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Bank controlling with a marketing attitude – applied statistics in the service of controlling

Author

Listed:
  • Péter Kalmár
  • Zoltán Zéman
  • János Lukács

    (Szent István University)

Abstract

In this study, the authors present the analysis of 14 regression models (implemented in business practice as well) which examine willingness to buy and were prepared in the past 5 years at three market-leading retail banks in the United Kingdom, as well as the analysis of the output / explanatory variables of these models. The models aimed primarily at existing customers’ willingness related to the buying and repeated buying of instant access, fixed term and ISA-type savings products. The models prepared jointly by the authors and the banks’ own analysts fundamentally served a double purpose. The ultimate business objective was to use the models in real sales campaigns with the intention to elaborate, in addition to the selection criteria of the existing direct marketing system, a selection procedure that gives a more precise estimate of willingness to buy. With the help of the more precise estimation, the new procedure proposes the involvement of only those customers in direct marketing whose willingness to buy is higher than in the case of random selection. This boosts cost efficiency, reduces the number of customer complaints and increases customer satisfaction. The scientific goal of the study is to explore the factors that affect the purchase of bank products, the weight of these factors and the direction of influencing, as well as to call attention to a potential development possibility of the methodology of controlling. The methodological processes described in the study can be applied in the preparation of more accurate product sales forecasts, may serve as a basis for campaign cost optimisation processes and may be part of customer value calculation methods as well. The findings can be utilised in other areas of science and business as well. Firstly, they provide information for controlling specialists responsible for the area of marketing that allows more precise planning, and provide timely insight for business analysts into the area of customer behaviour. Secondly, with this study the authors wish to call attention to the necessity of using up-to-date statistical methods and the results of social science in the field of banking and other services sectors.

Suggested Citation

  • Péter Kalmár & Zoltán Zéman & János Lukács, 2015. "Bank controlling with a marketing attitude – applied statistics in the service of controlling," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 14(4), pages 110-125.
    • Handle: RePEc:mnb:finrev:v:14:y:2015:i:4:p:110-125
    as

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    References listed on IDEAS

    as
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    2. Giliberto, S Michael & Thibodeau, Thomas G, 1989. "Modeling Conventional Residential Mortgage Refinancings," The Journal of Real Estate Finance and Economics, Springer, vol. 2(4), pages 285-299, December.
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    More about this item

    Keywords

    willingness to buy; regression model; key variable; banking sector; marketing controlling; bank controlling;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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