Banking and Marketing: Strategies of Lloyds TSB in the recession period

by

ACKNOWLEDGEMENT

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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Date: __________________________

DECLARATION

I , hereby declare to the best of my knowledge that all the contents of this thesis represent my personal authentic work, and that no such thesis has been previously submitted for any academic examination or any other qualification. Additionally, it is a representation of my own personal opinions, and does not have anything to do with those of the University.

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Abstract

The paper places focus on different aspects of the economy in times of recession and its` affect on different sections of the industry. In addition to this the intention of the research was to understand the strategies incorporated by the Lloyd TSB in response to the recession to negate them in a feasible manner. This led the financial institution towards liquidation and raised major concerns of their solvency. These issues soon became concerns of almost all of the major non-financial institutions resulting in the facility of credit payments which was withdrawn. This resulted in the consumers' and businesses' confidence being diminished. During all this time Lloyd faced huge amount of losses due to unpaid loans by the customers.

The economic crisis had severe effects on Lloyd banks and its implication for restructuring the balance sheet of banks and liquidity. It eventually affects the supply of credit to banks and households. Even though, the recent contraction in the second quarter of the year 2009 signalled that recession may be in its ending season. The volume of economic activities reduced to 0.3percent as compared to the precious year. However, with the exception of a few studies, the topic that remains to be explored is the household-level effect of economic recession. It should be acknowledged that there has been a large public interest in the societal impacts of the ongoing economic recession, as evidenced by the large amount of attention given to the topic by the popular press.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the study1

Global affect of recession2

Banking sector3

The Bank Objectives4

Offensive potential5

Relationship Marketing and the Banks6

Changes in the Environment7

Changes in Sources of Revenues8

Customers' and Account Managers' Perceptions8

Turnover among Account Managers8

Limited Span of Authority of Account Managers9

Banks' Credit Norms9

Bank Organization9

Inadequate Human Resources Management10

Existing Measures of Performance10

A Credit-Driven Culture10

Bank Structure11

Research Questions12

Overview of Lloyds TSB Bank13

CHAPTER 2: LITERATURE REVIEW14

Recession in United Kingdom14

The Impact of Recession15

Unemployment16

Social Effects16

Businesses16

Pricing in Economic Recession17

Stock Levels Considerations17

Human Resource Considerations18

Impact of the recession on employment and output18

Support for Growth20

The Indifferent Consumer22

Marketing to the Indifferent Consumer: A Longitudinal Analysis24

Benefit communication26

Benefits26

High Competition in Banking Industry28

Increasing Sophistication of Customers28

Introduction of Relationship Marketing: Customer Satisfaction and Customer Loyalty29

Relationship Marketing31

Decline in Bank lending32

Two strategies33

Asymmetric Monetary Policy Effect34

CHAPTER 3: METHODOLOGY36

Research Methodology36

Choosing a Case Study Type37

Interviews37

The standardized, open-ended interviews38

Closed fixed-response ...