Multi-attribute Analysis

Multi-attribute Analysis of Confidence, Convenience and Price

Multi-attribute Analysis of Confidence, Convenience and Price

Introduction

Financial services firms (FSF5) in the last decade are experiencing rapid changes in technology, deregulation, and a trend towards consolidation, globalization and competition in addition to the challenges posed by customers, who demand faster service and response that is of greater accuracy and of higher quality. Customer satisfaction scores in US banks have declined 8.1 per cent. It is clear that banks trail other industries/ businesses in customer satisfaction (Fornell et al, 1996). The situation is no different in other parts of the world due to internationalization of FSF operations. The competitiveness of the financial services industry coupled with the relative homogeneity of financial services products and services creates a challenge to the FSF industry. Research is warranted on: how customers evaluate services of FSF5, what key attributes are sought, used and valued in evaluation of financial service firms, and whether they differ by product type (Harrison, 2003).

These questions are more serious today than ever since the competitive environment of the FSF5 can be considered an antecedent of service related behaviors. Specifically, as the environment changes, service behaviors have to adjust dynamically and FSF5 are no exceptions. In reality, the financial services industry has moved to a retail environment. For example, many institutions have become more customers oriented. They have expanded product/service lines; implemented marketing programs aimed at increasing the customer's willingness and ability to purchase; and expanded customer business through cross selling. To remain competitive, many of the larger FSF5 have also consolidated their channels and embarked on cost-culling measures through technology enhancements (Dobni, 2002). The answers to these questions will facilitate FSF5 to reorient their marketing strategy for ensuring a planned growth. The study has important implications given the potential effect on future profits of behavioral outcomes of customers. As such, the study is unique in that it presents an overall systems approach to financial service evaluations and investigates a set of previously untested relationships. The paper is organized in five sections. In section II, conceptual framework for modeling customers' decision process in FSF5 is discussed followed by a review of the literature related to customer satisfaction, service quality, value, reputation, and customer loyalty. In section III, the methods and model specifications employed for the research analysis are explained. In section IV, the results of the study are discussed, and the model is validated. Finally, in section V, conclusions are drawn and implications on strategic, managerial and research areas are explained.

Discussion

In the academic literature, there have been relatively few attempts to develop models that explain customer decision processes especially in the context of financial services. The current research therefore, focuses on customer decision process in the financial services firms (FSF5), by analyzing the extent of reliability of FSF by customers, level of customers' confidence in these FSF5 and the degree of affordability of various services offered by FSF5. The research issue is modeled in the framework of customer decision-making; based on customer's knowledge ...