Loyalty in Online Services of Financial Companies

Paper Summary:

This paper analyzes the factors that affect a customer's loyalty in the online services of financial service companies. It specifically provides evidence from the Greek stock market. The paper provides a conceptual profile of the financial services industry and how it has been affected by and has made use of innovations in information technology in recent years. It also looks at the four major pillars of the financial services industry. The paper then shows that the theory base for brand loyalty has been based on numerous efforts to model basic consumer behavior in terms of how consumers evaluate alternatives and make purchase decisions.

Table of Contents:
Review of the Literature
Definitions of Terms
Background and Overview
The Financial Services Industry and Information Technology
Customer Loyalty Considerations in the Financial Services Industry
Brand Loyalty and the Importance of Information Technology
Trust and Service Quality Issues
Costs of Switching Services
Chapter Summary

From the Paper:

"In addition, Das (2004) reports that recent advances in information technology have proven to be a facilitating factor for many financial services companies, improving the capability of both investors and creditors to manage their portfolios and undertake better risk analysis of credit and market risks. As Gerstman and Meyers emphasize, though, consumers will still seek out those financial services that can provide them with the best mix of online and traditional services that allow them to maintain existing market share and gain additional inroads on their competition. These authors note that, "Across that entire spectrum, the comprehensive definition of customer or brand experiences will help to shape and guide the way companies manage their brands and achieve competitive advantage" (p. 21). In the final analysis, then, customer satisfaction in and of itself is not sufficient and differentiation must be sought in the conscious development of customer commitment, i.e. loyalty and devotion that transcends short-term 'feel good' relationships by building interdependencies, shared values and mutually beneficial strategies (Lewis & Varey, 2000)."

Sample of Sources Used:

• Bailey, S., & Schultz, D. E. (2000). "Customer/Brand Loyalty in an Interactive Marketplace." Journal of Advertising Research, 40(3), 41.
• Bertels, Thomas. (2003). Rath & Strong's Six Sigma Leadership Handbook. Hoboken, NJ: John Wiley & Sons.
• Brewster, Chris, Hilary Harris and Paul Sparrow. (2004). Globalizing Human Resource Management. New York: Routledge.
• Cocheo, S. (2006). "Does Your Product Line Need a Trim?" ABA Banking Journal, 98(7), 7.
• Das, Dilip K. (2004). Financial Globalization and the Emerging Market Economies. New York: Routledge.

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