The role of perceived benefit in the effect of innovative marketing practices on bank preference: An empirical study

Banks must be innovative to meet customer needs and survive in a competitive environment. Customers have become more conscious nowadays and have increasing demands and desires due to enhanced activities. In order to meet these needs, banks need to make efforts to be innovative and revamp their operations. Innovation encompasses different aspects such as developing new products, production processes, marketing tools, and channels. Therefore, it is crucial for banks to operate with the philosophy of "Innovate or Die." In line with this information, this study aims to examine the role of perceived benefit provided by innovative marketing practices in influencing customer bank preferences. For data collection in this research, the random sampling method was employed, and an online survey was utilized. In the evaluation of the developed model, exploratory factor analysis was initially conducted, followed by correlation analysis to determine the strength and level of impact of relationships within the model. The analysis results indicate that the tested model exhibits an acceptable fit. The study reveals a significant and positive bidirectional relationship (0.884) between bank preference and perceived benefit. Similarly, a significant and positive bidirectional relationship (0.823) between bank preference and innovative marketing practices was observed. The study also found a significant and positive bidirectional relationship (0.871) between perceived benefit and innovative marketing practices. Simple linear regression analysis was also utilized to test the hypotheses, and the F-test probability values (Significance level, p<0.05) indicated that the hypotheses were accepted. These findings demonstrate the significant role of perceived benefit and innovative marketing practices in customer bank preferences.