Consumers’ switching motivations and intention in the case of bank mergers: a cross-cultural study

2017 ◽  
Vol 35 (2) ◽  
pp. 254-274 ◽  
Author(s):  
Maya F. Farah
Keyword(s):  
Banking Sector ◽  
Service Providers ◽  
Critical Role ◽  
Real Life ◽  
Retail Banking ◽  
Cross Cultural ◽  
Switching Behavior ◽  
Content Type ◽  
Consumer Switching ◽  
The Impact

Purpose The purpose of this paper is to analyze consumer switching behavior, which in the retail banking sector is of outmost importance, particularly during financial crises and in their ensuing consolidation pressures. Moreover, research indicates that cultural values play a critical role in determining a customer’s likelihood to switch the service provider. The theory of planned behavior offers a comprehensive theoretical framework for an understanding of this behavior. Its application implies that switching is influenced not only by one’s attitudes toward changing banking service providers, but also by the merger situation at hand, the influence of significant others, and whether the switching decision is under one’s behavioral control. Design/methodology/approach This paper scrutinizes the merger between Lloyds TSB and Halifax Bank of Scotland in the Spanish market, with a focus on the differences between British and Spanish consumers. In all, 30 face-to-face exploratory interviews were conducted with a sample of customers from both nationalities selected through a purposive sampling technique. Findings The results indicate that the switching behavior within the banking sector is largely determined by one’s cultural background. While individualistic consumers are more prone to switch banks, collectivist consumers are highly risk averse and are unwilling to lose the established relations with a bank’s personnel. These particular characteristics make them unlikely to switch banks irrespective of a merger and its related consequences. Originality/value This paper examines the impact of cross-cultural differences on consumer switching motivations and intentions in the particular case of a real-life banks’ merger.

An intellectual journey into the historical evolution of marketing research in brand switching behavior – past, present and future

2015 ◽  
Vol 21 (2) ◽  
pp. 172-193 ◽  
Author(s):  
Osama Sam Al-Kwifi ◽  
Zafar U. Ahmed
Keyword(s):  
Historical Development ◽  
Service Providers ◽  
Common Factor ◽  
Marketing Research ◽  
Switching Behavior ◽  
Content Type ◽  
Secondary Sources ◽  
Brand Switching ◽  
Brand Attractiveness ◽  
The Impact

Purpose – The aim of this paper is to explore the historical development of brands and the development of literature on brand switching to define the antecedents that cause switching behavior among consumers and the impact of switching on market share of companies. Design/methodology/approach – The historical development of brands is tracked using different secondary sources. Then an intensive literature review is conducted on brand switching at the consumer and business levels. At each level, studies on brand switching are divided into several categories, such as household products, technological products and service providers, and the common factors behind switching for each category and between categories are determined. Findings – An examination of the historical development of brands shows that brands appeared on products a long time ago and evolved through a number of stages based on the economic and social environment. The literature reveals that no single model can explain brand switching behavior of consumers or businesses across different industries and products. Each study uses a specific set of factors to explain brand switching. However, brand attractiveness can be counted as the most common factor behind brand switching. Research limitations/implications – There is little understanding of the historical mutations of brand switching behavior and the influence of mutation on branding strategies. The study suggests that continuous exploration of consumer’s preferences is needed to create and sustain attractive brands. Practical implications – Managers increasingly recognize brands as one of the most valuable assets of an organization, and, therefore, an informed knowledge of the factors underpinning brand switching may help managers build attractive brands and prevent brand switching. This condition imposes significant challenges in a highly innovative environment, where technological changes can quickly make attractive brands obsolete. Originality/value – This paper highlights that the factors behind brand switching should be monitored constantly, even for the same brand, to define an appropriate strategy that helps sustain brand attractiveness.

Intentionality attributions and humiliation

2014 ◽  
Vol 48 (5/6) ◽  
pp. 901-923 ◽  
Author(s):  
Concepción Varela-Neira ◽  
Rodolfo Vázquez-Casielles ◽  
Víctor Iglesias
Keyword(s):  
Service Providers ◽  
Negative Emotion ◽  
Service Failure ◽  
Switching Behavior ◽  
Content Type ◽  
Complaint Behavior ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose – This paper aims to determine whether intentionality attributions have an effect on the customer’s complaint and switching behavior after a service failure, after accounting for the effects of the traditional dimensions of attribution (stability and controllability), and to examine whether intentionality attributions give rise to humiliation and to what degree this negative emotion enables us to understand the customer’s complaint and switching behavior after a service failure. Design/methodology/approach – A contribution of this investigation is that it studies real complaint and switching behaviors, as the few studies that focus on understanding customers’ complaint and defection behaviors mostly analyze customers’ intentions. Findings – The results of the study indicate that intentionality attributions have an effect on the customer’s switching behavior after a service failure, in addition to the impact of the traditional dimensions of attribution. The findings also show that humiliation is the emotion that mediates the relationship between intentionality attributions and switching behavior, opposite to other emotions that may also be related to attributions. Finally, the results also support that the effect of attribution of intentionality on complaint behavior is indirect; it only exists because attribution of intentionality influences negative emotions like humiliation, which in turn influences complaint behavior. Practical implications – To understand what makes customers complain after a service failure or switch service providers without giving them first the possibility of recovering the failure may help managers reduce the damage caused by the failure and increase the company’s profits. Originality/value – This study will try to contribute to the service failure research by analyzing the role of two variables that have not been analyzed before in this context: intentionality attribution and humiliation.

The impact of social media marketing activities on brand equity in the banking sector in Bangladesh: the mediating role of brand love and brand trust

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md. Hafez
Keyword(s):  
Social Media ◽  
Brand Equity ◽  
Banking Sector ◽  
Switching Behavior ◽  
Social Media Marketing ◽  
Equation Modeling ◽  
Brand Trust ◽  
Brand Love ◽  
Content Type ◽  
The Impact

PurposeThis research aims to explore the impact of social media marketing (SMM) activities on brand equity (BE) in the banking sector in Bangladesh. Moreover, brand love and brand trust are examined as a mediator of SMM activities and BE.Design/methodology/approachData were collected from a total of 289 banking customers in Bangladesh through a structured questionnaire and the hypotheses were examined using structural equation modeling (SEM).FindingsThe results validated that SMM activities have no significant influence on BE directly. Furthermore, brand love fully mediates the linkage between SMM activities and BE. Likewise, brand trust was found to have a partial mediation effect on SMM activities and BE.Research limitations/implicationsThis study was based on a specific sector in a particular geographic area. Hence, cross-cultural studies on different sectors need to be conducted to generalize the findings of the current research.Practical implicationsThe study offers useful insights for bank marketers to successfully manage SMM activities that can generate consumer interest toward a bank's brand and prevent switching behavior. Furthermore, the proliferation of authentic brand-related information over a firms' social media pages can build strong brand trust, which in turn contributes to BE for the banks.Originality/valueThe study further extended the current knowledge by showing that how SMM activities influence BE in the banking sector in Bangladesh. Also, this study empirically corroborates the mediation influence of brand love and brand trust on SMM activities and BE in the banking sector in Bangladesh, which was rarely tested in prior studies. Hence, the findings will add value to the nascent literature of BE from an SMM perspective.

scholarly journals Emergence of Non-Traditional Financial Service Providers in the Market - A Threat or An Opportunity for the Georgian Banking Industry

2021 ◽  
Vol 4 (2) ◽  
pp. 97
Author(s):  
Tea Kasradze
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
New Technologies ◽  
Service Providers ◽  
Banking Industry ◽  
Secondary Data ◽  
Financial Service ◽  
Retail Banking ◽  
Financial Industry ◽  
The Impact

Each banking institution has a customer-oriented strategic plan, although the sudden emergence of competition does not allow them to relax. The explosion of new technologies and the rise in consumer demand have been putting pressure on banks since the 2008 recession. Retail banking customers are constantly expecting new, improved, affordable, convenient continuous service from the bank. In an environment of increasingly competitive, innovative financial services, banks need to be able to maintain not only customers but also brand awareness. The emergence of non-traditional financial service providers in the market such as FinTech, NEO Banks, Challenger Banks, BigTech, which reduces the relationship between banks and their customers, completely changes the banking industry. Today we face a new open ecosystem of consumers, traditional banks, FinTech and BigTech companies, regulators, developers, non-banking firms and other players, with customers at the center. Banks will have to significantly change their commercial and operating models to retain customers and remain active players in the market. The presented paper examines the development trends of new players in the financial industry - non-traditional financial service providers and the readiness of the banking industry to respond to these trends. The paper is a study of the impact of digitalization of financial services on the banking sector based on the study and analysis of reports of the various international organizations, local policy documents, reports and regulations of the National Bank, the papers of various researchers and their secondary data. Based on the research, suggestions have been made on how Georgian banks should strategically approach non-traditional providers of financial services to avoid losses, withstand competition and remain active market players.

The effect of mergers and acquisitions on customer–company relationships

2019 ◽  
Vol 38 (2) ◽  
pp. 406-424
Author(s):  
Paula Alvarez-González ◽  
Carmen Otero-Neira
Keyword(s):  
Mergers And Acquisitions ◽  
Consumer Satisfaction ◽  
Banking Sector ◽  
Real Life ◽  
Sampling Technique ◽  
Point Of View ◽  
Customer Relationship ◽  
Content Type ◽  
Financial Activity ◽  
The Impact

Purpose The purpose of this paper is to explore employees’ perceptions about customers’ reactions to mergers and acquisitions (M&A). In particular, the aim is to explore how M&A in the banking sector affects the relationship between customers and the financial entity in a real-life context. Design/methodology/approach Using a case analysis methodology, this paper investigates the most important cases of M&A that occurred between 54 retail banks and saving banks in the Spanish market between 2009 and 2014. To do so, 36 face-to-face exploratory interviews were conducted amongst a sample of employees selected through a purposive sampling technique. Findings The perceptions of the employees about the impact of the M&A on customer relationship development suggest that financial M&A negatively affect prices, the location and closeness of the branches, and the routines of the financial activity, and positively affect products and services offered after the M&A. Research limitations/implications Given that the objective is to explore perceptions rather than test them, despite being insightful, the results of this study should be generalised with caution. Originality/value This paper explores customer responses and attitudes towards financial M&A from the point of view of marketing. This paper considers the effect that M&A changes generate on consumer satisfaction and bank−client long-term relationships.

The impact of globalization on the performance of Banks in South Africa

2016 ◽  
Vol 26 (4) ◽  
pp. 517-542 ◽  
Author(s):  
Fadzlan Sufian ◽  
Fakarudin Kamarudin
Keyword(s):  
South Africa ◽  
Host Country ◽  
Banking Sector ◽  
Generalized Method Of Moments ◽  
Estimation Method ◽  
Bank Performance ◽  
Content Type ◽  
Multinational Banks ◽  
Dynamic Panel Regression ◽  
The Impact

Purpose This paper aims to provide empirical evidence for the impact globalization has had on the performance of the banking sector in South Africa. In addition, this study also investigates bank-specific characteristics and macroeconomic conditions that may influence the performance of the banking sector. Design/methodology/approach The authors use data collected for all commercial banks in South Africa between 1998 and 2012. The ratio of return on assets was used to measure bank performance. They then used the dynamic panel regression with the generalized method of moments as an estimation method to investigate the potential determinants and the impact of globalization on bank performance. Findings Positive impact of greater economic integration and trade movements of the host country, while greater social globalization in the host country tends to exert negative influence on bank profitability. The results show that banks originating from the relatively more economically globalized countries tend to perform better, while banks headquartered in countries with greater social and political globalizations tend to exhibit lower profitability levels. Originality/value An empirical model was developed that allows for the performance of multinational banks to depend on internal and external factors. Moreover, unlike the previous studies on bank performance, in this empirical analysis, we control for the different dimensions of globalizations while taking into account the origins of the multinational banks. The procedure allows us to test for the home field, the liability of foreignness and global advantage hypotheses to deduce further insights into the prospects of banking across borders.

Reducing transportation emissions

2016 ◽  
Vol 23 (3) ◽  
pp. 674-703 ◽  
Author(s):  
Henrik Pålsson ◽  
Ola Johansson
Keyword(s):  
Service Providers ◽  
Freight Transportation ◽  
Industrial Sector ◽  
Content Type ◽  
Logistics Service Providers ◽  
Minor Influence ◽  
Transportation Emissions ◽  
Reduce Emissions ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is to examine the intention of companies to reduce transportation emissions by 2020 and the barriers and the discriminating factors that affect the reduction. Design/methodology/approach – A literature review identified potential logistical and technical actions and their barriers, and discriminating factors for reducing transportation emissions. A survey of freight transport-intensive industries in Sweden examined the effects of, intention for implementation of and barriers to 12 actions to reduce CO2 emissions from freight transportation. In total, 172 logistics managers responded, representing a response rate of 40.3 per cent. Findings – Logistics service providers (LSPs) and freight owners are likely to reduce a considerable amount of CO2 emissions from freight transportation by 2020 using a combination of actions. The lowest level of confidence was for reducing CO2 emissions by changing logistics structures, while there was greater confidence by means of operational changes. The actions have few barriers, but there is often a combination of barriers to overcome. Three discriminating factors influence the intention of a firm to reduce transportation emissions: perceived potential, company size and LSP/freight owner. The industrial sector of a freight owner has minor influence. Companies that are particularly likely to reduce emissions are LSPs, large companies, and those that perceive a large reduction potential. Research limitations/implications – Logistical and technical barriers appear to hinder companies from implementing actions, while organisational barriers and external prerequisites do not. Barriers cannot be used to predict companies’ intentions to reduce transportation emissions. The authors examined the impact of three discriminating factors on reduction of transportation emissions. The research is based on perceptions of well-informed managers and on companies in Sweden. Practical implications – The findings can be used by managers to identify firms for benchmarking initiatives and emissions-reducing strategies. Originality/value – The study provides insights into intended CO2 reductions in transportation by 2020. It presents new knowledge regarding barriers and discriminating factors for implementing actions to reduce transportation emissions.

Influence of human resource capital information disclosure on investors’ share investment intentions

2017 ◽  
Vol 46 (3) ◽  
pp. 551-571 ◽  
Author(s):  
Sugumar Mariappanadar ◽  
Alma Kairouz
Keyword(s):  
Performance Management ◽  
Human Resource ◽  
Information Disclosure ◽  
Banking Sector ◽  
Strategic Human Resource Management ◽  
Annual Reports ◽  
Individual Investors ◽  
Content Type ◽  
Investment Intentions ◽  
The Impact

Purpose The purpose of this paper is to apply the strategic human resource management (HRM) perspective to investigate the schematic relationship between the dimensions of human resource (HR) capital information and intentions to use such information in individual investors’ decisions relating to investing equities in the banking industry. Design/methodology/approach A two-stage empirical study was conducted in 2010 using a four-part HR capital disclosure questionnaire, which was developed and validated in stage 1 (n=145) of the study. In stage 2 (n=157), current or previous shareholders in one of the Australian banking sector corporations participated in the study. The collected data were analyzed using confirmatory factor and logistic regression analyses. Findings The findings of this explorative study highlight that the individual investors’ perception on the importance of performance management dimension of HR capital information has varied impacts on their intentions to use such information in investment decisions to buy, hold on to, or sell stocks. Practical implications This study has made an important contribution to the strategic HRM and behavioral finance literature that the human capital information facilitates the propensity to avoid regrets in selling shares too early (dispositional effect bias) to achieve utility benefits in future which is different from the findings of financial information disclosure study. Originality/value A recent critical review of HR disclosure indicated that most of the published articles on HR capital have used company annual reports for data source. However, this is the first study that attempts to understand the impact of HR capital disclosure information on investment intentions from individual investors’ schema rather than drawing data from company annual reports.

Managing multichannel coordination in retail banking: the influence of customer participation

2006 ◽  
Vol 24 (5) ◽  
pp. 327-345 ◽  
Author(s):  
Loïc Plé
Keyword(s):  
Organizational Design ◽  
Retail Banking ◽  
Customer Participation ◽  
Content Type ◽  
Quantitative Studies ◽  
Retail Banks ◽  
The Impact ◽  
Depth Interviews

PurposeThe purpose of this research is to explore the combining of marketing and organizational literature. This paper seeks to evaluate the relationships between multichannel coordination and customer participation, as seen through the lens of potential customer opportunism. It aims at showing the impact of this opportunism on the organizational design of multiple channels structures.Design/methodology/approachThe research reports on an exploratory case study in a French retail bank. A total of 25 in‐depth interviews were conducted, and the use of other sources enabled data triangulation.FindingsThe results show first that an increase in the number of distribution channels is liable to favor customer opportunistic behavior. To counter this, the bank mainly relies on impersonal coordination modes. An emerging result highlights the role of the customer as a “perceptual filter” between the different channels of employees.Research limitations/implicationsCustomer opportunism is studied via channels employees perceptions. An investigation using a customer survey may help to better understand this construct, e.g. to identify its antecedents, and to measure it precisely. Moreover, further qualitative and/or quantitative studies with larger sample sizes are needed to try and generalize these results.Practical implicationsIt is recommended not to forget that customers can facilitate or hinder multichannel coordination. Retail banks have the power to use them conveniently, provided that they are fully conscious of the scope of the “partial employee” role played by the customer.Originality/valueThis paper broadens understanding of how multichannel distribution structures are coordinated, and in a way belies traditional organizational design literature. The emerging result gives birth to the concept of “reversed interactive marketing”, which has interesting theoretical and practical repercussions.

Fair value and banking contagion

2016 ◽  
Vol 7 (3) ◽  
pp. 215-236 ◽  
Author(s):  
Leila Gharbi ◽  
Halioui Khamoussi
Keyword(s):  
Data Model ◽  
Banking Sector ◽  
Fair Value ◽  
Islamic Banks ◽  
Fair Value Accounting ◽  
Content Type ◽  
Gcc Countries ◽  
Conventional Banks ◽  
Value Changes ◽  
The Impact

Purpose This paper aims to explore empirically the impact of fair value accounting on banking contagion in a comparative context between Islamic banks and conventional banks. Design/methodology/approach The analysis of the impact of fair value changes on banking contagion is carried out through a panel data model. This study covers 20 Islamic banks and 40 conventional banks operating in the Gulf Cooperation Council (GCC) countries during nine years from 2003 to 2011. Findings Empirical evidence shows that there is a significant change in dynamic volatility in GCC banking sector because of financial crisis 2008. However, results fail to confirm the hypothesis that fair value accounting is significantly associated with an increase of banking contagion for both Islamic and conventional banks operating in GCC countries. Originality/value The outcome of this study provides some insights for academicians, accountants as well as regulators in terms of enhancing the effectiveness of accounting practices.

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