Title: An Empirical Study on Financial Products Offered by Indian Retail Banks to Assess the Relationship Between Sale Promotions, Time to Reward Receipt, and Customer Preference
Abstract: Abstract The present study attempts to investigate the impact of sales promotions and the time to reward receipt on customer preference. Moreover, the study also seeks to examine the contingent effect of different types of financial products. Many banks are competing on sales promotion segregation for their customer acquisition because of the highly competitive environment in the banking industry and almost similar financial product portfolios. The types of sale promotions studied are monetary and nonmonetary promotions, and instantaneous and delayed receipt of rewards is examined. Four financial products are studied: credit cards, mutual funds, fixed deposits, and bancassurances. Three-way analysis of variance showed that sales promotions in monetary terms are more preferable than those in nonmonetary terms in the case of all four financial products. Furthermore, instantaneous receipt of rewards is preferred over delayed receipt. Also, the study finds that a monetary promotion on a financial product (credit card) is more effective than offering a monetary promotion on other financial products (mutual funds, fixed deposits, bancassurances). However, the contingent role of the financial product category has no significant impact on the relationship between the time to reward receipt and customer preference. KEYWORDS: customer preferencedelayed reward receiptfinancial productsinstantaneous reward receiptmonetary promotionsnonmonetary promotions
Publication Year: 2012
Publication Date: 2012-10-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 2
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