Yuriy Fedkovych Chernivtsi National University (Chernivtsi, Ukraine)
The aim of this article is to determine the penetration level of innovations of bank marketing activity into general business processes. Also, develop a scientific and methodological approach to assessing the influence of innovations on marketing activity and the effectiveness of bank operation.
Scientific novelty of a given research consists of the development of three methods. The first method is aimed at quantifying the interpenetration level of innovations of marketing activity into general business processes of the bank. The implementation of this methodological approach takes place in three stages. The first one is building the array of input data. The next one is normalization of selected indicators by natural normalization method. The last one is calculation of the relative index of the structure.
The practical value of this approach consists in assessing the involvement level of banking business model into innovative processes.
The second method involves measuring the bank effectiveness. Its implementation is based on calculation of integral indicator of bank performance, which is given in a comparable form and generalized by an additive method. This allows building the econometric model with an important level of adequacy and significance by obtained parameters.
The possibility to make an adequate comprehensive assessment of bank performance based on ordinary indicator characterizing various aspects of the bank. This permits to make timely and rational management decisions.
The third method is aimed at assessing the influence of innovative component for marketing activity on the effectiveness of bank performance for developing the system of simultaneous structural equations. The value of proposed scientific and methodological approach lines in the ability to determine the level of innovative component influence for marketing strategy on the effectiveness of bank performance.
Overall, the results of calculations obtained from three scientific and methodological approaches make it possible to identify:
– the vector of bank development (intensive or extensive);
– effective innovation is introduced into marketing activity of the bank or it is not still a new one in the market and all customers use such competitors’ services;
– the way the relationship between innovations, marketing and efficiency of bank activity occurs.
The directions for further research will be aimed at defining the lag, that is, a temporary gap between the time of innovations introduction into banking marketing activity and specific findings of effective bank’s operation. In addition, it is also interesting to research the life cycle of marketing innovations, in conjunction with the developments proposed by authors, which will allow forming long-term policy and improving our own competitive positions in the banking market.
Keywords: marketing strategy, innovative component, bank effectiveness, causal modeling, principal component method
JEL Classification: М32, М31.
Cite as: Grebenyuk, N. (2017). Evaluating the innovative component of marketing activity of bank and defining its influence on bank effectiveness. Marketing and Management of Innovations, 3, 111-125. https://doi.org/10.21272/mmi.2017.3-11
This work is licensed under a Creative Commons Attribution 4.0 International License
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