Brand value proposition for bank customers in India

Abstract

Purpose: The purpose of this paper is to relate the customer value proposition offered by a bank with its structure of ownership. Design/methodology/approach: The study adopted a combination of exploratory and descriptive approaches. The attitudes and opinions of bank customers were gauged through a survey. Based on literature, a pool of items was identified to measure the construct of value proposition. It was hypothesized that different types of banks in India are chosen for different benefits offered by them. The relationship between value proposition and its constituent variables functional, emotional and self-expressive benefits was analyzed using multiple regression. Findings: Results prove that while self-expressive benefits drive the choice of foreign banks (FBs), functional benefits are important for all types of banks.Research limitations/implications: The research intends to study only the perceptions of customers having an account in Indian public sector banks, private sector banks or FBs. Practical implications: The study helps to relate the type of bank (public, private or foreign) a customer chooses, with the value proposition it offers. Using this study, banks can configure the value proposition that is appropriate for their target segment. Originality/value: The paper examines the value proposition offered by the three different types of banks (public, private and foreign) empirically. It links bank choice of the customer to the benefit assortment offered by different types of banks.