S/M/143. Consumer behaviour in the financial services environment

Firms are continually seeking ways to enhance customer value, retention and loyalty and decrease defection to other competing services in the same industry. In order to maximize profits and achieve competitive advantage, financial service firms must become more customer oriented, understand the needs of their consumers in addition to establishing long lasting relationships. The following essay analyzes how and why firms must become customer oriented in order to succeed and survive in the future. A series of theoretical applications and applied examples will be presented to further understand the psychology of the consumer. In addition, an emphasis on the relation between service and quality in marketing will be examined upon which an overall conclusion will be reached regarding the subject.