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The Importance Of Advertising In The Banking Industry

1119 Words5 Pages

Facing the severe competition from the increasing number of rivals in the industry, many companies or banks are paying more attention to the enhancement of effective advertising to get their products/services closer to the target customers. Also because of the pressure from this intense competition, effective advertising is said to improve the communication channel between customers and organizations, leading to the likelihood of success (Clemes et al., 2010). Cengiz et al. (2007) viewed advertising as activities planned and implemented to boost the sales or better the image of a product/service, business or company. Explained in a detailed perspective, companies normally take advantage of advertising in order to get their potential customers informed of the characteristics and features of products or services (). Dunn (1995) hold a view that advertising is a magical tool to appeal customers to a brand as well as maintaining the number of customers during some sluggish selling periods. …show more content…

In the banking industry, despite the similarities between financial products and services, it is important to see that banking products can even affect customers’ decision to switch a bank (Kiser, 2002). And more noticeable, companies that can provide customers with more choice of products are believed to survive more easily in today’s technology-driven and fast-paced environment (Strieter et al., 1999). Thanks to the advancement of modern technology, service products can have many positive aspects over the company performance, including decreasing transaction costs, switching rates and pushing customers to invent services experience themselves (Bitner et al., 2002). That also means banks without innovative technology to serve customers with better and more convenient service will have to face high chance of consumer switching intentions (Zhang,

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