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    Including the customer in efficiency analysis: evidence of a hybrid relational-transactional approach


    Coughlan, Joseph and Shale, Estelle and Dyson, Robert (2010) Including the customer in efficiency analysis: evidence of a hybrid relational-transactional approach. International Journal of Bank Marketing, 28 (2). pp. 130-149. ISSN 0265-2323

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    Official URL: http://dx.doi.org/10.1108/02652321011018323


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    Abstract

    Purpose: This paper illustrates the effect of including the customer as a resource in efficiency measurement. Variations in counting the customer illustrate the different impacts on efficiency between a transactional and a relational approach to bank branch marketing. Design/methodology/approach The paper uses Data Envelopment Analysis (DEA) to analyse the efficiency of the branch network under consideration. This technique, while well established in the bank branch efficiency literature, is used here to gain insight into how relationship and transactional paradigms are affecting performance. Findings: Although the average profile of the efficiency scores was similar, the scores of the individual branches differed greatly depending on how customers were counted. Some branches then can be typified as relationship oriented while others as transactions oriented bearing in mind that all branches have both remits. Practical implications: Future research in efficiency measurement should include customers as a resource of the bank given the importance of them for the activity of co-production. Careful consideration is required however of the method of accounting for these customers bearing in mind that different conceptualisations may significantly affect the efficiency score of the individual branches. Originality/value: This paper sheds light on what is happening at branch level in a large network in the UK in terms of how transactions and relationship marketing approaches are affecting efficiency scores and the objectives of the branch. It also answers a call (Fruchter and Sigue, 2005) for research into organisations that simultaneously use relationship and transactions marketing.

    Item Type: Article
    Additional Information: This is the postprint version of the published article, which is available at DOI: http://dx.doi.org/10.1108/02652321011018323
    Keywords: Relationship Marketing; Transactions Marketing; Bank branch; Data Envelopment Analysis;
    Academic Unit: Faculty of Social Sciences > School of Business
    Item ID: 6591
    Depositing User: Joseph Coughlan
    Date Deposited: 17 Nov 2015 15:51
    Journal or Publication Title: International Journal of Bank Marketing
    Publisher: Emerald
    Refereed: Yes
    URI:

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