Manuel Sánchez-Pérez

Characterising the deal-proneness of consumers by analysis of price sensitivity and brand loyalty: an analysis in the retail environment

This study characterises the ‘deal-proneness’ of consumers by analysis of the consumer-level characteristics of price sensitivity and brand loyalty. The study first develops a multinomial logistic (MNL) latent class model suitable for use with universal product code (UPC) point-of-sale (hypermarket) scanner data. The model is then used to assess the deal-proneness of consumers with respect to monetary promotions (price reductions) and non-monetary promotions (store flyers). The results show that almost 47% of consumers can be considered deal-prone, in that both kinds of sales promotions have a significant effect on their choice behaviour. The findings provide important insights for retail management in seeking to optimise the results obtained from promotional budgets.

Service Quality in Public Services as a Segmentation Variable

The application of perceived service quality to marketing segmentation makes a significant contribution to customer quality expectations by enabling more efficient segmentation. By means of an empirical analysis, the present work firstly contrasts the validity of perceived service quality measurements in public services. It goes on to analyse the usefulness of this concept as a segmentation criterion. Finally, customer segments are identified as a function of perceived quality and profiles are established for each segment. This study proves that service quality is a useful tool for segmentation in public services.

Nurturing employee market knowledge absorptive capacity through unified internal communication and integrated information technology

Organizations that are actively engaged in the dissemination of market information frequently question whether this effort improves employee information processing. We examined how the adoption of two integrative dissemination mechanisms, unified internal communication and information technology integration, is critical to enhancing employee market knowledge absorptive capacity. Using data from 211 industrial firms, we found that the existence of a greater market knowledge base and explicit market knowledge within firms determines the use of these mechanisms, which in turn increases employee absorptive capacity. Indeed, the mechanisms serve as full mediators for this ability, thus accentuating their value for knowledge, information technology, and innovation management.

A model to improve management of banking customers

Purpose The purpose of this paper is to provide a customer lifetime value (CLV) model to carefully assess and classify banking customers using individual measures and covering customers’ relationships with a portfolio of products of the company. Design/methodology/approach The proposed model comprises two sub-models: (sub-model 1) modelling and prediction of CLV in a multiproduct context using Hierarchical Bayesian models as input to (sub-model 2) a value-based segmentation specially designed to manage customers and products using the latent class regression. The model is tested using real transaction data of 1,357 customers of a bank. Findings This research demonstrates which drivers of customer value better predict the contribution margin and product usage for each of the products considered in order to get the CLV measure. Using this measure, the model implements a value-based segmentation, which helps banks to facilitate the process of customer management. Originality/value Previous CLV models are mostly conceptual, generalisation is one of their main concerns, are usually focussed on single product categories using aggregated customer data, and they are not design with a special emphasis on their application as support for managerial decisions. In response to these drawbacks, the proposed model will enable decision makers to improve the understanding of the value of each customer and their behaviour towards different financial products.

How customers’ offline experience affects the adoption of online banking

Purpose The purpose of this paper is to examine the impact of customers’ offline transaction behaviour in the form of loyalty and cross-buying on the adoption of self-service technology innovations by non-business customers in the context of online banking. Design/methodology/approach This study extends the Diffusion of Innovation Theory, as well as the Technology Acceptance Model adapted to describe and model individual customer observed behaviours in the pre-adoption stage of the adoption process. The Log-logistic parametric survival model is applied using panel data for 1,357 randomly selected new customers from a bank. Findings Significant differences arise among customers’ behaviours related to periodicity of interactions with the bank and quantity of products involved in the interactions, as well as convenience and risk of the interactions. The results corroborate that those customers who are more likely to adopt the online banking faster show an offline behavioural pattern more related to higher periodicity of interactions and convenience, rather than a high number of products involved in their interactions, the use of high-risk products or the maintenance of a higher average monthly liabilities. Originality/value While previous research explaining the process of adoption of the online channel has mainly focused on the analysis of customers’ attitudes (i.e. customers’ perceptions) and demographics, in this research an additional explanation is proposed using customers’ offline transaction behaviours. In addition, there is a considerable amount of research about the adoption of new technologies, but there is a scarcity of studies looking specifically at the financial services and banking industry.

Estimating Customer Potential Value using panel data of a Spanish bank

The main goal of this paper is the calculation of a multi-product model of Customer Potential Value using the Probit method. The results of this first analysis are used to perform an ex-post segmentation of customers, whose output can be employed to improve Customer Relationship Management strategies of the companies. Our research contributes to the consumer behaviour literature insofar as, according to our knowledge, no previous work has examined collectively the proposed drivers of Customer Potential Value in a multi-services retailer. To achieve these objectives, we use a panel data of a Spanish bank. The results allow us to confirm the influence of a set of behavioural variables on the ownership of different banking products and identify those customers whose value is higher and lower through the calculation of Customer Potential Value.

How Store Flyers Affect Consumer Choice Behaviour: National Brands vs. Store Brands

Feature promotions or advertised deals constitute an important element of retailer promotion activities. In particular, the effectiveness of store flyers is one of the aspects of most concern to the marketing managers of retail stores as part of their marketing strategy. This paper looks to shed more light on this issue by analysing the effect of brand presence in flyers on consumer choice for both national brands and store brands. To this end, a Multinomial Logit Model (MNL) is estimated with parameters specific to brands using store-flyers. With these specific parameters, a “competitive flyer effect” ratio is estimated in order to establish which brand benefits from being featured in the same flyer. The results provide key insights for both retailers and manufacturers on how to improve the effectiveness of store flyers.