Multi-attribute analysis of confidence, convenience and price functions of customers of financial services firms: A GLS
- PDF / 202,399 Bytes
- 20 Pages / 595 x 765 pts Page_size
- 113 Downloads / 141 Views
Ananth Rao is an associate professor at the College of Business Administration at Dubai University College teaching BBA and MBA students of Finance and Banking. He was awarded a PhD from the University of Minnesota, USA in 1991. Dr Rao has had more than a dozen research articles published in accredited international finance journals and was a bank manager for more than 15 years.
Abstract The paper examines attributes of customers for modelling the dimensions of confidence, convenience and affordability of services offered by financial services firms (FSFs) by applying a generalised least square (GLS) systems model to a cross-section of customers in Dubai. These three dimensions have become major drivers of long-run viability and survivability in the last 15–20 years, because of dynamic and competitive macroeconomic forces faced by the FSFs. Earnings stability, longevity of relationship and liquidity attributes significantly explain the confidence level of customers across FSFs. Core, tangible and relational attributes besides ambience and ATM network, positively significantly explained the convenience level of customers in FSFs. Home loans, credit cards, savings accounts, term deposits and insurance services are significant products that are affordable and valued by customers. The systems model was validated using a holdout sample. The study findings have implications for customer relationship management, customer insight and production/transaction processing competencies of FSFs in the study area and are equally applicable to FSFs in other developed and developing economies. Keywords Confidence, convenience, affordability, financial services firms, CRM, customer insight competency, production/transaction processing competencies, GLS systems model
INTRODUCTION Ananth Rao College of Business Administration Dubai University College No. 527 Al Maktoom St. Al Masood Building, PO Box 14143, Dubai, United Arab Emirates Tel: +971-4-2072618 e-mail: [email protected]
198
Financial services firms (FSFs) in the last 10–15 years have been exposed to rapid changes in technology, intense competition and globalisation which have had an impact on their long-run viability and survivability. As a sequel, the financial
Journal of Financial Services Marketing
Vol. 10, 3 198–217
services industry has moved to a retail environment. For example, many FSFs have become more customer oriented. They have expanded their product/service lines, implemented marketing programmes aimed at increasing customers’ willingness and ability to purchase, and expanded customer business through cross-selling.
# Palgrave Macmillan Ltd. 1479–1846/06 $30.00
Multi-attribute analysis of confidence, convenience and price functions
To remain competitive many of the larger FSFs have also consolidated their channels and embarked on cost-cutting measures through technology enhancements.1 Despite these dynamic adjustments, customers are less satisfied and continue to demand efficient services from FSFs. A study by Fornell et al. 2 indicates that customer satisfaction scores in US b
Data Loading...
