SUBJECTIVE PERCEPTION OF QUALITY

AM | @MackinlayEuruni

Sources. Hooman Estelami. Marketing Financial Services. New York: Dog Ear Publishing, 2006 (introduction).
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. Estelami: "A unique aspect of financial services marketing which differentiates it from other marketing practices is the illusive notion of quality. In the context of financial services, the notion quality is a highly subjective phenomenon.

- Insurance products: low probability of occurrence. "While the objective quality of an insurance company might be reflected by the willingness of the company to pay out customer claims, this measure is rarely known by the average user. In the insurance business, the majority of policyholder do not utilize their policy benefits since the events being insured typically have low probabilities of occurrence. Quality assessments in such a context are therefore not objective and are largely based on subjetive factors such as the customer's recognition of the name of the company or suggestions by friends" (p. 11)

- Asset management: time needed to assess quality. The objective quality of a broker-recommended investment portfolio may not be evident for many years until the securities in that portfolio have exhibited their long-term characteristics" (pp. 11-12).

[QUESTION: DO YOU UNDERSTAND THESE STATEMENTS?]

[CASE: BANCO SANTANDER INSURES MI HOME!]
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