Bank marketing

Purpose – The purpose of this paper is to examine the relationship between market orientation, learning orientation and innovation; and second, assesses the role of innovation, market orientation and learning orientation on firms’ business performance using a developing country (i.e. the Ghanaian banking domain) as a study context. Design/methodology/approach – Following a nation-wide survey among senior managers of 28 banks in Ghana, five research propositions were tested using multiple linear regression analysis. Findings – Results demonstrate that market orientation has significant association with innovation while learning orientation has significant impact on innovation. Moreover, innovation mediates the relationship between market orientation and business performance. Research limitations/implications – This study adopt the cross-sectional research design and as such acknowledge the same limitations as other cross-sectional studies. Practical implications – The research will h...

Purpose-The purpose of this paper is to deepen our understanding of customers' actual internet banking behaviour by combining the construct of technology readiness with the technology acceptance model and demographics, such as age and gender, into one integrated framework. Design/methodology/approach-The customer-specific internet banking acceptance model (CSIBAM) is validated through 435 UK internet banking users. Findings-The results indicate the importance of customer-specific factors in predicting actual behaviour. Technology readiness, age and gender moderate the beliefs-intention relationship. Customers with varying levels of technology-related views and demographics hold different beliefs about technology. The relationship between usefulness and behaviour was stronger for younger males with high levels of optimism and innovativeness (explorers and pioneers), whilst the relationship between ease of use and behaviour was stronger for older females with a high level of discomfort (paranoids and laggards). Practical implications-In today's highly competitive financial services market, knowledge of key customer-specific factors can help banks to enhance customer experience by focusing more on each segment's particular needs. This knowledge would also help managers to decide about the extent to which technology-based systems can be used, the appropriate type of these systems, the pace of implementation, and the type of customer support required. Originality/value-A distinctive contribution of this study is that it does not rely on self-reported intention or usage, but instead it employs actual behavioural data. Greater understanding of seemingly established relationships could improve the design of the service and the development of differential marketing strategies aimed at driving adoption and allaying rejection.

Purpose – The purpose of this paper is to examine the extent to which internal brand management (IBM), a subset of internal marketing, impacts on the three dimensions of job satisfaction ( JS), brand commitment (BC) and intention to stay (IS). Design/methodology/approach – A financial services company in Southern Africa was selected using convenience sampling. Exploratory factor analysis (EFA) was used to identify the dimensions of IBM, BC, JS and IS. Partial least squares path modeling was used to test the model and the hypotheses. The Mann-Whitney test was used to identify any statistically significant differences between frontline staff and management/support staff. Findings – The EFA of the components of IBM did not yield the three expected dimensions. For service staff, IBM significantly contributes to JS, BC and IS. Internal brand communication is the most important contributor to IBM. Research limitations/implications – In common with others, this research uses a limited samp...

Purpose -The purpose of this study is to investigate the effects of work-family conflict, emotional exhaustion, and intrinsic motivation on front-line employees' job performance, job satisfaction, and affective organizational commitment in Turkish retail banks as its setting. Design/methodology/approach -A total number of 363 usable questionnaires were personally retrieved from front-line employees in the research location. The relevant writings were canvassed in order to design the survey instrument. The hypothesized relationships were tested using LISREL 8.30 through path analysis. Findings -Results reveal that work-family conflict increased emotional exhaustion and decreased job satisfaction. Intrinsic motivation was found to exert a significant negative impact on emotional exhaustion. Results demonstrate that high levels of intrinsic motivation resulted in high levels of job performance, job satisfaction, and affective commitment to the organization. The empirical results also indicate that emotional exhaustion exerted a significant negative effect on job satisfaction. As hypothesized, high levels of job performance led to increased job satisfaction. However, work-family conflict and emotional exhaustion did not have any significant effects on job performance and affective organizational commitment. As expected, the empirical results provided support for the significant positive effects of job performance and job satisfaction on affective organizational commitment. Research limitations/implications -Job performance was operationalized via self-report measure. In future research, incorporating non-work variables such as family, leisure and life satisfaction into the research model would shed further light on one's understanding about the relationships of work-family conflict and emotional exhaustion with those variables. Practical implications -Top managements of banks should be committed to establishing and maintaining family-supportive work environments. By doing so, properly trained bank managers can create a culture that helps front-line employees balance work requirements with non-work responsibilities. In addition, these managers should provide ongoing training programs, which aim to teach front-line employees how to manage time effectively and resolve problems associated with work-family conflict and emotional exhaustion. Originality/value -The present study makes useful additions to the current knowledge base by investigating the effects of work-family conflict and intrinsic motivation on emotional exhaustion and the effects of work-family conflict and emotional exhaustion on various job outcomes of front-line bank employees in a developing economy.

Purpose -The purpose of this paper is to examine the effect of internal marketing, organizational commitment and organizational citizenship behaviors on commercial banks' market orientation. Design/methodology/approach -A quantitative survey methodology was adopted to collect data from commercial (non-state owned) banks' employees in Jordan. A sample of 365 employees within seven of 13 Jordanian commercial banks was used. Data were analyzed using AMOS 16.0 to determine the interactions between the various factors. Findings -Empirical findings confirmed that internal marketing, organizational commitment and organizational citizenship behaviors had a positive direct effect on banks' market orientation. In addition, organizational commitment had a positive direct effect on organizational citizenship behaviors. Practical implications -Jordanian commercial banks should convert internal marketing as a strategy into their core operations and systems to meet employees' demands and the bank goals. This conversion shall make employees show their sincere organizational commitment so that they can express the attitude of organizational citizenship behaviors that are beneficial for the banks' operations and survival. Originality/value -The paper introduces a new perspective of the associations and interactions that take place between marketing and organizational behavior concepts which affect organizations' market orientation endeavors. While such perspective is considerably new and relevant to general marketing literature, the fact that this paper is one of few papers that focus on internal marketing in Jordan adds to its originality.

Purpose -The two aims of this paper are to explore the development of trust for relationships between staff and customers in the banking sector and to investigate possible links between financial performance of relationship manager and their levels of emotional intelligence (EI) and trust. Design/methodology/approach -An internet survey was undertaken, where respondents were asked to complete an EI test and questions relating to trusting behaviour. These data were integrated with financial performance data supplied by the bank. Exploratory and confirmatory factor analysis and correlation analysis was used to identify links. Findings -Trust was found to be made up of three components: dependability; knowledge; and expectations. Further, there were significant correlations between both trust and EI, when compared to the financial performance of a relationship manager.

Keen competition in the market of banking products has made effective marketing activities of banks one of the most important factors of their successful functioning. Changes in the technological and socio-cultural environment require the adjustment of current marketing practices, as well as the active introduction of modern methods of promotion. The development of digital means of data transmission and their active use by the population has led to an interest in digital marketing.
The features of bank digital marketing as one of the sectoral types of marketing have been determined. The main characteristics of marketing Ukraine’s banking services have been outlined. The results of the study of major trends in digital marketing used by domestic banks in 2020have been presented. It has been found out that the cost of Internet advertising in the media component of marketing communications increased by 2.9 times up to UAH 2.3 billion, while the volume of television advertising decreased by 8% to UAH 3.9 billion. At the beginning of 2020, the expenses of banking institutions for marketing and advertising increased by UAH 571 million compared with 2016. The results of the research show that in 2020, only 29 out of 75 banks used Chatbots and seven of them used Chatbots as marketing communication channels with their customers. Only 11 banks of Ukraine prove to have significant success in doing marketing activities on social networks. The study allows us to note that most banking organizations are actively using certain digital marketing tools for promotion replacing traditional banking transactions with services based on the use of artificial intelligence, and moving into cyberspace. Only a small number of the analyzed financial institutions use all possible tools of digital marketing. Banking institutions have focused mainly on offering an improved customer experience, with more personalization and more customized services to increase customer satisfaction.

Financial service providers have long placed considerable faith in positive word of mouth communication as a means of attracting new customers and a variety of studies of customer choice of bank highlight the significance of personal recommendation. Given that financial services tend to be characterised by a predominance of experience and credence qualities, word of mouth communication is particularly valuable, providing the potential consumer with vicarious experience of the service under consideration. The impact of word of mouth is probably at its strongest when it originates from social contacts because of their greater perceived reliability. By its very nature, this form of communication is outside the formal control of an organisation and yet its impact is such that the ability to influence or encourage word of mouth could be a powerful marketing tool. This paper provides an exploratory analysis of the importance of word of mouth and the factors which influence its role within an organisation's marketing strategy, with particular reference to customer referral campaigns. Empirical evidence is collected from the (rapidly changing and liberalising) financial services sector in India.

Purpose – The purpose of this paper is to examine the relationship between market orientation, learning orientation and innovation; and second, assesses the role of innovation, market orientation and learning orientation on firms’ business performance using a developing country (i.e. the Ghanaian banking domain) as a study context. Design/methodology/approach – Following a nation-wide survey among senior managers of 28 banks in Ghana, five research propositions were tested using multiple linear regression analysis. Findings – Results demonstrate that market orientation has significant association with innovation while learning orientation has significant impact on innovation. Moreover, innovation mediates the relationship between market orientation and business performance. Research limitations/implications – This study adopt the cross-sectional research design and as such acknowledge the same limitations as other cross-sectional studies. Practical implications – The research will h...

Purpose -This paper aims to examine how international banking groups manage their branding in the context of successive mergers and acquisitions. It seeks to review of a number of case histories in order to show that banking companies tend to evolve a multi-tiered system for absorbing and rebranding acquisitions and it also seeks to present a general framework to guide future research and practice. Design/methodology/approach -The banking industry has been undergoing major consolidation in recent years, with a number of global players emerging through successive mergers and acquisitions. These transactions vary in scale and location, from major mergers of large, equal-sized international entities to acquisitions of smaller, local businesses in various countries all around the world. This paper brings together the literature on mergers and acquisitions, which mostly comes from economics and finance, with the marketing literature on branding and rebranding, to create a framework to help us to understand the management challenge of rebranding bank brands in this context. Citigroup and Crédit Agricole are used as a preliminary test of this framework.

The present paper acknowledges with same limitation that Indian private sector banks and foreign bank's marketing strategies are quite better than our public sector banks. On the basis of performance parameters like deposits, advances, interest income, other income and operating profits, the growth in performance is much better in foreign banks and private sector banks. The paper also suggests some strategies for the enhancement of bank marketing. Only those banks will survive in the future which will adopt effective and realistic strategy to win the trust of the customer.

This paper aims to examine the association between the perception of business school students and their adoption of e-banking services. This study integrates Technology Acceptance Model (TAM) and perceived risk to explain the adoption of e-banking. The study measures customer perception towards the adoption of e-banking services in terms of a) perceived usefulness, b) ease of use and c) perceived risks. Based on descriptive and causal research designs, the study made use of primary data collected through a structured questionnaire surveyed successfully on 159 business school students. By using descriptive statistics, t-test, correlation and regression, the study discovered that customer perception of usefulness, ease of use and risks have impacted on the adoption and use of e-banking services. Among the three perception variables measured, perceived usefulness made the strongest influence on business students’ adoption of e-banking in Kathmandu. The study findings should prove instr...

Describes a study performed in Canada to develop a reliable and valid scale for the measurement of the perceived service quality of bank services. A sample of retail banking customers was questioned. The proposed scale is called banking service quality (BSQ) and comprises 31 items which span six dimensions: effectiveness and assurance; access; price; tangibles; services portfolio and reliability.

... early stages of research, allowing the researcher to gain a better initial understanding of ... because they generally do not believe that Thailand has very strong privacy protection in ... Polatoglu, VN, Ekin, S. (2001), "An empirical investigation of the Turkish consumers' acceptance of ...

Este estudio muestra el estado actual del mercado financiero, desde una perspectiva de estrategia de marketing, se ha usado la metodología de análisis de situación de P. Kotler, a partir de información cuantitativa se han obtenido las variables críticas de segmentación y las estrategias competitivas y de posicionamiento. Además son estudiadas las 7P de servicio aplicado a la industria en Chile.
Se encuentra una industria de difícil acceso, donde se siguen utilizando de manera importante variables de tipo socioeconómicas para la segmentación, con crecientes regulaciones y una alta competitividad, con participantes que tienden a fusionarse para abarcar de mejor forma el mercado. La estrategia más usada en la actualidad es la de  banco global que atiende toda la gama de productos disponibles con sucursales especializadas para cada uno.
A pesar que el servicio tiene un alto nivel de estandarización en cuanto a la gama de productos y a los procedimientos, aún se pueden enfocar las estrategias a acciones que produzcan valor agregado como la absorción de servicios, transparentar la información y hacer más seguras y cómodas sus interacciones con el banco. El avance conseguido en banca electrónica hoy cubre las necesidades de los clientes de forma más eficiente y oportuna, esto significará a largo plazo una reducción importante en costos operativos.
Se ha tomado una muestra de las instituciones más representativas según su estrategia de negocio y su participación de mercado, tendrá un alcance exploratorio y está basado en información secundaria obtenida a partir de organismos regulatorios del sector, de análisis de datos tanto gubernamentales como privados además de artículos de prensa y sitios web especializados. Los datos se encuentran actualizados al segundo semestre de 2014 y están disponibles de forma pública.

Purpose -This research seeks to explore the role played by ethical reputation in amplifying the positive impact of value received by the customer on satisfaction with the supplier and ultimately loyalty. Design/methodology/approach -Survey responses derived from 299 customers, concerning two large financial institutions within Chile, are used to test relationships among ethical perceptions, customer value, satisfaction, and loyalty. Hypotheses are tested with a structural equation model. Findings -Results show that ethical perceptions about the organization amplify the impact of customer value on customer satisfaction and eventually loyalty. Research limitations/implications -This study contributes to the existing literature by showing that ethical perceptions from customers can help financial institutions achieve higher levels of satisfaction and loyalty. Study findings rely on customer survey responses collected in one country and one industry. Generalizability of findings is yet to be tested. Practical implications -Ethical reputation helps financial institutions retain their customers. Originality/value -This is the first study showing that customer perceptions about company ethics amplify the positive impact of customer value on customer satisfaction.

Purpose -This study seeks to investigate the role of internet trust as a specific form of technology trust in the context of internet banking. Furthermore, the integration of propensity to trust within the hierarchical structure of personality and its applicability to technological systems are investigated. Design/methodology/approach -The approach takes the form of an empirical study with 381 bank customers in Austria (adopters and non-adopters) and the use of a basic model of the adoption of internet banking with structural equation modelling (SEM). Findings -The results confirm the influence of internet trust on risk perception and consumer attitudes towards internet banking. Propensity to trust is a determinant not only for interpersonal relationships but also for trust in technological systems. Research limitations/implications -This is not a representative study. Future research is encouraged to systematically investigate further facets of the personality structure in trust and adoption research, as well as to test interaction effects of psychological determinants (from the study) and external stimuli (web site characteristics). Practical implications -Making the internet banking interface for the customer more attractive and easier to navigate is not enough to increase the adoption rate of internet banking. Trust-creating activities to increase internet trust and to diminish perceived risk must be continuously pursued. Propensity to trust is an important determinant in the fruitfulness of these actions. Originality/value -The paper presents the conceptualization of internet trust as a specific form of technology trust, and its pivotal role in the adoption process of internet banking, together with the extension of the propensity to trust concept to technological systems.

Supervised classification covers a number of data mining methods based on training data. These methods have been successfully applied to solve multi-criteria complex classification problems in many domains, including economical issues. In this paper we discuss features of some supervised classification methods based on decision trees and apply them to the direct marketing campaigns data of a Portu-guese banking institution. We discuss and compare the following classification methods: decision trees, bagging, boosting, and random forests. A classification problem in our approach is defined in a scenario where a bank's clients make decisions about the activation of their deposits. The obtained results are used for evaluating the effectiveness of the classification rules.

Purpose-This paper aims to empirically examine the factors that affect the adoption of online banking in Vietnam. Perceived usefulness, perceived ease of use, trust and government support were examined to determine if these factors are affecting online banking adoption. Design/methodology/approach-A survey was distributed to 156 respondents in Vietnam with 103 usable samples giving a response rate of 66 percent. Data were analyzed by employing correlation and multiple regression analysis. Findings-The results showed that perceived usefulness, trust and government support all positively associated with the intention to use online banking in Vietnam. Contrary to the technology acceptance model, perceived ease of use was found to be not significant in this study. Research limitations/implications-This study was conducted in Vietnam and future research can use this model to study the adoption of online banking in other countries. Practical implications-The results allow banks' decision makers to develop strategies that can increase the adoption of online banking. Banks should improve the security and privacy of the web sites, which will increase the trust of users. Banks should also create features which are useful to users and make sure users are aware of these features. Lastly, government should also play a role to support banks in their efforts to increase online banking adoption. Originality/value-The findings allow the factors that can influence the adoption of online banking in Vietnam to be understood. Unlike existing studies based on Technology Acceptance Model (TAM), this study includes both security and government support on top of the existing variables used in TAM. Most studies on adoption of online banking are focused on developed countries. By focusing on Vietnam, this model can also be applied to other countries which are relatively new to e-commerce and online banking.

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Purpose-This paper aims to empirically examine the factors that affect the adoption of online banking in Vietnam. Perceived usefulness, perceived ease of use, trust and government support were examined to determine if these factors are affecting online banking adoption. Design/methodology/approach-A survey was distributed to 156 respondents in Vietnam with 103 usable samples giving a response rate of 66 percent. Data were analyzed by employing correlation and multiple regression analysis. Findings-The results showed that perceived usefulness, trust and government support all positively associated with the intention to use online banking in Vietnam. Contrary to the technology acceptance model, perceived ease of use was found to be not significant in this study. Research limitations/implications-This study was conducted in Vietnam and future research can use this model to study the adoption of online banking in other countries. Practical implications-The results allow banks' decision makers to develop strategies that can increase the adoption of online banking. Banks should improve the security and privacy of the web sites, which will increase the trust of users. Banks should also create features which are useful to users and make sure users are aware of these features. Lastly, government should also play a role to support banks in their efforts to increase online banking adoption. Originality/value-The findings allow the factors that can influence the adoption of online banking in Vietnam to be understood. Unlike existing studies based on Technology Acceptance Model (TAM), this study includes both security and government support on top of the existing variables used in TAM. Most studies on adoption of online banking are focused on developed countries. By focusing on Vietnam, this model can also be applied to other countries which are relatively new to e-commerce and online banking.

Simplex transmission means such as advertisement and other promotion activities are no longer efficient for the banks. To increase the efficiency in promoting and communicating, simplex transmission activity should be converted to a communication activity. Target is not the " mass " but the " individual's in today's banking business. Because of these reasons it is a necessity to reach individuals, determine their expectations via specialized tools, and build up strategies for these expectations. Social media helps banks to produce concurrent, effective and fast solutions with its opportunities for practicing the aimed communication at this level. In addition, it became a solution partner as a flexible and low-budget communication channel. Wide properties of social media tools are going to surpass present media tools as " classical media " and be a pioneer in developing these kinds of new generation tools as " neo-media " .

The role of trust encompasses the exchanges and interactions of a retail bank with its customers on various dimensions of online banking. Specifically lays stress on the bank-to-customer exchanges taking place through the technological interface. Hypothesizes shared value, communication and opportunistic

Diajukan sebagai salah satu syarat untuk menyelesaikan Program Pasca Sarjana Pada Program Magister Manajemen Universitas Diponegoro Disusun Oleh: NOVEL FATRIO, SE NIM. C4A004173 PROGRAM STUDI MAGISTER MANAJEMEN PROGRAM PASCA SARJANA UNVERSITAS DIPONEGORO SEMARANG 2006 ii Sertifikasi Saya, Novel Fatrio, SE, yang bertanda tangan dibawah ini menyatakan bahwa tesis yang saya ajukan ini adalah hasil karya saya sendiri yang belum pernah disampaikan untuk mendapatkan gelar pada program Magister Manajemen ini ataupun pada program lainnya. Karya ini adalah milik saya, karena itu pertanggungjawabannya sepenuhnya berada di pundak saya Novel Fatrio, SE 16 Juni 2006 iii PENGESAHAN TESIS Yang bertanda tangan dibawah ini menyatakan bahwa draft tesis berjudul: ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI KEPUASAN NASABAH DALAM MENINGKATKAN LOYALITAS NASABAH (Studi Kasus: Pada PT. Bank Bukopin Kantor Cabang Tegal) yang disusun oleh Novel Fatrio, SE, NIM C4A004173 telah dipertahankan di depan Dewan Penguji pada tanggal 16 Juni 2006 dan dinyatakan telah memenuhi syarat untuk diterima Pembimbing Utama Pembimbing Anggota Prof. Dr. H. Suyudi Mangunwihardjo Dr. FX Sugiyanto, MSc Semarang, 16 Juni 2006 Universitas Diponegoro Program Pascasarjana Program Studi Magister Manajemen Ketua Program Prof. Dr. H Suyudi Mangunwihardjo iv ABSTRACT The purpose of this research is to test the influences of product excellence, trust, customer value, product excellence and company impression toward customer satisfaction and the effect to improvement of customer loyalty. Using these variables, caused by result of the research before Mital et althe direct influences of product excellence, trust, customer value, product excellence and company impression toward customer satisfaction and the effect to improve customer loyalty. The usage of these variables are able to solve the arising problem within PT. Bank Bukopin Tegal branch, which high degree of criticize accepted by PT. Bank Bukopin Tegal branch, where mean in its monthly PT. Bank Bukopin Tegal branch accept 19 negative criticism and 13 positive criticism, height mount the criticism its effect to decrease customer loyalty. The samples of this research are 120 customer of PT. Bank Bukopin Tegal branch. Structural Equation Modeling (SEM) was run by an AMOS software for data analysis. The result of the analysis showed that product excellence, trust, customer value, product excellence and company impression has positive influence which is significant toward customer satisfaction, customer satisfaction has positive influence which is significant toward customer loyalty.

Banking sector can be considered as main recipient in recent economic downturn. There is a need for better strategies in this sector. As a result of the continuing movement towards deregulation and the associated increase in competition, establishing a long-term institutional relationship with corporate clients becomes of great importance to the banks in order to gain a moderate or greater share of the financial market and of a corporation's business. In effect, because the bank provides its corporate client with additional facilitating and supporting services, the demand for banking products and services by a partnership relationship client will be less sensitive to price than is the demand by a shortterm, non-relationship customer. This study examines the commitment-trust dimension of the relationship marketing paradigm in Sri Lankan's corporate banking sector. Random sample method has been used with questionnaire. The findings show that the marketing strategy and a long-term marketing orientation were positively correlated with customer commitment and trust. And To continue to be successful in the corporate sector, banks must invest in the long-term relationship marketing activities.

Purpose -The purpose of this research is to analyse the dimensionality of the concept of perceived value in the banking sector, adapting the GLOVAL scale of measurement of perceived value to the banking services sector. Design/methodology/approach -A total of 200 customers of financial entities were surveyed, and structural equations models were used to verify the reliability and validity of the scale of perceived value. Findings -Perceived value is found to be a multidimensional construct composed of six dimensions: functional value of the establishment, functional value of the personnel; functional value of the service; functional value price; emotional value; and social value. A scale of overall perceived value in financial services was obtained, composed of six dimensions and represented by 22 items that are significant for their measurement. Research limitations/implications -In future studies it would be interesting to include items to measure non-monetary sacrifices, such as waiting times, queues, etc. Practical implications -A tool for measuring the value of financial entities as perceived by the customer is presented; with it the value perceived by customers can be quantified, evaluated and monitored.

This paper presents an analysis of customer choice criteria in the home loans market in the UK. In particular, the study investigates the relative importance of choice criteria according to consumers and also analyses differences in the importance of choice criteria with respect to a number of demographic and related factors.

Purpose-The increasing number of banks in the Ghanaian banking industry has brought about intense competition in the industry. The purpose of this paper is, therefore, to examine the factors that influence retail banking customers' loyalty intentions. Design/methodology/approach-In order to validate the proposed research model, the study adopts a survey design. Data were collected from 565 customers of the top performing banks in terms of customer deposits. Data analysis employed the partial least squares structural equation modeling (PLS-SEM) using SmartPLS version 3. Findings-Results from the PLS-SEM analysis indicated that satisfaction, service quality and trust had significant effect on loyalty, with satisfaction having the most significant effect. Interestingly corporate image was found to have a significant effect on both satisfaction and trust but not on loyalty. In all, the proposed model accounted for 63.3 percent of the variation in loyalty. Research limitations/implications-The current study samples customers from only the top performing banks in Ghana. The use of cross-sectional data makes it impossible to study how customers' perceptions change over time. Results from this study could, however, help managers of banks in designing strategies aimed at improving customer loyalty in order to consolidate their market share. Originality/value-This paper adds to existing works that focus on loyalty in the retail banking sector, especially from the context of a developing economy. The study draws attention to the interrelationship among service quality, perceived value, satisfaction, image, trust and loyalty.

We use a survey of individual investors disclosed by the Portuguese securities commission (CMVM) in May 2005 to study the impact of investors' levels of financial literacy on portfolio diversification. We consider distinct aspects of financial literacy, and control for socioeconomic and behavioral differences among individual groups of investors. Our results suggest that investors' educational levels, their financial knowledge and the information sources used by retail investors to gather information on markets and financial products have a significant impact on the number of different assets included in a portfolio.

Purpose -This paper aims to re-examine the role of traditional service quality in an e-banking environment by providing a review of how traditional service quality perceptions have evolved through the current and continuing stream of change in banking technology and the corresponding changes in the nature of how banks interact with their customers. Design/methodology/approach -Data were collected from a mail survey sent out to a commercially purchased mailing list of 2,500 business names and addresses. The overall usable response rate was 30.6 per cent. Quadrant analysis was performed on the service quality dimensions from the SERVQUAL scale. Findings -While the importance ranking of the five SERVQUAL dimensions has not changed dramatically over the years, large discrepancies were found between customer expectations and their perceived performance of traditional banking services. Practical implications -Quadrant analysis produced specific recommendations on how banks should prioritise the allocation of their resources to maintain high perceived service quality in their human interactions. Originality/value -This is the first study which revisits and re-examines traditional service quality in the e-banking era. It highlights how high levels of traditional service quality may lead to increased customer trust and thus more successful cross-selling of e-banking products to customers.