The role of positioning in the retail banking industry of Sub-Saharan Africa

Abstract

Purpose The purpose of this paper is to investigate employment of positioning strategies in the retail bank sector of Sub-Saharan Africa, specifically using Ghana as the study context. In addition, it explores the applicability of western-based typology of positioning strategies in the Sub-Saharan African environment. Design/methodology/approach Six retail banks – three national and three foreign – are studied, each through an in-depth case study method: covert and participant observation techniques; and face-to-face interviews of chief executive officers, marketing managers, and bank branch managers provided data for the study. Findings The results show that the “service” positioning strategy is the most popular strategy employed by retail banks. “Value for money,” “attractiveness,” “brand name,” and “country of origin” positioning strategies are also dominant. “Top of the range” and “selectivity” strategies are minimally pursued by the sample of banks studied. The results reveal that both foreign and national retail banks employ multiple positioning strategies in the face of competition. However, foreign retail banks consistently employ a; large number of strategies relative to national retail banks. This paper supports the applicability of a western-derived set of positioning strategies in the Sub-Saharan African marketplace. Research limitations/implications This study closes a gap in the understanding of positioning, as well as filling the empirical gap in the application of positioning. In addition, it helps resolve a contextual gap of knowledge in Sub-Saharan Africa’s retail banking sector. Originality/value This study responds to Porter (1996), Clancy and Trout (2002), and Knox (2004) for continued empirical research in positioning in service industries and specifically in Sub-Saharan African economies (Coffie, 2014, 2016; Coffie and Owusu-Frimpong, 2014). Moreover, this research adds value to the banking and marketing literatures through a qualitative case study method, which is an important yet overlooked research method (Yin, 2009).

The impact of brand origin and CSR actions on consumer perceptions in retail banking during a crisis

“…As another example, if the brand origin is more compatible with service excellence, the bank can focus on customer-related responsibilities and emphasize its specific contributions to the lives of its customers. In alignment with the findings of Blankson et al . (2017), the current study points out that foreign banks can employ a broader range of CSR and positioning strategies in the market since local brands have a comparative advantage in CSR-related attitudes and perceptions.…”

Factors influencing consumer loyalty: evidence from the Ghanaian retail banking industry

“…This study goes beyond banking in general, focusing on retail specifically. As observed by Blankson et al (2017), the deregulation of the banking sector in Ghana since 2006 has led to an impressive growth in the banking sector in general, and retail banking in particular. Therefore, this study seeks to examine the behavioral influences on customers as competition has increased.…”

“…Mumin et al (2012) and Ujakpa et al (2015) focused on the general banking sector, while Narteh and Kuada (2014) and Tweneboah-Koduah and Farley (2015) who had conducted studies on customer loyalty and retail banking focused primarily on customer satisfaction as a standalone determinant of loyalty. Blankson et al (2017) focused on the role of positioning in the retail banking industry. According to Ganiyu et al (2012), satisfaction is a passive customer condition which alone cannot achieve the active and proactive objective of retaining customers and ensuring their loyalty in a tightly competitive banking industry as in Ghana.…”

“…Such relationships among service quality, corporate image, trust and loyalty have been explored in studies focusing on other countries. Specific to the banking sector of Ghana, Blankson et al (2017) stated that there has been increased competition among banks, and an impressive growth of retail banking in particular since deregulation in 2006. It is expected that with increased competition, the relationship between service quality and loyalty will be complicated by other variables.…”

Customer loyalty and value anticipation: does perceived competition matter?

“…Anning-Dorson (2017b) asserts that a regulatory regime has an impact on the competitiveness of an industry. As part of their competitive strategies, the current players are embarking on service innovation, improvement through IT, service delivery, process improvement and optimizing business efficiency (see: Blankson et al, 2017;Boateng et al, 2016;Narteh and Kuada, 2014;Hinson et al, 2010).…”