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

This article is (c) Emerald Group Publishing and permission has been granted for this version to appear here (////BURA web address here). Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.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