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Article
Publication date: 4 February 2019

Kent Eriksson and Cecilia Hermansson

The purpose of this paper is to determine how three relational attributes – duration, context and trust – are subjectively perceived by bank customers, and how these…

Abstract

Purpose

The purpose of this paper is to determine how three relational attributes – duration, context and trust – are subjectively perceived by bank customers, and how these affect their saving behavior, as defined by monthly flows to mutual funds and the financial products bought and held in stock.

Design/methodology/approach

The authors use a combination of unique bank register and subjective survey data, and a structural equation model for theory development. Four constructs are developed to estimate the structural model, i.e. saving behavior, duration, context and trust.

Findings

The authors find that all three relational attributes have positive effects on saving behavior. The authors also find that duration and context have the largest total effects, and that trust is a mediating variable channeling indirect effects from context and duration to saving behavior.

Practical implications

One implication for bank managers is that it takes time and understanding of customer context to gain customer trust, but that this increases customer savings. Another implication is that the authors confirm that relational attributes can be studied using subjective measures in surveys, and that these have an effect on objective savings behavior. The findings provide an understanding that could develop both the customer’s value and the banks’ business opportunities.

Originality/value

The impact of relationships between bank advisors and their customers in terms of costs and benefits has been studied, but a little research has focused on the attributes of the relationship and how these affect customers’ saving behavior. The study also uses unique objective bank register data, combined with customers’ subjective perceptions of the relationship.

Details

International Journal of Bank Marketing, vol. 37 no. 1
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 15 May 2017

Kent Eriksson and Cecilia Hermansson

Customer interactions with sellers change as social interactions in society change. The old dichotomy between transaction and relation exchange may no longer be valid as…

Abstract

Purpose

Customer interactions with sellers change as social interactions in society change. The old dichotomy between transaction and relation exchange may no longer be valid as customers form relationships with sellers in new ways. It is against this background that the authors study how customers’ subjective perception of relational exchange appears in objectively defined transactional and relational exchange forms. The authors study one bank’s customers, and, based on objective bank records, the authors identify segments that behave as transactional and relational customers. The authors also identify a group of customers who are in between transactional and relational, and the authors call these interimistic relational, since they interact repeatedly with the bank in a short period of time. The paper aims to discuss these issues.

Design/methodology/approach

The authors study how subjective attributes of relational exchange differ in objectively defined transactional, interimistic, and relational customer groups. The authors use a large data set, consisting of a combination of survey and objective bank records for 90,528 bank customers.

Findings

Findings are that the old dichotomy between transaction and relation is no longer valid, since customers’ exchange behavior and perception of exchange do not match up when it comes to the transaction-relation dichotomy. The authors find empirical evidence for that the subjective relational attributes can be observed in objectively defined relational, interimistic, and transactional customer groups. Overall, subjective relational attributes are strongest in the objective relational group; they are weaker in the interimistic group. Relational attributes are weakest, but still present, in the transactional group.

Practical implications

The findings presented here suggest strong support for relationship marketing practice, since even customers who behave transactionally perceive that they have an element of relationship with the seller. The authors find that customers may behave in a relational, interimistic, and transactional way, but that they perceive themselves as more or less relational. The practical implication is that customer analysis should focus on exchange forms, and that it is essential to analyze how exchange changes, and how multiple exchange forms may be combined in customer behavior and perception.

Social implications

The social implications of this paper are that marketers should consider the exchange between customer and financial service supplier as more or less of a relationship, and more or less of a service. Financial service firm strategies and regulation of financial services should acknowledge that no financial service transaction is independent of the relationship between the financial service provider and the customer. It may seem so objectively, but subjectively, it is not.

Originality/value

The authors present a unique comparison of objective and subjective customer exchange. There are two contributions that come from this research. The first is that customers perceive themselves as partially relational, even though they behave transactionally. The other contribution is that the authors identified interimistic relational exchange (IRE) as an exchange form in between relational and transactional. IRE can potentially be very important for market research and practice, as it captures modern market behavior. In today’s world, consumers form their perceptions in a multitude of ways, and may therefore have relational attitudes and transactional behaviors. More research is needed into how consumer perceptions and behaviors relate to each other, and how it impacts consumer purchase of financial services.

Details

International Journal of Bank Marketing, vol. 35 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

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Article
Publication date: 23 February 2020

Kent Eriksson, Cecilia Hermansson and Sara Jonsson

This paper investigates the viability of the relationship-oriented business model. Specifically, it examines the effects of bank customers' satisfaction, loyalty, and…

Abstract

Purpose

This paper investigates the viability of the relationship-oriented business model. Specifically, it examines the effects of bank customers' satisfaction, loyalty, and trust in bank advisors on two client-level performance measures; client-level non-interest revenue, and client-level revenue on net interest spread. It further investigates how effects are moderated by differences in clients' risk tolerance and financial literacy.

Design/methodology/approach

The findings are based on analyses of a data set that combines survey data (collected from 13,525 bank clients in 2013) with bank record data from each respondent. The cross sectional data is analyzed using OLS-regression and structural equation modeling.

Findings

Overall, the findings are that the relationship banking model generates non-interest revenue, but not revenue on net interest spread. In more detail, findings show that trust has a positive direct effect on client-level non-interest revenue. Furthermore, trust mediates the entire effect of satisfaction and loyalty on client-level non-interest revenue. Customer satisfaction and loyalty do not lead to enhanced client-level non-interest revenue if there is little trust in bank advisors. Findings further show that the relevance of trust for non-interest revenue is higher for clients with high risk tolerance and high financial literacy. Satisfaction, loyalty, and trust have no effect, however, on client-level revenue on net interest spread.

Originality/value

While previous literature mainly has used subjective intentions (e.g., repurchase behavior) as operationalization of performance, this paper combines subjective survey data and objective performance data, allowing the investigation of how the customer relationship model affects actual performance. Furthermore, the paper investigates the relational banking model's effect on non-interest and net interest spread revenue, and we show that the relational banking model generates only non-interest revenue, and not net interest spread revenue. The fine-grained client-level data also allows the investigation on how the effect of trust on client-level performance differs among client groups with different cognitive characteristics (i.e., risk tolerance and financial literacy).

Details

International Journal of Bank Marketing, vol. 38 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

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Article
Publication date: 15 October 2020

Ignat Kulkov, Björn Berggren, Kent Eriksson, Magnus Hellström and Kim Wikstrom

This paper focuses on medical device university spin-offs (USOs), taking into account the peculiarities of financial and nonfinancial support and intellectual property…

Abstract

Purpose

This paper focuses on medical device university spin-offs (USOs), taking into account the peculiarities of financial and nonfinancial support and intellectual property rights (IPRs). The authors declare that these parameters play a significant role in business development at the early stages.

Design/methodology/approach

This empirical data consist of individual and group interviews in Finland and Sweden, which are later inductively analyzed.

Findings

The results show that public financial support contributes to the formation and start of sales stages in small countries and local markets. However, at the validation stage, approaches for supporting entrepreneurship in the field of medical devices may differ. The ownership of IPRs assists in the development of entrepreneurship in the region due to the transfer of research results and researchers to the industry and increases the number of spin-offs and the cooperation of universities with business.

Originality/value

This contribution is in the identification of the key parameters for the formation, support and development of the USOs from the point of view of the availability of financial resources and the ownership of IPRs.

Details

Journal of Small Business and Enterprise Development, vol. 27 no. 7
Type: Research Article
ISSN: 1462-6004

Keywords

Content available
Article
Publication date: 1 February 2008

Kent Eriksson

Abstract

Details

International Journal of Bank Marketing, vol. 26 no. 1
Type: Research Article
ISSN: 0265-2323

Content available
Article
Publication date: 28 April 2014

Hooman Estelami and Kent Eriksson

Abstract

Details

International Journal of Bank Marketing, vol. 32 no. 3
Type: Research Article
ISSN: 0265-2323

Content available
Article
Publication date: 27 May 2014

Kent Eriksson and Hooman Estelami

Abstract

Details

International Journal of Bank Marketing, vol. 32 no. 4
Type: Research Article
ISSN: 0265-2323

Content available
Article
Publication date: 1 June 2015

Kent Eriksson and Hooman Estelami

Abstract

Details

International Journal of Bank Marketing, vol. 33 no. 4
Type: Research Article
ISSN: 0265-2323

Content available
Article
Publication date: 7 September 2015

Kent Eriksson and Hooman Estelami

Abstract

Details

International Journal of Bank Marketing, vol. 33 no. 6
Type: Research Article
ISSN: 0265-2323

Content available
Article
Publication date: 1 April 2014

Kent Eriksson and Hooman Estelami

Abstract

Details

International Journal of Bank Marketing, vol. 32 no. 2
Type: Research Article
ISSN: 0265-2323

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