It's Not What You Get but When You Get It: The Effect of Gift Sequence on Deposit Balances and Customer Sentiment in a Commercial Bank

Haisley, Emily; Loewenstein, George
February 2011
Journal of Marketing Research (JMR);Feb2011, Vol. 48 Issue 1, p103
Academic Journal
The authors examine the impact of gifts on deposit balances and customer satisfaction in a longitudinal field experiment conducted at a commercial bank. They find that gifts increased deposit balances, survey response rates, and customer satisfaction compared with the no-gift control. They manipulated several factors within the gift treatment: gift type, the accompanying message, and the sequence of gift value, which improved ($35 then $100 gift), worsened ($100 then $35 gift), or was a single gift. A highly detrimental effect of decreasing gift value occurred on deposit balances. This 'deterioration aversion' persisted in a long-term follow-up analysis of deposit balances. A vignette experiment replicates deterioration aversion and extends the results, demonstrating increased effectiveness of improving gifts over constant gift sequences and indicating that the mechanism underlying deterioration aversion involves the violation of expectations.


Related Articles

  • Implementation of Relationship Marketing in Albanian Banking Sector and Corporate Customers' Perceptions. Kromidha, Jonika; Kristo, Ilia // Journal of Economic Development, Management, IT, Finance & Marke;Sep2014, Vol. 6 Issue 2, p1 

    This study employs an inductive research approach to explore Relationship marketing in Albanian Banking Sector and gain an understanding of corporate customers' views of Relationship marketing activities and corporate customer satisfaction in banking sector, the possibility of a gap existence...

  • Providing E-Satisfaction. Aldisert, Lisa // Bank Marketing;Jan2000, Vol. 32 Issue 1, p53 

    Focuses on ways to create satisfaction for online bank customers. Overview of the survey result of a study conducted by Forrester Research; Comparison of some Web sites in terms of customer services.

  • Like Weight Watchers -- For Savers. Lepro, Sara // American Banker;8/3/2010, Vol. 175 Issue 118, p1 

    The article examines efforts by banks to market savings accounts to customers. The increased rate of savings by U.S. consumers in the wake of the global financial crisis has created new interest in banks in marketing savings accounts. Since interest rates on bank deposits are low, some banks are...

  • Full Customer View Is Overrated. Silverman, Scott // American Banker;6/23/2011, Vol. 176 Issue 97, p8 

    The author offers opinions on bank marketing and customer relations, arguing that it is not necessary for banks to have comprehensive data on their customers' banking activities to effectively sell new services to them.

  • Big Payoff. Stewart, Deb // ABA Bank Marketing;Sep2007, Vol. 39 Issue 7, p42 

    The article looks at three types of customer reward programs offered by banks. Debit-only programs are intended to increase demand for debit transactions, and potentially impact acquisition and retention of checking customers through a variety of different rewards. Debit and credit programs are...

  • EVALUATING CUSTOMER SATISFACTION IN BANKING SERVICES. Bena, Irina // Management & Marketing;2010, Vol. 5 Issue 2, p143 

    New, competitive market conditions, where companies need to fight for their survival, rendered evident that building and managing relationships with customers is vital. At the basis of every long term relationship lies the customer satisfaction. In the service area the construct of satisfaction...

  • Brand-New Ball Game. Miller, Nick // ABA Bank Marketing;Sep2006, Vol. 38 Issue 7, p28 

    The article discusses the importance of having a consistent sales process and customer experience in the brand advertising of banks. There are four steps to maximize brand delivery. First is to translate brand attributes and customer preferences into a detailed description of a customer...

  • Advisors, Not Adversaries.  // Commercial Lending Review;Sep2004, Vol. 19 Issue 5, p43 

    The article presents information pertaining to the commercial banking industry. The commercial banking industry has witnessed a loss of personal customer service in recent years. The reason behind this is that, most of the banks find it difficult to generate enough revenue from small or...

  • Customer Satisfaction Now Requires A Web of Two-Way Communications. Motley, L. Bill // ABA Bank Marketing;Oct2009, Vol. 41 Issue 8, p44 

    The article suggests strategies that older banks should consider in assuring customer satisfaction of online services they offer. Customers that belong to the Generation Y are more demanding and meticulous in choosing the services offered to them by banks making the marketing strategy a...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics