ABSTRACT
Information technology has contributed significantly to the marketing strategies adopted banks in Nigeria. Information technology is applied by banks in their product, pricing, promotion and distribution strategies. Hence, the researcher deemed it wise to examine the effect of information technology on the development of effective marketing strategy of banks in Nigeria. The objective was pursued by the researcher in order to bring to limelight other numerous benefits derivable from the application of information technology in the process of developing effective marketing strategy in Nigeria banking industry. Relevant literatures on information technology and marketing strategies of banks were reviewed. The study focused on Zenith Bank, Umuahia branch. Questionnaires were distributed to top personnel and staff of Zenith bank PLC in order to generate relevant data for the study. The data generate were analyzed using simple descriptive and multiple regression to achieve the specific objectives of the study and test the truthfulness of the formulated hypotheses. The result of the analysis provided the following findings; Information technology has a significant effect on service delivery of banks, information technology has a significant effect on customer care of the bank and that information technology has a significant effect on repositioning of service. Based on the findings, the researcher recommends that information technology should be applied by banks and other business organizations in the ensuring the effectiveness of their marketing strategies.
TABLE
OF CONTENTS
Title - - - - - - - - - - i
Certification - - - - - - - - - ii
Approval
page - - - - - - - - - iii
Dedication - - - - - - - - - - iv
Acknowledgement - - - - - - - - v
Table of
contents - - - - - - - - - vi
List of
tables - - - - - - - - - vii
Abstract - - - - - - - - - - - viii
`
CHAPTER ONE
INTRODUCTION
1.1 Background
of the Study - - - - - - 1
1.2 Statement of
Problem - - - - - - - 3
1.3 Objective of the Study - - - - - - - 4
1.4 Research
Question - - - - - - - 5
1.5 Research
Hypotheses - - - - - - - 5
1.6 Significance
of Study - - - - - - - 6
1.7 Scope and
Limitation of Study - - - - - - 6
1.8 Definition
of Terms - - - - - - - - 7
CHAPTER TWO
REVIEW
OF RELATED LITERATURE
2.1 Meaning of
Information Technology - - - - - 9
2.2 Technology
Investments - - - - - - - 10
2.3 Lesson from
History of Technology in Banking- - - - 13
2.4 Strategic
Significance of Information Technology- - - 17
2.4.1 Use of Information
Technology in Banking Industry- - 19
2.4.2 Banking Activities
and Impact of its Product and Services- 21
2.5 Meaning of
Marketing Strategy - - - - - - 23
2.6 Marketing
Strategies and Competitive Edge - - - - 25
2.6.1 Basis
for Building a Competitive Advantage - - 26
2.6.2 Achieving
Sustainability in the Market - - - - 27
2.6.3 Types
of Competitive Strategies - - - - 28
2.6.4 Characteristics
of a Good Marketing Strategy - - - 35
2.7 Concept of
Relationship Marketing - - - - - - 36
2.8 Scope of
Relationship Marketing - - - - - - 39
2.8 Information
Technology Tools used in Banks - - - - 44
2.8.1 Automated
Teller Machines - - - - - - 45
2.8.2. Electronic Cheques -- - - - - - - 46
2.8.3 Quick
Funds Transfer - - - - - - - 46
2.8.4 Western
Union Money Transfer - - - - - 47
2.9 Conventional
Approach to Marketing Strategy - - - - 47
CHAPTER THREE
RESEARCH
METHODOLOGY
3.1 Research
Design - - - - - - - - 48
3.2 Area of
Study - - -- - - - - - 48
3.3 Population
of the Study - - - - - - - 49
3.4 Sample Size
and Sampling Technique - - - - 49
3.5 Method of
Data Collection - - - - - - 51
3.5.1 Primary
Data - - -- - -- - 51
3.5.2 Secondary
Data - - -- - - - 51
3.6 Method of
Data Analysis - - - - - - 52
CHAPTER
FOUR
4.0 DATA
PRESENTATION, ANALYSIS AND HYPOTHESES TESTING
4.1 Questionnaire Distribution - - - - - - 53
4.2 Socio-Economic Data - - - - - - - 54
4.3 General Data - - - - - - - - 57
4.4 Regression Analysis - - - - - - - 62
4.5 Hypotheses Testing - - - - - - - 66
CHAPTER
FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary
of Findings - - - - - - - 69
5.2 Conclusion
- - - - - - - - - 70
5.3 Recommendations - - - - - - - - 70
Reference
Appendix I
Questionnaire
LIST OF
TABLE
Table
4.1.1: Questionnaire Distribution - - - - - 53
Table
4.2.1: Gender of respondents - - - - - 54
Table
4.2.2: Age of Respondents - - - - - - 54
Table 4.2.3:
Marital Status of Respondents - - - - - 55
Table 4.2.4:
Educational Qualification of the Respondents - - 55
Table
4.2.5: How long have been working for
the firm? - - 56
Table 4.3.1:
Do you have access to Information Technology facilities? - - - 57
Table 4.3.2:
Do you apply Information Technology in your Marketing Strategy? - 57
Table 4.3.3: Are there benefits you derive
from the use of Information Technology? - 58
Table 4.3.4: The use of Information
Technology facilities ensures the efficiency
in the Distribution Strategy adopted by your Bank? - - 59
Table 4.3.5: The use of Information Technology facilities
ensures the efficiency
of the Pricing Strategy use by the Bank? - 60
Table 4.3.6: The application of Information Technology
enhances the
effectiveness of Product Development Strategy of the Bank - - - - - - 61
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Today’s business environment is very
dynamic and undergoes rapid changes as a result of technological innovation, increased
awareness and demands from customers. Business organizations, especially the
banking industry of the 21st century operates in a complex and
competitive environment characterized by these changing conditions and highly
unpredictable economic climate. Information technology (IT) is at the centre of
this global change curve. Laudon and Laudon (2001) contend that managers cannot
ignore information systems because they play a critical role in contemporary
organization. They point out that the entire cash flow of most fortune 500
companies is linked to information technology concepts, techniques, policies
and implementation strategies to banking services. Information Technology has
become a subject of fundamental importance and concerns to all banks and indeed
a prerequisite for local and global competitiveness. Information technology
directly affects how managers decide, how they plan and what products and
services are offered in the banking industry.
According to Berger (2003) through
the introduction of information technology related products in internet
banking, electronic payments, security investments, information exchanges,
banks now can provide more diverse services to customers with less man power.
Therefore, information technology has continued to change the way banks and
their cooperate relationships are organized worldwide and the variety of
innovative devices available to enhance the speed and quality of service
delivery. Woherem (2000) claims that only banks that over haul the whole of
their payment and delivery systems and apply information technology to their
operations are likely to survive and prosper in the new millennium. He advises
banks to re-examine their service and delivery systems in order to properly
position them within the framework of the dictates of the dynamism of
information technology.
The adoption of information
technology by banks has positively affected their marketing strategies because
banks can reduce their operating costs by adopting the appropriate information
technology engineered marketing strategy. The banking industry in Nigeria has
witnessed tremendous changes linked with the development in information
technology over the years. The quest for survival, global relevance,
maintenance of existing market share and sustainable development has made
exploitation of the many advantages of information technology through the use
of automated devices imperative in the banking industry. Therefore, this study
examines the effect of information technology on the development of effective
marketing strategy in the Banking Industry using Zenith Bank Plc as a case
study. The next section discusses the problem statement of this study.
1.2 Statement of Problem
Marketing strategies represent the
skilful plan adopted by a marketer to outdo another competing marketer in the
industry based on such indices as profitability, market share etc. Before the
adoption of information technology in the banking industry, marketing
strategies have been applied in the banking industry to outwit opponents.
However, the adoption of information technology in the banking industry and
more so, its application in enhancing efficiency of marketing strategies has
presented sizeable problems and challenges. The pre-eminent problem is that
adoption of unethical marketing strategies has risen sharply recently. The
question is, could it be attributed to information technology?
On the other hand, given that
previous marketing strategies adopted by banks yield positive results, what
effect would the adoption of information technology have on marketing strategy?
Should the old ways of strategic operation that has yielded positive results be
discarded for the progress that is seemingly apparent with the introduction of
information technology? Finally, some banks have enjoyed competitive advantage
with the old ways of doing business. Would the application of information
technology play any significant role in enhancing the marketing strategies
while yielding profitable result?
1.3 Objective of the Study
The general purpose of this study is
to examine the effect of information technology on the
development of effective marketing strategies in the banking industry.
Specifically, this study intends to;
1. Determine the effect of information technology in service
delivery of banks.
2. Ascertain effect of information technology on bank
customer care.
3. Ascertain effect of information technology on
repositioning of service.
1.4 Research Question
This study will attempt to provide
answers to the following research questions;
a.
Does
information technology have any significant effect on service delivery of
banks?
b.
Does
information technology have any significant effect on bank customer care?
c.
Does
information technology have any significant effect on repositioning of services?
1.5 Research Hypotheses
The following research hypotheses are
formulated to guide the researcher in the study.
Ho1: Information technology does not have any
significant effect on the service delivery of banks;
Ho2: Information technology does not have any significant
effect on banks’ customer care.
Ho3: Information
technology does not have any significant effect on the repositioning of
service.
1.6 Significance
of Study
This study which focused on
ascertaining the effect of information technology on the development of
effective marketing strategies in the banking industry will be of immense
benefits to the following individuals, commercial banks and governmental
agencies.
a.
Consumers:
This study exposes consumers of banking services on how banks in Nigeria
utilize information technology in ensuring the effectiveness of service
delivery. It also exposes consumers on various marketing strategies adopted by
banks in Nigeria in order to ensure efficient and better service delivery.
Thus, increasing the expectations of consumers of banking services.
b.
Academicians:
The study provides detailed information on the various forms of information
technological devices and how they can be utilized. The study furnishes
students and lecturers in marketing, banking and finance and other related
disciplines on the marketing strategies adopted by banks to improve service
delivery and better customer satisfaction. Moreso, it provides fertile ground
for further research to be carried out on this topic by potential researchers.
c.
Commercial
banks: The study provides detailed information on various information
technological devices that commercial banks operating in a competitive business
environment like the Nigeria market can adopt to increase their competitive
edge and market share. Moreso, it provides indepth knowledge on various ways
banks can improve the effectiveness of their marketing strategies through
adopting and effectively using modern information technological device.
d.
Governmental
Agencies: The study furnishes detailed knowledge on how government and its
numerous agencies saddled with the responsibility of improving the efficiency
and efficacy of banking service can make this information technological devices
available and easily accessible by banks operating in the country.
1.7 Scope and Limitation of Study
The scope of the study focused, on
the effect of information technology on developing effective marketing strategy
in financial institution. The study population is specifically the top middle,
and supervisory management of Zenith Bank Plc branches in Umuahia. However, the
limitation of the study includes:
a.
Insufficient Finance:
This prevented the
researcher from collating exhaustive materials and as well hindered the
researcher’s movement from one source location to the other in search of
relevant materials.
b.
Time Constraint: The time constraint is another factor the researcher had
to seamlessly combine academic work with the research work.
c.
Respondents Uncooperativeness: Some respondents were grossly uncooperative as this did
not permit the researcher to elicit information from them especially through
interview.
1.8 Definition of Terms
a. ATM: This represents automated teller machines
b. Capital
Market: This is a market for
long term securities such as bonds, share etc.
c. Computer
Based Information System:
This is information system that, rely on computer hardware, and software for
processing and disseminating information. It represents the use of interrelated
components, for the planned regular collection, processing, storing and
disseminating vital relevant and appropriate information to support decision
making, analysis, and control of the organizations operations.
d. Data:
This represents unprocessed information which when processed enables firms to
undertake various decisions and execute different facts.
e. Internet: This is a computer
network connecting worldwide networks of computers through internet protocol
for data transmission.
f. Investment: This is the act of laying out money or capital in an
enterprise with the expectation of profit
g. Management
Information System (MIS): This involves people, equipments, processes for
the regular planned collection, processing, storing and dissemination of vital
information that would aid the decision making unit of any organization in
reaching a realistic goal.
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