Online banking and privacy: redesigning sales strategy through social exchange

Gajendra Prasad Liyanaarachchi, Sameer Deshpande, Scott Weaven

Research output: Contribution to journalArticlepeer-review


Purpose: This paper advocates for banks to understand customers' online privacy concerns, use those insights to segment consumers and design tailored sales strategies to build a mutual relationship through a social exchange that produces a competitive advantage.

Design/methodology/approach: A qualitative study involving 30 in-depth interviews with Australian and Asian millennials residing in Australia was conducted using a grounded theory approach to explore privacy concerns of online banking and determine the efficacy of their banks' existing sales strategy and practice.

Findings: The study revealed differences in customer perceptions of trust, confidence, responsibility and exchange. Adopting a power-dependency paradigm within a social exchange theoretical framework and power distance belief of national culture theory, the authors identified four consumer segments: exemplar, empiric, elevator and exponent. The authors propose a tailored consumer-centered sales strategy of communication, control, consolidation and collaboration.

Originality/value: The paper contributes to the research in services marketing, sales strategy and banking in three ways: first, the authors demonstrate the importance of the social exchange theory and national culture as a premise to develop a competitive advantage; second, the authors propose an innovative set of consumer segments in regards to online privacy concerns; and, third, the authors introduce four sales strategies tailored to each of the four segments.
Original languageEnglish
Pages (from-to)955-983
Number of pages29
JournalInternational Journal of Bank Marketing
Issue number6
Early online date24 Jun 2021
Publication statusPublished - 18 Aug 2021


  • privacy concerns
  • sales strategy
  • online banking
  • social exchange theory
  • national culure

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