Banking Services Industry Research Articles

Who matters most in services: detractors, passively satisfied or promoters?

Understanding the differences in various types of consumers groups to the complaint resolution process in a banking services industry was the objective of this research. The three groups compared were promoters, passively satisfied and detractors based on Reicheld (2001) framework. The multi-group comparison results indicated that all the three groups were different in their response to the complaint resolution process. The detractors emerged as the most important customer segment in complaint handling process with highest impact on recommendation of bank to the peer group. Implications for complaint management in services industries are discussed as well as addition to the body of knowledge in consumer complaining behaviour.

Transfer Pricing System in Banks

n today's environment of banking services industry, where competition is emerging every day, where the customer’s requirements are becoming sophisticated and the number and diversity of products and geographic markets is growing, maintaining margins is becoming more and more difficult. Developing a successful activity, profitable and sustainable has become one of the key factors to survive. Consequently, performance measurement systems take a special significance as the most important techniques in decision making processes. Currently, commercial banks operating in the Albanian banking market does not follow a specific model/method for assessing profitability and performance for each organizational unit. Generally banks, in the process of measuring their performance, are guided by budgeting process detailed of each unit within the bank and fulfillment of the objectives set. But, these objectives refer only to level of sales (eg., collected deposits or loans granted) for each unit/branch and don’t distribute costs generated by each cost centers. Funds transfer pricing is a technique suggested to assist banks in measuring profitability. This technique allows managers to compare the profitability of different products, different branches and management and economic performance of the various units. This paper discusses the key principles of functioning of a transfer pricing system, and actually it as a useful method to be used in measuring the performance of various units within a bank. First, the paper briefly addressed the cost of funds for banks, as a starting point for setting the transfer price. Then it treats methodologies for determining the transfer price. Finally, at the end it addressed the application of the system of internal transfer price in a hypothetical example which derives into specific conclusions. DOI: 10.5901/ajis.2015.v4n3s1p509

Effects of Organizational Cultures and Anti-Bullying Initiatives on Workplace Bullying among Workers in the Healthcare, Education, and Banking Service Industries

Effects of Organizational Cultures and Anti-Bullying Initiatives on Workplace Bullying among Workers in the Healthcare, Education, and Banking Service Industries

English

Previous studies have examined acquiring firms undergoing mergers and acquisitions along with the impact that these events have on firm security prices.  These studies have had mixed results. Some indicate negative impact on stock prices while others conclude that there is a positive effect. This study extends these previous studies by increasing both the number of firms sampled and the years evaluated. The first finding indicates that when acquiring firms are compared to firms not engaged in M&A activities, the acquiring firms’ stock price effect is significantly negative, while the non-M&A firms’ stock price effect is significantly positive. When the acquiring firms are evaluated by industry membership, findings suggest that firms engaged in M&A activities in all industries evaluated exert a significantly negative effect on stock prices, with the exception of the oil and gas industry along with the banking and financial services industry. These two industries were found to have a significantly positive effect on stock prices. These findings are important because they provide investors, managers and others with additional insight to the effects of mergers and acquisitions, from the acquiring firm’s perspective, on security prices. This study indicates that firms in certain industries may be more positively impacted, from a stock price perspective, than firms in other industries.   Key words:  Mergers, acquisitions, security prices, acquiring firms.

Managing customer citizenship behavior: a relationship perspective

This paper aims to examine customer citizenship behavior (CCB) and explore the interrelationships between relationship value, relationship quality, relationship strength, and CCB. The study conceptualizes an integrated citizenship behavior model and applies it to India's banking services industry in the business-to-customer context. Structural equation modeling was employed to empirically test the hypotheses using a sample of 347 responses collected by a survey questionnaire. The findings indicate that relationship value significantly influences relationship quality, and relationship quality has a significant effect on relationship strength and CCBs. Relationship value had an indirect effect on relationship strength and citizenship behavior through relationship quality. This study also reveals significant differences between relationship quality and citizenship behavior across the customer's gender. Implications and future research directions of the study are proposed.

Determinants of customer relationship marketing success in Islamic retail banking

Muslims and non-Muslims alike are increasingly turning to Islamic banks as alternative to interest-centric conventional banks. Islamic banks exist and operate in accordance with Shariah principles enshrined in the Holy Quran. For Islamic retail banking to thrive and survive in today’s competitive banking and financial services industry occasioned by a number of conventional banks opening up Islamic windows, Islamic bank managers must aggressively adopt good customer relationship marketing. Given that the recent global financial crisis had little or no impact on Islamic banks throughout the world, Muslims and non-Muslims demand for Islamic banks’ products and services are on the rise. This acknowledged evidence presents a significant opportunity for Islamic banks to compete and remain successful. To do just that mandates Islamic banks to focus on utilising effective customer relationship marketing strategies to acquire and retain customers. Using a decision support model, this paper seeks to quantify the d...

THE ROLE OF PERCEIVED COMPETITIVE ADVANTAGE, CORPORATE IMAGE, SWITCHING BARRIERS AND MAIN-BANK STATUS IN THE RELATIONSHIP BETWEEN CUSTOMER PERCEIVED VALUE, SATISFACTION AND CUSTOMERS� LOYALTY IN RETAIL BANKING INDUSTRY

ABSTRACT The purpose of this study is to examine the role of perceived competitive advantage, perceived corporate image, perceived switching barriers and main-bank status in effecting of customer perceived value and satisfaction relating to customers’ loyalty. Utilizing hierarchical moderated regression analysis, the proposed model was studied for the banking service industry. The findings show that the main-bank status does have a negative moderating impact on the perceived value - satisfaction relationship, while there is no moderating effect in the satisfaction-loyalty relationship. Perceived competitive advantage and switching barriers only have direct impact on satisfaction-loyalty relationship. Further analyses reveal that, in addition to its direct impact, the perceived competitive advantage and switching barriers exhibit a moderating effect when the level of satisfaction is high, while the main-bank status exhibits a moderating effect for the case of either low or high level of satisfaction. Keywords Customer perceived value, Perceived competitive advantage, Perceived corporate image, Perceived switching barriers, Customer satisfaction, Customer loyalty, Main-Bank status.

Measurement of Switching Cost on the Customer Retention in the Banking Industry

Abstract This study discusses the relationships among switching costs, inertia, and customer retention in the case of customers of banking service industries and discusses in depth whether inertia affects switching costs. In this study, we surveyed 500 existing banking account holders in Taiwan and acquired 404 valid responses. The respondents were required to submit viewpoints regarding their most familiar financial institutions. The results show that the perception of switching costs and inertia has a positive impact on banking service industries’ customer retention. Customer word of mouth is a major factor in customer retention, the attraction of new customers, and customer retention intent. Financial service providers should also attach importance to customer segmentation in order to satisfy the real needs of various types of customers and thereby increase profits and competitiveness. This paper is an important empirical analysis highlighting the significance of the effects of switching costs and inertia on customer retention in banks.

PENGARUH VARIABEL KEPUASAN, KEPERCAYAAN, DAN KOMITMEN AFEKTIF TERHADAP PERPINDAHAN NASABAH DI SURABAYA

It is a fact that banking services industry is certainly difficult to determine because of the quality of the product which is naturally intangible. In general, customers need the creation is sustainable. Yet, it is not an easy task for us because changes can occur at any time, whether the change in customer’s tastes or psychological aspects also followed by the changes in environmental conditions that affect aspects of their psychological, social and cultural backgrounds. This study was conducted at Bank BCA Surabaya whose objectives as the following: such as to analyze (1) the effect of affective commitment to customer satisfaction. (2) the influence of trust on affective commitment toward customers. (3) the effect of affictive commitment toward customer migration intentions, It employed 100 respondents, gathered based on nonprobability sampling or convenience sampling. The analysis technique used is multiple linear regression analysis using t-test. The results showed such as (1) satisfaction variables significantly influence the affective commitment variable, while the trust variable does not significantly influence affective commitment variable. (2) variable effective commitment significantly influences the intention variable, displacement variable customer satisfaction, and trust, while no significant effect on the intention variable displacement of cus tomers.

The internationalisation of Malaysian‐based multinational banks

PurposeGiven the importance of understanding the dynamics of the internationalisation and expansion process, it is surprising that – in reviewing the extensive literature – that little attention has been paid to service organisations. This paper attempts to shed light on business strategies and the international entry modes of the services sector in general, and the area of banking which form a significant and substantive proportion of global trade. Therefore, this paper aims to address this omission by exploring the behaviour of Malaysian multinational financial and banking service industries in their international expansion in terms of their motivation, mode of entry strategies, selection of target markets, and their strategic thrusts.Design/methodology/approachThe paper follows an exploratory approach utilising qualitative multiple case studies. Empirical data are presented from case study of four large Malaysian‐based multinational commercial banks through interviews with managers from the banks' headquarters as well as managers responsible for and/or engaged in the development and implementation of international marketing strategies.FindingsIt is inferred that Malaysian multinational commercial banks are entering foreign markets, employing a foreign direct investment entry mode, by creating branches and representative offices, and in some cases by acquiring part of the share or the whole capital of existing local financial institutions. These expansions have been motivated by several factors related to both their domestic markets (push factors: government initiatives, small size, low and limited growth) and the attractiveness of their target markets (pull factors/location advantages: high market growth, low to moderate levels of competition).Research limitations/implicationsThe case study has inherently limited the capacity to offer generalisations concerning other service companies.Practical implicationsThis paper is rich in its practical implications. As this study was concerned with the practical experience and behaviour of Malaysian‐based multinational banks on their choice of entry modes and organisational forms when internationalising, Malaysian banking and marketing practitioners can use the analysis and results as a means of comparing their current tactical and strategy foreign entry behaviour with that of other internationalising banks.Originality/valueThe paper offers new insights into the emergence and international expansion of Malaysian‐based multinational commercial banks, and sheds light on the internationalisation process associated with services per se.

The Great Recession: Some Niebuhrian Reflections

The Great Recession: Some Niebuhrian Reflections

SEC Accounting And Auditing Enforcement Actions In The Banking Industry

<span>This paper provides insight into several descriptive issues that help clarify the nature of management fraud in the banking and financial services industry. The SECs Accounting and Auditing Enforcement Releases (AAER) Nos. 1 to 400, published between 1984 and 1992, were surveyed to identify a sample of banks and other related entities that were the subject of SEC enforcement action for fraudulent financial reporting. Those cases are analyzed and results are reported in this study. Detailed cases are also presented to illustrate the nature of financial statement fraud relating to valuation problems in investment accounts, misstatement of loan reserves, and non-disclosure of material financial information. Implications for research, practice, and teaching and presented.</span>

Generic Corporate Identity in the Nigerian Banking Services Industry: Triggers, Developmental Process, and Circumvention Strategies

Generic Corporate Identity in the Nigerian Banking Services Industry: Triggers, Developmental Process, and Circumvention Strategies

The Dynamics of Urban Economies: Melbourne 1971 to 2006

The spatial economy of metropolitan Melbourne can be grouped into three distinct areas which developed in different ways between 1971 and 2006. The outer parts of Melbourne became more urbanised, while the economies of the inner part of the metropolis maintained a strong presence in the finance, banking and high-level service industries. The middle parts of Melbourne showed much more diverse behaviour and were the destination of much of the manufacturing activity which moved out of the inner part of the metropolis. Melbourne and its component municipalities in most cases underwent a transition to less specialised economic structures over this period, the largest changes occurring in local government areas with the highest level of specialisation. There is little evidence of the city converging to a common economic structure, nor are there any signs of the emergence of economic sub-centres at the expense of the CBD.

Currency options trading practices and the construction and governance of operational risk

PurposeRecent failures and scandals in the banking and financial services industry have served as catalysts for anxiety about operational risk. In particular, the Basel II accord emphasises the need to develop methodologies for assessing and managing this category of risk. However, operational risk is said to be an elusive and problematic concept. This paper aims to examine how certain events in the banking and financial services industry become enframed and constructed as operational risk and how such risk is managed.Design/methodology/approachThe paper draws on the sociology of risk literature to analyse how an “unauthorised trading” event (and associated losses) that occurred in the currency options trading desk of the National Australia Bank (NAB) was enframed and constructed as operational risk. Data are gathered through metadiscourse analysis of textual materials relating to this event.FindingsThe analysis reveals the social and institutional mechanisms underlying the construction of risk and the contested nature of risk knowledge. In particular, it highlights the significant role of media discourse in articulating risk claims and dominating public discourse about risk. It also highlights the moral character of the concept of risk and how the moralising of risk discourse leads to the creation of particular forms of subjectivities and the operationalisation of certain risk management rationalities in NAB.Originality/valueThe paper will be helpful in improving researchers' and practitioners' understanding of how, in a given field of possibilities, particular events become constructed as operational risk.

An Evaluation of Marketing Practices in Banks in Ghana

ABSTRACT This study ascertains the extent to which the marketing concept has been adopted and implemented by banks in Ghana. It addresses a gap in an area that is currently under researched and provides insight into the banking services industry in a developing country. All sixteen licensed banks in Ghana were included in this study. The data was collected through in-depth interviews and self completed questionnaires. The results suggest that marketing departments in the banks are organised mainly within headquarters and headed by marketing and advertising/public relations managers. The marketing activities in the banks are associated with the stage where marketing orientation is perceived as advertising and public relations. There is a partial lack of marketing culture in the banks. The total and formal acceptance and understanding of the marketing concept is at an embryonic stage in the evolutionary process.

The mediating role of corporate image on customers’ retention decisions: an investigation in financial services

A conceptual framework is proposed that investigates the effects of customer satisfaction, service quality, and value on perceptions of corporate image and customer loyalty towards the service firm. To test the framework, structural equation modelling techniques are applied to data collected from 1,224 customers in the banking services industry. The results of the study indicate that satisfaction and service quality are positively related to value and that quality exerts a stronger influence on value than satisfaction. The findings also show that customers receiving higher levels of service quality will form a favourable image of the banking institution. In addition, value is found to positively impact on image, suggesting that the banking institution should have a strong image when customers believe they are getting high value. Similarly, customer satisfaction and image perceptions are found to impact on service loyalty with satisfaction having a greater influence on loyalty than image. The managerial and research implications of the reported study are discussed.

Employment Systems in Transition? A Comparative Analysis of Britain and Australia

This paper seeks to broaden the scope of internal labour market analysis by investigating changes in the character of company employment systems in a cross-national context. Taking Britain and Australia as the point of reference, the aim is to ascertain whether there are common trends emerging in the character of internal labour markets despite national variations in employment regulation and labour market policy trajectories. Through an analysis of matched organisations in the banking and postal service industries, as well as macro labour market trends, the study finds that comparable forms of employment flexibility, such as part-time working, have developed in both Britain and Australia. At the same time, however, important divergencies have emerged in the structure of pay, largely due to the distinctive impact of national regulatory systems. It is argued that sectorally specific imperatives, such as competitive and technological pressures, and the state and regulatory frameworks, have been simultaneously influential in the restructuring of employment systems in these two countries.

Post‐Acquisition Performance of Rural Banks

The effects of bank consolidation on available credit for small rural businesses and farmers is a major concern. It is often argued that larger organizations, which usually have an urban base, neglect the credit needs of their rural constituents. The effect of on the banking and financial services industry was recently investigated by the U.S. House Subcommittee on Financial Institutions and Consumer Credit. Janet Yellen, a member of the Board of Governors of the Federal Reserve System, testified that mergers resulting in relatively high levels of local banking market concentration can adversely affect local bank customers. Similar concerns were also raised by the Texas House Committee on Small Business Access to Capital: Experience with interstate banking tells us that out-of-state banks tend to decrease their lending service to small businesses-which are the backbone of job creation. The effect of consolidation on rural financial markets is not a new issue. A set of studies by the Federal Reserve System in the early 1970s examined the effects of bank structure on the

Economic Cost, Scale Efficiency, and Competitive Viability in Banking

This paper addresses the issue of the competitive viability of banks of different scales and scopes of operation and the implications that this may have for the evolving structure of the banking and financial services industry. Unlike previous papers, this paper is the first to include both production and opportunity costs in an empirical evaluation of bank efficiency. No consistent evidence is reported to suggest that banking organizations can achieve further gains in either production or economic efficiency by expanding beyond $2 billion dollars of total assets. Thus it is likely that smaller, less diversified banking organizations will remain competitively viable. Copyright 1996 by Ohio State University Press.