Retail bank services strategy: A model of traditional, electronic, and mixed distribution choices

被引:24
作者
Byers, RE [1 ]
Lederer, PJ [1 ]
机构
[1] Univ Calif Irvine, Grad Sch Management, Irvine, CA 92717 USA
关键词
automated teller machines; ATM; banking industry; branch banking; channel selection; distribution channels; electronic banking; financial services; PC banking; retail banking;
D O I
10.1080/07421222.2001.11045686
中图分类号
TP [自动化技术、计算机技术];
学科分类号
0812 ;
摘要
Design of a retail banking distribution strategy is an important issue in that industry. This paper shows the effect of new electronic distribution technologies such as PC banking on the choice of a bank's distribution strategy. We present a competitive model of distribution strategy choice, including heterogeneous consumers and banks, that allows a rich variety of customer preference and technology cost parameters. Sensitivity analysis shows how several parameters affect the competitive outcome. This analysis suggests that changing consumer behavior and attitudes, instead of banks' cost structure with new technologies significantly affects the bank's distribution strategy choice. If the segment of consumers that prefers PC banking remains small relative to the segment that prefers branches, then there will still be a market for specialized branch banks. Branch banking without PC banking services will be a viable strategy until the segment that prefers PC banking grows larger (amounting to about 40 percent of all transactions). Banks offering both branch and PC banking services can prevent successful and profitable entry by virtual banks (Internet banks offering only PC banking services) as long as the segment of customers that prefer PC banking remains relatively small (less than two-thirds of all transactions). Beyond this fraction, virtual banks will be profitable. This analysis suggests that it may be a long time (if ever) before virtual banks turn a profit.
引用
收藏
页码:133 / 156
页数:24
相关论文
共 17 条
[1]  
ARACTINGI E, 1994, J RETAIL BANKING, V16, P19
[2]   Mail versus mall: A strategic analysis of competition between direct marketers and conventional retailers [J].
Balasubramanian, S .
MARKETING SCIENCE, 1998, 17 (03) :181-195
[3]  
BAUER JL, 1995, DISTRIBUTION 2000 DE
[4]  
BYERS R, 2000, COMPETITION BANKS
[5]  
CHELST KR, 1988, J RETAIL BANK, V10, P5
[6]   THE ECONOMICS OF QUALITY [J].
DEVANY, AS ;
SAVING, TR .
JOURNAL OF POLITICAL ECONOMY, 1983, 91 (06) :979-1000
[7]   BRANCH PLANNING THROUGH DECENTRALIZED MARKETING AND REGIONAL-ANALYSIS STUDIES [J].
ELIOPOULOS, GO ;
KOUZELIS, AK .
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, 1987, 30 (01) :48-54
[8]  
HAWK K, 1990, BANK MARKETING, V22, P26
[9]   A SPATIAL INTERACTION-MODEL FOR BRANCH BANK ACCOUNTS [J].
HOPMANS, ACM .
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, 1986, 27 (02) :242-250
[10]   Pricing, production, scheduling, and delivery-time competition [J].
Lederer, PJ ;
Li, LD .
OPERATIONS RESEARCH, 1997, 45 (03) :407-420