1. Online banking and privacy: redesigning sales strategy through social exchange.
- Author
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Liyanaarachchi, Gajendra, Deshpande, Sameer, and Weaven, Scott
- Subjects
INTERNET privacy ,SOCIAL exchange ,ONLINE banking ,SALE of banks ,GROUNDED theory ,POWER (Social sciences) ,COMPETITIVE advantage in business - Abstract
Purpose: This paper advocates for banks to understand customers' online privacy concerns, use those insights to segment consumers and design tailored sales strategies to build a mutual relationship through a social exchange that produces a competitive advantage. Design/methodology/approach: A qualitative study involving 30 in-depth interviews with Australian and Asian millennials residing in Australia was conducted using a grounded theory approach to explore privacy concerns of online banking and determine the efficacy of their banks' existing sales strategy and practice. Findings: The study revealed differences in customer perceptions of trust, confidence, responsibility and exchange. Adopting a power-dependency paradigm within a social exchange theoretical framework and power distance belief of national culture theory, the authors identified four consumer segments: exemplar, empiric, elevator and exponent. The authors propose a tailored consumer-centered sales strategy of communication, control, consolidation and collaboration. Originality/value: The paper contributes to the research in services marketing, sales strategy and banking in three ways: first, the authors demonstrate the importance of the social exchange theory and national culture as a premise to develop a competitive advantage; second, the authors propose an innovative set of consumer segments in regards to online privacy concerns; and, third, the authors introduce four sales strategies tailored to each of the four segments. [ABSTRACT FROM AUTHOR]
- Published
- 2021
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