Integration of information technology (IT) systems into the organizational structure of a banking organization is an important key to success (Gretzel et al. 2000). In addition, technology has facilitated the relationship building process with customers by providing systems with the capabilities to obtain customer information and translate it into benefits for both the organization and the customer (Zineldin 2000). The information gathered through technology allows banking organizations to customize products and services for the customer (Ahn, Kim, & Han 2003).
Web-based technology applications have helped bankers perform their job more effectively and efficiently by distributing information to customers at their convenience and assisting in information searches. Some examples of the impact the internet has had on businesses include the opportunity for online advertising to be targeted to an audience and deliver advertisements that are customized to their needs, interest and taste (Gretzel et al. 2000). In the past decade the Internet has become a powerful marketing tool for banking organizations.
Banks have used websites as an information portal, transaction engine, and decision making tool for customers. The development of electronic business and its different functions offers new opportunities for collaboratively banking products (Palmer & McCole 2000). However, there is now an increase in the use and importance of IT use within the banking organization to support administrative activities like marketing and finance (Yuan et. al. 2006). On the other hand, the business-business aspect of IT use has been limited to general information provision and exchange (Yuan. et al. 2006).
However, the same organizations that have utilized the IT to perform the transactions mentioned above have failed to exploit the full benefits of creating a relationship with their customers through web-based marketing strategies such as effectively providing information on products and services, e-commerce transaction functions, personalization/customization capabilities, and customer loyalty or retention programs (Bauer, Grether, & Leach 2002;
Wang & Fesenmaier 2006). Since the main function of E-banking is to market its products, it is imperative to discuss marketing and its evolution from a relationship marketing perspective. Since the introduction by McCarthy (1960) of the marketing mix, the 4 Ps of marketing (price, product, place and promotion) has been viewed as a promotional technique for a product or a service with the main focus placed on the 4 Ps of marketing. An evolution of marketing strategies has occurred to reflect the changes in the customer needs and principle based accounting advantages.
Marketing has evolved from a transaction focused activity to a relationship building activity performed by most organizations to promote long and profitable business relationships. The aim of Internet marketing is to create long lasting relationships with customers, provide a better customer experience and create greater customer satisfaction to build long-lasting relationships (Kotler, Bowen, & Makens 2006). One way to accomplish a competitive advantage over other organizations is for the organization to create a mutually beneficial relationship with customers.
Building this relationship helps create customer loyalty since the customer perceives that the firm appreciates and values the customer’s commitment to the company. The literature indicates the implementation of the different web-based marketing activities within organizations depends on organizational characteristics like company culture, company size, financial resources, technological expertise and experience, organizational flexibility, and managerial support of new technological implementations (Goode & Stevens 2000; Gretzel et al. 2000; Thong 1999; Wang & Fesenmaier 2006; Zhu & Kraemer 2005).
Web-based technology applications have helped bankers perform their job more effectively and efficiently by distributing information to customers at their convenience and assisting in information searches. Some examples of the impact the internet has had on businesses include the opportunity for online advertising to be targeted to an audience and deliver advertisements that are customized to their needs, interest and taste (Gretzel et al. 2000). In the past decade the Internet has become a powerful marketing tool for banking organizations.
Banks have used websites as an information portal, transaction engine, and decision making tool for customers. The development of electronic business and its different functions offers new opportunities for collaboratively banking products (Palmer & McCole 2000). However, there is now an increase in the use and importance of IT use within the banking organization to support administrative activities like marketing and finance (Yuan et. al. 2006). On the other hand, the business-business aspect of IT use has been limited to general information provision and exchange (Yuan. et al. 2006).
However, the same organizations that have utilized the IT to perform the transactions mentioned above have failed to exploit the full benefits of creating a relationship with their customers through web-based marketing strategies such as effectively providing information on products and services, e-commerce transaction functions, personalization/customization capabilities, and customer loyalty or retention programs (Bauer, Grether, & Leach 2002;
Wang & Fesenmaier 2006). Since the main function of E-banking is to market its products, it is imperative to discuss marketing and its evolution from a relationship marketing perspective. Since the introduction by McCarthy (1960) of the marketing mix, the 4 Ps of marketing (price, product, place and promotion) has been viewed as a promotional technique for a product or a service with the main focus placed on the 4 Ps of marketing. An evolution of marketing strategies has occurred to reflect the changes in the customer needs and principle based accounting advantages.
Marketing has evolved from a transaction focused activity to a relationship building activity performed by most organizations to promote long and profitable business relationships. The aim of Internet marketing is to create long lasting relationships with customers, provide a better customer experience and create greater customer satisfaction to build long-lasting relationships (Kotler, Bowen, & Makens 2006). One way to accomplish a competitive advantage over other organizations is for the organization to create a mutually beneficial relationship with customers.
Building this relationship helps create customer loyalty since the customer perceives that the firm appreciates and values the customer’s commitment to the company. The literature indicates the implementation of the different web-based marketing activities within organizations depends on organizational characteristics like company culture, company size, financial resources, technological expertise and experience, organizational flexibility, and managerial support of new technological implementations (Goode & Stevens 2000; Gretzel et al. 2000; Thong 1999; Wang & Fesenmaier 2006; Zhu & Kraemer 2005).
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