How effective is 'relationship marketing' in gaining customer loyalty to securities brokerages?

Relationship marketing (RM) is widely acknowledged as a useful tool in gaining customer loyalty in various sectors. However, to date, there had been no research on how RM impacts customer loyalty in the securities brokerage firm industry in The Stock Exchange of Thailand. This study employs an inductive research approach to explore RM in securities brokerage firms in Thailand’s financial services sector and gain an understanding of customers’ and other stakeholders’ views of RM activities and loyalty to brokerages in an emerging market. Multiple data collection methods were employed, including semi-structured interviews as the main collection method and participant observations in a supporting role. Qualitative content analysis and coding techniques were used for analysing the data. This pioneering research provides new theoretical and practice knowledge and delivers a far more subtle and nuanced analysis of the dynamics at play between customer loyalty, various RM strategies and different customer types – compared to the current literature. The study found that securities brokerage firms in Thailand implemented RM practice but with differences in relationship marketing strategies, depending on the types of customers being targeted. The study identified the main factors impacting on customer loyalty to both local and international securities brokerage firms. Finally, the research confirmed that RM had a demonstrable impact in gaining customer loyalty to securities brokerage firms in The Stock Exchange of Thailand (SET), but with intriguing characteristics, for example, RM’s positive impact on individual short-term investors’ loyalty, not to brokerages, but to particular staff

Sustaining entrepreneurial business: a complexity perspective on processes that produce emergent practice

This article examines the management practices in an entrepreneurial small firm which sustain the business. Using a longitudinal qualitative case study, four general processes are identified (experimentation, reflexivity, organising and sensing), that together provide a mechanism to sustain the enterprise. The analysis draws on concepts from entrepreneurship and complexity science. We suggest that an entrepreneur’s awareness of the role of these parallel processes will facilitate their approaches to sustaining and developing enterprises. We also suggest that these processes operate in parallel at multiple levels, including the self, the business and inter-firm networks. This finding contributes to a general theory of entrepreneurship. A number of areas for further research are discussed arising from this result

The use of intellectual capital information by sell-side analysts in company valuation

This paper investigates the role of intellectual capital information (ICI) in sell-side analysts’ fundamental analysis and valuation of companies. Using in-depth semi-structured interviews, it penetrates the black box of analysts’ valuation decision-making by identifying and conceptualising the mechanisms and rationales by which ICI is integrated within their valuation decision processes. We find that capital market participants are not ambivalent to ICI, and ICI is used: (1) to form analysts’ perceptions of the overall quality, strengths and future prospects of companies; (2) in deriving valuation model inputs; (3) in setting price targets and making investment recommendations; and (4) as an important and integral element in analyst–client communications. We show that: there is a ‘pecking order’ of mechanisms for incorporating ICI in valuations, based on quantifiability; IC valuation is grounded in valuation theory; there are designated entry points in the valuation process for ICI; and a number of factors affect analysts’ ICI use in valuation. We also identify a need to redefine ‘value-relevant’ ICI to include non-price-sensitive information; acknowledge the boundedness and contextuality of analysts’ rationality and motives of their ICI use; and the important role of analyst–client meetings for ICI communication

It's Not Just the ATMs: Technology, Firm Strategies, Jobs, and Earnings in Retail Banking

The authors examine trends in job content and earnings in selected jobs in two American banks. Firm restructuring and technological changes resulted in higher earnings for college-educated workers. The banks followed different strategies in implementing these changes for lower-skill jobs, with different effects on bank tellers in particular. The authors conclude that technology enables workplace reform but does not determine its effect on jobs and earnings; these effects are contingent on managerial strategies. This focus on organizational processes and managerial strategy provides a complementary approach to accounts of growing inequality that center solely on the role of individual skills and technological change.

A legacy handbook for business support

Legacy Handbook reviewing emda's experience of business support activity. Identifies key achievements and draws out lessons learned that may be relevant to successor bodies active in this area

How ‘Zerodha’ Used Technology to Disrupt the Indian Stock Trading Industry?

In this practitioner-oriented research, we describe how “Zerodha” entered and disrupted the Indian stock trading industry through the use of technology by overcoming the challenges of (1) developing a new business offering that is accessible to all, (2) gaining trust across the community, and (3) fostering and growing their business ecosystem. Our case-based research illustrates how an organization can enter a well-established business area and create value by (1) rethinking the business model, (2) treating technology as a business enabler, (3) empowering the end user, and (4) proactively investing in the business and community. Based on Zerodha’s experiences, we provide guidelines and recommendations for other businesses contemplating to enter and disrupt an established industry by leveraging technology

Was there a bubble in the 1929 Stock Market?

Standard tests find that no bubbles are present in the stock price data for the last one hundred years. In contrast., historical accounts, focusing on briefer periods, point to the stock market of 1928-1929 as a classic example of a bubble. While previous studies have restricted their attention to the joint behavior of stock prices and dividends over the course of a century, this paper uses the behavior of the premia demanded on loans collateralized by the purchase of stocks to evaluate the claim that the boom and crash of 1929 represented a bubble. We develop a model that permits us to extract an estimate of the path of the bubble and its probability of bursting in any period and demonstrate that the premium behaves as would be expected in the presence of a bubble in stock prices. We also find that our estimate of the bubble's path has explanatory power when added to the standard cointegrating regressions of stock prices and dividends, in spite of the fact that our stock price and dividend series are cointegrated.

Customer Experience in Online Financial Services: A Study of Behavioral Intentions for Techno-Ready Market Segments

Purpose – Drawing upon research in consumer behavior, the purpose of this paper is to deploy an alternative way to predict behavioral intention with customer technology beliefs and experience in e-brokerage services. Design/methodology/approach – This study tests the proposed framework and relevant hypotheses with survey responses collected from 258 online investors. Findings – Technology-ready (TR) customer segments vary in their evaluations of customer-service interfaces; interface evaluations affect cognitive service experience; and interface evaluations and cognitive experience affect customers’ behavioral intentions. Research limitations/implications – This study indicates that flow experience emerges as an important factor for achieving sustainable competitive advantages in e-brokerage services. The research findings and relevant hypotheses might not apply to low-credence services. Practical implications – The findings indicate that service designers need to examine the life cycle of the intended service offerings and customize corresponding service/product features based on customers’ technology beliefs and personal characteristics, which can further lead to maximized flow experience and increased intention rate. Originality/value – The paper is among the first attempts to examine how psychographic features affect customers’ experience and valuation of certain service system interfaces from service design perspective

Infusion of information systems in the stockbroking sector

The Australian stockbroking sector has been at the forefront of integrating information systems (IS) in its daily operations. Trade and clearance account for a large percentage of processes undertaken in a brokerage house. Upon integration of IS, the trade and clearance processes of the sector were centralised and the institutional arrangements of the sector were transformed. Centralisation also meant that this large percentage of processes was directly controlled by the Australian Stock Exchange (ASX) and the Australian Securities and Investment Commission (ASIC). Although the integration of IS was intended to rationalise the trading regime and make the process of brokerage identical across the industry, there are many types of brokerage houses - each catering to a specific group of customers. This interplay between the intent to homogenise the sector by the regulatory authority and the move by the brokerage houses to strategically differentiate from peers motivated this research to explore the dynamics of the diffusion of IS adoption and its resultant structural changes in the stockbrokerage sector