Discuss intangibility, inseparability, contingent consumption and heterogeneity features of financial services marketing

Expert Solution

The use of marketing tools and techniques by the financial service providers/firms to promote its financial services in order to attract new customers and retain old customers is called financial services marketing.

Financial services marketing has some unique features which include intangibility, inseparability, contingent consumption, and heterogeneity. They can be explained as follows-

· Inseparability of financial services marketing- Inseparability of services marketing means that the production and consumption of services are interrelated and cannot be separated from each other. It can be explained with an example that supposes a customer wants to invest and he seeks some advice in this regard then he needs to visit a bank in order to get the advice of a practicing professional (investment advisor). So that he can invest in the best possible financial securities. Hence, it can be seen that the parties need to have in a certain place for any financial service marketing.

· Intangibility of financial services marketing- It means that financial services in most of the cases cannot be touched/tested by the customers. Purchasing of financial services is one of the highly emotive decisions of the customers. Hence, the proper benefits of financial services must be highlighted by the financial services marketers.

· Heterogeneity of financial services marketing- Although all banks offer their financial services on similar terms and conditions to the customers. But an effective financial service marketer needs to customize the financial services as per the need of the concerned customers.

· Contingent consumption of financial services marketing- It means the investment made on the financial securities does not entail the immediate and direct benefit to the investor in most of the cases. Its example is life insurance. Hence, proper strategies should be deployed to market financial services.

Hence, these were some peculiar features of financial services marketing.

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keosha answered 6 months ago

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