- 1. Ko de Ruyter, Professor and Chair, Marketing Department,
Maastricht University The Marketing-Finance Interface: A Relational
Exchange Perspective
2. No school for old men
- During the past two decades strong focus on the marketing of
services, specifically financial services
- Tracing back the origins of the MF interface; The
Marketing-Finance: A Relational Exchange Perspective, Journal of
Business Research (2000)
- Wall street vs. Main street
- Marketing managers: Procedural Fairness (+)
- Finance managers: Interfunctional Rivalry (-)
- Both: Mutual Resource dependence
- The Marketing-Finance Interface: A Relational Exchange
Perspective
3. 2004 New Kid on the Block:
- JBR paper A Marketing-Finance approach towards industrial
channel contract relationships: a model and application
4. We fast forward to 2008:Research on the Formation of Online
Investors Self-Efficacy 5. Current Trend
- Online consumers are active co-producers of financial
services
- Not only trust the bank, but also trust themselves
- Confidence or self-efficacy is based on increasing variety of
information sources
- As a result self-efficacy updating is a dynamic process
- We suspect that different patterns will exist!
6. Service Providers Educate Customers
- Bank of America: tools and independent research to help you
choose the right investments
- ABN-AMRO:TradeGlobe Academy, TradeBox
7. Managerial Problem: How can customers adapt to their new
service role?
- Online investment induces self-defeating behaviors such as
excessive trading because of overconfidence
- This is particularly problematic because:
-
- customers tend to attribute service failures more to the firm
than to themselves,
-
- share these bad experiences effortlessly with online
peers,
-
- and can seamlessly switch to a competitors web site
8. Research Questions
- How can novice investors be successful online?
- Does investors self-efficacy matter?
- How is self-efficacy formed during pre-purchase information
search?
9. Research Design
- Computerized survey using online investment context
- Respondents were asked to invest a predetermined sum of money
in stocks
- Respondents were asked to look at three websites; a firm,
expert, and peer information source of which source evaluations and
self-efficacy were recorded
10. Example: Third-Party Web Site 11. Research Findings
- Highly efficacious consumers:
- have higher usage intentions
- Perceive higher service value
12. Research Findings
- Information source credibility and argument quality increase
self-efficacy
- Consumers differentiate among information sources and weigh
associated evaluations differently
- Focus on third-party credibility and firm argument quality.
Surprisingly, peer source is less relevant.
13. Research Findings
- Amount of search doesnotaffect self-efficacy
- Consumers engagement impacts effect of source evaluations
14. Research Findings
- Multiple investor segments exist based on response to
information:
-
- Segment 1 (n = 89): increases self-efficacy during search
-
- Segment 2 (n = 146): maintains self-efficacy
-
- Segment 3 (n = 22): decreases self-efficacy
15. Research Findings
- Increasing segment: inexperienced, spends high effort, obtains
high profits ( 61.27 after 2 months)
- Maintaining segment: experienced, little less effort, medium
performance ( 52.09)
- Decreasing segment: experienced, low effort, low performance (
1.29), less motivation than other groups
16. Implications
- Control investors information search by partnering with and
linking to credible external information providers
- Provide high quality information:authenticity, consistency,
clarity of content and style, and an explicit and transparent
service recovery strategy
- Increase customers engagement by incorporating interactive user
forums, real-time updates, customizable home pages, and virtual
agents
17. Implications
- Inexperienced investors make up for lack of experience by
spending high effort
- This strategy pays off for novices compared to experienced
investors
- A minority of investors is unmotivated and performs poorly
18. Implications: What to do with underperforming customers?
- Convince customers that spending high effort on information
evaluation and investment decision pays off
- Set realistic service expectations; customer makes own
success
- Make information easy to digest; summary section with necessary
info, click-through to details