The financial services industry, in particular the retail banking sector, is expanding its embrace of electronic distribution strategies. Today, for example, almost all retail banks offer on line inquiry for customer accounts, and most provide the Air Jordan 6 Rings ability to perform balance transfers, withdrawals, and bill payments. Electronic distribution is growing, too. In 1996, PC banking was estimated to reach about 2.5% of banking households and was projected to grow to approximately 19% by 2002.

Early work on electronic commerce and the vast Air Jordan 23s majority of practitioner literature point to cost savings yielded by an on line distribution approach. For example, a study by Booz Allen Hamilton, a management consulting firm, reports that the marginal cost of an on line banking transaction is four cents compared to $1.44 for a teller based transaction.

In a paper titled Better Customers Utilize Electronic Distribution Channels: The Case of PC Banking, Wharton’s Lorin M. Hitt and Harvard’s Frances X. Frei challenge the assumption that cost saving represents the primary long term benefit offered by electronic distribution Air Jordan 11s in the retail banking sector.

For instance, even if the Booz Allen cost saving figures are accepted, Hitt and Frei argue that on line banking technology is easily replicated by competitors and is therefore unlikely to create a sustainable competitive advantage. In addition, many of these cost reductions are accompanied by reduced entry barriers and increased market transparency, which further intensify competition. Finally, they say, the substantial investment in infrastructure as well as incremental service and support costs erode much, if not all, of the supposed cost savings.

While Hitt and Frei reject the cost savings potential, however, they conclude that PC banking does offer at least one significant benefit it lets institutions retain high profit customers.

In 1998, Hitt and Frei developed their own data, convincing seven banks with assets ranging from $30 billion to $200 billion to participate in a comprehensive study of IT (information technology) investment practices. The study included a general overview of the process as well as an extensive discussion and data collection effort of PC banking as an example of a recent IT investment decision. These data included project timelines, initial and ongoing costs, motivation for the investment and measured outcomes.

Some of the data were collected by a formal questionnaire with specific queries, while other data were obtained in response to such open ended questions as, do you perceive the value of PC banking to be?

A questionnaire was sent to each bank and interviews were then scheduled with the individual or group most knowledgeable about a particular issue.

These differences were studied by estimating regression models that related customer demographics and PC banking usage to product balances and the number of products they use. Based on the statistics they developed, Hitt and Frei made Air Jordan 4s three initial observations: First, customers who use PC banking are consistently wealthier, more likely to own a home and to be married, and are between two to six years younger than those who do not use PC banking.

Second, PC banking users generally have more banking products, greater asset balances, and offer greater (estimated) profitability.

Third, the differences between PC banking and non PC banking customers persist across different institutions in the Hitt Frei study, although there is some variation on the degree of the difference. Hitt and Frei observe that even after accounting for demographic differences, account duration and short run versus long run profitability, PC banking customers offer more value than those who do not bank by PC.

For example, electronic customers use more products and carry higher asset and liability balances in both a single cross section and over different stages of the account lifetime. Following their adoption of PC banking, they also tend to acquire products at a slightly greater rate than that suggested by their characteristics.

Their study offers valuable guidance for banks that are considering Air Jordan 1 expanding or implementing electronic distribution. Although the cost savings benefits of PC banking appear to be minimal or non existent in the medium term, the product could be viewed as a tool for retaining a small but significant segment of high value accounts.

In essence, electronic banking is a competitive necessity that offers a high degree of value. Additionally, the product is a useful segmentation device that could open the door to targeted cross sells, price discrimination and other effective strategies. Thus, most of the potential segmentation effects are not being realized.

They also note that account retention was a motivation in only four of the seven banks studied. And even in these institutions, there was little measurable explicit pursuit of account retention in the product marketing and deployment approaches. As such, traditional banks are likely to face new and aggressive competition for high value electronic customers from on line virtual banks as well as such so called mega banks as Citigroup and NationsBank that have national brand recognition but currently have a limited geographic scope.

Adohr Milk Cream is a US-based company famous for its gorgeous cows with their glamorous digs! Raised near Hollywood, CA…the movie capital of the World…our beautiful bovine are pampered like the stars they are. Our philosophy is “Star-quality cows make star-quality milk�. Our premier line of milk powder baby formulas are nutritionally complete for your rising star.

In the tradition of Old Hollywood, our wholesome, nutritious and delicious newborn, infant and toddler formulas start with milk from A-List cows. The cast of nutritionists and scientists at Adohr Milk Cream have spent years researching and developing the best combination of ingredients to provide optimal nutrition.

At Adohr Milk Cream, we believe your child is the star of your life…from pregnancy through toddlerhood and beyond. Our milk powders provide 100% of the recommended daily supply of vitamins and minerals that are essential for strong teeth and bones, good skin and hair, and a healthy brain. Everything a little star needs to grow.

Since our company was founded, every product we manufacture is done so with traditional values in mind. Our old-fashioned milk powders are made in America and are FDA-approved following strict guidelines and manufacturing processes.