engleski

Performance evaluation of distribution channels for retail financial services

Channels of distribution or marketing channels represent one of the four founding elements of the marketing mix. Unlike some other components of the marketing mix, decisions about channels of distribution often represent actions that require large investments and long term obligations and as such are not easy or quick to change as some other elements of the marketing mix. Therefore, it is very important for the organization to design its marketing channels carefully, selecting among different alternative solutions in order to be at the same time cost efficient and suitable for the target market and type of products offered. Financial institutions represent a great research setting as they are abundant with different and complex channel structures where multichanneling is a rule, not an exception. Important question is how to evaluate or measure the performance of the distribution channel? In devising the model many different approaches have been considered ranging from purely accounting to behaviorist methods. Starting from the Spprigs’ “ Framework for developing measures of channel member performance” , a new model for performance evaluation of retail channels of distribution of financial services has been proposed. Validity of the model has been empirically tested. In the conclusion of the paper there are recommendations for the application of the model in the operational business environment of the Croatian financial institutions.

channels of distribution; financial services; performance evaluation; marketing; Croatia

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