MANAGING TIME IN BANK MARKETING

Johanna Ahola and Helena Ahola

University of Oulu, Department of Anthropology and Art Studies, Cultural Anthropology

Pentti Kaiteran katu 1, Oulu, Finland

Oulu University of Applied Sciences, School of Business and Information Management

Teuvo Pakkalan katu 19, Oulu, Finland

Keywords: Anthropology, CRM, Internet, bank marketing, time.

Abstract: Time in marketing and economic studies is usually treated as a scarce resource. Therefore, theoretical

perspectives from philosophy, sociology and psychology are used to build a preliminary framework for

recognizing representations and categories of time in bank marketing. “Anytime” enabled by the Internet

has inspired this conceptual paper based on work-in-process research approached from business

anthropology. Further ethnographic research, especially time-reckoning method from anthropology, is

suggested to explore the time representations of customers’ banking. The main managerial contribution of

the study will be to create concepts and frameworks to better strategically manage time using CRM systems.

1 INTRODUCTION

Internet is available for “anyone, anywhere and

anytime”. Internet technology has changed the way

to do business. Time-related competitive advantages

so far are related to real-time ordering, status

reports, online processes, collaboration and

automated systems (Lumpkin et al. 2002). Internet

has an ability to shrink and enlarge time. Allowing

instant information and transaction, Internet shrinks

time (Afuaf and Tucci 2001). Internet enlarges time

extending current opening hours or continuing

working days across time zones. Changes in

technology create new ways of thinking about and

experiencing time and space, that are universal

elements of all cultures.

The “anytime” Internet is an opportunity and a

threat for bank marketing. Heinonen (2004) argues

for the time flexibility and allocation of time as

value adding dimensions in Internet banking.

Lähteenmäki (2006), on the other hand, emphasizes

the importance of “service-centered banking logic”

of the local banks. Therefore, to create customer

value, and to do profitable banking business it is

critical to know when the customers are within

reach, and how time is used efficiently in customer

relationships. That is why time needs to be managed

in bank marketing.

2 OBJECTIVES, RESEARCH

QUESTIONS AND METHODS

Marketing and economic studies usually treat time

as a scarce resource. This work-in-process study has

a purpose to broaden the temporal scheme in bank

marketing, and look for new time categories to be

applied in CRM systems development. CRM i.e.

customer relationship management is a business

strategy combined with technology to effectively

manage the complete customer life cycle (Smith

2001). It is about achieving, maintaining and

improving competitive strength by anticipating

customers’ future needs as well as satisfying their

current requirements. (Payne 2006) Customer

requirements life cycle suggested by Bruhn (2003,

pp. 43-44) is a useful concept to be applied in bank

marketing. The concept suggested takes into account

the customer’s age and the society. However, time is

a multi-dimensional construct, and deserves further

investigation. Empirical research could provide

more specific data for CRM systems development.

This paper proposes a research framework for

exploring the representations of time in personal

banking (in retail banking). The purpose is to add

our theoretical and managerial understanding of the

conceptualization of time in banking and thus

allowing more strategic design for bank marketing.

335

Ahola J. and Ahola H. (2007).

MANAGING TIME IN BANK MARKETING.

In Proceedings of the Second International Conference on e-Business, pages 335-338

DOI: 10.5220/0002111303350338

 SciTePress

The main research questions in this work-in-process

paper are the following:

• What kind of time categories based on different

time theories could be applied in bank

marketing?

• What kind of time representations related to the

different categories can be found in banking?

The first question will be answered by reviewing

literature from anthropology, sociology, philosophy

and psychology, and the second one by observations

based on work experience of developing business

processes in a Finnish retail bank. The bank has

widely adopted Internet as a channel for self-

services, personal services and marketing

communication. The entire ongoing and future

research process is described in Figure 1.

Figure 1: The research-in-process.

This paper is based on the first stage of the research

process, and is mostly conceptual.

3 LITERATURE REVIEW ON

TIME THEORIES

Generic theories of time, based on philosophy and

natural sciences, are interested in the features of time

such as duration, succession and state of affairs. It is

also accepted that time has different qualities which

vary between individuals, societies and cultures.

3.1 Anthropology of Time

In a Stone Age culture, time-frame was shaped by

agriculture. One period in the year was labeled as

“planting time”. Comparatively, other primitive

societies relied more on astrological time

(Malinowski 1926). Time-reckoning is an

anthropological, empirical method to coordinate

activities such as dating events and estimating the

lengths of time spans. Time includes the “rhythms”

of basic activity cycles linked to natural cycles as

well as each season’s distinctive “tempos”. People

universally “perceive” time’s passage via

differentiated cultural concepts or modes of time-

reckoning (Munn 1992).

Time-reckoning uses selected cultural categories

or contingent events (“time indications”) to “tell

time” (ask “when” something happened, will or

should happen) and to “measure” duration (ask “how

long” something takes or to “time” it). The relevant

categories may segment human activities or natural

processes (including diurnal, solar and lunar cycles)

into successive intervals. (Munn 1992)

Anthropology of time has emerged in an era when

the notions of temporal diversity (“local times”) and

heterogeneity were opposed to temporal singularity

and homogeneity (Munn 1992). Anthropologists and

sociologists emphasize that the essentially Western

chronological construct of time is but one of the

wide range of constructs of time.

3.2 Time Concepts in Sociology

Psychology and Philosophy

Time in sociology is qualitatively differentiated

according to beliefs and customs common to a

particular group of people. Social time consists of

“collective representations” that derive from and

reflect the groupings and varied “rhythms” in life.

These represented categories (days, seasons, etc.)

form a qualitatively varied temporality. Social time

is not continuous but is interrupted by critical dates.

Calendars give time a rhythmic form instead of

measuring it. All calenderical systems arise and are

perpetuated by social requirements. They arise from

social differentiation and a widening area of social

interaction. (Munn 1992)

Time in psychology is experienced by

individuals. In general, the experience can be

described as how time filled with varied and

interesting experiences seems short in passing, but

long as we look back. On the other hand, a tract of

time empty of experiences seems long in passing,

but in retrospect short (Davies 1994). Time is

influenced by the number and importance of

concrete events occurring in the particular period

under observation.

Time in general is not a single concept; rather it

represents two basic ideas that are “duration” and

“succession”. Succession is the concept that one

event can be perceived to follow another. Duration is

the interval between successive events, “which has

no existence in and of itself but is the intrinsic

characteristic of that which endures”. For example,

chronological time (mainstream Western time

Research

esu

Applied

anthr

op.

Ethno-

Literature

Anytime

Represent.

of time

Internet

Customers’

banking

CRM

applications

Managing

time

Managerial

implication

Strategic

timing

ICE-B 2007 - International Conference on e-Business

336

concept) is then just one construct of duration. Hours

are only one way of expressing succession. Different

societies will have different ways of expressing

either basic concept. (Davies 1994).

3.3 Time Theories Applied in

Marketing

Theories of time are applied in marketing and

information systems sciences. Time paradigm for

much of current marketing thought involves a single

construct of time, the chronological. It is seen as a

philosophical problem that chronological time is not

an inherent human concept, but an artificial

construct, and just one way of sensing duration. It is

argued that there is a danger that current marketing

thought is being constrained by the acceptance of the

chronological paradigm. Treating time as a scarce

resource that is allocated and assuming individuals

to seek to minimize duration of activities leads to the

streamlining of services and immediacy in the

supply of goods and services. If immediacy and time

compression are the only messages emerging from

marketing theory to be absorbed by marketing

practitioners, then the service sector in particular

will look only to speed up every activity. Other

approaches to time need to be adopted within

marketing. (Davies 1994)

As applied in consumer marketing theory, time is

treated as an asset, a resource or a utility. Time is

money and is allocated purposively. The central

hypothesis in such an approach is that individuals

seek to minimize the time taken to complete an

activity so as to create further opportunities to

undertake other activities. The weakness inherent in

this perspective is the assumption that activities are

undertaken one at a time (monochronically), while

many activities are in fact undertaken

simultaneously (polychronically) (Kaufmann et al.

1991). A more general model of time allocation in

the chronological paradigm is needed (Davies 1994).

In information technology studies polychronic time

concept is prominent. It means “that consumers can

intake, process and output several types of cues,

signals and data in the same time that they formerly

used to process only one type of information”

(Kaufmann and Lane 1996). The popularity of

Windows-based computer packages capitalizes on

this ability and the seemingly-natural tendency to

multi-task in information activities.

In some areas of marketing literature, time is

seen as cyclical rather than linear. Different cycles

have been recognized, such as diurnal cycle (day

rhythm), family life cycle, cyclical yearly events (f.

ex. Christmas), episodic events (f. ex. Easter),

biorhythms, seasonality, business cycles, product

life cycles, paydays and product replacement cycle.

Even though linear, chronological time appears to be

dominant in western culture and recent marketing

literature, there are occasions that individuals have

difficulty in maintaining a strictly linear frame of

reference. (Davies 1994

)

4 PRELIMINARY FINDINGS

Based on literature, earlier studies and preliminary

empirical observations in bank marketing time

representations related to the different time theories

and categories are proposed in Table 1. The table

summarizes the conceptual framework for further

qualitative and ethnographic studies, which we

propose.

Table 1: Conceptual framework of time in banking.

Time

theories

Categories Time representations

Chronological

Calendar,

timetables,

periods

Due date, opening

hours, appointment,

loan time, savings

time, interest check

Social

activities,

seasons,

rhythm of

life

Payday, banking day,

semester, working

hour, day off, building

season, trade cycles,

exchange day,

holiday, offer

deadline, adulthood,

“long term savings”,

“time is money”,

“loan within an hour”

Individual

Significant

events,

temporal

experience

First-time home, next

home, hurry

Generic

Succession,

duration,

state of

affairs

Waiting time, service

process, customer

relationship, handling

time, fixed time

period, real time

Chronological time theories distinguish such

categories as calendar, timetables, and periods.

Examples of time representations are such as due

date, opening hours, appointment, loan time, savings

time, interest, and check. Social theories emphasize

social activities, seasons, and rhythm of life. Time

representations respectively are, for example,

payday, banking day, semester, working hour, day

MANAGING TIME IN BANK MARKETING

337

off, building season, trade cycles, exchange day,

holiday, offer deadline, adulthood, “long term

savings”, “time is money”, and “loan within an

hour”. Individual time categories are significant

events, or temporal experiences, such as first-time

home, next home, hurry etc. Generic categories

include succession, duration, and state of affairs.

Examples of them are waiting time, service process,

customer relationship, handling time, fixed time

period, real time etc.

5 DISCUSSION AND FURTHER

RESEARCH

We conclude that time deserves further research, as

the Internet has enabled anytime access to many

services. Is the Internet changing the “time

landscape” as severely as the telephone did in its

time? Kern (1983) says it in this way: “Telephone

changed the structure of the brain. Men live in wider

distances, and think in larger figures, and become

eligible for nobler and wider motives.”

We propose further research by ethnographic

methods and qualitative anthropological analysis to

create new theory on the bank customers’

representations of time enabled by the Internet. Data

could be gathered by participative observation,

diaries and theme interviews of customers about

how they indicate or tell time (when and how long).

What does “anytime” mean for the customer, and

how could that challenge be met by the banks’ CRM

systems in multi-channel bank marketing? The main

managerial goal is to manage time in ways in which

time is “not merely “lived” but “construed” in the

living (Munn 1992)”. Empirical data can be applied

in business application (CRM) development and

strategic design of bank marketing.

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