Editorial

Citation

Estelami, K.E.a.H. (2013), "Editorial", International Journal of Bank Marketing, Vol. 31 No. 3. https://doi.org/10.1108/IJBM.03231caa.001

Editorial

Article Type: Editorial From: International Journal of Bank Marketing, Volume 31, Issue 3.

Financial institutions have a central role in supporting societal development. In most countries, financial services firms contribute to a larger share of the gross domestic product, and advances in the financial services sector are often correlated with social and economic development. However, as evident in the current economic climate, the financial sector can also have considerable detrimental effects on socio-economic development, and in light of the financial crisis, regulations governing financial markets are under revision around the world. These regulatory changes often need to be guided by an accurate understanding of the dynamics of the exchange process in financial decisions. Therefore, there is an urgent need for advancing our knowledge on financial markets, and in particular, bank marketing practices.

This issue of the International Journal of Bank Marketing helps address some of these needs. For instance, one of the papers in the current issue concerns how bank advisors influence their customers. It is often assumed that regulation of financial services advisors will provide customers with reasonably objective advice. The research presented shows that a customer's perception of an advisor can be biased, which suggests that regulators need to be more sensitive to the fact that customer biases may influence the outcomes of financial services transactions. Another paper in this issue highlights one of the most transformative changes to the way customers and banks interact, namely online banking. While banking used to be considered a relationship business, we are now beginning to understand the profound changes that online exchanges bring to the process of relationship building in the financial services industry. Two other papers in this issue of IJBM provide a global perspective on the topic of bank marketing and test existing theories and methods into the analysis of emerging banking markets. They do so by examining theories of bank marketing in the context of public v. private banks in the Indian financial services market, and the analysis of Islamic v. non-Islamic banks in United Arab Emirates. This approach enables us to increase our understanding of the ever-changing nature of customer relationships in the global context.

In the first paper of this issue of IJBM, Söderberg examines the relationship between bank customers who receive financial advice and bank staff that provide the advice to customers (advisors). The research studies how the gender and mood of the bank advisor influences the risk perception of the customer. The findings show that the mood and gender of an advisor significantly influence customer risk perception. Customers perceive it more likely that they will purchase financial services from a smiling woman, but they find a frowning man more trustworthy. The implications of these findings are very important, as financial advice is often considered a fairly standard and objective procedure, without many biases. Both policy and research on advice giving can now build on Söderberg's findings by advancing the study of biases in risk perception based on the relationship between the advisor and the customer. Policy development therefore needs to take into account the effectiveness of current regulations governing advisory services, since the effect of advisors on customer risk perceptions is not uniform, and cannot easily be controlled for. Söderberg's paper highlights the attention researchers need to give to a deeper understanding of how customer risk perceptions are formed based on the customer's relationship with the advisor. Her work also points to the significance of understanding the micro-processes in customer-advisor relationships, and the importance of the decision-making context.

In the second paper of this issue, Kaura examines antecedents of customer satisfaction in Indian banks. The reported research compares antecedents of customer satisfaction in private and public banks. Many of the factors that have been found to be antecedents to customer satisfaction in other studies, in both developed and developing countries, prove to be valid also in India. Studies of customer satisfaction seem to be strikingly robust around the world. The research by Kaura finds that there are differences between private and public sector banks, such that bank employee behaviour and perceived convenience has different effects on customer satisfaction in private and public sector banks. These interesting findings bring attention to both the important role of customer satisfaction in banking, and the importance of bank governance for the delivery of service quality. Kaura's research highlights the impact of bank governance on the complex dynamics that drive customer satisfaction.

The growth in online banking has transformed the banking industry. Banking is often considered a relationship-based business. However, it is unclear if the relational focus can be maintained in the distant environment of online banking. For banks, segmentation analysis in online banking can be a useful tool to develop relationship strategies for their online customers. The paper by Rajaobelina, Brun and Toufaily presents research that demonstrates how a segment-based analysis can be conducted on online customers using customers’ demographic and relational data. In a study of 421 online banking customers, the authors combine demographic and relationship-based variables that help describe the profiles of customer segments. Their approach provides clear distinctions among the segments. For instance, older males are found to be very relationship-oriented. However, for this segment banks face challenges in making them use online banking services. On the other hand, young customers (ages 25-44) with high incomes are the least relationally oriented online banking customers. The results suggest that if banks aim to maintain their relationship marketing strategy in those channels where there are personal interactions, then they need to refine their segmentation strategies and pay closer attention to differences in segment-based needs.

The final paper in this issue focuses on the bank selection process, as it relates to Islamic banking practices. Similar to many other Islamic countries, one of the facets that makes the banking market in the United Arab Emirates interesting is the presence of both Islamic and non-Islamic banks. These banks differ in how they are governed. They also vary from the customer's bank selection perspective and the drivers of new account generation. The paper by Miniaoui reports on an empirical investigation of the determinants for bank selection in Islamic and non-Islamic banks. The results indicate that the drivers of bank selection are more clearly identifiable for Islamic banks, as their customer have more clearly defined preferences. This may be due to the fact that Islamic banks are also more clearly differentiated when compared to non-Islamic banks in the United Arab Emirates. Miniaoui's work highlights the importance of methodical market research in identifying the unique needs of banking customers in the Islamic banking system.

The topics addressed by the papers in this issue of the International Journal of Bank Marketing point to the shifting nature of banking markets. These papers help develop a clearer understanding of how customers perceive financial advice, how online bank relationships are constituted, and the characteristics of emerging financial markets. The resulting understanding helps advance marketing theories and provides the tools needed for more effective marketing of financial services. The presented research also provides direction on where advancements can be made. The marketing knowledge and tools presented in these papers can be improved to match evolving societal needs that financial institutions need to constantly address. All the papers in this issue provide clear directions on how research can be further advanced in the future. It is this constant strive for advancing marketing methods and theories that is central to the advancement of the field of financial services marketing and its central role in global socio-economic development.

Kent Eriksson and Hooman Estelami