Investigated the Effective Factors in the Process of Market Share Increase among the Branches of Bank Saderat

Abstract

The present study investigated the effective factors on the process of market share increase among the branches of Bank Saderat given to the importance of market share in performance and profitability of banks. One-hundred twenty one employees were selected as the research sample among one-thousand one-hundred employees of the branches of Bank Saderat. The effect of eight factors on market share increase of Bank Saderat in Isfahan province was investigated. Results of statistical tests demonstrated the effect of these factors more than the average level. According to Dunkan test, these factors were classified into four major classes based on the highest to the lowest effect. These four classes include bank services-human factors, marketing-bank facilities-bank services, bank accessibility-technology-marketing and general factors-documentations and physical equipments-bank accessibility.

Development of E-banking channels and market share in developing countries

“…The market share of corporations has, also, a vital role in setting the equilibrium price. That is, the more corporations in the market with less market share, the better the market movement towards a competitive market (Tash et al 2014); it should be noted that the banking industry is not an exception (Bahrami et al 2014).…”

“…Overall, a large market share is the consequence of the prosperous accomplishment of a competitive strategy and the corollary of a company's market growth (Ghemawat 2002). Bahrami et al (2014) believed that some factors, including human factors, bank facilities, technology, bank services, bank accessibility, and physical factors, can affect the bank market share. As mentioned earlier, some key elements, such as customer satisfaction (Anderson et al 1994;Rust and Zahorik 1993), brand extension (Smith and Park 1992), dynamic marketing methods (Davcik and Grigoriou 2016), customer retention (Rust and Zahorik 1993), forming joint ventures (Shen and Cheung 2018), low prices, and a high quality of products and services (DeYoung and Nolle 1996), can significantly influence the growth of a bank's market share.…”

“…we conceptualize the relationship between e-banking channels and bank market share types of communication, like wireless connections, and transfers money from a buyer's account to the merchant's account (Hosseini and Mohammadi 2012). POS terminals are accessible, and they significantly facilitate banking transactions; thus, they can lead to improvement of the bank's market share (Bahrami et al 2014). We therefore derived the following hypothesis:…”

“…Consequently, based on DeYoung and Nolle (1996), ATMs can increase the bank market share. As Bahrami et al (2014) discussed, out-of-branch service accessibility and other physical factors of banking services can lead to an increase in the bank's market share. Moreover, ATM services can be found in every location (Sharma, Sharma & Khan, 2019;Singanamalla et al, 2019); thus, developing ATMs can strengthen service accessibility.…”

“…Moreover, mobile banking has a high potential for providing additional banking services and should be further developed by banks (Brown et al 2003). Therefore, based on DeYoung and Nolle (1996) and Bahrami et al (2014), mobile banking can significantly contribute to a bank's market share. As a result, we developed the following hypothesis:…”