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The Banking Game: Literature Review Part Two by Doreen Soutar

The Banking Game: Analysis of the extinction of the bank as trusted institution and NONIIs as an indicator of non-reciprocal strategies by Doreen Soutar. This is the second part of her literature review…

Banking: A Dual-Strategy Model

The banking industry operates in two distinct environments: financial trading and retail savings and loans (Casu et al 2006) and this has in the past resulted in the banks developing two distinct behavioural patterns to cope with these environments: a competitive model and a cooperative model. The competitive model was suitable for environments such as the stock market, where the inhabitants agreed to fight each other for available resources. The cooperative model was more suitable for retail banking environment, where customers assume that there is a fundamental principle of honourable group-focused behaviour (King, 2010; Kennedy, 2010). Read more

The Banking Game: Literature Review Part One by Doreen Soutar

Contrary to many claims at the time, there is a considerable literature prior to the 2007 crash which demonstrates that the circumstances necessary for impending crisis existed. For example, Taylor (1999) noted that “….in a decade perhaps only a dozen mammoth financial institutions may remain….

in the next three to five years, European banks profits will come under severe pressure” (p.60), Nabudere (2009) noted that there are many similarities between the crashes of the 1980s and 2007, and in a history of financial crises, Winter (2005) suggests that they typically have a signature context of a tendency to speculate and lax credit controls. In short, many commentators and researchers suggest that it could have and indeed was predicted, but the portents were ignored. Read more

The Country of Origin (COO) Effect by Doreen Soutar

This literature review is divided into three main sections: This section looks at The Country of Origin (COO) Effect…


Complementary to research on internal and external influences on purchase behaviour motivation, research has also been carried out which looks at the intrinsic and extrinsic cues individuals use when making purchasing decisions. The intrinsic cues are based on the product itself, such as the quality of the materials it has been make from. The extrinsic cues are those which are not directly related to the product, such as the brand label or the price. Some researchers (Lantz & Loeb, 2006; Okechuku, 2004) suggest that the country of origin of a product can be a stronger cue for purchasing behaviour that brand name, price, or quality. Scottish whisky or Egyptian cotton are prime examples of the COO effect. Read more

Ethnocentrism and Country of Origin Effects: The Process of Purchasing by Doreen Soutar

The early models of purchasing behaviour were developed in the 1970s, and were informed by research in psychology into the relationship between the individual’s intention to act and their subsequent behaviour (Fishbein & Azjen, 1975).

These models relatively simplistic, suggesting that behaviour was a result of a reasoning process which took internal thought processes and external influences into account. As these models were applied to purchasing decisions and expanded, it became clear that purchasing decisions were only partly rational, and contained a much wider and more complex interaction of influences.

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