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Pricing Mechanism of Banking Products

Author

Listed:
  • A. Mussina
  • S. Albekova
  • J. Shakirova

Abstract

The pricing problem of banking services is quite versatile and requires resolving a number of issues. In the context of a competitive banking environment and the expansion of the range of banking services, it becomes necessary to find the most effective mechanisms for making price offers. As a rule, the customer is interested not simply in the banking service, which is available in almost any second-tier bank, but in high quality and affordability. Based on the synthesis of the quality management process of banking services and the pricing process, this article proposes a model for setting prices for banking products and services with regard to their quality. The starting point for the research was the works of domestic and foreign authors on the essence of banking marketing, the relationship between the price of the banking product and its quality, and the problem of choosing possible quality assessment methods by examining a bank credit. The authors' model of an algorithm for finding the price/quality ratio of the banking service is offered, which gives a step-by-step description of the process of assessing the characteristics of the banking service. The article shows what opportunities are opened for the bank subject to the assessment of the price/quality ratio of the banking service.

Suggested Citation

  • A. Mussina & S. Albekova & J. Shakirova, 2018. "Pricing Mechanism of Banking Products," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 665-677.
    • Handle: RePEc:ers:journl:v:xxi:y:2018:i:2:p:665-677
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    File URL: https://www.ersj.eu/dmdocuments/2018_XXI_2_51.pdf
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    References listed on IDEAS

    as
    1. N.P. Gubin & S.A. Litvinova & V.A. Arsenyeva, 2017. "Types of Financial and Credit Products: Concept, Subject, and Place on Russian and Global Financial Market," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 524-529.
    2. Irina Japparova & Ramona Rupeika-Apoga, 2017. "Banking Business Models of the Digital Future: The Case of Latvia," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 846-860.
    3. V.V. Mitrokhin & S.S. Artemyeva & I.K. Simaeva, 2016. "Assessment of the Balance Degree of Loan Companies Banking Policy," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 19-31.
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    More about this item

    Keywords

    Bank leader; service; product; price; quality; marketing. JEL codes: G21; M3Read the Full Paper here;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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