bank sector on the implementation of Internal Marketing (IM). While the overall aim of Internal Marketing is the creation of a unified culture around the values of customer service, employee empowerment and service quality, the evidence suggests that Internal Marketing is perceived and enacted in ways that at times contradict such managerial rhetoric. The paper sheds light on what internal marketing is (its underlying principles within the organisations studied), the ways in which the banks studied use it in order to change their organisational culture as well as the difficulties encountered in implementing IM as a culture change agent. It concludes that the implementation of Internal Marketing in the banks under the study is problematic and does not result into a unified organisation culture. Indeed, implementing Internal Marketing is a process fraught with difficulty, which at times leads to divisions, ruptures and ambiguity in the newly created organisational culture.     

A comparison of the effect of retail purchase and direct marketing on the endowment effect

This article reports on a study comparing the effect of the retail and direct marketing channels of delivery on the endowment effect. The results demonstrated the endowment effect for both retail and direct marketing channels of product delivery. In addition, in the direct marketing channel, the endowment effect was strengthened by the physical, tangible possession of products at the point of product receipt compared to its virtual possession value at the point of purchase. In the retail channel of delivery, confirming consumer expectation with the possession of the product at the point of purchase resulted in the strengthening of the endowment effect compared to the unexpected out‐of‐stock retail situation. Contrary to expectations, the duration of the product possession did not affect product valuation. Managerial implications are discussed. © 2006 Wiley Periodicals, Inc.     

Segmentation in direct marketing channels: a transaction-patterns based method

This paper presents a method designed to segment a customer file for direct marketing using behavioral data. The results of this method are tested against the traditional Recency-Frequency-Monetary Amount segmentation model, as well as other parameters of consumer behavior. Strategic applications and future research orientations are suggested.     

Impact of marketing activities on relationship quality in the Malaysian banking sector

The current study investigates the impact of marketing activities on relationship quality in the Malaysian banking sector. Analysis of survey results show that greater client and employees' relational orientation yields higher relationship quality and results in better relationship continuity. Results also show that committed client relationships lead to client satisfaction, loyalty, positive word of mouth and promotion However, mutual disclosure was found to have no significant relationship with relationship quality.This may indicate that bank customers in Malaysia do not feel that having close relationships with the bank will have any positive impact on relationship quality. This particular finding may serve as a warning signal to practitioners and scholars alike that thorough research must be carried out on the use of relationship marketing prior to implementation.     

Trust and direct marketing environments: A consumer perspective

The desire to establish long‐term customer relationships has led companies to consider normative as well as outcome related aspects of relationship development. Much of the research undertaken in this field has focused upon such activity in business‐to‐business markets. The current study sought to examine these issues, from the consumer perspective, in relation to approaches made by firms using direct marketing techniques, specifically direct mail. Empirical assessment was made of a sample of consumers in relation to their receptivity to product and service offerings from firms, and the effects of commitment, trust and privacy concerns upon this receptivity. In conclusion, some implications for marketing practice in developing customer relationships in direct marketing environments are discussed.     

Predicting bank failures using a hazard model: the Venezuelan banking crisis

This paper uses a proportional-hazard model with time-varying covariates to determine the financial indicators that could have predicted the bank failures during the 1994–1995 Venezuelan banking crisis. A proportional-hazard model is an adequate econometric tool to analyze this case of limited cross-sectional financial information. I find that both a bank's ability to generate sound profits and the support of low risk government bonds were the key to not failing in a crisis that took down more than half of the system. These results can be extended to a general case of bank failures under volatile economic environments.     

Mine the direct marketing riches in your database.

Companies are ignoring a wealth of untapped marketing gold embedded in their internal customer files. If this information can be extracted from a database, it could become a key source of sales leads.     

突破思维 电梯广告尝试直销新模式

2009年．在全球经济危机已经颇为严峻的形势下，国内各大新媒体企业并没有坐以待毙．而是想方设法去积极应对。在改变策略、稳步调整的情况下。尝试开拓新型媒体商业模式，保障正常广告销售的同时帮助客户最大限度地实现了产品销售突破．成为目前各大新媒体公司的—个突围策略。     

Female images in advertising: the implications of social comparison for marketing

Does advertising create insecurities and dissatisfaction with the self? This exploratory study investigated how British women consumers, aged 24–50, responded to a range of ideal images presented in fashion magazines. Congruent with previous research, British women compared themselves with idealised advertising images. However, consumers actively and selectively interpreted the meanings of idealised images represented in advertising stimuli. Although some women raised their standards of comparisons and lowered their own self-assessments after viewing the ideal images, there was also evidence that women employed a variety of strategies when consuming the idealised images portrayed in fashion advertising, depending on the goal of the social comparison process. These strategies are interpreted in the context of social comparison theory, and the implications for integrated marketing communication strategies are discussed.     

Consumer response to marketing channels: A demand-based approach

Abstract

Marketing channels have faced rapid structural and functional transformations during the last few decades. While a large body of research has been devoted to understanding the supply-side aspects of marketing channels, much less research has taken the demand-side perspective to study consumer perception of channel position and functions. This article extends the channel literature to a broader domain and develops a consumer-based theoretical framework reflecting factors that influence consumer perception of and reaction to channel strategies and decisions. The authors conceptualize that consumers’ perceived channel value is a critical factor in determining their loyalty behavior. Seven important channel features are identified that would positively influence the perceived channel value. The relationship between perceived channel value and channel preference is strongly dependent on the level of customer value co-creation. The article concludes with research implications and suggestions of avenues for future research.     

World class marketing: From lost empires to the image men

An inaugural lecture to the University of Bradford, Richmond Building, Bradford, on 22nd January 1991.