Editorial

Citation

Estelami, K.E.a.H. (2014), "Editorial", International Journal of Bank Marketing, Vol. 32 No. 4. https://doi.org/10.1108/IJBM-03-2014-0046

Editorial

Article Type: Editorial From: International Journal of Bank Marketing, Volume 32, Issue 4.

The papers in this issue of the International Journal of Bank Marketing cover an array of financial services marketing issues across multiple regions of the world. Two of the papers are related to a fundamental concept in financial services marketing: trust. Trust has a significant role in how much existing customers interact with a bank, and how likely potential customers may adopt the bank as their financial institution of choice. The first paper in this issue deals with how perceptions of trust interact with customers’ perceptions of opportunistic behaviour by banks. This paper empirically demonstrates that trust can reduce customers’ risk perceptions in their interactions with the bank. The second paper in this issue extends the context to that of advisory services. In this paper a comprehensive review of the savings behaviour by customers is conducted and the role of advisors in providing trusting relationships that engage customers in successful savings strategies is examined. The next two papers in this issue extend the global perspective of bank marketing. The third paper in this issue examines the topic of brand building for banks in Trinidad & Tobago. A model is used to test how brand building can help banks build a stronger relationship with their customers. In the fourth paper in this issue, the switching of bank customers in India is examined. This paper examines several factors that influences customer switching in this unique context. A detailed outline of each of these papers is provided below.

In the first paper in this issue of IJBM, Nygaard, Dahlstrom, Kimasheva and Ulvnes focus on the issue of trust in banking. Trust is an important requirement in many banking transactions. It becomes especially relevant in the corporate banking setting where business customers and corporations are being served. This is generally a market segment that has not been studied a great deal in the past due to limited data. In this paper, using a survey and a structural equations modelling approach, the impact of trust in the relationships between banks and their corporate customers is examined. Specifically, risk perceptions by customers are examined as a function of inter-organizational trust and perceptions of opportunism. The results indicate that trust reduces customers’ perceptions of risk, and risk perceptions are elevated if the bank is perceived by customer to exhibit opportunistic behaviours. The findings are significant from a relationship building perspective as they provide prescriptions on how to improve the relationship between banks and their corporate customers.

In the second paper in this issue, Eriksson and Hermansson examine the drivers of savings behaviour. Traditional theories on consumer savings have focused primarily on aggregate savings behaviour rather than on individuals’ decisions that lead to savings. Traditional economic models assume that the financial sector serves the role of an intermediary, and forecast savings behaviour accordingly. However, the role of financial services providers in encouraging and guiding the savings behaviour of households is not focal to this perspective. However, from a practical point of view and given the need to optimize consumers’ savings habits, the behavioural theories of how savings behaviours can be modified are critical. In this paper, theories of savings behaviour from various fields – including economics, finance, economic psychology and marketing are integrated. The relationship with savers’ motives, behaviours and preferences are also examined. Using a thorough review of existing literature, three models for the relationship between advisors and customers are identified. Savings behaviour is examined with respect to the amount of savings, flow of savings and type of savings. The paper also provides implications for policymakers and financial advisors in assisting customers improve their savings behaviours.

In the third paper in this issue, Rambocas, Kirpalani and Simms examine the issue of brand equity for banks. Brand equity can have a profound impact on customer experiences and their level of engagement with a retail bank. It affects individuals’ choice of banks, their willingness to pay for the bank's services, and their propensity to remain customers of the bank in the long term. While the majority of existing research on brand equity has focused on the branding of goods, a relatively smaller volume of research has focused on service brands, and even less so on the branding of banks. In this study, an integrated model is developed to examine the relationship between brand equity, customer experience, customer satisfaction and brand affinity. Hypotheses are developed relating these key constructs. Survey data are obtained using a questionnaire administered to a large sample of retail banking customers in Trinidad and Tobago, and tested using structural equations modelling. The framework provided and the study results can guide retail banks in quantifying the return on investment associated with their brand building expenditures and other efforts to differentiate and market the bank's brand.

In the final paper in this issue of IJBM, Raitani and Vyas focus on the causes for that customers in India switch banks. The banking market in India continues to grow and mature. The issue of the causes of customer switching is interesting not only for an increased understanding of the Indian banking market, but also for an increased understanding of the sources of customer switching. The study by Raitani and Vyas suggest that established factors for customer switching are valid also in India, which validates existing theories. Factors, such as price, reputation, response to service failure, customer satisfaction, service quality, service products, competition, and customer commitment all influence customers’ decision to switch banks. The next step in research could be to further explain how these factors relate to each other. It is reassuring that important factors identified in marketing research are valid in most markets, and this fact is also a good reason to expect that the relationships between these factors may be the same in different markets.

The papers presented in this issue of IJBM reflect the global perspective of bank marketing topics as they each reflect research conducted in different corners of the globe. These papers also demonstrate the fundamental psychological and technological drivers of financial decisions that are universal across the globe. In doing so, the research presented in this issue of the International Journal of Bank Marketing demonstrates the universality of topics that bank marketers need to grapple with on a daily basis, and the common research threads that bind this field together on a global basis.

Kent Eriksson and Hooman Estelami