The Effect of Customer Profitability on Strategic Cost Choices for Iraqi Banking Institutions

• Autores: Mohanad Mohamed AlMudhafar, Mohanad Hadi AlHawazi
• Localización: International Journal of Professional Business Review: Int. J. Prof.Bus. Rev., ISSN 2525-3654, ISSN-e 2525-3654, Vol. 7, Nº. 5, 2022 (Ejemplar dedicado a: Continuous publication; e0597)
• Idioma: inglés
• DOI: 10.26668/businessreview/2022.v7i5.733
• Enlaces
  • Texto completo (pdf)
• Resumen

  • Purpose: the aim of this research is to find out the extent of compatibility between the strategy adopted by the Iraqi private banks and the trends of the customers of these banks.

      Theoretical Framework: Although the study was conducted in the Iraqi economic environment, its applications can be implemented in different environments, whether at the level of different countries or different sectors.

      Design/Methodology/Approach: The data was collected through the establishment of two types of questionnaire, the first type is for banks, as 100 forms were distributed, and the second type is specific to the customers of those banks, as 1000 forms were distributed. And to conduct the necessary analysis, the researchers used the statistical analysis program SPSS V.24.

      Findings: Through the statistical analysis of the questionnaire, it was found that there is a clear difference between the strategic orientations of the Iraqi banks that focus on the cost strategy on the one hand, and the orientations of the customers of those banks who prefer the differentiation strategy.

      Research, Practical & Social implications: More future studies can be conducted to determine the extent of compatibility between the strategic directions of companies in different sectors with the orientations of the customers of those companies.

      Implications/Originality/Value: The study provides a good way to identify the success of the company's strategy in achieving the desires of customers, and thus achieve a higher level of loyalty of these customers towards the company.

• Referencias bibliográficas
  • Blocher, E. J., Stout, D. E., & Cokins, G. (2010). Cost Management: A Strategic Emphasis (5th ed.). New York: McGraw-Hill Companies, Inc.
  • Bradley, F. (2003). Strategic Marketing, In The Customer Driven Organization. England: John Wiley & Sons Ltd.
  • CIMA. (2005). CIMA official terminology. London: CIMA Publishing.
  • Cokins, G. (2015). Measuring and managing customer profitability. Strategic Finance, 96(8), 23-27.
  • Cross, R. G. (1997). Revenue Management: Hard-Core Tactics for Market Domination. New York: Broadway Books.
  • Cugini, A., & Caru, A. &. (2007). The Cost of Customer Satisfaction: A Framework for Strategic Cost Management in Service Industries....
  • Gleaves, R., Burton, J., Kitshoff, J., Bates, K., & Whittington, M. ( 2008). Accounting is from Mars, marketing is from Venus:establishing...
  • Gnangnon, S. K. (2021). Wages in the Manufacturing Sector and Remittances Outflows from High-Income Countries. Remittances Review, 6(2), 115-132.
  • Gosman, M., Kelly, T., Olsson, P., & Warfield, T. (2004). The Profitability and Pricing of Major Customers. Review of Accounting Studies,...
  • Gupta, S., Hanssens, D., Hardie, B., Kahn, W., Kumar, V., Lin, N., et al. (2006). Modeling Customer Lifetime Value. Journal of Service Research,...
  • Hansen, D. R., & Mowen, M. M. (2006). Cost Management: Accounting and Control (5th ed.). USA: Thomson South-Western.
  • Hicks, D. T., Olejniczak, E. J., & Curell, B. A. (2009). MEASURING CUSTOMER & PRODUCT PROFITABILITY AT REGIONAL & COMMUNITY BANKS....
  • Hollensen, S. (2015). Marketing Management, A Relationship Approach (Third Edition ed.). Malaysia: Pearson Education Limited.
  • Hooley, G., Piercy, N. F., Nicoulaud, B., & Rudd, J. M. (2017). Marketing Strategy & Competitive Positioning (Sixth Edition ed.)....
  • Horngren, C. T., Datar, S. M., & Rajan, M. (2015). Cost Accounting: A Managerial Emphasis (15th ed.). USA: Pearson Education, Inc.
  • Islambegović, S. N., & Gadžo, A. (2015). Evaluation of customers’ profitability in the accounting practice of Tuzla Canton companies....
  • Jao-Sheng, C., & I-Ching, L. (2018). Empirical Research on The Power of Decision-Making in Strategic Cost Management and Corporation Competitiveness...
  • Järvinen, J., & Väätäjä, K. (2018). Customer Profitability Analysis Using Time-Driven Activity-Based Costing:Three Interventionist Case...
  • Keegan, W. J., & Green, M. C. (2005). Global Marketing. (4th, Ed.) NJ, USA: Prentic-Hall.
  • Kotler, P., & Keller, K. L. (2016). Marketing Management (15th Edition ed.). USA: Pearson Education Limited.
  • Krasnikov, A., Jayachandaran, S., & Kumar, V. (2009). The Impact of Customer Relationship Management Implementation on Cost and Profit...
  • Kumar, V., Venkatesan, R., & Rajan, B. (2009). Implementing Profitability Through a Customer Lifetime Value Management Framework. Gfk...
  • Lywood, J., Stone, M., & Ekinci, Y. (2009). Customer Experience and Profitability: An Application of The Empathy Rating Index (ERIC) in...
  • Mothersbaugh, D. L., & Hawkins, D. I. (2016). Consumer Behavior, Building Marketing Strategy (13th Edition ed.). USA: McGraw-Hill Education.
  • Noone, B., & Griffin, P. (1998). Development of an Activity-Based Customer Profitability System for Yield Management. Progress in Tourism...
  • Peppers, D., & Rogers, M. (2011). Managing Cuatomer Relationships, A Strategic Framework (Second Edition ed.). New Jersey: John Wiley...
  • Pfeifer, P. E., Haskins, M. E., & Conroy, R. M. (2005). Customer Lifetime Value, Customer Profitability, and the Treatment of Acquisition...
  • Savic, B., Vasiljevic, Z., & Dordevic, D. (2014). Strategic Cost Management As Instrument For Improving Competitiveness of Agribusiness...
  • Solomon, M. R., Marshall, G. W., & Stuart, E. W. (2015). Marketing, Real People, Real Choices (Eighth Edition ed.). England: Pearson Education...
  • Subramanian, U., Raju, G. S., & Zhang, Z. J. (2014). The Strategic Value of High - Cost Customers. Management Science, 60(2), 494-507.
  • Thakur, R., & Summey, J. H. (2010). Optimizing CRM: A Framework For Enhancing Profitability and Increasing Lifetime Value of Customers....
  • Triest, S. v., Bun, M. J., Raaij, E. M., & Vernooij, M. J. (2009). The impact of customer-specific marketing expenses on customer retention...