Understanding the consumption process through in‐branch and e‐mortgage service channels : A first‐time buyer perspective

Purpose – The twin aims of this paper are to explore the differences in the consumption process between the traditional in‐branch and web‐based (e‐mortgage) service channels and how the differences relate to any problems identified in the electronic service environment, with respect to information search and product evaluation. Design/methodology/approach – A process‐oriented approach comparing the two service channels (in‐branch vs e‐mortgage) was conducted in two study phases. Data from the e‐mortgage process were collected using protocol analysis with 12 first‐time buyers (FTBs) applying on a website belonging either to a hybrid or to an internet‐only bank. Results of the e‐mortgage process were mapped on to stages of the in‐branch process, which was captured by observation of six FTB mortgage interviews to determine the level of correspondence and emergent issues. Findings – Support for the FTB in the e‐mortgage process was problematic and service provision was found to be product‐ rather than consumer‐oriented. Practical implications – The study highlights the importance of design issues in the electronic service environment for creating confidence in the online advice and information available on home mortgages for FTBs. Originality/value – The paper promotes increased understanding by financial service providers of the characteristics that support the consultative selling process for complex products such as mortgages and inform multichannel retailing.