Bank of America - Final

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<ul><li><p>!</p><p>!</p><p>Rollins College Professor Dr. Fetscherin </p><p>December 3rd, 2015 </p><p>!Brand Report </p><p>Alexander Blessig </p></li><li><p>! </p><p>!</p><p>2 </p><p>Table of Contents Table of Contents .................................................................................................................... 2 </p><p>1 Introduction and Objectives ........................................................................................ 3 1.1 Industry Overview ............................................................................................. 3 1.2 Brand Sentiment ............................................................................................... 3 1.3 Objectives of the Paper ..................................................................................... 4 </p><p>2 Literature Review ........................................................................................................ 4 2.1 Relevance of Analysis ....................................................................................... 4 2.2 Importance of Customer Brand Relationships .................................................. 5 2.3 Brand Love and Hate ....................................................................................... 5 </p><p>3 Research Method ......................................................................................................... 6 3.1 Scope of the research ........................................................................................ 6 3.2 Data Collection ................................................................................................. 7 3.3 Data Cleaning Process ...................................................................................... 7 3.4 Errors with Data ............................................................................................... 8 </p><p>4 Respondent Profile ...................................................................................................... 9 5 Love and Hate of Brands ........................................................................................... 10 </p><p>5.1 Hypothesis Testing .......................................................................................... 10 5.2 Brand Awareness ............................................................................................ 10 5.3 Brand sentiment Haters and Lovers ............................................................. 12 5.4 Brand Hate ...................................................................................................... 13 5.5 Brand Love ...................................................................................................... 14 5.6 Bank comparison ............................................................................................. 16 5.7 Influence of Income and Education ................................................................ 18 5.8 Unethical Behavior ......................................................................................... 19 5.9 Possible improvements ................................................................................... 19 </p><p>6 Conclusions ............................................................................................................... 21 References ............................................................................................................................. 22 Appendix ............................................................................................................................... 23 </p></li><li><p>! </p><p>!</p><p>3 </p><p>!!!!Figure 2: I HATE Bank of America </p><p>1 Introduction and Objectives 1.1 Industry Overview Bank of America is one of the four largest financial institutions in the United States. With an asset size of $2.14 trillion1, it is a very influential bank that affects many peoples lives. This brand report on Bank of America shows that it is a strong and internationally recognized brand. However, its brand image has been impacted negatively by many scandals and the financial crisis of 2008/2009. Four major banks, listed in Figure 1, dominate the U.S banking industry. They are compared to each other with asset size, customer base, Facebook likes, Twitter followers, Google brand hate hits, and Google brand love hits. This gives a good indication about the banking industry in relation to social media sentiment and online appearance two important factors for any brand image. The banking industry itself is so significant that influences people from all social classes. Major U.S. Banks </p><p>Asset Size (Trillion $) </p><p>Customers (Million) </p><p>Facebook Likes </p><p>Twitter Followers </p><p>Google Hits Brand Hate </p><p>Google Hits Brand Love </p><p>JP Morgan Chase </p><p>2.58 652 3,865,065 304,000 326,000 443,000 </p><p>Bank of America </p><p>2.14 493 2,280,928 417,000 522,000 18,500,000 </p><p>Citigroup 1.83 2004 1,053,663 662,000 380,000 556,000 Wells Fargo 1.74 705 839,884 192,000 481,000 11,400,000 </p><p> Figure 1: Social Media presence 1.2 Customer Sentiment The customer sentiment shows that the company needs to improve its brand image significantly in the future. Hate websites such as www.ihatebankofamerica.com6 (see Figure 2) imply that there is a growing negative sentiment towards the image of the bank. The social media mentions on Talkwalker.com, the Trackur website tool, and Yougov.com show very negative feelings towards the brand and its image. Exhibit 2 in the Appendix illustrates </p><p>some of the main reasons why people do not like the bank. They describe it as greedy, dishonest, misleading, despicable, and irresponsible7, which are all serious negative attributes for a bank. There is even a Bank of America hate </p><p>!1 http://www.bankrate.com/finance/banking/americas-biggest-banks-8.aspx!2 http://www.tomsguide.com/us/jpmorgan-chase-breach-disclosure,news-19676.html 3 http://about.bankofamerica.com/en-us/our-story/our-history-and-heritage.html#fbid=XFkhmGPft5w/hashlink=today 4 http://www.citigroup.com/citi/about/citi_at_a_glance.html 5 http://www.complaintslist.com/banks/wells-fargo/ 6 http://www.ihatebankofamerica.com/ 7 https://today.yougov.com/opi/browse/Bank_of_America </p></li><li><p>! </p><p>!</p><p>4 </p><p>song available on YouTube composed by a former customer with 30,000 views8. However, Bank of America has 2,280,928 Likes on Facebook and 417,000 Followers on Twitter. Figure 1 illustrates each of the four major banks and compares its social media presence on Facebook9, Twitter10, and relates that to its total Asset Size as of 11/19/15. There is a correlation between Asset Size of the Bank and the amount of Facebook Likes that a bank has. Twitter followers are actually inversely related to the Asset Size except of Wells Fargo, which has the least amount in both categories. The Google hits of brand hate are fairly equal with Bank of America having the most hits. To be able to restructure and repair the image completely, more in depth analysis is needed. To analyze the source of the brand hate and sentiment of customers towards Bank of America further research needs to be done. 1.3 Objectives of the Paper The purpose of this research paper is to evaluate why people hate or love banks. The project will entail exploratory research and collecting primary data through a questionnaire as a convenient sample. It is important to produce first hand primary data that is specifically tailored for this image problem. Overall, the problem of dissatisfied customers and a shattered brand image are so significant that they need to be addressed in further primary research. The goal of the questionnaire is to determine why people hate or love Bank of America and its competitors. Furthermore, the survey intends to understand the customer profile of those haters and lovers and why they hate or love a certain brand. To be able to analyze correlations within the data, Excel and SPSS are used. The technical analysis will range from simple descriptive data to regression analysis, ANOVA matrixes, and T tests in order to test the hypotheses and prove if they are right or wrong.! 2 Literature Review 2.1 Relevance of Analysis As one of the largest banks not only in the United States but also in the entire world, Bank of America has an immense responsibility to itself and its customers. Next to corporate social responsibility, the companies brand image is vital for customer acquisition and retention. In the past, this has been a serious problem for the company, as illustrated in the brand sentiment section above. Many academic papers and reviews have covered the topic of satisfaction of banking services. The literature review will relate to academic studies and the hypothesis in the research methodology will be based on the conclusions from the literature review. A vital part of the analysis is its justification because it makes the research project relevant. Many articles will be summarized and in order to show the importance of a brand image analysis and illustrate its correlation to the direct revenues and profits of Bank of America. This is a key trait for the company to succeed in the future because the banking industry seems to have a big image problem since the financial crisis in 2008/2009 as it was made responsible for most of the economic downturn afterwards. It is now up to all these companies to get rid of their greedy image and improve their customer brand relationships. </p><p>!8 https://www.youtube.com/watch?t=64&amp;v=2VAdLxxfIVo 9 https://www.facebook.com/ 10 https://twitter.com/!</p></li><li><p>! </p><p>!</p><p>5 </p><p>Figure 4: Dislike brands </p><p>2.2 Importance of Customer Brand Relationships The articles that will be mentioned show the importance of consumer brand relationships and why people love or hate brands. In the article The power of brand love by Barker, Peacock, and Fetscherin11, the importance of this research paper is justified to a great extent. </p><p>The main purpose of the article, is to prove that brand love leads to greater profitability and total shareholder return (Barker, Peacock, and Fetscherin, 2015), vindicates this research project. If there was no correlation between those two factors, it would not make sense for company executives to perform such a research study because it is of utmost importance to increase profits at all times. Furthermore, the article mentions </p><p>the importance of brandscape, which implies that love towards a certain brand can exist towards more than just one brand (Barker, Peacock, and Fetscherin, 2015). As Figure 3 </p><p>shows, even in very different industries such as Airlines, Drug retail or Specialty retail, companies with a higher BERA score generate higher revenues. Brand relationships and specifically brand love permit companies to monetize increased willingness to pay a premium, gain market share, remain price-competitive or increase profits (Barker, Peacock, and Fetscherin, 2015). With the help of the so-called BERA (Brand Equity Relationship Assessment) analysis, it can be determined that companies with a higher BERA </p><p>score are more likely generate higher profits than companies with a lower BERA score. This score is composed of Brand Regard, Competitive Uniqueness, Brand Cognizance, and Brand Meaningfulness (Barker, Peacock, and Fetscherin, 2015). The article Negative Double Jeopardy: The role of anti-brand sites on the Internet by S. Umit Kucuk is important for this research study as such a website already exists for Bank of America. More valuable brands have a higher attraction towards brand hate websites than less valuable brands. This would indicate that Bank of America is a valuable brand name as well. It is also mentioned that those hate website are one of the biggest fears of major CEOs because they can decrease profits. 2.3 Brand Love and Hate Another important article related to this research project is Emotions that drive consumers away from brands: Measuring negative emotions toward brands and their behavioral effects by Simona Romani, Silvia Grappi, and Daniele Dalli. It is vital to understand the </p><p>!11 https://blackboard.rollins.edu/bbcswebdav/pid-148803-dt-content-rid-479944_1/courses/90351.INB390T.1.201509/Viewpoint.pdf </p><p>Industry Company BERA score </p><p>EV to Rev. ratio </p><p>Airlines Southwest 79.3 1.5x </p><p> Delta 61.5 1.2x </p><p>Drug retail Walgreens 91.4 1.0x CVS 87.3 0.9x Specialty retail GNC 60.7 2.1x Vitamin Shop 32.8 1.2x </p><p>Figure 3: Relevance of BERA scores </p></li><li><p>! </p><p>!</p><p>6 </p><p> Figure 5: Brand Love and Hate </p><p>0% 20% 40% 60% 80% 100% </p><p>Hate/ Love? </p><p>Love Hate </p><p>reasoning behind brand love and hate. As Figure 4 illustrates, the brand hate or just dislike can be very strong and widespread12. One needs to comprehend why a customer decides to love or hate a certain brand. A certain stimulus in the human brain triggers the will to buy or not buy a product often originating form brand love or hate. Important for the brand is the visual and verbal information that serves to identify and differentiate a brand (Brakus, Schmitt, Zarantonello, 2009). According to the article Consumers have Humanlike Relationships with Brands by Jeanette Mulvey, consumer brand relationships are very similar to human relationships between people. She states that on one hand consumers relate to brands a certain way because of economic factors, such as price and quality of the </p><p>products. On the other hand, a communal relationship (Mulvey, 2012) is important because it promotes an emotional relationship to the brand built on partnership and trust. The article Someone has to hate your brand by Drew McLellan reveals another perspective to the topic of hating and loving certain brands. The </p><p>author claims that it is actually beneficial if there is hate towards a brand because it has to stand for something as it cannot be neutral (McLellan, 2014). His main point is that there is nothing worse than consumers not having an opinion or a feeling associated with a brand. Companies that try to be everything to everyone (McLellan, 2014) are in the mushy middle (McLellan, 2014) as Figure 513 graphically illustrates. This is an important consideration for this research project because it means that the amount of people that select neutral in any of the questions in the survey have a significance for the brand analysis as well. On top of that, it can change the interpretation of the haters of the bank because they can be considered valuable as the customers at least have an opinion about the bank. The brand connection matrix and the brand feeling matrix, developed by Dr. Fetscherin and Dr. Heinrich clearly show the importance of strong customer relationships with brands. They both factor in emotional connections as in feelings and affection and functional connections, meaning thinking and cognitive perception (Heinrich, 2014). The second one relates more to the emotional part in detail. Overall, the research extracts mentioned above justify this research paper and underline the importance of the following research. </p><p> 3 Research Method 3.1 Scope of the research In order to analyze the love and hate towards the brand Bank of America, a representative survey was conducted. It helps the research to gain validity...</p></li></ul>