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The IUP Journal of Marketing Management
Focus

Consumers play a critical role in deciding the future of companies by their choice of purchase and opinion towards various brands of products. Therefore, marketing organizations have to conduct consumer research regularly to know their choice and preferences before purchase and post-purchase response. This makes the marketing organization improve the quality of their goods and services based on customer’s expectations and post-purchase satisfaction.

This issue commences with the paper, “Cognitive Dissonance and Purchase Involvement in the Consumer Behavior Context”, by Babu P George and Manoj Edward who examine how the degree of personal involvement in a particular purchase decision effects the information needed to reduce cognitive dissonance associated with that purchase. It is proposed by the authors that to overcome the cognitive dissonance, more supportive information is needed, as compared to dissonance associated with low involvement purchase.

The second paper, “Determining Relationship Marketing Instruments”, by Che Aniza Binti Che Wel and Jamil Bojei, aims to explore and empirically test the dimensions of Relationship Marketing Instruments (RMIs) that are appropriate in managing customer relationships. It first examines the concepts of RMIs and its important dimensions followed by reports on the construction and validation of the measure of RMIs. Past literature on this topic had hypothesized five dimensions of RMIs; however, an exploratory factor analysis discovered that RMIs consists of eight dimensions.

The third paper titled, “Consumer Behavior from a Social Communication Perspective: A Research on Young Adults”, by Figen Ebren, focuses on consumer attitude within a group and concepts of social and functional benefits residing in the purchase and ownership of products. The ideas of identifying and measuring consumer tendencies in this regard are relatively new constructs. This study contrasts status-seeking and role-relaxed consumers across social influence and personal factors.

The fourth paper titled, “Involvement Constructs and Paths to Persuasion Models in Decision Making by a Retail Buyer”, by Ramesh Krishnan and Monika Kothari, reflects that there is a need for a model unique to the retailer’s buying behavior and aims to address the issue by giving a new direction to this discipline. The primary purpose of this paper is to assess the involvement constructs and paths to persuasion model in decision making by a retail buyer, especially for a new product introduction decision. Two well-known models in consumer behavior—Elaboration Likelihood model and Heuristic and Systematic Information Processing model have been used to study the retailer’s buying behavior.

The fifth paper titled, “Impact of Service Quality on Customer Loyalty, Commitment and Trust in Indian Banking Sector”, by Sandip Ghosh Hazra and Kailash B L Srivastava, aims to examine the relationship of service quality with customer loyalty, commitment and trust from the customers’ perspective in the Indian banking industry. Implications of the study show that banks should go for loyalty programs and provide better quality services in order to retain customers and get their commitment.

The sixth paper of this issue, “Managing Service Quality: An Empirical Study on Internet Banking”, by Sunayna Khurana, focuses on identifying customer preferences towards on-line banking and finds out various service quality dimensions that affect customer satisfaction in internet banking. Efficiency, responsiveness, fulfillment, privacy of personal information and easiness to use were found to be core service quality dimensions in internet banking.

This issue concludes with a case study, “Enduring Relationship” by T Frank Sunil Justus and B Karthikeyan which analyzes the sales promotion program to build a customer relationship endeavor and the intervening marketing communication scenario to gear itself to meet the threat of competition.

-- B Shafiulla
Consulting Editor

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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Marketing Management