Course Questions On Banks And Consumer Behavior In The Banking Sector (Coursework Sample)

Consumer Behavior in Banks
Name
Institutional Affiliation
1 How do bank consumers perceive the convenient location of the bank branch?
Consumers prefer proximity of their bank branches close to their residential or workplaces. Proximity offers easy accessibility to the bank users. According to Siddique 2012, location is an influential factor in customer bank selection choice. The more the number of bank branches the more convenient it becomes for the customer to transact with the bank and enjoy other financial service offered. Also, convenience of bank location enhances interaction between the bank and the customer (Waite & Ennew, 2013).
2 How do bank consumers perceive inconvenient bank operating hours?
A consumer’s financial institution selection criteria take to account the reliability of the firm towards meeting the client needs. In this case, convenient operational hours as a commercial facility is essential. Considerably, bank users in the UK perceive the operational hours of banks as short thus inconvenient to most users. Therefore, customers’ perception on inconvenient bank operational hours is that of unfairness and lack of customer inclusion or satisfaction. Additionally, it shows the bank’s preference of virtual financial services to real services as seen from the inconvenient operational time CITATION OAr11 \l 1033 (Aregbeyen, 2011).
3 How do bank consumers perceive efficient and prompt enquiries handling?
Fast, accurate and effective service in dealing with customer query is one-way that exhibit quality and excellent customer care service towards clients. Prompt enquiry handling also gives an indication to the customers on the level of proficient of bank employees on financial matters CITATION Hoo12 \l 1033 (Estelami, 2012). Further, the perception of the bank’s reliability to customers exists in such a scenario which enhances customer satisfaction (Saleh et al., 2013).
4 How do bank consumers perceive banks ameliorating their banking services to their expectations?
Despite the existence of diverse customer expectations, commonality occurs at the edge of a bank’s continual upgrade towards meeting customer requests. Saleh et al. (2013), stipulates that the presence of many financial institutions makes the banking industry volatile to client retention. Thus, clients perceive advancement as a positive aspect to sustainable financial growth to bank and themselves. Explicitly, amelioration shows concern and care for the customers by the banking entity.
5 How do bank consumers perceive bank rewards?
Reward schemes act as a catalyst to maintaining customer loyalty amidst the intense competition in the financial market. Users view awards as an aspect used by banks to create lasting relationships with them by the provision of such incentives. Moreover, rewards differ, but they act as an incentive for using a particular bank’s services. On the other hand, rewards serve as the marketing tool for firms, especially under the credit sector. Further, compensation creates a relational link between the customer and the bank. Also, the customer feels appreciated for using a particular bank (Smedley, 2013). Consequently, rewards serve as a catalyst to induce customers to invest more of their financial assets with the bank. Also, use of rewards improves the customer experience.
6 How do bank consumers perceive difficult online bank account access with the pins and security checks?
To the users, the difficulty in accessibility through strict security measures indicates safe accounts and transactions. Online transactions use remote channels which expose huge risk to customer financial accounts. Hence, the difficulty in access curbs fraud and any irregularity in the online operation (The European Consumer Organisation, 2016).
7 Why bank consumers don’t pay attention to TV banks’ adverts?
Consumers perceive advertisements as a camouflaged act to attract and lure individuals to a certain concept. Unfortunately, financial issues are risky and require great precaution that makes people undertake direct physical consultancy (Purkayastha, 2014). Hence, the little attention paid to TV adverts by bank consumers. Additionally, financial institutions offer intangible products thus, a difficulty in marketing to convince customers. Moreover, consumers need to trust the bank with their money leading to the ignorance of adverts (Zeiger, 2016).
8 Explain bank consumers seeking easier financial terms and more understandable banking products features and description?
A survey carried out by CGI in 2014 designates that 84 percent of consumer satisfaction arises from accessibility, reasonable terms and products. The 1,244 consumer survey across U. S, Canada, Germany, U. K, France and Sweden aimed at learning the consumers’ banking preference (CGI, 2014). Due to the unpredictable nature of the financial sector, customers take precaution with investments. Financial security is a factor of consideration in financial product selection. Precisely, easier bank products are financially manageable. Nonetheless, lack of bank product knowledge would lead to the consumer’s financial distress.
9 How do bank consumers perceive the unreliability of online banking system being down at times or not being able to have access?
Consumers regard this as a common challenge. The unreliability of the e-banking system affects the consumer’s financial activities. Thus, the bank user prefers an easily accessible bank branch (Estelami, 2012). On the other hand, inaccessibility of online financial services would be attributed to inadequate expertise by the bank employees. Consumers require accessibility to their funds at all times. Thus, a hindrance to accessibility is an indication of a bank’s failure in rendering its services.
10 How do bank consumers perceive bank advisors behind the till not having full power to execute limited banking enquiries?
Second to price at 42% as a factor to bank choice is quality customer service offered by the banking institution CITATION Ern10 \l 1033 (Ernest&Young, 2010). Customers value the quality of service the bank offers, and this takes into account the customer relation and satisfaction. Therefore, lack of power by bank advisors to execute some services affects the client’ time and resources. On the other hand, consumers perceive a lack of executory power as bureaucratic. Despite the time wastage aspect, it reflects on the bank’s diverse expertise resources to address specific financial matters (Waite & Ennew, 2013).
Explain why bank consumers always want better financial value from their banking services?
In the banking industry delivery of value-added services is essential. Otherwise, customers being dynamic will shift to firms with better services at their financial level. Innovativeness and offer of incentives show the care and value for customer service to individuals. In marketing, the satisfaction of the client's value takes a central place as people tend to maximize their utility at the minimum input combination (financial contribution) (Aregbeyen, 2011). Also, bank users require a high return proportional to their investment. Consequently, the bank’s viability does depend on customers’ deposits to carry out financial services. Hence, the need for consumers to get high financial value.
How do bank consumers perceive bank advisors trying to sell them products/services they don’t need?
Clienteles view this as professional misconduct or an indirect way of stealing from an informed consumer on certain products that are not a necessity to the customer at that time. Further, they act as agents after the customers’ money rather than providing secure and trustworthy services to consumers. In fact, Ernest & Young attribute such conduct as bad service delivery which results in a weak bank-customer relationship and customer dissatisfaction (Ernest &Young, 2010). Intently, building successful relationships in the financial sector is crucial.
How do bank consumers perceive security and being a victim of fraud?
Fraud leads to both emotional and financial loss thus; consumers require high levels of security regarding their finances. Being a fraud victim affects the customer’s perception of protection and safety at the bank. Moreover, such a scam is a personal violation of the trust relayed on one’s bank. Insecurity shatters confidence and trust leading to a damaged bank-customer relationship. Accordingly, it increases dissatisfaction and switching behavior with the bank’s reputation crumbling down (Hoffman, 2012).
Explain why consumers don’t worry about their banking details being misused, as they will get a refund at the end?
Trust is an aspect that many bank customers owe to their financial entities. Therefore, to retain a sufficient bank-customer relationship, banks offer quality services which include secure usage of customer details. Hence, the consumer has a guarantee of compensation in light of personal data misuse by the bank. Otherwise, the financial security policies and measures of banking entities give an assurance to customers concerning their details (Muller et al., 2014). Moreover, banks take caution of misusing customer details to curb on compensatory expenses. In spite of that, lack of understanding and knowledge of the significance of concealing personal bank details by consumers is the problem. Users attach great importance to their cash balances while being negligent to any ...