The impact of affective orientation on bank preference as moderated by cognitive load and brand story style

2019 ◽  
Vol 37 (5) ◽  
pp. 1334-1349
Author(s):  
Danny Tengti Kao ◽  
Pei-Hsun Wu
Keyword(s):  
Cognitive Load ◽  
Financial Services ◽  
Brand Preference ◽  
Content Type ◽  
Segmentation Strategy ◽  
Orientation Scale ◽  
Bank Marketing ◽  
The Impact ◽  
Affective Orientation ◽  
Brand Preferences

Purpose The competition among banks in Taiwan is fierce. The financial services offered by banks are highly similar and banks attempt to devise a variety of marketing campaigns to gain brand preferences of bank clients. However, little research regarding bank marketing has applied the segmentation strategy to precisely target bank clients. The purpose of this paper is to explore the moderating roles of cognitive load and brand story style in the impact of bank clients’ affective orientation on brand preference of bank clients. Design/methodology/approach A total of 216 participants who have bank accounts in Taiwan were randomly assigned to a 2 (brand story style: underdog vs top dog) × 2 (cognitive load: low vs high) factorial design. An ANOVA was conducted to examine the interaction effects of affective orientation, cognitive load and brand story style on the brand preference of bank clients. Affective orientation of participants was measured by Affective Orientation Scale. Findings Results demonstrate that for bank clients with low and high affective orientation, advertisements characterized by cognitive load (low vs high) and brand story style (underdog vs top dog) will elicit differential brand preferences of bank clients. Originality/value This is the first research to examine the moderating effects of bank clients’ affective orientation, cognitive load and brand story style on brand preferences of bank clients. Specifically, this research takes up the call to apply bank clients’ personality traits to examine the impact of bank marketing on brand preferences of banks.

Strategy war games: how business can outperform the competition

2018 ◽  
Vol 39 (6) ◽  
pp. 3-12 ◽  
Author(s):  
Jason West ◽  
Maiko Chu ◽  
Lincoln Crooks ◽  
Matthew Bradley-Ho
Keyword(s):  
Financial Services ◽  
Business Strategy ◽  
Joint Venture ◽  
Corporate Strategy ◽  
Insurance Company ◽  
Content Type ◽  
External Threats ◽  
Internal Capabilities ◽  
Banking Institution ◽  
The Impact

PurposeBusiness wargames represent an alternative approach to challenge organisations to uncover internal capabilities through competitive actions designed to counteract external threats and address strategic mismatches. Internal capabilities uncovered as a result of actions taken during a competitive wargame aims to replicate market conditions found in competitive industries. These outcomes are difficult to achieve using many popular strategy design methods. The purpose of this study is to examine the use of war game-style activities in formulating corporate strategy that incorporate the natural behaviors of the leadership team in creating strategic plans.Design/methodology/approachUsing a case study from the banc assurance industry, the authors review a wargame process composed of two competing teams; the banc assurance organisation and an unincorporated joint venture between a banking institution and an insurance company. The goal of each entity was to develop strategy to improve both customer satisfaction and market share at the expense of each other given a finite set of resources. Success was judged using a simple set of metrics defined by both a consumer team and an independent umpire.FindingsConsumers of financial services are price sensitive and highly brand loyal. Unwillingness to switch brands to a prevailing competitor or other emerging (Fintech) institution persists to a threshold of a price and/or value differential of 15 to 20 per cent. The results highlight potential deficiencies in the proposed banc assurance strategy through the observation of customer behaviours and inefficient resource use.Originality/valueThe wargame approach conducted in a realistic landscape revealed internal capabilities not otherwise evident. The impact of authentic human behaviours in setting business strategy was captured which is very difficult to replicate using more formal scenario analysis and planning.

scholarly journals How customers’ offline experience affects the adoption of online banking

2016 ◽  
Vol 26 (5) ◽  
pp. 1072-1092 ◽  
Author(s):  
Antonia Estrella-Ramon ◽  
Manuel Sánchez-Pérez ◽  
Gilbert Swinnen
Keyword(s):  
Technology Acceptance ◽  
Diffusion Of Innovation ◽  
Financial Services ◽  
New Technologies ◽  
Online Banking ◽  
Adoption Process ◽  
Content Type ◽  
Parametric Survival Model ◽  
Self Service Technology ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of customers’ offline transaction behaviour in the form of loyalty and cross-buying on the adoption of self-service technology innovations by non-business customers in the context of online banking. Design/methodology/approach This study extends the Diffusion of Innovation Theory, as well as the Technology Acceptance Model adapted to describe and model individual customer observed behaviours in the pre-adoption stage of the adoption process. The Log-logistic parametric survival model is applied using panel data for 1,357 randomly selected new customers from a bank. Findings Significant differences arise among customers’ behaviours related to periodicity of interactions with the bank and quantity of products involved in the interactions, as well as convenience and risk of the interactions. The results corroborate that those customers who are more likely to adopt the online banking faster show an offline behavioural pattern more related to higher periodicity of interactions and convenience, rather than a high number of products involved in their interactions, the use of high-risk products or the maintenance of a higher average monthly liabilities. Originality/value While previous research explaining the process of adoption of the online channel has mainly focused on the analysis of customers’ attitudes (i.e. customers’ perceptions) and demographics, in this research an additional explanation is proposed using customers’ offline transaction behaviours. In addition, there is a considerable amount of research about the adoption of new technologies, but there is a scarcity of studies looking specifically at the financial services and banking industry.

FIFA – highlighting the links between global banking and international money laundering

2018 ◽  
Vol 21 (4) ◽  
pp. 498-512 ◽  
Author(s):  
Mohammed Ahmad Naheem
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Banking Sector ◽  
Due Diligence ◽  
Content Type ◽  
Services Sector ◽  
Financial Services Sector ◽  
Global Banking ◽  
Beneficial Ownership ◽  
The Impact

PurposeThis paper uses the recent (August 2015) FIFA arrests to provide an example of how illicit financial flows are occurring through the formal banking and financial services sector. The purpose of this paper is to explore which elements of anti-money laundering (AML) compliance need to be addressed to strengthen the banking response and reduce the impact of IFFs within the banking sector.Design/methodology/approachThe paper is based on the indictment document currently prepared for the FIFA arrests and the District Court case of Chuck Blazer the FIFA Whistleblower. It uses the banking examples identified in the indictment as typologies of money laundering and wire fraud. Corresponding industry reports on AML compliance are included to determine where the major weaknesses and gaps are across the financial service.FindingsThe main findings from the analysis are that banks still have weak areas within AML compliance. Even recognised red flag areas such as off shore havens, large wire transfers and front companies are still being used. The largest gaps still appear to be due diligence and beneficial ownership information.Research limitations/implicationsThe research topic is very new and emerging topic; therefore, analysis papers and other academic writing on this topic are limited.Practical implicationsThe research paper has identified a number of implications for the banking sector, addressing AML deficiencies, especially the need to consider the source of funds and the need for further enhanced due diligence systems for politically exposed and influential people and the importance of beneficial ownership information.Social implicationsThis paper has implications for the international development and the global banking sector. It will also influence approaches to AML regulation, risk assessment and audit within the broader financial services sector.Originality/valueThe originality of this paper is the link between the emerging issues associated with allegations of bribery and corruption within FIFA and the illicit financial flow implications across the banking sector.

US SEC approves sweeping amendments to rules governing money market funds

2015 ◽  
Vol 16 (1) ◽  
pp. 25-39
Author(s):  
Jack Murphy ◽  
Stephen Cohen ◽  
Brenden Carroll ◽  
Aline A. Smith ◽  
Matthew Virag ◽  
...  
Keyword(s):  
Financial Services ◽  
Boards Of Directors ◽  
Financial Stability ◽  
Money Market ◽  
Content Type ◽  
Fund Managers ◽  
Money Market Funds ◽  
The Usa ◽  
To Come ◽  
The Impact

Purpose – To explain the background and details and to discuss the implications of the USA Securities and Exchange Commission’s (SEC’s) July 23, 2014 amendments to Rule 2a-7 and other rules that govern money market funds under the Investment Company Act of 1940. Design/methodology/approach – Explains the background, including problems during the financial crisis, the USA Treasury’s temporary guarantee program in 2008, earlier SEC proposals, and the USA Financial Stability Oversight Council’s recommendations. Details the amendments to Rule 2a-7, including the authorization to impose liquidity fees and redemption gates, the floating net asset value (NAV) requirement, the impact of the amendments on unregistered money funds operating under Rule 12d1-1, guidance on fund valuation methods, disclosure requirements, requirements for money fund portfolios to be diversified as to issuers of securities and guarantors, stress testing requirements, and compliance dates. Findings – The Amendments set forth sweeping changes to money fund regulation and will have a profound effect on the money fund industry. Although the most significant provisions of the Amendments – the floating NAV requirement and the imposition of liquidity fees and redemption gates – will not go into effect for two years, the changes to the industry will be apparent almost immediately. Practical implications – Money fund managers and boards of directors should begin assessing the potential impact of the Amendments and develop a schedule to come into compliance. Originality/value – Practical guidance from experienced financial services lawyers.

Customer loyalty and value anticipation: does perceived competition matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ishmael Ofoli Christian ◽  
Thomas Anning-Dorson ◽  
Nii Nookwei Tackie
Keyword(s):  
Customer Value ◽  
Banking Sector ◽  
Value Theory ◽  
External Boundary ◽  
Content Type ◽  
Behavioral Loyalty ◽  
Attitudinal Loyalty ◽  
Situational Effects ◽  
Bank Marketing ◽  
The Impact

PurposeDrawing on customer value theory and the demanding nature of today's customers, this paper examines the moderating effects of competition, as perceived by customers, on the nexus between customer value anticipation (CVA), satisfaction and loyalty.Design/methodology/approachUtilizing data from the Ghanaian banking sector, which has been going through some reforms that are changing the banking landscape, the study analyzes data from 587 customers. Respondents were drawn from a cluster of banks within an enclave with different types of customers and epitomize the competitive nature of Ghana's banking sector.FindingsCVA drives customer satisfaction, attitudinal loyalty and behavioral loyalty among bank customers. However, between attitudinal and behavioral loyalty, customers will be more behaviorally loyal to banks that successfully anticipate their needs than they would be in attitude. The relationships between CVA and satisfaction and loyalty are such that the level of competition among sector players does not alter the effect; thus, when a bank is able to anticipate customer value, customers are going to stay loyal to such a bank irrespective of the competitive offers.Originality/valueAlthough the impact CVA has on satisfaction and loyalty is justified in the existing literature, extant research has not systematically examined the influence of external boundary and situational effects on the potency of anticipating customer value in detail. The current study shows the effect of competition on CVA and customer behavioral outcome. The study further concludes that irrespective of competition, banks that are perceived to be high on CVA will have their customers being loyal. This is very important in the development of bank marketing and product innovation strategies.

Systematized literature review on financial inclusion and exclusion in developed countries

2019 ◽  
Vol 38 (3) ◽  
pp. 600-626 ◽  
Author(s):  
Beatriz Fernández-Olit ◽  
José María Martín Martín ◽  
Eva Porras González
Keyword(s):  
Literature Review ◽  
Financial Services ◽  
Meta Analysis ◽  
Developed Countries ◽  
The Body ◽  
Financial Inclusion ◽  
Vulnerable Groups ◽  
Theoretical Frameworks ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to provide a systematic literature review of the research published on financial inclusion (FI) and financial exclusion (FE) in developed countries using key terms and strict inclusion and exclusion criteria. Design/methodology/approach In total, 52 papers were deemed to be relevant to the analysis. These works were critiqued using a framework that addressed geographical contexts, topics, methodologies and theoretical frameworks. Findings This review highlights the uneven level of development of the academic debate between North America, the UK and continental Europe, and identifies the different theoretical frameworks that construe the body of literature in each region. In addition, the findings show the scant offer of work on the impact that the digital economy has on FE, as well as the reduced number of studies which have focused on certain vulnerable groups and the access to some financial services. Social implications The studies reviewed have not analyzed the specific needs of vulnerable groups while considering the different contexts and pathways to exclusion. The evaluation of solutions and strategies to achieve inclusion is one of the least addressed aspects in the literature. Originality/value The paper synthesizes the main contributions of the top literature on the redefinition of FI/FE in developed countries, the role of fringe services and new determinants of exclusion. The proliferation of studies regarding FI in low- and middle-income countries has generated a great amount of meta-analysis and systematized reviews of asymmetric results. However, no systematized literature review on the broad scope of FI/FE in developed countries has been published in the last decade. This work sheds light over poorly analyzed areas of research that refer to notable social problems.

scholarly journals The impact of social media on the performance of microfinance institutions in developing countries: a quantitative approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmad Daowd ◽  
Muhammad Mustafa Kamal ◽  
Tillal Eldabi ◽  
Ruaa Hasan ◽  
Farouk Missi ◽  
...  
Keyword(s):  
Social Media ◽  
Developing Countries ◽  
Performance Indicators ◽  
Financial Services ◽  
Microfinance Institutions ◽  
Poverty Level ◽  
Content Type ◽  
Media Platform ◽  
Media Applications ◽  
The Impact

PurposeOver the last few decades, microfinance industry is argued to have played a constructive role in alleviating poverty level and providing the underprivileged with access to financial services. Statistics from the World Bank reveal that, currently, only 4% of the underprivileged have been served out of the 3 billion+ potential clients. Such results are due to several claims, particularly the operational and financial challenges faced by microfinance institutions (MFIs) in the constant flux inviting more attentions towards its performance. While explicit attention is given by many researchers towards mobile banking and information and communication technology (ICT) in improving the MFIs’ performance, the study on how social media, as a rapidly growing online phenomenon, can impact on the MFIs’ performance remains scarce. As such, this study aims to investigate this impact based on four dimensional performance indicators: efficiency, financial sustainability, portfolio quality and outreach.Design/methodology/approachA model is proposed and tested to ascertain the relationship between social media applications and organisational performance. In so doing, web-based questionnaires have been used to collect data from MFI employees in developing countries. Results reveal a significant influence of the social media over the MFIs’ performance, offering valuable insights into both researchers and practitioners in the domain of microfinance, as well as social media—conforming that the adoption of social media as marketing, advertising and communication tools may significantly improve the MFIs’ performance.FindingsThe results demonstrate that there is a positive and significant impact of social media use within microfinance on the key indicators of MFIs. They also show that the highest impact of social media usage within the microfinance is on the portfolio quality. In addition, it was found that marketing and advertising; communication and sales and distribution are the main areas where social media is able to support while social networking websites are the most popular platforms employed in MFIs.Originality/valueThis study adds to the existing literature few theoretical and practical aspects. First, this study developed a model for assessing the value of social media as a new phenomenon within this type of organisation. Second, it offers microfinance sponsors, managers and policy makers with a frame of reference to understand what social media platform can be deployed for each purpose. Third, with the identification of the main MFIs’ performance indicators, this research provided a reference of performance measurement guide for microfinance industry when assessing different technological employment.

Anti-money laundering – the need for intelligence

2017 ◽  
Vol 24 (3) ◽  
pp. 472-479 ◽  
Author(s):  
Richard John Lowe
Keyword(s):  
Money Laundering ◽  
Organized Crime ◽  
Financial Services ◽  
National Level ◽  
Financial Sector ◽  
International Standards ◽  
Policy Makers ◽  
Content Type ◽  
The Military ◽  
The Impact

Purpose The purpose of this paper is to highlight the need for predictive intelligence to support anti-money laundering programs in the financial sector. Design/methodology/approach The methodology adopted herein consists of a literature review on the use of intelligence in anti-money laundering, the sources of intelligence and information used in the financial sector, supported by experience gained from investigating and prosecuting money laundering cases, and the assistance provided to financial services companies. Findings Banks and other regulated services are required to meet international standards to deny services to criminals and terrorists, identify suspicious activity and report to the authorities. Regulated businesses have large operations which check customers against sources that confirm their identity or against lists of proscribed or suspected offenders at an individual or national level. Their controls tend to look backwards when other organisations that rely on intelligence, such as the military, value predictive, forward-looking intelligence. The penalties that banks and others face for failure in their controls are increasingly severe, as looking backwards and not forwards reduces the extent to which the controls meet their purpose of reducing the impact of organized crime and terrorism. Originality/value This paper serves as a useful guide to alert and educate anti-money laundering professionals, law enforcement and policy makers of the importance of predictive intelligence in countering organized crime and terrorism. It also considers whether lessons in intelligence handling from other areas can inform a debate on how intelligence can be developed to counter money laundering.

scholarly journals The impact of internal brand management on employee job satisfaction, brand commitment and intention to stay

2015 ◽  
Vol 33 (1) ◽  
pp. 78-91 ◽  
Author(s):  
Rose Du Preez ◽  
Michael Thomas Bendixen
Keyword(s):  
Job Satisfaction ◽  
Financial Services ◽  
Brand Management ◽  
Three Dimensions ◽  
Brand Commitment ◽  
Intention To Stay ◽  
Content Type ◽  
Internal Brand Management ◽  
Service Staff ◽  
The Impact

Purpose – The purpose of this paper is to examine the extent to which internal brand management (IBM), a subset of internal marketing, impacts on the three dimensions of job satisfaction ( JS), brand commitment (BC) and intention to stay (IS). Design/methodology/approach – A financial services company in Southern Africa was selected using convenience sampling. Exploratory factor analysis (EFA) was used to identify the dimensions of IBM, BC, JS and IS. Partial least squares path modeling was used to test the model and the hypotheses. The Mann-Whitney test was used to identify any statistically significant differences between frontline staff and management/support staff. Findings – The EFA of the components of IBM did not yield the three expected dimensions. For service staff, IBM significantly contributes to JS, BC and IS. Internal brand communication is the most important contributor to IBM. Research limitations/implications – In common with others, this research uses a limited sample size in a specific geographic location. The results may differ if replicated in other geographies or organizations. Practical implications – Executives and managers of financial service firms are advised to drive focussed IBM practices rather than waiting for it to become the passive consequence of human resource management. Originality/value – Given the paucity of research into the practical application of IBM, the purpose of this research is to explore the impact of IBM on frontline employees in the financial services industry.

Tequila at home or abroad? paths to brand love and purchase loyalty for hedonic products

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Silvia Cacho-Elizondo ◽  
Mary Conway Dato-on ◽  
Tracy Harmon-Kizer
Keyword(s):  
Brand Image ◽  
Strategy Development ◽  
Brand Relationships ◽  
Brand Love ◽  
Content Type ◽  
Segmentation Strategy ◽  
Brand Relationship ◽  
Significant Difference ◽  
The Usa ◽  
The Impact

Purpose This study aims to examine the impact of consumer brand experience on brand love and loyalty toward a favorite tequila brand across Mexico and the USA while advancing marketing strategies to strengthen consumer-brand relationships. Design/methodology/approach Data were analyzed from 906 respondents (348-USA and 558-Mexico) to assess paths to purchase loyalty and test brand relationship hypotheses using partial least squares. Findings Analysis revealed that consumers in both markets demonstrated similar paths from tequila experience to brand love and attitude toward their favorite tequila brand. On the contrary, significant differences in the influence of tequila experience on the brand image were evident. Tequila experience did not have a significant difference between markets on purchase loyalty. Attitude toward the tequila brand had a much stronger influence on brand image for the USA compared to Mexican respondents. Finally, brand love’s influence on purchase loyalty differed significantly between the two markets of respondents. Practical implications Considering different paths to behavioral brand loyalty across markets enables segmentation strategy development to increase repeat purchase and brand allegiance. Results indicate that the brand's image is a strong influencer of purchase loyalty, suggesting opportunities exist for brand managers to consider unique paths toward purchase loyalty. Originality/value This study advances the literature by answering the call for multi-national studies that investigate consumer-brand relationships. Furthermore, the research setting offers insight into consumer-brand relationships and consumption patterns for spirits in a different national context, in this case, the product’s country of origin (Mexico) and its largest market (USA).

Sign in / Sign up

Export Citation Format

Share Document