Effects Of Online-Banking On Bank Of America And Cheyef Halak Essay.

Objectives of Cheyef Halak Campaigns

The primary objectives of Cheyef Halak’s campaigns as we discussed in class include:

• To reach out and involve citizens of Lebanese
• To emancipate and create awareness of the challenges that curb citizens of Lebanese from emerging a civilized community.

Implementation:

Cheyef Halak’s was provided with a helping hand by being deliberated on among the most widely held talk shown in Lebanon:

Kalam E1 Nass devoted a whole program to the particular source, Bassmet wataer generates a chip.

Result:

Cheyef Halak’s campaigns had endowed citizens of Lebanese to emerge the chief agents of transformation, who have the capability to track, report and capture desecration at times when state organizations were reluctant and unenthusiastic to do so, and the people of Lebanese have taken it seriously, internalized it and live according to it.

Argument:

• The CSE campaign could go for at least two years, and as well has the assistance of the then internal Prime Minister from the beginning.
• The stratagem was meant to grant the Lebanese people power, making campaigner who would extent campaign would massage the level of grass root.   

Part a

The bank cost per consumer decreases after the institution of online banking in Bank of America. The institution can now reach huge groups of customers who formerly were deemed unreachable. The introduction of this system must have triggered opportunities to come knocking at their doors without even asking for them. Clients belonging to the Bank of America had various ways they could use to access their bank accounts through mobile browsers, texting, as well as downloadable applications. Apart from the eased access, the bank was not rendering any fee for mobile banking services. Such aspects must have aided a lot in lowering the bank costs on each consumer.

Part b

Three main effects associated with online-banking in Bank of America gave room for this phenomenon, and they include the following.

Three Effects

Online Banking Increases Client’s Involvement and Cross Selling

Consumer engrossment refers to customers' encouragement to process information, and it has been boosted substantially by the widespread application of online banking. Henceforth, the more marketers in Bank of America involve customers into their banking brands, the easier they will be able to comprehend customer behaviour regarding in what manner they make decisions as well as the characteristics of products they are looking for. Consequently, this generates a connection between the customers’ desires, objectives, and values and brand knowledge. Thus, when customers are more engaged with the product marketing communication, they will pay more attention to the brand knowledge since they become more inspired to ‘collect, understand, elaborate, and integrate information. This aspect, has, therefore, assisted Bank of America in lowering cost per consumer.

Further, online banking has allowed Bank of America to cross-sell its products. Newly introduced brands can now easily be advertised to a large pool of customers at once without necessarily knocking at the door of the street branch. Information about products managed by the banks can be disseminated to the targeted customers faster and with few inconveniences if any.

Impact of Cheyef Halak Campaigns on Lebanese Society

Online Banking Increases Passive Customers and Minimize banking Complexity

Passive customers often the follow the flow and some people view them as absorbers. They get information about the services they receive from a given organization, but they let it wash over them. They hardly contemplate about it, and there is no conversation, and any opinions that they might or could not have had are lost. The attributes of these customers can be viewed from different angles. First, it is clear that the information they come across is not shared and the chances are that the company will lose opportunities which are reaped from active customers. However, active customers sometimes may twist the available information and instead of relating the accurate course of events they share wrong or exaggerated information. If this occurrence takes place, Bank of America may be forced to invest too many funds in an attempt to share their correct information.

In addition, online banking minimizes banking complexity. Clients are now able to carry out their transactions with ease after the introduction of online banking in Bank of America. Online banking, for instance, enables them to have quick access to their account history and transactions in the comfort of their houses. These mechanisms offer the speediest ways of checking and seeing if a transaction has cleared an account. Unlike before, they can assist customers to figure out the amount of a financial transaction after one has lost his or her receipt. Besides, online banking platforms also allow them to find out about unapproved dealings faster. Furthermore, online banking has as well allowed customers to transfer funds from one account to another much more quickly. It is more expedient than the traditional methods and can save a client a trip to the bank. Apart from the rampant challenge of insecurity, online banking has made all dealings less complicated for all and sundry.

Online Banking Would Surge Transactions And Save Money Benefits Amounting To About 80%.

As pointed earlier, online banking allows individuals to carry out operations with ease. For example, the services allow clients to realize errors in their accounts for easier correction. Besides, they are able to keep track of pending transactions and check their cleared debits every day to balance their accounts. These amazing attributes of online banking have in increasing the net number of transactions in Bank of America. Online banking in this company has become much more widespread and has made the financial life very easy to manage.

Three Main Effects Associated with Online-Banking in Bank of America

Apart from decreasing cost per consumer, the introduction of online banking has enabled Bank of America to save financial benefits amounting to around 80%. Through online banking, customers can do much of the transacting work by themselves, and so staff numbers can be reduced. This means that the company will cut off on expenses incurred in the form of wages and salaries to the employees. Initially, Bank of America and other banks were very costly to run, considering extraordinary boulevard rental for a branch costs hundreds of thousands of pounds annually. In addition to that, there are staff expenditures, heating, insurance and lighting costs. It has been projected that Bank of America upon the introduction of online banking can save up to 80% on the cost of transactions. Besides, Bank of America can bring more clients on board to for a portion of the cost it takes them to get a single one via the door of a high street branch. Due to the decreased operational expenditures, internet banks can provide very attractive incentives to their clients. Bank of America, for instance, often has higher rates of interest for investors and lower rates of interest for debtors. A bank advertisement in a newspaper about a certain brand can produce over 300,000 visits to the website in a day while traditionally they could never deal with this amount of consumers in a day.

Part c

In the course of the module, the provided exhibits to calculate overall conversion rates of 8.6% and 13.3% as well as the overall application completion rates of around 17.5% and 38.9% for paid search and display, accordingly. There are two possible reasons as for why the conversion and completion rates for display are higher than those of paid search.  

First, we summarize the above information as follows;

• Overall conversion rate of 8.6% and 13.3%
• Overall completion rate of 17.5% and 38.9% 

1. Two probable reasons

We know that the conversion rate is equal to the total number of application started divided by the net number of clicks. Also, the rate of completion equals to the total number of completed applications divided by the net number of applications started.

1. Google: Conversion rate is equals to 0.0832 = 0.0832*100 = 8.32%

              Completion rate on the other hand, is 0.1899 = 0.1899*100 = 18.99%

1. Yahoo: Conversation rate is equal to 0.1179 = 0.1179*100 = 11.79%

             Completion rate is equal to 0.3807 = 0.3807*100 = 38.07%

In some Industries, even the 5% conversion rates are as remarkable as they seem to. If one needs a range of 2%-5% conversion rate, then he or she has a load of room to grow.

Online Banking Increases Client's Involvement and Cross Selling

Make use of more marketing and advertisement to capture the attention of would-be clients who demonstrated intent but failed to convert.

Ii) From the exhibition, the overall Cost Per Application, often abbreviated as CPA, for display is estimated at $88 while overall CPA for paid search is $73.

That is; the overall CPA display is %88 and

CPA for paid searches equals $73 

BBVA, therefore, is equals to 77*100 / 88

= 82.95% 

Various reasons might have led to BBVA spending its whole online budget on the paid search. Some of these reasons include, but not limited to the following.   

Two reasons:

• That consumers are submitting their information and credentials to the BBVA server center and not to other individuals who might attempt to act out being the bank
• That all information is encoded between customer and BBVA server, and as a result thwarting their probable reading or mismanagement by unauthorized third parties.

In this section, the following table will be referred to. A conjoint exploration study was carried out in Tunisia to find out customers' partialities for different flavors, brands, and costs of yogurts.  The part-worths for a sample of three customers (that is regression coefficients) are tabulated. The answers to the corresponding questions are listed below in their order.

Q1. (Answer c) The best possible product for respondent 1 is STIL Yoghurt priced at $0.40 with Vanilla flavor.

Ans2. a) The worst possible product for Respondent 1 is generic brand yoghurt priced at $0.80 with Banana flavor.

Ans3. b) The relative importance of importance each attribute for Respondent 1 is 54.1% for the brand, 21.7% for price 24.2% for flavor.

Ans4. a) Yes, the ideal product is the same for all three respondents.

Ans5. d) None of the above.

In this Problem, various assumptions will be made while designing the advertising campaign. While using the provided information, for instance, I will assume that viewers who watch any program are able to see all insertions of the advertisement in that program. That is viewers never left the room or turn away. Besides, we shall assume that two programs are presented at the same time.  

Information; Nielsen ratings

Program	Cost per Ad insertion	Nielsen Rating
Belcher	$200, 000	17
NYPC Red	$100,000	14
Redemption Island	$200,000	16
Friend	$100,000	6

 
Percentage of the entire population who watch multiple programs 

Programs	% of populations
Belcher, Redemption, and NYPC Red	3%
Belcher and Redemption	5%
Belcher and NYPC Red	2%
Belcher and Friend	1%
Redemption NYPC Red	4%

1. The best campaign I would recommend is that comprising Belcher and Redemption Island. Belcher program on its own has a Nielsen rating of about 17%. This is the percentage of households in the United States who are tuned in to this program in a given period in time. On the other hand, Redemption Island has a Nielsen rating of 16%, that is a slightly lower percentage of all US households tuned in for it. When both Belcher and Redemption Island programs are combined, they depict the highest Nielsen percentage (of about 5% in the multiple programs).
2. I would recommend a larger number of insertions for Belcher than Redemption Island.  This is in consideration to cost per insertion for each program and the Nielsen percentage.   

Belcher program – 4 insertions and Redemption Island – 2

Above insertions will suit our weekly budget of $1,200,000 since

(4* $200,000) + (2* 200,000) = $1,200,000

1. Average frequency of this campaign = 4+2/2= 3
2. Percent of the population who will have an opportunity to see the ad at least 3 times

3% +5% +2% +1%+4% /x = 3

15/x=3

X=5

Percent of the population who will have an opportunity to see the ad at least 3 times is equals to 5%.  

Information: Help a newspaper with a pricing Problem. Total population in the city is 100, 000 people. There are 4 segments in the market which differ in terms of size and the inclination to pay for weekly and Sunday delivery of the newspaper.

Online Banking Increases Passive Customers and Minimize Banking Complexity

This information is tabulated as follows.

Size of Segment	Sunday paper Inclined to pay up to… per week	Weekly paper Inclined to pay up to…per week
20000	$5.00	$8.00
10000	$1.00	$9.00
50000	$6.00	$1.00
20000	$4.00	$7.00

  
Task 1: Develop a uniform price for the weekly newspaper as well as a uniform price for the Sunday paper.

 The uniform price for the weekly newspaper as well as a uniform price for the Sunday newspaper can be determined as follows.

• Uniform price or cost for weekly paper

Is equals to 8+9+1+7 divided by 4

25/4 =$6.26

• Uniform cost or price for Sunday paper is determined by

5+1+6+4   divided by 4

16/4= $4.00

Task 2: In addition, determine the pure bundling price:

= Segment size * Sunday paper Inclined to pay up to… per week * Weekly paper Inclined to pay up to…per week

20000 * 8 * 5 = $80000 (max)

50000 * 1 * 6 = $30000

10000 * 9 * 1 = $90000 (Min)

20000 * & * 4 = $56000

Thus, from these calculations, it is evident that the pure bundling price is the minimum of all of them which is equals to $90000.

Task 3:  Determination of mixed bundling pricing schemes for the Sunday and weekly newspaper which generates the maximum revenues

Mixed bundling price scheme for the Sunday & weekly newspaper which optimize incomes is $80000

Problem 5 (30 POINTS)

• MWX is not selling since MWX biocides are chemicals which exterminate microorganisms in metallic working liquids and consequently prolong the lifespan of the fluid.

MWX promoting Industry was the metallic working liquid formulators who framed and vended metal working. Since the end-market was scrappy great formulators distributed their commodities via a secondary disseminated network.

The 4Ps which typically form a marketing mix can be used to figure out why MWX is not selling.

• Price: This refers to the value of the MWX. The company recommended the retail price of the commodity to the end-user be set at $2 per two-ounce packet. However, one of the suppliers demanded that he might sell each packet for $6 to end-users. 
• Product: The item being sold is a biocide named Kathon MWX. It is a type of a chemical which kills microorganisms in metal working fluids and thus outspread the lifespan of the fluid. This fluid is used by the metal dealers in machining processes for example drilling and grinding.
• Place: This is the point of sale.The leading levels of wholesalers in this particular sector were the metalworking fluid formulators who formulated and wholesaled metalworking fluid distillate directly to huge corporations in their respective setting. 
• Promotion: The Company used various activities to make the product known to the users. For instance, Full-page advertisements in five issues of the American Machinist were put in place as the principal promotion strategy. 

From the description of the above marketing mix, it is evident that the pricing strategy used by the company is quite ineffective. Pricing experts are charging disproportionate prices for the product. In addition, the product has some side effects which can be detrimental to the lives of the frequent users.

No I do not agree with the distributor of MWX that is could be sold for $6 per packet.

It can best be traded at $1 per packet. The provider per box of 144 packages was @144. Thus the cost of 1 packet shall be only $1. 

• MWX marketing policy taking into consideration Haas and Rohm resources and capabilities are:

A sales force of six salespeople who consumed approximately 20% to 30% of their time on all biocide consumers roughly a third of this time was devoted on formulators. The time-out of the time spends visiting prominent workers.

MWX sachets in cases containing 144 containers every one of them weighing two modicum Quality price to dispense per box of 144 packs were $144.

Suggestions

• The pricing experts ought to put into consideration cost-effectiveness whenever pricing. This will ensure correct prices are for the correct amounts of the commodity.
• The responsible personnel should implement promotional mechanisms such as face-to-face undertakings to educate the end-users possible detriments of the biocide if mishandled.  In addition, the product should be packaged well with keen consideration of the user that is whether wholesaler or the end-user.

Bauer, H., Hans, Maik Hammerschmidt, Tomas Falk, “Measuring the quality of e?banking portals", International Journal of Bank Marketing, (2005) Vol. 23 Issue: 2, pp.153-175,

Howcroft, Barry, Robert Hamilton, Paul Hewer, "Customer involvement and interaction in retail banking: an examination of risk and confidence in the purchase of financial products", (2007) Journal of Services Marketing, Vol. 21 Issue: 7, pp.481-491,

Petrus, Guriting and Nelson Oly Ndubisi. "Borneo online banking: evaluating customer perceptions and behavioral intention (2006)." Management research news 29, no. 1/2: 6-15.

Vatanasombut, Banphot, et al. "Information systems continuance intention of web-based applications customers: The case of online banking (2008)” Information & Management 45, no. 7: 419-428