Building societies as retail banks: The importance of customer service and corporate image

Legislative changes have opened up new opportunities for building societies in Britain to operate as retail banks offering a wide range of services. These organisations have operated very successfully in their traditional role for many years and have acquired a favourable generic image. The factors underlying consumer perceptions of the images of building societies are explored and compared with those relating to banks. Findings are presented to suggest that, although the building societies retain a generally favourable image, there are aspects of it that may hinder their successful operation in new markets. There is no evidence of the existence of distinct images for particular societies. Possible marketing implications of the findings are considered.