Abstract
Financial service institutions today recognise that customer commitment is a notion that can no longer be treated casually in today’s banking environment. More than ever, customer retention is regarded as a critical component of long-term profitability and survival in the financial services sector. Competition within the banking sector has caused financial services institutions to introduce permanent measures aimed both at maintaining and retaining profitable customer relationships. Yet keeping customers appears to be more and more difficult as the industry continues to change at an increasing rate. Much of the revolution is technology driven, and Internet banking will continue to play a key role in a plethora of new products, services and brands aimed simultaneously at wooing new customers and retaining existing ones. Consequently, insight into brand switching behaviour amongst financial services customers is central to understanding how retention can be affected in the new economy.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Aaker, D. A. Managing Brand Equity. Capitalizing on the Value of a Brand Name, New York: The Free Press, 1991.
Abela, A. S., Jr. “Current Research: Value Exchange: The secret of building customer relationships on line,” The McKinsey Quarterly, 2 (1997).
Adolf, R., Grant-Thompson, S., Harrington, W. and Singer, M. “Current Research: What leading banks are learning about big databases and marketing,” The McKinsey Quarterly, 3 (1997).
Ajzen, I. ‘Form Intentions to Actions: A Theory of Planned Behaviour,’ in Kuhl, J., Beckmann, J., Action Control: From Cognition to Behaviour, Heidelberg, 1985.
Alpert, F. H. and Kamins, M. A. “An Empirical Investigation of Consumer Memory, Attitude, and Perceptions Toward Pioneer and Follower Brands,” Journal of Marketing, 59 (1995): 34–45.
Anderson, E., Fornell, C. and Lehmann, D. “Customer Satisfaction, Market Share and Profitability: Findings from Sweden,” Journal of Marketing, 58 (July 1994).
Axelrod, J. N. “Attitude Measures That Predict Purchase,” Journal of Advertising Research, 8, 1 (1968): 3–17.
Bearden, W. and Teel, J. “Selected Determinants of Consumer Satisfaction and Complaint Reports,” Journal of Marketing Research, 10 (1983).
Beatty S. E., Homer, P. and Kahle, L. R. “The involvement-commitment model: Theory and implications,” Journal of Business Research, 16, 2 (March 1988): 149–167.
Bell, D. E. “Regret in decision making under uncertainty,” Operations Research, 30, 1982.
Berger, A. et al. “Subjective product knowledge as a moderator of the relationship between attitudes and purchase intentions for a durable product,” Journal of Economic Psychology, 15 (1994): 301–314.
Bitner, M. J. “Building Service Relationships: It’s All About Promises,” Journal of the Academy of Marketing Science, 23, 4 (1995): 246–251.
Bloemer, J. M., Kasper, H. and Lemmink, J. “The relationship between overall dealer satisfaction with the attributes of dealer service, intended dealer loyalty and intended brand loyalty: a Dutch automobile case,” Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behaviour, 3 (1990).
Bloemer, J. M. and Kasper, H. “The Complex Relationship Between Consumer Satisfaction and Brand Loyalty,” Journal of Economic Psychology, 16 (1995).
Booz, Allen and Hamilton. Internet Banking in Europe: Survey of Current Use and Future Prospects, Studies 1997.
Buchanan II, B. “Building Organizational Commitment: The Socialisation of Managers in Work Organisations,” Administrative Science Quarterly, 19 (1974).
Churchill, G. A. and Surprenant, C. “An Investigation into the Determinants of Customer Satisfaction,” Journal of Marketing Research, 19, 1982.
Cohen, L. “The Level of Consciousness: A Dynamic Approach to the Recall Technique,” Journal of Marketing Research, Vol. 3, 2 (1966).
Colgate, M. and Stewart, K. “The challenge of relationships in services,” International Journal of Service Industry Management, 9, 5 (1998).
Cunningham, S. M. “Perceived Risk and Brand Loyalty,” in Fox, D. (ed.), Risk Taking and Information Handling in Consumer Behaviour, Boston: Harvard University Press, 1967.
Danaher, P. and Matsson, J. “Customer Satisfaction during the service delivery process,” European Journal of Marketing, 28, 5 (1994).
Dekimpe, M. G., Steenkamp, J.-B. E.-M., Mellens, M. and Abeele, P. V. “Decline and Variability in Brand Loyalty,” The International Journal of Research in Marketing, 14, 5 (1997): 405–420.
Dichtl, E. and Schneider, W. “Kundenzufriedenheit im Zeitalter des Beziehungsmanagement,” in Belz, C., Schögel, M., Kramer, M. (eds), Lean Management und Lean Marketing, St. Gallen, 1994.
Diller, H., Preispolitik, 2nd ed. Stuttgart, Berlin: Köln, 1991.
Diller, H. ‘Kundenbindung als Marketingziel’, Marketing ZFP, 18, 2 (1996).
Dowling, G. R. and Staelin, R. “Perceived Risk: The Concept and Its Measurement.” Psychology and Marketing, 3 (1994).
Engel, J. F., Blackwell, R. D. and Miniard, P. W. Consumer Behaviour, 6th ed. Chicago: The Dryden Press, 1990.
Engelhardt, W. and Freiling, J. “Integravität als Brücke zwischen Einzeltransaktion und Geschäftsbeziehung,” Marketing ZFP, 1 (1995): pp. 26–35.
Ennew, C., Wright, M. and Thwaites, D. “Strategic marketing in financial services: retrospect and prospect,” International Journal of Bank Marketing, 11, 6 (1993).
Erevelles and Leavitt. “A Comparison of Current Models of CS/D,” Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behaviour (1992).
Ernst & Young, Technology in banking, Survey 1998.
Financial Times. Sainsbury’s Banking Boom, The Financial Times Newspaper (23) October 1997.
Fornell, C. “A national Customer Satisfaction Barometer: The Swedish Experience,” Journal of Marketing, 56 (January 1992).
Fotheringham, S. A. “Consumer Store Choice and Choice Set Definition,” Marketing Science, 7 (1988): 299–310.
Fournier, S. A Consumer-Brand Relationship Framework for Strategic Brand Management, PhD. Dissertation, University of Florida, 1994.
Foxall, G. R. “Theoretical Progress in Consumer Psychology: The Contibution of a Behavioural Analysis of Choice,” Journal of Economic Psychology (1986): 393–414.
Goldsmith, R. E., Emmert, J. and Hofacker, C. “A causal model of consumer involvement: replication and extension,” Proceedings Winter Educators’ Conference (1991).
Gummesson, E. “The new marketing: developing long term interactive relationships,” Long Range Planning, 20 (1987).
Gremler, D. D. “The Effects of Satisfaction, Switching Costs, and Interpersonal Bonds on Service Loyalty,” PhD. Dissertation, Arizona State University, 1995.
Gronroos, C. “Value-driven relational marketing: from products to resources and competencies,” Journal of Marketing Management, 13 (1997).
Haley, R. I., and Case, P. B. “Testing Thirteen Attitude Scales for Agreement and Brand Discrimination,” Journal of Marketing 43, 4 (1979): 20–32.
Henning-Thurau, T. and Klee, A. “The impact of customer satisfaction and relationship quality on customer retention: a critical assessment and model development,” Psychology & Marketing, 1997.
Herrmann, A. Produktmanagement. München, 1998.
Hermanns, A. and Sauter, M. Management-Handbuch Electronic Commerce. Verlag Vahlen, 1999.
Holmsen, C. A., Palter, R. N., Simon, P. R. and Weberg, P. K. “Retail banking: Managing competition among your own channels,” The McKinsey Quarterly, 1 (1998): 82–93.
Homburg, C., Giering, A. and Hentschl, F. “Der Zusammenhang zwischen Kundenzufriedenheit und Kundenbindung,” forthcoming in Die Betriebswirtschaft, 1998.
Homburg, C. and Rudolph, B. “Theoretische Perspektiven zur Kundenzufriedenheit,” in Simon, H., Homburg, C. (eds), Kundenzufriedenheit, Wiesbaden, 1995.
Johnson, M. D. Customer Orientation and Market Action, New Jersey, 1998.
Johnson, M. D. and Fornell, C. “A Framework of Comparing Customer Satisfaction Across Individuals and Product Categories,” Journal of Economic Psychology (1991).
Johnson, M. D., Anderson, E. W. and Fornell, C., “Rational and Adaptive Performance Expectations in a Customer Satisfaction Framework,” Journal of Consumer Research, 21 (March 1995).
Jones, J. “Branding and loyalty: Key issues for retaining the customer,” Journal of Financial Services Marketing, 1, 3 (1996)
Kahneman, D. and Tversky, A. “Prospect Theory: An Analysis of Decision under Risk,” Econometrica, 47 (March 1979).
Keller, K. “Conceptualising, Measuring, and Managing Customer-Based Brand Equity,” Journal of Marketing, 57, 1 (1993).
Korte, C. Customer Satisfaction Measurement: Kundenzufriedenheitsmessung als Informationsgrundlage des Hersteller- und Handelsmarketing am Beispiel der Automobilwirtschaft, Frankfurt, 1995.
Kotler, P. “Marketing management: Analysis, planning, implementation, and control,” Prentice-Hall, 1995.
La Barbera, P. A. and Mazursky, D. “A longitudinal assessment of consumer satisfaction/dissatisfaction,” Journal of Marketing Research, 20 (1983).
Liljander, V. and Strandvik, T. “Estimating Zones of Tolerance in Perceived Service Quality and Perceived Service Value,” International Journal of Service Industry Management, 4, 2 (1993).
Lingenfelder, M. and Schneider, W. “Die Kundenzufriedenheit Bedeutung, Meßkonzept und empirische Befunde,” Institut für Marketing, Arbeitspapier Nr. 80, Universität Mannheim, 1990.
Loomes, G. “When Action Speaks Louder than Prospects,” American Economic Review, 78 (1988): 463–470.
Loomes, G. and Sudgen, R. “Regret Theory: An Alternative Theory of Rational Choice under Uncertainty,” The Economic Journal, 92 (1982).
Mathieu, J. E. and Zajac, D. M. “A Review and Meta-Analysis of the Antecedents, Correlates, and Consequences of Organizational Commitment,” Pschological Bulletin, 118, 2 (1990).
Meyer, J. P., Allen, N. J., and Gellatly, I. R., “Affective and Continuance Commitment to the Organization: Evaluations of Measures and Analysis of Concurrent and Time-Lagged Relations,” Journal of Applied Psychology, 75, 6 (1990).
Meyer, A. and Oevermann, D. ‘Kundenbindung’, Handwörterbuch des Marketing, Stuttgart 1995, Sp. 1340–1351.
Mittal, B. and Lee, M. S. “A causal model of consumer involvement,” Journal of Economic Psychology, 10 (1989).
Morgan, R. M. and Hunt, S. D. “The Commitment-Trust Theory of Relationship Marketing,” Journal of Marketing, 58 (July 1994): 20–38.
Mulhern, F. J. “Retail marketing: From distribution to integration,” International Journal of Research in Marketing, 14 (1997): 103–124.
Muthukrishnan, A. V. “Decision Ambiguity and Consumer Brand Loyalty,” Ph.D Dissertation, University of Florida, 1993.
Oliver, R. L. and Swan, J. E. “Consumer Perceptions of interpersonal Equity and Satisfaction in transactions: a field survey approach,” Journal of Marketing, 53 (1989).
Olshavsky, R. W. and Granbois, D. R. “Consumer Decision Making — Fact or Fiction,” Journal of Consumer Research, 6 (September 1979): 93–100.
Peter, S. Kundenbindung als Marketingziel, Wiesbaden, 1997.
Peter, J. P. and Olson, J. C. Consumer Behaviour and Marketing Strategy, 4th ed., Howewood, IL: Irwin, 1996.
Piller, F. T. Kundenindividualle Produkte-von der Stange. Harvard Business Manager, 3 (1997).
Rotter, J. B. “Generalized Expectancies for Internal versus External Control of Reinforcement,” Psychological Monographs, 80, 1 (1966): 27–56.
Salimen, P. and Wallenius, J. “Testing Prospect Theory in a Deterministic Multiple Criteria Decision-Making Environment,” Decision Sciences Journal, 24, 2 (1993).
Samuelson, B. M. and Sandvik, K. “The Concept of Customer Loyalty,” Proceedings of the Annual Conference — European Marketing Academy, 26, 3 (1997): 1122–1140.
Schiffman, L. G. and Kanuk, L. L. Consumer Behaviour. London: Prentice Hall, 1994.
Sheaves, D. E. and Barnes, J. G. “The Fundamentals of Relationships: An Exploration of the Concept to Guide Marketing Implementation,” Advances in Service Marketing and Management, 5 (1996).
Sheth, J. N. and Parvatiyar, A. “Relationship Marketing in Consumer Markets: Antecedents and Consequences,” Journal of the Academy of Marketing Science, 23, 4 (1995): 255–271.
Shimp, T. A. “Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications,” 4th ed., Fort Worth: Dryden Press, 1997.
Solomon, M. R. Consumer Behaviour, Massachusetts: Allyn and Bacon, 1994.
Solomon, H. Virtual Money, New York & London: Oxford University, Press, 1997.
Spectrum. “Moving into the Information Society,” DTI Information Society Initiative, London: Publisher?, 1996.
Stebbins, R. A. “On Misunderstanding the Concept of Commitment: A Theoretical Understanding,” Social Forces, 48 (1970).
Thaler, R. H. “Towards a Positive Theory of Consumer Choice,” in Thaler, R. H. (ed.) (1994): Quasi Rational Economics, New York, 1994.
Tversky, A. and Kahneman, D. “The Framing of Decisions and the Psychology of Choice,” Science, 211 (January 1981).
Tversky, A. and Kahneman, D. “Rational Choice and the Framing of Decisions,” Journal of Business, 59, 4 (1986).
USWeb/CKS Strategies for Growing Your Business through E-commerce. Proven Techniques for Expanding Your Business with a Successful E-commerce Initiative (1999).
USWeb/CKS Success in the Internet Economy. Which companies will ride this wave successfully and which will be overturned (1998).
USWeb/CKS Mastering Change. Four Ways to Survive and Thrive in the Digital Economy (1998).
Wallace, J. E. “Becker’s Side-Bet Theory of Commitment Revisited: It is Time for a Moratorium or a Resurrection?” Human Relations, 50, 6 (1997).
Webster, F. W. “The changing role of marketing in the corporation,” Journal of Marketing, 56 (October 1992).
Wiendieck et al., “Konsumentenentscheidungen — Darstellung und Diskussion konkurrierender Forschungsansätze,” in Irle, M. (ed.), Methoden und Anwendungen in der Marktpsychologie, Göttingen, 1983.
Wiswede, G. Einführung in die Wirtschaftspsychologie München, 1995.
Woodside, A. and Trappey, R. “Finding out why your customers shop your store and buy your brand ACP Models of Primary Choice,” Journal of Advertising Research (November/December 1992).
Woodside, A. G. and Trappey, R.J. “Customer Portfolio Analysis Among Competing Retail Brands,” Journal of Business Research, 35, 189–200 (1996).
Woodside, A. G., Frey, L. L. and Daly, R. T. “Linking service quality, customer satisfaction and behavioural intention,” Journal of Health Care Marketing, 9 (1989).
Yi, X. “Memory & Cognition,” Dept. of Phonological Recoding in Short-Term Memory, 19, 3 (May 1991): 263–273.
Zeithaml, V. A., Berry, L. L. and Parasuraman, A. “The Nature and Determinants of Customer Expectations of Service,” Journal of the Academy of Marketing Science, 21, 1 (winter 1993).
Reports
NatWest Annual Report, 1998.
Morgan Stanley, “The Internet Retailing Report”, May 1997.
Morgan Stanley, “The European Internet Report”, June 1999.
PriceWaterhouseCoopers: Building tomorrow’s leading retail bank, The Economist Intelligence Unit Limited and Coopers & Lybrand, 1996.
PriceWaterhouseCoopers: European Private Banking Survey, 1996/97.
PriceWaterhouseCoopers: Consumer Electronic Access Project, Final Report, Overview and demand/supply findings (Volume I), Application scenarios and winning strategies (Volume II), October 1998.
PriceWaterhouseCoopers: Information Management and the Future of Banking, 1998.
PriceWaterhouseCoopers: E-Commerce Initiative, Internet Based Financial Services Results of Telephone Survey Executive Summary, March 1999.
PriceWaterhouseCoopers: Online Banking, January 1999.
PriceWaterhouseCoopers: Electronic Business Outlook, 1999.
Trappey, R. J. Modelling Personal Computer Purchase Behaviour — Hewlett Packard, U.K., 1999.
Copyright information
© 2005 Randolph J. Trappey III and Arch Woodside
About this chapter
Cite this chapter
Trappey, R.J., Woodside, A.G. (2005). Modelling Bank Loyalty. In: Brand Choice. Palgrave Macmillan, London. https://doi.org/10.1057/9780230514201_5
Download citation
DOI: https://doi.org/10.1057/9780230514201_5
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-52357-3
Online ISBN: 978-0-230-51420-1
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)