Teemu Santonen

Price sensitivity as an indicator of customer defection in retail banking

Purpose – The purpose of this research is to analyse how different dimensions of perceived service loyalty including price sensitivity explains the consumer defection in retail banking.Design/methodology/approach – Empirical tests were conducted with survey data from nearly 1,700 consumers in Finland.Findings – The findings support previous suggestion that service loyalty can be determined by following four dimensions, although a shade of interference in the unidimensionality of the service loyalty instrument in question was observed: purchase intention; word‐of‐mouth communication; price sensitivity; and complaining behaviour.Originality/value – It was found that only the price sensitivity dimension – in which reliability and unidimensionality was strongly verified – was related to the likelihood of defection in the case of low‐price and limited product range driven sales offers. Results show that loyal customers are also open to attractive marketing information. This outcome is important since the willi...

National Open Innovation System (NOIS) : Defining a Solid Reward Model For NOIS

With the aim of generating new ideas, a novel online social network (OSN)-based national open innovation system (NOIS) is introduced. Although the motivations to participate in online communities have been studied a lot, impacts of rewards on the open innovation activities such as NOIS have not gained much interest. To create successful innovation systems, it must include options for rewarding all key actors. We will define generic success measures for the NOIS reward model and introduce the body of knowledge regarding rewards in general and in online communities. To summarise our findings, we will suggest a solid reward model for open innovation-based OSNs and NOIS.

Defining a mass customisation strategy for online banking

In this study, we will empirically evaluate the perceived value of the 16 different customisation approaches from the end-user point of view in the context of the online banking environment. In addition, we will investigate which seven typical online banking services would most likely gain the highest value throughout customisation. Based on these two empirical ranking orders, a conceptual cross-classification framework is proposed. As a result, it is suggested that the success of the mass customisation strategy in the online banking environment might depend on 1) the degree of end-user participation and 2) the intensity of the customised service usage. Significantly, the results did not support the previous suggestions that the end-users are willing to pay more for the customised online banking service experience. Managerial implications are discussed in-depth.

Massidea.org: a greener way to innovate

This chapter focuses on the very early phase of the innovation process typically named the fuzzy front end (later FFE) of innovation. We challenge our current understanding of innovation practices at the individual but also at the system level by presenting the novel massinnovation concept. Massinnovation may be defined as: When a wide range of people and their different but complementary insights are brought together, novel ideas generated by thinking outside the box are possible. Massidea.org—smashing ideas founded on a series of innovation theories—is a free-of-charge open innovation community in which people can not only share their ideas, but also discuss today’s challenges as well as visions of the future, which are key factors when creating new innovations. By intelligently connecting people and their brainchildren with the help of content recommendation, a creative space that can boost individual and communal creativity is born. In Massidea.org, public, private, and educational sector organizations and nations can collaborate in a green way with a wide range of people. First this chapter introduces the theoretical foundations of massinnovation, and then, the concept of Massidea.org is discussed in detail.