Trust and Switching Costs in the FinancialServices Industry
Especially in the Financial Services Sector we can see a strategic shift towards implementing CustomerRelationship Management (CRM) strategies. The basic assumption of this strategies is that customers who are lockedinto a stable relationship will be willing to pay premiums and by this generate higher margins due to increasingswitching costs over time. As a result of technological progress customers will be able to organize their personal dataenvironment more and more on their own. By this switching from on financial service provider to another becomesmore easy. Hence financial services providers have to develop new strategies for locking in customers. Based on thecharacteristics of financial services, building a trust relationship can be a successful way to do this. Trust-buildingactivities are proposed and general conclusions are provided for financial services firms...
Consumer behaviour ; Applications ; Management of financial services: stock exchange and bank management science (including saving banks) ; Individual Working Papers, Preprints ; No country specification