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Online banking and privacy: redesigning sales strategy through social exchange

Gajendra Liyanaarachchi (Department of Marketing, Griffith University, Gold Coast, Australia)
Sameer Deshpande (Department of Marketing, Griffith University, Gold Coast, Australia)
Scott Weaven (Department of Marketing, Griffith University, Gold Coast, Australia)

International Journal of Bank Marketing

ISSN: 0265-2323

Article publication date: 24 June 2021

Issue publication date: 18 August 2021




This paper advocates for banks to understand customers' online privacy concerns, use those insights to segment consumers and design tailored sales strategies to build a mutual relationship through a social exchange that produces a competitive advantage.


A qualitative study involving 30 in-depth interviews with Australian and Asian millennials residing in Australia was conducted using a grounded theory approach to explore privacy concerns of online banking and determine the efficacy of their banks' existing sales strategy and practice.


The study revealed differences in customer perceptions of trust, confidence, responsibility and exchange. Adopting a power-dependency paradigm within a social exchange theoretical framework and power distance belief of national culture theory, the authors identified four consumer segments: exemplar, empiric, elevator and exponent. The authors propose a tailored consumer-centered sales strategy of communication, control, consolidation and collaboration.


The paper contributes to the research in services marketing, sales strategy and banking in three ways: first, the authors demonstrate the importance of the social exchange theory and national culture as a premise to develop a competitive advantage; second, the authors propose an innovative set of consumer segments in regards to online privacy concerns; and, third, the authors introduce four sales strategies tailored to each of the four segments.



Liyanaarachchi, G., Deshpande, S. and Weaven, S. (2021), "Online banking and privacy: redesigning sales strategy through social exchange", International Journal of Bank Marketing, Vol. 39 No. 6, pp. 955-983.



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