This paper uses the context of online banking to investigate the consequences of using self-service distribution channels to alter customer interactions with the firm. Using a sample of retail banking customers observed over a 30-month period at a large U.S. bank, we test whether changes in...

We empirically document factors that influence how local operating managers use discretion to balance the trade-off between service capacity costs and customer sensitivity to service time. Our findings, using data from one of the largest financial services providers in the United States,...

Data Envelopment Analysis (DEA) has been widely studied in the literature since its inception in 1978. The methodology behind the classical DEA, the oriented method, is to hold inputs (outputs) constant and to determine how much of an improvement in the output (input) dimensions is necessary in...

When does increased service quality competition lead to customer defection, and which customers are most likely to defect? Our empirical analysis of 82,235 customers exploits the varying competitive dynamics in 644 geographically isolated markets in which a nationwide retail bank conducted...

This paper investigates the impact of customer compatibility – the degree of fit between the needs of customers and the capabilities of the operations serving them – on customer experiences and firm performance. We use a variance decomposition analysis to quantify the relative importance of...

This paper surveys the changing dynamics, banking technology, and management challenges in the nascent online banking industry. The paper presents four models of online banking that are being used in the industry. The paper also examines the critical role of aligning internal processes,...