Identifying the factors of service failure based on the marketing funnel and providing agile solutions (Study case: Iran-Zamin Bank)

Document Type : Original Article

Authors

1 Prof., Department of Business Management, Faculty of Economics, management and Administrative Sciences, Semnan University, Iran

2 Phd. candidate of Business Management, Faculty of Economics, management and Administrative Sciences, Semnan University, Iran

3 3Phd. candidate of Business Management, Faculty of Economics, management and Administrative Sciences, Semnan University, Iran

10.48308/jbmp.2024.235737.1611

Abstract

Purpose: The phenomenon of service failure expresses the gap between satisfaction and expectations of customers from a service. Ignoring the causes of this phenomenon has become a problem. The purpose of the current research is to identify these factors and provide solutions to reduce customer dissatisfaction with domestic banking services based on the marketing funnel.
Method: The data of this research is of qualitative type and its statistical population consists of employees and managers of Iran-Zemin Bank and customers of this bank. In the first population, 23 employees and managers of Iran-Zmin Bank and in the second statistical population, 13 customers of this bank were determined and interviewed and analyzed.
Findings: In total, 3 main themes and 12 sub-themes were identified. The main themes included the main reasons for the failure of banking services, the revenge of the dissatisfied customer, and the ways out of the service failure.
Conclusion: According to the opinions of experts, many of the reasons for the failure of services in the banking industry are the ignorance and lack of information of the customers about the banking rules and instructions, and it is necessary to take measures to educate the customers. Also, it seems necessary to improve the level of knowledge and skills of managers and employees about how to deal with customers, self-restraint and non-confrontation of bank employees with dissatisfied customers.

Keywords


Anastasya, R. A., & Winursito, Y. C. (2024). Application of the Digital Marketing Funnel to Improve Graha Office Sales Strategy Using SWOT Analysis. Venus: Journal of Engineering Science Publications, 2(1), 109-121.
Azimi, Hamidreza., Mirabi, Vahidreza., & Safarzadeh., Hossein. (2021). Presentation of the marketing model of banking services based on social networks, case study: Shahr Bank. Business Management, 13(51), 1-13.‎ ( in persian).
Aghazadeh., Hashem, Jandaghi., Gholamreza, & Bazaz, Zainab. (2010). The behavior of bank operators and its effect on customer decision making. Business Management, 2(7), 61-80.(in Persian).
Abdkhoda., Ali. (2015). Investigating the effect of marketing strategies on the bank's marketing performance. Management and Entrepreneurship Studies, 8(2), 132-146. ( in Persian).
Azizi, Shahriar., Adak, Shabnam., Ayvazinejad, Salman. (2022). The effect of recovery strategies, recovery time and the organizational position of the recovery in failures caused by employees on the customer's post-purchase behavior. Production and Operations Management, 12(1), 57-76. (in Persian).
Azizi, Shahriar., Melol, Pouria., Ayvazinejad, Salman. (2022). The effect of recovering failures caused by service and personnel on customer satisfaction in the health system (case study: dental industry). Journal of Modern Marketing Research, 11(3), 197-210. (in Persian).
Azemi,Y.,W. Ozuem, K.E. Howell, and G. Lancaster. (2019). An exploration into the practice of online service failure and recovery strategies in the Balkans. Journal of Business Research 94, 420–431.
Armistead, C., Bowman, C., & Newton, J. (1995). Managers’ perceptions of the importance of supply, overhead and operating costs. International Journal of Operations & Productio Management, 15(3): 16–28.
Abbott, M.L. (2010). The marketing essentials: customer’s purchase patterns. International Journal of Business and Management, 7(1): 192.
Aspal, P. K. and Malhotra, N. (2013),“Performance Appraisal of Indian Public Sector Banks,” World Journal of Social Sciences, 3,71 – 88.
Al-Habil, W. I., Al-Hila, A. A., Al Shobaki, M. J., Abu Amuna, Y. M., & Abu Naser, S. S. (2017). The impact of the quality of banking services on improving the marketing performance of banks in Gaza governorates from the point of view of their employees. International Journal of Engineering and Information Systems (IJEAIS), 1(7): 197-217.
Behzadi, Bahare., Hamidizadeh, khooshnevis. (2019). Modeling the marketing and technological innovation of the banking network in evaluating the macroeconomic performance of the country. Farda Management, 65(19), 3-16. ( in Persian).
Bitner, M. J., Booms, B. H., & Mohr, L. A. (1994). Critical service encounters: The employee’s viewpoint. Journal of Marketing, 58(4): 95–106.
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative research in psychology, 3(2): 77-101.‏
Bugg Holloway, B., Wang, S., & Beatty, S. E. (2009). Betrayal? Relationship quality implications in service recovery. Journal of Services Marketing, 23(6): 385–396. https://doi.org/10.1108/08876040910985861
Baliga, A. J., Chawla, V., Ganesh, L. S., & Sivakumaran, B. (2021). Service failure and recovery in B2B markets–a morphological analysis. Journal of Business Research, 131, 763-781.
Cheng, C.C., & Krumwiede, D. (2012). The role of service innovation in the market orientation-new service performance linkage. Technovation, 32(7-8): 487-497. https://doi.org/10.1016/j.technovation.2012.03.006
Colicev, A., Kumar, A., & O'Connor, P. (2019). Modeling the relationship between firm and user generated content and the stages of the marketing funnel. International Journal of Research in Marketing, 36(1): 100-116.
Crosby, L. A., & Stephens, N. (1987). Effects of relationship marketing on satisfaction, retention, and prices in the life insurance industry. Journal of Marketing Research, 24 (4): 404–411.
Cresswell, J. (2013). Qualitative inquiry & research design: Choosing among five approaches.
Dehdashti Shahrokh, Zohre., Tagvi Fard, Mohammad Taghi., and Rostami., Nasreen. (2010). A model to measure the effect of bank brand reliability on customer loyalty commitment. Iranian Management Sciences, 5(20), 69-88. (in Persian).
El-Helaly, N., Ebeid, A. & El-Menbawey, A., (2015). The role of customer  knowledge management process in service recovery performance: An applied study to the Egyptian National Railways. International Journal of Management and Applied Research, 2(1): 1-21.
Fan, A.Z., Chou, S. P., Zhang, H., Jung, J., Grant, B. F. (2019). Prevalence and correlates of past year recovery from DSM-5 alcohol use disorder: Results from National Epidemiologic Survey on alcohol and related conditions-III Alcohol Clin Exp Res.  https://doi.org/10.1111/acer.14192.
Fouroudi, P., Kitchen, P. J., Marvi, R., Akarsu, T. N., & Uddin, H. (2020). A bibliometric investigation of service failure literature and a research agenda. European Journal of Marketing, 54(10), 2575-2619.
Grönroos, C. (2000). Service Management and Strategy: Marketing the Moments of Truth in Service Competition. 2nd ed., Lexington, MA: Lexington Books.
Garmsiri, Kangrani Farahani, Amirnejad, & Qanbar. (2021). Designing and testing the marketing model of banking services based on the systematic database method in Saderat Bank of Iran. Modern Marketing Research, 11(3), 23-44.( in Persian).
https://doi: 10.22108/NMRJ.2021.127796.2412
Hosseini Amiri, Seyed Mahmoud., Emami Far, Mohsen., Barshad, Abdul Hossein. (2011). Investigating the role of information support in reducing the consequences of anger and discouragement of customers after experiencing a service failure (case study: Babolsar residential hotels). ( in Persian).
 
Hamidizadeh, Mohammadreza. (2019). Strategic and long-term planning, Tehran: Semat.( In Persian).
Hoque, M. E., Nik Hashim, N. M. H., & Azmi, M. H. B. (2018). Moderating effects of marketing communication and financial consideration on customer attitude and intention to purchase Islamic banking products: A conceptual framework. Journal of Islamic Marketing9(4), 799-822.
Hoffmann, P. (2011). Determinants of the profitability of the US banking industry.International Journal of Business and Social Science, 2, 22-45.
Johnston, T. C., & Hewa, M. A. (1997). Fixing service failures. Industrial Marketing Management, 26(5): 467–473. https://doi.org/10.1016/S0019-8501(96)00158-7
Kolapo, F. T., Mokuolu, J. O., Dada, S. O., & Adejayan, A. O. (2021). Strategic marketing innovation and bank performance in Nigeria. Innovative Marketing, 17(1): 120. http://dx.doi.org/10.21511/im.17(1).2021.10.
Koc, E. (2017). Service failures and recovery in tourism and hospitality: A practical manual. CABI.
Kotler, P. (2012). Kotler on marketing. Simon and Schuster.
Lala, V., and R. Priluck. (2011). When students complain an antecedent model of students’ intention to complain. Journal of Marketing Education 33(3): 236–252.  https://doi.org/10.1177/0273475311420229
Lotfi Ashtiani, Jalali, & Tabrizian. (2023). Designing a satisfaction model of service re-creation with an emphasis on brand loyalty based on the foundational data theory in the banking industry. Marketing Management, 18(59), 61-85. ( in Persian). http://doi.org/10.30495/JOMM.2023.72801.2032
Mahmoudi, Khamsa, Abbas, & Hosseini Shakib. (2023). The innovative model of social banking based on digital transformation in Iran's banking industry. Research Journal of Transformation Management. (1401), 121-149.( in persian).
Makudza, F. (2020). Augmenting customer loyalty through customer experience management in the banking industry. Journal of Asian Business and Economic Studies, 28(3), 191-203. https://doi.org/10.1108/JABES-01-2020-0007
Mousavi Jed, Nesai, Khabat, Mohed, & Seyed Mohammad Reza. (2022). Retail banking and its effective marketing factors (Study case: Bank Mellat branches in Sanandaj). Business Management, 14(56), 176-194.( in Persian).
Mattila, A. S., & Ro, H. (2009). Customer satisfaction, service failure, and service recovery. In Handbook of hospitality marketing management (pp. 318-345).
Ma, J. (2018). Empirical Study on Media Selection in University Marketing Based on Funnel Model. In 2018 International Conference on Information Technology and Management Engineering (ICITME 2018) (pp. 71-74). 10.2991/icitme-18.2018.15
Mathew, S., Jose, A., & Chacko, D. P. (2020). Examining the relationship between e-service recovery quality and e-service recovery satisfaction moderated by perceived justice in the banking context. Benchmarking: An International Journal27(6), 1951-1980.
Nejati, Mehrnaz., Rah Chamani, Ahmed. (2015). The effect of service quality failure on customer loyalty in the banking industry. Marketing management. (in Persian).
Nohi, Mersana., Shakuri. (2019). Evaluating the role of company-oriented and customer-oriented content marketing based on the stages of the marketing funnel. Pars Modir Marketing, 16(5), 50-61. (in Persian)
Nabavi Chashmi, Seyyed Ali., Thanago, Ali., Dadashi Jokundan, Alireza. (2014). Investigating the impact of the process of developing strategic marketing management on market performance. Case study: Mellat Bank of Golestan Province, Second International Accounting and Management Conference, Tehran, Top Service Company. (in Persian).
Nohara, Oki, Hiromi Honma, Barrtt Ishida (2019). Full-Funnel Marketing Strategy. Tamko. https://doi.org/10.54099/ijmdb.v1i1.330
Ozkan Tektas, O. (2017). Perceived justice and post-recovery satisfaction in banking service failures: do commitment types matter?. Service Business, 11(4), 851-870.
https://doi.org/ 10.1007/s11628-016-0333-2Top of Form
Sapian, A., & Vyshnevska, M. (2019). The marketing funnel as an effective way of a business strategy. The art of scientific mind.
Shams, G., Rehman, M. A., Samad, S., & Rather, R. A. (2020). The impact of the magnitude of service failure and complaint handling on satisfaction and brand credibility in the banking industry. Journal of Financial Services Marketing, 25, 25-34. https://doi.org/10.1057/s41264-020-00070-0
Smith, A.K., R.N. Bolton, and J. Wagner. )1999(. A model of customer satisfaction with service encounters inving failure and recovery. Journal of Marketing Research 36(3): 356–372.
Singhal, S., A. Krishna, and D. Lazarus. (2013). Service failure magnitude and paradox: A banking perspective. Journal of Relationship Marketing 12(3): 191–203. https://doi.org/10.1080/15332667.2013.836027
Seyed Javadin, Seyed Reza., Kimasi, Massoud. (2005). Service quality management. Publication of Negha Danesh. ( in Persian).
Setiasih, S., & Dandono, Y. R. (2022). The Impact of Full Funnel Marketing Strategy towards Preference Hotels Mediated by Technology-Driven Market in the Tourism Industry. International Journal of Management and Digital Business, 1(1), 1-14. https://doi.org/ 10.54099/ijmdb.v1i1.330
Saunders , Mark ; Lewis, Philip; Thornhill, Adrian (2009). Research methods for business students. Fifth edition. Harlow: Pearson Education.
Tawakkol, Faridian, Heydari, Amir Houshang, Naqsh, & Amirza. (2023). Future scenarios of the banking industry. Investment Knowledge, 12(46), 371-394.(in Persian).
Taheri, Zahid Gharavi, & Asayesh. (2023). Profit and risk management is necessary to increase the efficiency of Melli Bank of Iran branches. Marketing Management, 18(58), 139-149. ( in Persian)
Tan, T. M., Salo, J., & Aspara, J. (2019). When a brand betrayed me: How brand betrayal increases consumer self-disclosure for future personalized offerings. NA-Advances in Consumer Research.
Valenzuela, F., R. Cooksey, L. Chandralal, and R. Hassan. (2013). Service recovery in the Australian banking industry. Contemporary Management Research 9(4): 463–482. https://doi.org/10.7903/cmr.11370
Wiraguna, R. T., & Aulia, D. (2024). The Influence Of Sales Funnel Marketing On Brand Awareness Through Social Media Influencers. International Journal of Applied Management and Business2(1), 52-61.
https://doi.org/10.54099/ijamb.v2i1.691
Waheed, M. H. & Khan, N. U. (2019). The impact of service recovery strategies and justice theory upon customer satisfaction in airline industry of Pakistan. NICE Research Journal, 12(1): 25-38.
Woelfel, C. J. (1993), Encyclopedia of Banking and Finance, Columbus, OH: McGraw-Hill Publishing
Weber, K., & Hsu, C. H. (2022). Beyond a single firm and internal focus service failure/recovery: Multiple providers and external service recoveries. Journal of Travel Research61(1), 50-63.
Zolkiewski, J., Lewis, B., Yuan, F., & Yuan, J. (2007). An assessment of customer service in business-to-business relationships. Journal of Services Marketing, 21(5): 313–325. https://doi.org/10.1108/08876040710773624
Zhu, X., & Zolkiewski, J. (2015). Exploring service failure in a business-to-business context. Journal of Services Marketing, 29(5): 367–379.