Online banking and privacy : redesigning sales strategy through social exchange
Purpose: This paper advocates for banks to understand customers' online privacy concerns, use those insights to segment consumers and design tailored sales strategies to build a mutual relationship through a social exchange that produces a competitive advantage. Design/methodology/approach: A qualitative study involving 30 in-depth interviews with Australian and Asian millennials residing in Australia was conducted using a grounded theory approach to explore privacy concerns of online banking and determine the efficacy of their banks' existing sales strategy and practice. Findings: The study revealed differences in customer perceptions of trust, confidence, responsibility and exchange. Adopting a power-dependency paradigm within a social exchange theoretical framework and power distance belief of national culture theory, the authors identified four consumer segments: exemplar, empiric, elevator and exponent. The authors propose a tailored consumer-centered sales strategy of communication, control, consolidation and collaboration. Originality/value: The paper contributes to the research in services marketing, sales strategy and banking in three ways: first, the authors demonstrate the importance of the social exchange theory and national culture as a premise to develop a competitive advantage; second, the authors propose an innovative set of consumer segments in regards to online privacy concerns; and, third, the authors introduce four sales strategies tailored to each of the four segments.
Year of publication: |
2021
|
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Authors: | Liyanaarachchi, Gajendra ; Deshpande, Sameer ; Weaven, Scott |
Published in: |
International Journal of Bank Marketing. - Emerald, ISSN 0265-2323, ZDB-ID 2032104-1. - Vol. 39.2021, 6 (24.06.), p. 955-983
|
Publisher: |
Emerald |
Saved in:
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