Bank strategic positioning and some determinants of bank selection

Abstract

Presents an empirical stuRecently, banks have found themselves facing more aggressive competition, uncertainty and unlimited opportunities. No bank can offer all products/services and be the best/leading bank for all customers. They are forced to find a new basis for competition. A bank must examine its strengths and opportunities and take a competitive position in the competitive marketplace. Discusses some strategic issues related to bank positioning. A number of ways in which distinctive positions can be developed and maintained have been identified. A well‐integrated application of technology and staff through operations that respond to customer needs encourage customers to use a whole range of banking products/services rather than just a few. It also helps to build loyalty by creating deeper and fuller customer relationships. Surveys how a bank has been selected and perceived from the point of view of its customers in relation to its competitors in that marketplace. Reveals that in Sweden, there is no single leading bank in all financial areas, but there are a number of leaders: a leader in terms of deposit base, a leader in terms of loans outstanding base, a largest bank in terms of assets, and a niche leader bank. Shows that functional quality is a more important factor than traditional marketing activities. As expected, convenience of location, price and advertising had a minor impact on bank selection.

Citation

Zineldin, M. (1996), "Bank strategic positioning and some determinants of bank selection", International Journal of Bank Marketing, Vol. 14 No. 6, pp. 12-22. https://doi.org/10.1108/02652329610130136