Technology and Customer Value Dynamics in Banking Industry: Measuring Symbiotic Influence in Growth and Performance

Prof Rajagopal

No 2006-07-MKT, Marketing Working Papers from Tecnológico de Monterrey, Campus Ciudad de México

Abstract: This paper attempts to critically examine the available literature on the subject, discuss a model that provides a framework for analyzing the variables associated with customer value, and to identify potential research areas. The paper argues through a set of linear equations that maximizing customer value which is interdependent factor for technology adoption and profit optimization in the banks need to be backed with appropriate economic parameters for attaining competitive efficiency and optimizing profit. The framework of the construct is laid on the theory of competitive advantage and customer lifetime value, so as to maximize the potential of the organization and all its subsystems to create and sustain satisfied customers. The paper draws theoretical impetus from new technologies in banking services such as mobile banking in the North American region and discusses the technology led marketing process towards optimizing profit. The discussion in the paper also analyzes the main criteria for successful internet-banking strategy and brings out benefits of e-banking from the point of view of banks, their technology and customer values and tentatively concludes that there is increasing returns to scale in the bank services in relation to the banking products, new technology and customer value.

Keywords: Banking technology; customer value; profit optimization; diffusion and adoption process (search for similar items in EconPapers)
JEL-codes: C21 C51 D21 D91 G21 O14 O33 (search for similar items in EconPapers)
Date: 2006-08
New Economics Papers: this item is included in nep-ban, nep-cse, nep-fin, nep-fmk, nep-ino and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://alejandria.ccm.itesm.mx/egap/documentos/2006-07-MKT.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to alejandria.ccm.itesm.mx:80 (No such host is known. )

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ega:wpaper:200607

Access Statistics for this paper

More papers in Marketing Working Papers from Tecnológico de Monterrey, Campus Ciudad de México Contact information at EDIRC.
Bibliographic data for series maintained by Amaranta Arroyo (egap.ccm@servicios.itesm.mx this e-mail address is bad, please contact repec@repec.org).