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CHARACTERISTICS THAT FORM CUSTOMER VALUE INBANKS: A RESEARCH ON ATMs (AUTOMATED TELLER
MACHINE)
Assist. Prof. Nilsun SARIYER, PhDOnsekiz Mart University, TURKEY
1. Introduction
Customer value concept hasbeen discussed in marketing for the lasttwo decades. Many of the concepts suchas perceived value, shopping value, netvalue of the customer, consumer valuehave been used in the same meaning.Moreover, many of the concepts usedwith customer value concept such asvalue, benefit, price, quality, loyalty,satisfaction have still been underdiscussion.
Discussing customer value
requires us to mention a two sidedconcept including the value given by thecustomer and the value given to thecustomer. These two values are notgiven by the seller organization. They arethe values perceived by the customers.Therefore, rather than the customervalue, the concept of perceived value isused. This value can be defined as thebenefit which the customer obtains inreturn for what the customer gives. As it
can be understood from the definition,the way of providing value to customersis possible through increased benefit. Inother words, adding services, things thatcustomers view as critical, beneficial orunique is necessary. From this point,three values that businesses provide totheir customers can be expressed asexpected value, desired value andunexpected value. Expected value isstandard services or goods for the
customers given by the businessdepending on its own capacity ofproduction and marketing. Expectedvalue is a concept where emotional ties
that customers establish with theorganization come fore. If the customerhas increased emotional tie the customergoes on buying the products of the
business. Desired value is characteristicsthat provide positive value to customers.These characteristics are simple andthey are provided without a need toperforming a marketing research.Unexpected value is providing value toabove customers expectations. It helpsin strengthening the ties betweencustomers and the business. Anotherpoint that should be kept in mind is thatthese values can only be referred to asvalue if they are perceived by thecustomer.
2. Measurement of customer value
When studies on customer valueare examined it can be seen that theyincreasingly consist of how customersexpress value. Holbrook identifiedcharacteristics of customer value as
effectiveness, quality, social value, game,aesthetics and altruism. Mathwicks,Malhotra and Rigdon expressed thatcustomer value is a formation of a set ofconcepts that are visual appeal,entertainment, escapism, enjoyment,efficiency and economic value.
Bono referred customer value asperceived value, actual value, entryvalue, side values, synergy value,security value, attractivity value, fashion
value, function value, easiness value andtying value. Noumann divided the valuesidentified by Bono into two category andclassified them as characteristics that
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depend on experience andcharacteristics that depend on operation.Holbrook also identified the factors ofefficiency, excellence, politics esteem,play, aesthetics, morality and spirituality.
Sheth, Neuman, and Grossexpressed customer value as social,economic, functional, informational andsituational. In the same manner, theyproved that customer value consists offunctional, emotional, social, situationaland informational dimensions. For thispurpose they developed the PERVALscale. In the formation process of thescale 85 statements were used in thebeginning and then the number of the
statements was eliminated to 19 at theend of the studies. Moreover, Sweeneyand Soutars scale to identify perceivedvalue of durable consumer goods atbrand level have still been accepted andused by many academics. However, itshould be considered that Sweeney andSoutars scale measures the sellingprocess as one phase pre-selling, timeof selling and after selling and it acceptscustomer value as multi-dimensional and
ignores informational and situationalvalues.
Petrick developed SERV-PERVAL scale starting from PERVALscale. They concluded that customervalue is formed by quality, emotionalvalue, monetary price, behavioral priceand reputation. Following Petrick,Sanchez, Callariso, Rodriguez andMoliner developed a different scale forthe services and measured customer
value. They attempted to identify thevalue of services used by customers by ascale that they called GLOVAL, the firststudy performed in tourism sector valuesof functional value (establishment),functional value (professionalism),functional value (quality), functional value(price), emotional value and social valuedimensions have been identified. Inanother study of this scale, Roig,Sanchez, Teno and Monzonis identified
some dimensions in bank services andtourism services.
3. Customer value in the banks
Great innovations in informationtechnology and communication haverevolutionized the banking industry.Banks took huge leaps particularly byusing technological infrastructure rapidly.Banks that adopt innovations oftechnology fast attempt to increasesatisfaction levels of their customers. Callcenters, ATM machines and kiosks aresuch examples. However, customerdissatisfaction is quite high. Some of thebanks aim to increase customer value bygiving importance to customer relations
management and data mining. Banks tryto pursue different service programs tocustomer groups which they create byusing the data. The purpose of theirefforts aims increasing the perceivedvalue of their customers. Highlycompetitive nature of banking industrywhich consists of competition amongstate owned and privately owned barksrequire keeping current customers doingbusiness and moving towards creating
customer value rather than customersatisfaction. Studies on this topic supportbanks moving towards creating customervalue. Loveman stresses the need tocreate customer value besides turningdata into information. Payne and Jahodaexpressed moving towards creating newvalues to customers rather than thevalues served to users. On the otherhand Woodruff stresses the importanceto create high values to customers due to
highly competitive nature of the 21st
century. Banks serve their customerswith the unexpected values by addingnew values each day. How do customersperceive the values created by thebanks? This study aims to find an answerto this question.
4. The purpose of the research
This study aims to identify
whether or not customers see thecharacteristics that banks add in order tocreate value to customers as customervalue. For this purpose, how current
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customers place characteristics whichthe banks provide to them while they usebanking services as different dimensionshave been examined. Scales developedabout customer value have been used in
this research. Because the aim of thisstudy is to identify how customers placethe services of businesses as customervalue. So the study does not try toidentify value dimensions.
5. Material and method
In the research that hasdescriptive features, data have beenprimarily gathered. Considering various
types of the services given by the banksperforming a reduction in the services tobe analyzed was decided to beperformed. Therefore only a singleservice of the banks has been studied.Yet, in the selection of the service, thefactor of service coverage for allconsumers was taken into consideration.So ATM machines were selected. ATMmachines occurred as a result oftechnological improvements can be usedin drawing out/ in money, transferringmoney to deposit accounts and betweenaccounts, requesting cheque book,issuing travelers cheque and acceptingcredit card applications. In this regard,ATM machines are inseparable parts ofthe banking system. Besides abovementioned characteristics of ATMmachines several characteristics such asthe ability to use the machine without
bank card, not only for drawing moneybut also drawing in money, issuingtravelers cheque, accepting credit cardapplication, money transfers, showingtelevision advertisements on the screen,presentation of new services, applicabilityof the ATM machine for all branchoperations add new values every day.Considering above mentioned topics,ATM machines have been selected forthe research. Another factor that ATM
machine users are usually the currentcustomers of the banks has beeneffective in selecting ATM machines.Data obtained between the dates of
October-November 2008 from thecustomers who performed their bankingtransactions using ATM machines byface to face survey method in front of themachines. The sampling method used in
the study is one of the non-randomsampling methods, conveniencesampling.
In the questionnaire form,classified measurement method which asunmetrical but categorical characteristicsstudied in Bono, Naumann andHolbrooks customer value has beenadopted to banks. These characteristicsare performance, color, respectability,innovation, comfort, easiness of use,
appearance, accessibility, speed, touch-screen, image wholeness, continuousfunctioning, pleasure of use, coverage,reputation and stability. The survey hasbeen conducted on 30 users first as pilotstudy and then it has been implemented.The survey has been conducted on 350people face to face. As a result of pre-evaluation 47 completed surveys wereeliminated as they were found faulty andmisleading. Data obtained from 303
consumers were analyzed by using multi-dimensional scaling method. SPSS 15.0software has been used in the analysis.
6. Findings
Before starting themultidimensional scaling analysis internalreliability of the characteristics included inthe analysis has been examined.Variables that are irrelevant to internalreliability have been excluded. As a resultof two reliability analyses variables ofperformance, respectability, innovation,comfort, stability, wholeness, aesthetics,reputation, and color have beenexcluded. The rest of the characteristicswere included in the multidimensionalscaling analysis. In order to test reliabilityand validity of the results ofmultidimensional scaling analysis
appropriateness index and tensionvalues known as R2
have beenconsidered. As a result of 3 repetitivefigure R
2of our research has been 0,
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79130. This value is the square numberof correlation index and it is expected tobe high. 60 % and over is a desiredresult. Tension value in our research hasbeen 0,18718. This value shows the
quality of multi-dimensional scaling.Ratios below 2,5 demonstrate thatmultidimensional scaling is at very goodlevels.
Table 1: Results of two dimensionaldemonstrations
Table 1 includes thedemonstration results obtained in orderto draw out spatial map as a result of theanalysis. Figure 1 demonstrates thespatial map drawn by SPSS 15.0.
Dimension(Coordinates)
ObjectNumber Object name
1 2
1 Nice view ,0935 -,9584
2 Touch screen 1,9522 -,82983 Reliability ,1301 ,1556
4 Accessibility ,2135 ,7825
5 Bankassociation
-,6931 -1,5221
6 Easiness of use ,6186 ,64587 Color 1,8393 -1,4540
8 Coverage ,7616 ,4474
Figure 1: Spatial Map of Customer Value
This map shows the value thatcustomers give to ATM. Axis is named asaesthetics characteristics and usingcharacteristics that depend on the use ofATMs.
Characteristics on the right fieldof 0 point are those that are related toaesthetics. These are nice view, touchscreen, color, reliability, accessibility,easiness of use, and coverage. Bank
customers regard these characteristicsas aesthetical characteristics of ATMs.Characteristics on the left field of 0point is called as bank association. It is
seen as an aesthetical characteristic.Touch screen has been selected as themost aesthetical characteristic by therespondents with their 1,9522demonstration value.
Characteristics above 0 pointare those related to use of ATM such asaccessibility, easiness of use, coverageand security and below 0 point arethose that are related to characteristics
unrelated to the use of ATM such as niceview, touch screen, color and bankassociation. In relation to the use, themost significant characteristics from the
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point of customers has been accessibilitywith a demonstration value of 0,7825.Bank association with a demonstrationvalue of -1,5221 has been thecharacteristic that has not been related to
the use of ATM.
7. Conclusion
Businesses attempt to attractcustomers by creating value. Eachcharacteristic they add for this purpose isperceived as a value by the customer.This research shows how customersevaluate the value as a result of thesacrifice they bear. ATMs have been
chosen so that particularly the customerswho have ties with the bank have beenpreferred. Current customers have beentargeted so that it could be understoodthat characteristics of ATM machineshave been but forward as a value couldbe understood. At the end of theresearch it has been identified thatcustomers consider characteristics ofaesthetics and use of ATMs have comefore while the machines are used. This
research concludes that customersperceive ATMs in two dimensions;characteristics of aestheticism and use.Different dimension can be referred to in
the placement of the characteristics.These are characteristics that are relatedto aesthetics and use, characteristics thatare related to aesthetics but unrelated touse, characteristics that are unrelated to
aestheticism but related to use andcharacteristics that are unrelated to both.When each field is considered it could beseen that there are differentcharacteristics. While characteristics thatare related to aestheticism and use areaccessibility, easiness of use, coverage,and security; characteristics that arerelated to aestheticism but unrelated touse are touch-screen, color, and niceview. The only characteristic that has
been unrelated to both aestheticism anduse has been bank association. Nocharacteristics unrelated to aestheticismbut related to use has been found in theresearch. Adding value in this field isimportant in that banks could create newvalues to their customers that shows apath for future studies on the issue.Because apart from previous scales ofcustomer value, a multi dimensionalscaling has been used to identify a
different approach in understanding whatcharacteristics customers giveimportance and turn them into value hasbeen tried to be discussed.
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