Does Distance Influence Profitability of Bank Customers?

Eduardo Kalil Hanna

Does Distance Influence Profitability of Bank Customers?

Eduardo Kalil Hanna * §

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Does Distance Influence Profitability of Bank Customers?

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Abstract

This study aims to identify whether customers who live further away from bank branches where they opened their checking accounts are as profitable as those who live closer. For this purpose, it were selected 30 bank branches of one of the largest retail banks in Brazil and it was used analysis of variance in order to compare customer mean profitability of these branches among primary, secondary and fringe trading areas for those customers who receive their salaries by the bank and also for those who don´t receive. Regardless of whether customers receive or not their salaries by the bank, those who live further from the branches where they opened their checking accounts are as profitable as those who live closer and, in some cases, they are more profitable. So, Banks must take into account all customers of a branch and not only those who live closer it in order to develop strategies for customer retention and for increasing profitability provided by customers.

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34 Cites in Article

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Eduardo Kalil Hanna. 2015. "Does Distance Influence Profitability of Bank Customers?". Global Journal of Management and Business Research - A: Administration & Management GJMBR-A Volume 15 (GJMBR Volume 15 Issue 44 (A11)).

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GJMBR Volume 15 Issue 44 (A11)

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

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Classification

GJMBR-A Classification JEL Code: E58

Submission ReceivedApril 6, 2015
Peer Review Double Blind
Handling Editor
Accepted April 30, 2015
Published October 5, 2015

Version of record

v1.2

Issue date

October 5, 2015

Language

English

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Article Matrices

Total Score: 101

Country: Brazil

Subject: Global Journal of Management and Business Research - A: Administration & Management

Authors: Eduardo Kalil Hanna (PhD/Dr. count: 0)

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