@article{Frohlich_Kavan_Samli_1999, place={Huntsville, Texas}, title={Improving Bank Market Performance}, volume={16}, url={https://jbs-ojs-shsu.tdl.org/jbs/article/view/217}, DOI={10.54155/jbs.16.2.107-120}, abstractNote={<p>The primary assertion of this paper is that banks need to redirect and balance the focus of their business strategy from that of an internal (efficiency oriented) to an external (effectiveness oriented) marketing research program in order to achieve full profit potential. The return on assets (ROA) of banks has only fluctuated from 0.93% in 1992 to 1.24% in 1997. As one alternative to the flat ROA, the industry has engaged in a merger mania and invested in internal, transaction-oriented information systems in order to reduce costs and increase the current net income (efficiency driven). However, this business strategy results in short-run profits to the exclusion of opportunities that may result in long-run profits. It is obvious from this flat ROA that banks have not been effective. Therefore, in order to avoid the danger of banks becoming atrophied, the organizational effectiveness component must be brought into the overall architecture of the bank’s information system rather than the simple current emphasis on processing efficiency. This change in business strategy requires a fundamental paradigm shift in the manner in which banking executives view their industry. The business strategy must change from the narrow "provider of financial service" orientation to the broader "fulfiller of financial needs" orientation. A marketing information research system facilitating such a major shift in orientation is presented.</p>}, number={2}, journal={Journal of Business Strategies}, author={Frohlich, Cheryl and Kavan, C. Bruce and Samli, A. Coskun}, year={1999}, month={Oct.}, pages={107–120} }