What is the result of new products in a market in which existing products cover most basic customer needs?
A more complicated and opaque product
Details of interest rate swap financial product:
- Small business customers would pay a lower rate of interest on a business loan if interest rates went up, but a higher rate of interest if interest rates went down
- Businesses believed the products to be an interest rate cap that would save them having to pay a rise in interest rates, but the same rate as before if rates were to fall
What is the European Court of Justice?
An institution that interprets the law of the EU
What did the ECJ rule in 2011?
It is illegal under gender discrimination law for insurers to offer different prices for men and women
How have direct line used the ECJ ruling of product development to fuel product development?
- It introduced a scheme called ‘DrivePlus’ that allows safe drivers in 17-25 age group to save up to 20% on their car insurance premium
- To qualify, driver must have a ‘telematics’ black box fitted to their car which monitors driving behaviour, data is then fed back to the insurance company who judges the degree of safety of driving and gives a discount according to their score
Example of a bank redesigned current account products to appeal to customers disgruntled by overdraft charges:
Santander ‘Everyday Current Account’ offers a free arranged overdraft for the first four months for new customers switching via the bank’s ‘Switcher Service’
Who took over responsibilities from the OFT when it closed?
- FCA
- ASA
- CMA
What happens normally if there is a crash involving an uninsured driver, even if the insured party is not at fault?
The insured party receives no compensation
What does Direct Line’s ‘Uninsured Driver Promise’ do?
Protects insurance policyholders against uninsured drivers
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1.1 An Overview of the Financial System62
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1.2 Trends in the Financial Sector18
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1.3 Financial Intermediation17
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1.4 The Sources and Applications of Funds5
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1.5 New Types of Financial Services Provision15
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2.1 The Importance of Competition23
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2.2 The Competition Situation in the UK19
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2.3 The Need to Promote More Competition3
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2.4 Methods of Increasing Competition25
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2.5 The Consumer Environment and the Determination of Consumer Choice10
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3.1 The Sustainability of the Financial Services System28
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3.2 The Sustainability of Individual Providers Within the Financial Services System10
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3.3 The Sustainability of Financial Products8
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3.4 Trends in (Un)sustainability20
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3.5 Conclusion1
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4.1 How the media treat financial matters27
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4.2 Extreme reporting Vs the balanced view9
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4.3 Behind the headlines6
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4.4 The media as watchdog5
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5.1 The external environment and PESTEL analysis7
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5.2 The political environment26
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5.3 The economic environment33
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5.4 The social environment24
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5.5 The technological environment1
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5.6 The legal environment12
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6.1 Change, uncertainty, risk and loss15
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6.2 Changing rates of inflation18
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6.3 Volatility in the stock market3
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6.4 Economic uncertainty6
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6.5 Attitudes to credit and debt4
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6.6 Institutional issues32
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6.7 Changing weather patterns5
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6.8 Religious attitudes to financial products8
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6.9 Ethical and environmental concerns3
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6.10 Terrorist attacks7
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7.2 Targeting consumer groups4
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7.3 Marketing materials and information2
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7.4 The small print and regulatory requirements9
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7.5 Different types of marketing4
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7.6 Different advertising methods8
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7.7 Ethics, sustainability, CSR and environmental issues in marketing literature15
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7.8 Evaluating the marketing effort1
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7.9 How different approaches fit different business contexts4
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7.10 Marketing and the wider industry context8
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7.11 Marketing and the changing financial services industry1
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8.1 Managing the customer relationship26
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8.2 Attracting and retaining customers12
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8.3 Achieving customer satisfaction8
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9.1 Meeting the needs, wants and aspirations of a market segment15
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9.2 Market research in financial services15
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9.3 The product development process9
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Randoms8
