Driver of customers cross-buying intention in

banking sector
Literature review:According to Verhoef (2001) were the first to introduce the
term cross-buying and defined it as the purchase of a number of
different services from the same provider. In other words, crossbuying is the behavior expressed in buying various products from
the same provider (Soureliet al., 2008; Verhoef et al., 2001). In
fact, cross-selling and its benefits can only be achieved if
consumers are willing to cross-buy (Polonsky et al., 2000).
Therefore, cross-buying is complementary to cross-selling, which
pertains to the suppliers efforts to increase the number of
products or services that a customer uses within a firm (Aurier
and N'Goala, 2010; Kamakura et al., 2003). A number of factors
that may impact bank customers cross-buying intentions have
been proposed in previous research studies.
A summary of the literature review with regard to factors that
affect cross-buying intention is listed thus:
1. The tendency of most prior studies has been to examine
variables such as image, service convenience, interpersonal
relationships, trust, payment equity, experience, pricing, and
product variety.
2. It is difficult to determine the relative importance of the weight
or ranking of each cross-buying intention, because they were not
defined in previous studies.
3. Prior studies have neither focused on evaluating the strategies
of stimulating the customers cross-buying intentions, nor
suggested how ban assurance decision makers should allocate
marketing resources.

R.P Goyal in his article Customer Service in Banks has

underlined the importance of improving customer service in
banks and suggested that it could be achieved by motivating and
orienting the staff, simple systems and procedures and specific
schemes to suit customer needs.

Wagner A. Kamakuraa,*, Michel Wedelb,c, Fernando de Rosad, Jose Afonso Mazzone.

Cross-selling pertains to efforts to increase the number of

products or services that a customer uses within a firm. Crossselling products and services to current customers has lower
associated cost than acquiring new customers, because the firm
already has some relationship with the customer. A proper
implementation of cross-selling can only be achieved if there is an
information infrastructure that allows managers to offer
customers products and services that tap into their needs, but
have not been sold to them yet.

Som Aditya Juyal and Sameekisha Uniyal (2010) in their

study focused on stress related issues among HDFC, ICICI, PNB
and SBI Banks across mid and low hierarchies and genders. The
population selected for this particular study was employees of
PNB & SBI (Public Sector Banks) and HDFC & ICICI (Private Sector
Banks) from Dehradun. Working conditions are assumed to be
comparatively unfavourable at private banks than public banks.
The same was comprehended earlier but here the differences are
indicatively significant among SBI & PNB and HDFC & ICICI Banks.
Also, executives at HDFC and PNB find it difficult to express
themselves to their seniors and the difference it has is somewhat
significant to what executives feel at SBI & ICICI Banks.

According to Gorski, Lorraine (2002a) in the article The

New Producers emphasizes how insurers can use the banks
customer base to reach new customers. Banks have the trust of
their customers and that would be a good distribution channel for
life insurance, especially in the midlevel or mass market. Banks
could represent 3-4 different insurers therefore the insurance
products need to be competitive (for the customer and the
representative) and specific for bank employee selling.
Furthermore, established relationships are necessary and the
product needs to be branded and well advertised.

consolidating the issues relating to customers crossbuying intentions of financial products in the banking services,
this book explores the topic of customers cross- buying intentions
from the view of collectivism in Korea and Taiwan. As there seems
to be a lack of studies on this topic, this book begins with
research questions based on the literature gaps in the related
studies on East Asian and European countries.

A growing emphasis is placed on cross-selling and crossbuying in the financial industry. In this context, cross-selling is
defined as the practice of promoting additional products to

existing customers in addition to the ones that a customer

already has (Butera 2000, p14), or as the efforts to increase the
number of products that a customer uses within a firm (Kamakura
et al. 2003, pp46-47).
Correspondingly, cross-buying is referred as the buying of
different products from the existing provider in addition to the
ones the customer currently has (Ngobo 2004, p1129) or as the
number of products acquired from the same provider over time
(Verhoef et al. 2001, p219; Soureli et al. 2008, p. 361; Liang &
Chen 2009, p6). As this study is conducted from the customer
viewpoint, we focus on literature on cross-buying and use the
term in relation to buying both banking and insurance products
from the same provider. Table 1 summarizes the existing research
on cross-buying in the financial industry.
All in all, cross-buying has been widely discussed in relation
to customer satisfaction and customer loyalty. Although some
debate remains as to whether cross-buying is an antecedent or a
consequence of behavioural loyalty (e.g. Reinartz et al., 2008),
research in the financial industry seems to have the tendency to
investigate it as a consequence of such behaviour.
Given contextual choices, all the studies have been
completed on retail settings. Additionally, cross-buying is mainly
investigated within an individual financial sector, i.e. either within
banking, insurance or securities, and only few studies employ
data on customer attitudes towards buying insurances from banks
(Ngobo, 2004; Lymberopoulos et al., 2004) or vice versa (Verhoef
et al., 2001; 2002; Verhoef & Donkers, 2005).

Boros, Joan E. (2002). States in Are Convergence Products

Happening? That convergence depends on its definition. She
offers very useful definitions for convergence: 1) Merger of banks
and insurers, heretofore independent, into a financial supermarket
with endless cross-selling potential, and 2) A combination of
insurance and capital markets products moving into a union and
uniformity, or separate markets performing the same functions.

This could also be labeled as securitization of insurance risk and

or insurancization of financial risk.

Johnston, Jarrod and Madura J. in their paper

Valuing the potential transformation of banks into financial
service conglomerates: Evidence from the Citigroup merger
proposes to test whether commercial banks, insurance
companies, and brokerage firms were constructively affected by
the Citigroup/Travelers merger for future consolidation of financial
services firms. They compute the valuation effects ensuing from
the merger announcement among those commercial banks and
financial services firms most likely to be affected and conclude
that commercial banks, insurance companies, and brokerage
firms have all experienced positive and significant valuation
effects upon

Estrella, Arturo in the paper Mixing and matching:

Prospective financial sector mergers and market valuation,
analyses which types of mergers are likely to be most fruitful for
banks and other financial firms in the United States. The author
acknowledges that the extent to which different business
activities are fundamentally distinct induces a tradeoff between
diversification gains and loss of efficiency. The research considers
life insurance, property/casualty insurance, securities, and
commercial firms as potential matches for firms and concludes
that potential diversification gains arise from almost all
combinations involving banking and insurance.

Boros, Joan E. examined motives for combining bank and

other financial services. Diversification benefits and product

complementarities (i.e. mortgage and mortgage insurance, auto

financing and auto insurance) seem to be the prime motives .
Geiger's a study was to establish the needs of customers.
Social structure of the bank's customers and the image that the
customers had of the banks were studied along with customers
judgment of the range of services that the banks had to offer, the
effectiveness of various advertising and other sales promoting
measures, and the customers' will to save and other habit.
Findings indicate that satisfied customers are more positively
minded than those who are critical of what their banks have to
offer them.
Shibo Li, Baohong Sun and Ronald- This commonly
observed situation offers significant opportunities for companies
carrying multiple products and services to crosssell other
products and services to their existing customer base. In addition,
their purpose is to predict what type of consumer is more
beneficial to target in the future rather than when an individual
should be targeted. This was the main objective of this study. The
sample size considered in this study is 20financial products, 1201
randomly selected households. The methodology adopted was
descriptive in nature.
This research developed a model useful for predicting
product and service acquisition in markets where consumers have
sequentially ordered demands .Our model was designed to
leverage these reoccurring purchase patterns and in so doing
increase the predictive accuracy of our attempts to model product
and service choice. We demonstrated our approach on data
collected from a large Midwestern bank and found that including
these proposed effects significantly improved predictive
performance. We expect that there are many other service
environments

Konstantinos Lymberopoulos, Ioannis E. Chaniotakis,

Magdalini Soureli.
This paper tries to identify the opportunities for banks to
cross-sell insurance products via their branch network. examine
whether or not retail bank customers are aware of insurance
selling through bank branch networks, and are willing to purchase
insurance products from their banks identify the reasons that
customers would buy insurance from banks and the particular
insurance products that could be cross-sold by banks investigate
the factors that express customers attitudes to banks and
insurance companies in relation to the provision of insurance
products. Opportunities for banks to cross-sell insurance products
in Greece. test potential relationships between these factors and
customers demographic characteristics, awareness and the level
of use of insurance products. identify specific customer segments
which are more likely to purchase insurance programmes from
banks. The sample size considered was the target population
comprised men and women, over 21 years old, who had dealings
with a bank or an insurance company. The methods adopted was
descriptive research, non-probability sampling was used;
questionnaire. Spss software.