The use of conjoint analysis to review the attractiveness of credit conditions
Journal Title: Acta Economica - Year 2012, Vol 10, Issue 16
Abstract
The increase in aggregate demand is one of the primary goals of every economy. By achieving this goal, many positive effects in economy are also achieved which is manifested through increase in consumption, investment and creating a better social environment. The state has the key role in achieving this goal, with its instruments and policies it directs economy toward demand increase. Although all economies aspire to this goal, many are not in position to realize the goal they have set for themselves. The alternative, in an effort to increase aggregate demand, may be the banking sector. Increase in volume of loans directly influences the growth of demand. Commercial banks, like all companies, strive to continually increase their value on the market and to better position themselves. One way to succeed in doing so is to increase the income. Given the specificity of commercial banking, their goal is achieved, inter alia, by improving of lending. In order to increase income on this basis, a very important prerequisite is the formation of attractive credit offers with the strong emphasis on respecting the views of clients on this issue. To respect and value clients` views means identifying key factors and adjusting the offer to them. The power of conjoint analysis is that it allows us to get the answer to this problem. The algorithm of this analysis is a multivariate procedure to measure the preferences of bank clients regarding the loan attributes. Conjoint analysis relies on a survey of bank clients with the representative set of attributes that are ranked according to clients` preferences. Obtained quantitative informations can be used to model the credit offer. For example, one commercial bank is interested in forming a new attractive credit offer and wants to study the influence of several factors (attributes) on client preferences in order to determine which factor is the most important one.
Authors and Affiliations
Дарко Милуновић, Дарија Милуновић
Keywords
Related Articles
- EP ID EP43743
- DOI -
- Views 257
- Downloads 0
SETTLING OF TRADE DISPUTES WITH ELEMENT OF FOREIGN ITERFERENCE
Arbitration settling of disputes among economic subjects as a result of business transactions with element of foreign interference is more and more important for of judging. Even though, gradually it has more important r...
SOCIAL - ECONOMICAL CHANGES AND THE QUALITY OF LIFE IN REPUBLIC OF SRPSKA (BOSNIA AND HERZEGOVINA)
A war in Republic of Srpska started soon thereafter, counsing widespread destruction and loss of life. The war had significant consequences for the country. In addition to the material destruction and loss of life, there...
FINANCIAL GAMBLING AS AN GENERATOR OF FINANCIAL CRISIS
In this article we discuss about last global financial crisis, principal – agent relationship and new role of state in modern economy. Financial gambling is new issue for public debate between experts and nonexperts. Als...
Leaden legs of recovery of Republic of Srpska economy
This paper , on the base of historical facts, tries to warn the business decision makers on the need to examine the global limiting factors that significantly affect the recovery and development of the economy of any coun...
Transparency in corporate governance
A signifcant aspect of corporate governance refers to the transparency and disclosure, which can provide numerous benefts to company’s business and signifcantly contribute to gaining investors confdence. However, low tra...