Marketing online banking services: The voice of the customer
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Dan Sarel is an associate professor of Marketing at the University of Miami (Florida) specialising in marketing strategy and implementation in the financial services industry. Dr Sarel has over 25 years of consulting experience in the services marketing field, branding and trademark research. As a prolific researcher his publications have appeared in a range of journals including the Journal of Marketing, Journal of the Academy of Marketing Science, California Management Review, Journal of Financial Services Marketing and Intellectual Property & Technology Law Journal.
Howard Marmorstein is an associate professor of Marketing at the University of Miami (Florida). His research focuses on consumer financial decision-making behaviour and response to marketing communications. He has received two National Awards for his research on consumer behaviour. His publications have appeared in a range of journals including the Journal of Consumer Research, Journal of Marketing Research, Journal of Business and Psychology, Journal of Financial Services Marketing and Intellectual Property & Technology Law Journal.
Abstract US banks have invested heavily in developing online capabilities, with the expectation of migrating customers to the new cheaper delivery system. Results in the USA thus far have been mixed at best; market penetration is low and customer usage is sporadic, focusing mainly on simple tasks. This paper reports on the first of two studies conducted to investigate the reasons for the mediocre performance. A qualitative consumer study revealed significant differences in attitudes and opinions between early users and those that banks hope will adopt next. Most importantly, future prospects could be characterised as indifferent about online banking; many were not convinced about its benefits and the value it provides. While the potential to expand the market for online banking services exists, banks need to re-examine their marketing approach. Keywords services
Online banking, new product adoption, indifferent consumer, unsought
INTRODUCTION
Dan Sarel School of Business Administration, University of Miami, PO Box 24817 Coral Gables, FL 33124–6554, USA Tel: +1 305 284 1772 Fax: +1 305 284 5326; e-mail: [email protected]
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The results of online banking introduction in the USA can best be described as mixed. Early projections of rapid adoption by the US consumer have not been met. In late 2002, between 22 per cent and 26 per cent of US households with bank accounts performed some form of online banking.1,2 This level of penetration is significantly lower than estimates for European consumers.3 Many of the US
Journal of Financial Services Marketing
online consumers are inactive or use online banking sporadically, and they tend to use it for simple bookkeeping or verification tasks and avoid more complex transactions. Most consumers still prefer the comfort of an old-fashioned branch or contacting a call centre to online banking. Plans by many US banks to reduce the size of their branch networks had to be reconsidered. In many
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