Respondent bias was tested by calculating the response to a questionidentifying whether the person completing the survey was the President orCM1Pricing below competitorsCM2Continuing, overriding concern for lowest cost per unitCM3Narrow, limited range of services/productsCM4Developing and refining existing service/product offeringsCM5Major expenditure on technology-based delivery systems to lower costsCM6Economies of scale achieved through merger or consolidationCM7Outsourcing functions or entering into joint ventures to control costCM8Extremely strict service/product quality control proceduresCM9Specific efforts to insure a pool of highly trained/experienced personnelCM10Concerted effort to build the bank’s reputation within the industryCM11Following the actions of competitorsCM12Building bank name identificationCM13Strong branch networkCM14Promotion/advertising expenditures above the industry averageCM15Major expenditure on technology to differentiate services/productsCM16Extensive customer service capabilitiesCM17Innovation in marketing techniques and methodsCM18Broad service/product rangeCM19Maintaining lending capacity and flexibilityCM20Major effort to insure adequate deposit availabilityCM21New service/product developmentCM22Only serve specific geographic marketsCM23Emphasis on the marketing of specialty services/productsCM24Services/products offered in higher priced market segmentsCM25Services/products offered in lower priced market segmentsCM26Emphasis on training, education, and institutional learningTable I.Competitive methodsCriticalcompetitivemethods49Downloaded by University of Sunderland At 13:05 20 April 2017 (PT)
CEO, chief financial officer, chief operating officer, or other. The distributionindicated that pass-on respondent bias was minimized, as 93 percent of thepresidents or CEOs who were mailed the form completed it. The analysisshowed that respondents had an average of 11.0 years of strategic planningexperience and that the respondent’s bank had been developing a strategic planfor an average of eight years. This suggests that the respondents were qualifiedto provide information appropriate for the intent of the study. The data werealso examined to determine if bank size had a significant impact on reportedROA ratings. The banks assigned to each cluster were sorted into three groupsby size (less that $100 million, $101 to $500 million, and more than $500 million)and the performance ratings for each of the size groups were tested usingANOVA. This test indicated that size effects were not significant within thesample.Strategies used in the banking industryThe first step in the analysis was to identify strategy types based oncompetitive methods that are used by the banks surveyed. The 26 competitivemethod scores were subjected to principal components factor analysis usingthe latent root method (eigenvalues greater than one) to derive a five-factor, apriori solution (Robinson and Pearce, 1988; Bush and Sinclair, 1992). A
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- Spring '17
- Derek Watson
- Porter generic strategies, University Of Sunderland, competitive methods