IT-enabled incentive schemes in telephone banking

Author

Sandbiller, Klaus ; Will, Andreas ; Buhl, Hans U. ; Nault, Barrie R.

Author_Institution

Augsburg Univ., Germany

Volume

3

fYear

1997

fDate

7-10 Jan 1997

Firstpage

249

Abstract

We show that an IT-enabled suitable design of incentives improves the competitiveness of new marketing and distribution channels like telephone banking. Using and extending a framework developed by Nault and Dexter (1994) for franchising, we show that an IT-enabled ownership of customers increases the effort of telephone consultants to establish ongoing customer relationships, leading to higher income for the consultants and higher profits for the banking firm. Moreover, it can be shown that the bank can optimize incentive parameters in such a way to achieve a first-best solution

Keywords

bank data processing; information technology; marketing data processing; telephony; IT; competitiveness; customer relationships; distribution channels; franchising; incentive schemes; information technology; marketing; profits; telephone banking; telephone consultants; Banking; Contracts; Costs; Customer satisfaction; Incentive schemes; Insurance; Marketing and sales; Monitoring; Profitability; Telephony;

fLanguage

English

Publisher

ieee

Conference_Titel

System Sciences, 1997, Proceedings of the Thirtieth Hawaii International Conference on

Conference_Location

Wailea, HI

ISSN

1060-3425

Print_ISBN

0-8186-7743-0

Type

conf

DOI

10.1109/HICSS.1997.661603

Filename

661603