The role of price satisfaction in managing customer relationships: the case of financial services

Purpose - The financial services market is constantly changing in terms of both competition and consumer behaviour. Customer switching is increasing, while bank marketers attempt to maintain a loyal customer base, in order for the banks to survive and be profitable. The aim of this research was to p...

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Bibliographic Details
Published in:Marketing intelligence & planning 2013-05, Vol.31 (3), p.216-228
Main Authors: Lymperopoulos, Constantine, Chaniotakis, Ioannis E, Soureli, Magdalini
Format: Article
Language:English
Subjects:
Banking industry
Banks
Brand loyalty
Case studies
Competition
Customer relationship management
Customer services
Fees & charges
Information seeking behavior
Interest rates
Pricing policies
Product orientation
Retail banking
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Summary:Purpose - The financial services market is constantly changing in terms of both competition and consumer behaviour. Customer switching is increasing, while bank marketers attempt to maintain a loyal customer base, in order for the banks to survive and be profitable. The aim of this research was to provide deeper insight into the direct effect of price satisfaction as expressed by its various dimensions on bank customer switching behaviour.Design methodology approach - The research involved a review of the literature on factors affecting customer switching behaviour, with a particular emphasis on the role of price. In order to obtain the necessary data, a survey was designed and conducted in the greater Athens area. The questionnaire was administered to 306 bank customers by means of personal interviews.Findings - The data analysis suggests that bank customer "intentions to switch banks" are affected by the level of their "price satisfaction". "Price satisfaction" in turn is affected positively by "transparency", "price quality ratio", "relative price", "reliability" and "price fairness". In addition, "information search" exerts a positive impact on "price satisfaction".Originality value - This study extends previous academic research, by analysing "price satisfaction" in depth, through its various dimensions and by examining the relationships between these variables and consumer switching intention. In addition, statistical evidence of these relationships and their synergies is provided.
ISSN:0263-4503
1758-8049
DOI:10.1108/02634501311324582