The Routledge Companion to Financial Services Marketing

607 Pages·2014·6.013 MB·English

by  Tina Harrison, Hooman Estelami

The Routledge Companion to
Financial Services Marketing
Interest in fi nancial services marketing has grown hugely over the last few decades, particularly
since the fi nancial crisis, which scarred the industry and its relationship with customers.
It refl ects the importance of the fi nancial services industry to the economies of every nation
and the realization that the consumption and marketing of fi nancial services differs from that of
tangible goods and indeed many other intangible services.
This book is therefore a timely and much-needed comprehensive compendium that reflects
the development and maturation of the research domain, and pulls together, in a single volume,
the current state of thinking and debate. The events associated with the financial crisis have
highlighted the need for banks and other financial institutions to understand how to rebuild trust
and confidence, improve relationships and derive value from the marketing process.
Written by an international team of experts, this book provides the latest thinking on how
to manage such challenges and is vital reading for students and researchers in financial services
marketing, policy-makers and practitioners.
Tina Harrison is Senior Lecturer at the University of Edinburgh, UK and editor of the Journal
of Financial Services Marketing.
Hooman Estelami is Professor of Marketing at Fordham University, USA and editor of the
International Journal of Bank Marketing.
Routledge Companions in Business,
Management and Accounting
Routledge Companions in Business, Management and Accounting are prestige reference works
providing an overview of a whole subject area or sub-discipline. These books survey the state of
the discipline including emerging and cutting edge areas. Providing a comprehensive, up to date,
defi nitive work of reference, Routledge Companions can be cited as an authoritative source on
the subject.
A key aspect of these Routledge Companions is their international scope and relevance. Edited
by an array of highly regarded scholars, these volumes also benefit from teams of contributors
which reflect an international range of perspectives.
Individually, Routledge Companions in Business, Management and Accounting provide an
impactful one-stop-shop resource for each theme covered. Collectively, they represent a com-
prehensive learning and research resource for researchers, postgraduate students and practitioners.
Published titles in this series include:
The Routledge Companion to Fair The Routledge Companion to
Value and Financial Reporting International Business Coaching
Edited by Peter Walton Edited by Michel Moral and Geoffrey Abbott
The Routledge Companion The Routledge Companion to
to Nonprofi t Marketing Organizational Change
Edited by Adrian Sargeant and Walter Wymer Jr Edited by David M. Boje, Bernard
Burnes and John Hassard
The Routledge Companion
to Accounting History The Routledge Companion
Edited by John Richard Edwards to Cost Management
and Stephen P. Walker Edited by Falconer Mitchell, Hanne
Nørreklit and Morten Jakobsen
The Routledge Companion
to Creativity The Routledge Companion
Edited by Tudor Rickards, Mark to Digital Consumption
A. Runco and Susan Moger Edited by Russell W. Belk and Rosa Llamas
The Routledge Companion to Strategic The Routledge Companion to
Human Resource Management Identity and Consumption
Edited by John Storey, Patrick M. Edited by Ayalla A. Ruvio and Russell W. Belk
Wright and David Ulrich
The Routledge Companion to The Routledge Companion
Public-Private Partnerships to Accounting Education
Edited by Piet de Vries and Etienne B. Yehoue Edited by Richard M. S. Wilson
The Routledge Companion to The Routledge Companion
Accounting, Reporting and Regulation to Business in Africa
Edited by Carien van Mourik and Peter Walton Edited by Sonny Nwankwo and Kevin Ibeh
The Routledge Companion to The Routledge Companion to
International Management Education Human Resource Development
Edited by Denise Tsang, Hamid Edited by Rob F. Poell, Tonette
H. Kazeroony and Guy Ellis S. Rocco and Gene L. Roth
The Routledge Companion to The Routledge Companion to Auditing
Accounting Communication Edited by David Hay, W. Robert
Edited by Lisa Jack, Jane Davison Knechel and Marleen Willekens
and Russell Craig
The Routledge Companion
The Routledge Companion to Entrepreneurship
to Visual Organization Edited by Ted Baker and Friederike Welter
Edited by Emma Bell, Jonathan
Schroeder and Samantha Warren The Routledge Companion
to International Human
The Routledge Companion Resource Management
to Arts Marketing Edited by David G. Collings, Geoffrey
Edited by Daragh O’Reilly, Ruth T. Wood and Paula Caligiuri
Rentschler and Theresa Kirchner
The Routledge Companion to
The Routledge Companion to Financial Services Marketing
Alternative Organization Edited by Tina Harrison and Hooman Estelami
Edited by Martin Parker, George Cheney,
Valerie Fournier and Chris Land
The Routledge Companion to
the Future of Marketing
Edited by Luiz Moutinho, Enrique
Bigne and Ajay K. Manrai
Dramatic changes in technology, regulations and consumer behavior are transforming the fi nan-
cial services industry around the world. This book provides an excellent and comprehensive
perspective from several experts on how marketing practices need to change in this dynamic
industry.
Sunil Gupta, Professor, Harvard University, USA
This book makes a most valuable contribution to research and professionals operating in the
fi nancial services industry. In particular, it focuses on the unique nature of the industry, and the
diverse range of traditional and emergent issues it is currently facing. In this respect, the book is
highly topical and fully refl ects the dynamic nature of these issues and the associated challenges.
Barry Howcroft, Professor, Loughborough University, UK
While most fi nancial institutions focus their energy on adhering to the new regulatory environ-
ment, this book brings the attention of practitioners and academics back to its origins, namely
how to create outstanding customer value in a fast changing environment by providing services
for fi nancial security, stability and fl exibility. It offers a comprehensive perspective on how to
regain trustful relationships with customers and stay competitive against the upcoming new
players in the market.
Peter Maas, Professor, University of St. Gallen, Switzerland
This essential guide to fi nancial services marketing provides a comprehensive, expert and criti-
cal picture of a vital area of economic life. Researchers and practitioners alike will fi nd it
indispensable.
Karen Rowlingson, Professor, University of Birmingham, UK
The Routledge Companion
to Financial Services
Marketing
Edited by
Tina Harrison and
Hooman Estelami
First published 2015
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2015 Tina Harrison and Hooman Estelami
The right of the editors to be identifi ed as the authors of the editorial
material, and of the authors for their individual chapters, has been
asserted in accordance with sections 77 and 78 of the Copyright,
Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced
or utilized in any form or by any electronic, mechanical, or other means,
now known or hereafter invented, including photocopying and
recording, or in any information storage or retrieval system, without
permission in writing from the publishers.
Trademark notice : Product or corporate names may be trademarks or
registered trademarks, and are used only for identifi cation and
explanation without intent to infringe.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
The Routledge companion to fi nancial services management /
edited by Tina Harrison and Hooman Estelami.
pages cm. – (Routledge companions in business, management
and accounting)
Includes bibliographical references and index.
1. Financial services industry–Marketing. 2. Financial institutions–
Marketing. 3. Bank marketing. I. Harrison, Tina. II. Estelami, Hooman.
HG173.R68 2014
332.1068’8–dc23
2014019505
ISBN: 978-0-415-82914-4 (hbk)
ISBN: 978-0-203-51739-0 (ebk)
Typeset in Bembo
by Cenveo Publisher Services
Contents
List of fi gures xi
List of tables xiii
List of contributors xv
I ntroduction: fi nancial services marketing in a post-crisis era 1
Tina Harrison and Hooman Estelami
PART I
The dynamic fi nancial services marketing environment 11
1. I mpact of regulation on competition in commercial
and investment banking 13
Anoop Rai, George J. Papaioannou and A. Sinan Cebenoyan
2. ‘ Challenger banks’: are they for real? The impact of new entrants
on fi nancial services competition 30
Steve Worthington
PART II
The fi nancial services consumer and fi nancial decision-making 43
3. S ocial and psychological infl uences on fi nancial literacy 45
Bruce Huhmann
4. U nderstanding how consumers make fi nancial choices:
a cross-disciplinary learning experience 62
Hazel Bateman, Jordan Louviere and Susan Thorp
5. H ousehold decisions on fi nancial services: the role of the wife 78
Salvador Ruiz de Maya and Eva Tomaseti-Solano
6. W hat drives the purchase decision in pensions and
long-term investment products in the UK? 91
Orla Gough and Roberta Adami
vii
Contents
7. F inancial and non-fi nancial attributes of pension fund structures:
a customer perspective from the Netherlands 101
Nikos Kalogeras, Arvid O. I. Hoffmann and Dominik Mahr
8. M utual fund investors’ knowledge calibration and behavioral biases 116
Sanjay Kumar Mishra and Manoj Kumar
PART III
Managing fi nancial services relationships and
the customer experience 131
9. F inancial services customer relationships: meanings, motivations
and manifestations 133
Annie Pei-I Yu and Tina Harrison
10. T rust and trustworthiness in retail fi nancial services: an analytical
framework and empirical evidence 148
Christine Ennew and Harjit Singh Sekhon
11. S hould I stay or should I go? The case of loyalty in the
UK retail banking industry 166
Dahlia El-Manstrly
12. F inancial services quality: people, processes and performance 177
Kent Eriksson
PART IV
Developing and managing the fi nancial services offering 189
13. F inancial services and innovation: a customer-centric approach 191
Stefan Michel
14. A brave new world: branding in fi nancial services 204
Jillian Dawes Farquhar and Julie Robson
15. T he many deaths of a fi nancial services offering 219
David R. Harness and Tina Harness
PART V
Financial services pricing strategies 237
16. C onsumer perceptions of fi nancial services prices 239
Hooman Estelami
viii
Contents
17. P rice management in fi nancial services 254
George J. Avlonitis and Kostis Indounas
18. P rice bundling: a smart pricing strategy for banking 271
Wei Ke, Georg Wuebker and Jens Baumgarten
PART VI
Communicating and promoting fi nancial services 289
19. T he neglected art (and science) of fi nancial services advertising 291
Karen Robson and Leyland Pitt
20. A n AMO model for communicating and promoting fi nancial services 305
Alex Wang
PART VII
Distribution and delivery of fi nancial services 321
21. T he role of technology in fi nancial services distribution and delivery 323
Fernando Jaramillo
22. M obile banking, a business models approach 335
Anthony Gandy
23. E -servicescapes in online banking: towards an integrated conceptual
model of the stimuli contributing to the online banking experience 346
Kathryn Waite and Jennifer Rowley
PART VIII
Corporate fi nancial services marketing 365
24. R elationships and the business-to-business marketing
of fi nancial services 367
Peter Moles
25. C ompetition and cooperation in partnership arrangements
in fi nancial services 380
Sandeep Singh and Joon Yong Seo
PART IX
Alternative banking models 397
26. I slamic banking 399
Hussain Rammal
ix