New Customer Oriented Banking: Approaches, Challenges and Patterns

Subject Areas : Journal of Investment Knowledge

Seyed Ali  Jalali Nazari ¹ (Ph.D. Student, Department of Business Management, UAE Branch, Islamic Azad University, Dubai, United Arab Emirates)
Kambiz  Heidarzadeh ² (Associate Professor, Department of Business Management, Science and Research Branch, Islamic Azad University, Tehran, Iran)
Hamid Reza  Saeednia ³ (Associate Professor, Department of Business Management, North Tehran Branch, Islamic Azad University, Tehran, Iran)

Received: 2021-10-25 Accepted : 2021-11-09 Published : 2023-06-22

Keywords: New Banking, investment, customer orientation, bank competitiveness, digital economy,

Abstract :

As an industry operating in the money market, banks and banking have gone through a paradigm shift due to the digitalization of business. Thus, the industry has to pay attention to potential and actual customers for sustainability in the age of the digital economy. This has led it to be considered as one of the knowledge and professional topics in studies.In this study, the researcher focused on the issue of new customer-oriented banking. Accordingly, he concentrated on approaches and challenges aimed at identifying components effective on the banks' customer orientation such as their confusion using the in-depth interview approach. Ultimately, an appropriate model was presented as the outcome.Based on summarizing the research results, out of the total identified factors resulting from axial coding, a limited number of factors like the competitiveness of banks had a significant impact in this regard. Hence, banks may need to pay attention to such factors and invest in them to strengthen the durability of their activity, profitability, and value-creation. Moreover, reducing the customer’s confusion was found to be an effective factor in competitiveness.Keywords: New Banking, Digital Economy, Investment, Banks’ Competitiveness, Customer-Orientation, Customers’ Confusion.

References:

• خداداد حسینی، سید حمید و رضوانی، مهران، 1391، مدیریت جامع برند؛ مکاتب، ارزش‌گذاری و توسعه برند ملی، انتشارات دفتر پژوهش‌های فرهنگی، چاپ اول، تهران، صص 52-77.


• رهباردار، فهیمه؛ عربشاهی، معصومه و بهبودی، امید. (1397). پیامدهای ناشی از سردرگمی مصرف‌کننده؛ بررسی نقش تعدیلگری اعتماد (مورد مطالعه: برندهای مواد غذایی)، فصلنامه علمی- پژوهشی تحقیقات بازاریابی نوین، سال هشتم، شماره سوم، شماره‌


• رهنمای رودپشتی، فریدون ، اکرم فرزین و فریده نیکویی،(1386) ، هفت گفتار در ارزش ها و ارزش آفرینی کسب و کار اقتصادی ، انتشارات هزاره سوم اندیشه.


• مهیمنی، مرجان؛ حیدرزاده، کامبیز و منصوریان، یزدان، (1398)، نگاه پدیدارشناسانه به‎‌معنای تجربه زیسته سردرگمی در انتخاب محصولات، مدیریت بازرگانی، دوره 11، شماره 3.


• Kurtulmuşoğlu, F. B., & Atalay, K. D. (2020). The effects of consumer confusion on hotel brand loyalty: an application of linguistic nonlinear regression model in the hospitality sector. Soft Computing, 24(6), 4269-4281.


• Kasper, H., Bloemer, J., & Driessen, P. H. (2010). Coping with confusion. Managing Service Quality: An International Journal.


• Matzler, K., Stieger, D., & Füller, J. (2011). Consumer confusion in internet-based mass customization: Testing a network of antecedents and consequences. Journal of Consumer Policy, 34(2), 231-247.


• Walsh, G. & Mitchell, V. (2005). Consumers vulnerable to perceived product similarity problems. Journal of Macromarketing, 25, 140-52.


• Walsh, G., Hennig-Thurau, T., & Mitchell, V.-W. (2007). Consumer confusion proneness: scale development, validation, and application. Journal of Marketing Management, 23(7-8), 697-721.


• Mitchell, V. & Kearney, I. (2002). A critique of legal measures of brand confusion. Journal of Product and Brand Management, 11, 357-77.


• Clancy, K. & Trout, J. (2002). Brand confusion. Harvard Business Review, 80, 22-34.


• Kent, R.& Allen, C. (1994). Competitive interference effects in consumer memory for advertising. Journal of Marketing, 58, 97-105.


• Coyne, M. & Traflet, J. (2008). Ethical issues related to the mass marketing of securities. Journal of Business Ethics, 78, 193-8.


• Wible, A. (2011). It’s all on sale. Journal of Business Ethics, 99, 17-21.


• Berry, L. & Yadav, M. (1996). Capture and communicate value in pricing of services. Sloan Management Review, 37, 41-52.


• Lindsey-Mullikin, J. & Petty, R. (2011). Marketing tactics discouraging price search. Journal of Business Research, 64, 67-73.


• Mitchell, V. & Papavassiliou, V. (1999). Market causes and implications of consumer confusion. Journal of Product and Brand Management, 8, 319-39.


• Which? (2013a). Unit price confusion. Retrieved from http://www.which.co.uk.


• Which? (2013b). Supermarket unit prices. Retrieved from http://www.which.co.uk.


• Neville, S. (2013). Tesco ‘half-price strawberries’ deal prompts red faces and £300,000 fine. Retrieved from http://www.theguardian.com.


• Houston, M. (1972). The effect of unit pricing on choices of brand and size economic shopping. Journal of Marketing, 36, 51-69.


• Bagchi, R. & Davis, D. (2012). $29 for 70 items or 70 Items for $29. Journal of Consumer Research, 39, 62-73.


• Kasabov, E. (2015). What we know, don’t know, and should know about confusion marketing. European Journal of Marketing. Vol. 49 Iss 11/12 pp.


• Schweizer, M., Kotouc, A. J., & Wagner, T. (2006). Scale development for consumer confusion. Advances in consumer Research, 33(1), 184-190.


• Scheibehenne, B., Greifeneder, R., & Todd, P. M. (2010). Can there ever be too many options? A meta-analytic review of choice overload. Journal of consumer research, 37(3), 409-425.


• Wobker, I., Eberhardt, T., & Kenning, P. (2015). Consumer confusion in German food retailing: the moderating role of trust. International Journal of Retail & Distribution Management.


• Tamburian, C. (2013). The Effect of Consumer Confusion on Brand Loyalty on Low Involvement Product Category. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 1(4).


• Mitchell, Vincent-Wayne, Gianfranco Walsh, and Yo Yamin. 2005. towards a conceptual model of consumer confusion. Advances in Consumer Research 32:143–150.


• Sproles, G. B., Geistfeld, L. V., & Badenhop, S. B. (1980). Types and amounts of information used by efficient consumers. Journal of Consumer Affairs, 14(1), 37-48.


• Iyengar, S. S., & Lepper, M. R. (1999). Rethinking the value of choice: a cultural perspective on intrinsic motivation. Journal of personality and social psychology, 76(3), 349.


• Wright, P. (1975). Consumer choice strategies: Simplifying vs. optimizing. Journal of marketing research, 12(1), 60-67.


• Poiesz, T.B.C. (2004), “The free market illusion psychological: limitations of consumer choice”, Journal of Economic Psychology, Vol. 49 No. 2, pp. 309-38.


• Viswanathan, M., Rosa, J. A., & Harris, J. E. (2005). Decision making and coping of functionally illiterate consumers and some implications for marketing management. Journal of marketing, 69(1), 15-31.


• Kim, J., Novemsky, N., & Dhar, R. (2013). Adding small differences can increase similarity and choice. Psychological Science, 24(2), 225-229.


• White, C. M., & Hoffrage, U. (2009). Testing the tyranny of too much choice against the allure of more choice. Psychology & Marketing, 26(3), 280-298.


• Fasolo, B., Hertwig, R., Huber, M., & Ludwig, M. (2009). Size, entropy, and density: What is the difference that makes the difference between small and large real‐world assortments? Psychology & Marketing, 26(3), 254-279.


• Pilli, L. E., & Mazzon, J. A. (2016). Information overload, choice deferral, and moderating role of need for cognition: Empirical evidence. Revista de Administração, 51(1), 36-55.


• Lange, J., & Krahé, B. (2014). The effects of information form and domain-specific knowledge on choice deferral. Journal of economic psychology, 43, 92-104.


• Parker, J. R., & Schrift, R. Y. (2011). Rejectable choice sets: How seemingly irrelevant no-choice options affect consumer decision processes. Journal of marketing research, 48(5), 840-854.


• Dhar, R., & Simonson, I. (2003). The effect of forced choice on choice. Journal of marketing research, 40(2), 146-160.


• Biswas, D., & Grau, S. L. (2008). Consumer choices under product option framing: loss aversion principles or sensitivity to price differentials? Psychology & Marketing, 25(5), 399-415.


• Garaus, M., & Wagner, U. (2019). Lost in the store: assessing the confusion potential of store environments. Schmalenbach Business Review, 71(4), 413-441.


• Rubino, T., & Young, C. (2019). The Moderating Effect of Consumer-Based Brand Equity towards the Effect of Social Media Content Marketing on Creating Consumer Engagement in The Case of Go-Jek. IBuss Management, 7(3).


• Hu, Y.-J. (2012). the moderating effect of brand equity and the mediating effect of marketing mix strategy on the relationship between service quality and customer loyalty: The case of retail chain stores in Taiwan. International Journal of Organizational Innovation, 5(1), 155-162.