Unlike other books which focus solely on the business or profit aspects of measuring the customer experience, this book focuses on the benefits to the consumer as well as the company or financial institution. The book describes how business and government can undertake market research to determine whether the credit and investment markets are functioning properly and providing consumers with adequate information to make sound and safe credit and investment decisions. A discussion of different market research methods abilities to uncover problems in the credit and investment markets is provided.
Findings and trends from studies measuring the customers experience in the credit and investment markets during the 1991 - 2009 time periods are discussed along with regulatory guidelines and consumer protection laws. The methodologies used to measure the customer experience and detect misleading sales practices; unfair treatment and discrimination in the financial services market place are described in detail. The techniques of mystery shopping, matched pair testing and consumer surveys are described along with a detailed discussion of study design, data collection methods, sample size determination, statistical testing, reporting and analysis. Sample questionnaires, mystery shop scenarios and profiles and sample analyses and charts are provided.
Protecting Main Street : Measuring the Customer Experience in Financial Services for Business and Public Policy
Description
Table of Contents
Chapters 1.0 Introduction An overview of the importance of conducting different forms of market research to uncover problems in the lending and mortgage markets and how these problems affect the consumers' ability to make optimal credit decisions. Examples of the problems uncovered by market research through match pair testing, mystery shopping and telephone surveys from 1991 -- 2007 are discussed. A discussion of how changes in the mortgage and lending markets have created problems and how these problems have affected the financial well being of the nation, consumers and lenders is provided. Lastly the book will outline how the same market research methodologies can identify problems in other business sectors, for example consumer investment, savings and housing. As such the book will provide a blueprint for identifying and correcting problems in critical markets affecting the financial well being of consumers and the nation through action oriented market research. 2.0 Market Research Approaches 2.1 What is Self-testing? A definition of self-testing is provided along with the objective and the information it provides is discussed. The various market research methodologies used for self-testing are defined, including match pair testing, monadic testing, mystery shopping, post application telephone surveys, focus groups, loan file reviews and regression analysis. 2.2 What Benefits are Offered by Conducting Market Research and Self-testing? The information and benefits offered to lenders, financial institutions, consumers and government oversight and policy setting agencies is reviewed. The market research approaches ability to detect discrimination, misleading sales practices and violations of the law is described. 2.2 Match Pair Testing and Mystery Shopping to Detect Discrimination and Unfair Sales Practices A definition of match pair testing and monadic testing is provided along with how the techniques are performed is reviewed. Areas discussed are the objective, the information collected, the questionnaire, project implementation, reporting and action plans based on results. a a Sample questionnaire and report formats are provided. Results from publicly available studies and reports will be provided. 2.3 Post Application Telephone Surveys A definition of post application telephone surveys is provided along with how the technique is performed is reviewed. Areas discussed are the objective, the information collected, the questionnaire, project implementation, reporting and action plans based on results. Sample questionnaire and report formats are provided. Results from publicly available studies and reports will be provided. 3.0 The Results Uncovered by Market Research 1991 -- 2008 3.1 1991 -- 1995 A discussion of the approaches, methodology and publicly available findings from market research studies designed to detect discrimination and fair treatment in lending will be reviewed. Definitions concerning different forms of discrimination will be provided. Example of how the results were described and portrayed will also be provided. A discussion will be provided describing government enforcement and regulatory agency, community groups and lender attitudes and uses of the market research and testing will be provided. The best practices used by lenders and encouraged by government agencies will be reviewed. Department of Justice and government agency enforcement actions against lenders will be described. 3.2 1996 -- 1999 A discussion of the approaches, methodology and publicly available findings from market research studies designed to detect discrimination and fair treatment in lending during the mid -- late 1990's will be reviewed and contrasted with the early 1990's. Examples of how the results were described and portrayed will also be provided. A discussion will be provided describing government enforcement and regulatory agency, community groups and lender attitudes and uses of the market research and testing during this time will be provided and compared to the early 1990's. The best practices used by lenders and encouraged by government agencies will be reviewed and contrasted to the early 1990's. Department of Justice and government agency enforcement actions against lenders will be described. a 3.3 2000 -- 2008 A discussion of the approaches, methodology and publicly available findings from market research studies designed to detect discrimination, fair and reasonable lending and misleading sales practices in lending after the turn of the century will be reviewed and contrasted with the early 1990's. Examples of how the results were described and portrayed will also be provided. A discussion will be provided describing government enforcement and regulatory agency, community groups and lender attitudes and uses of the market research and testing during this time will be provided and compared to the early 1990's. The best practices used by lenders and encouraged by government agencies will be reviewed and compared to the mid -- late 1990's. Department of Justice and government agency enforcement actions against lenders will be described. 4.0 Market Research Approaches and Other Business Sectors A review of conducting theses approaches in other business sectors, for example, the consumer deposit and investment markets as well as housing will be provided. As the book will demonstrate how marketing research approaches can help to ensure the consumer is provided with adequate access to information to make appropriate investment, savings and credit decisions
Author Description
Paul C. Lubin has more than 30 years experience measuring and improving the customer experience. He owned and operated one of leading financial services market research firms in the country, Barry Leeds and Associates and has worked for the leading financial institutions in America. He pioneered the use of market research to detect discrimination and unfair sales practices in consumer lending and developed self-testing testing programs for financial institutions facing allegations of discrimination and unfair sales practices. In the early 1990's, he pioneered the use of Mystery Shopping and Matched Pair Testing to detect discrimination in lending. In the early to mid-1990's he developed a method to test for discrimination through customer feedback and coined the phrase "post-application test." The procedure is considered a valid self-test for discrimination by federal regulatory agencies. At the same time he pioneered the use of Mystery Shopping to examine non-deposit investment sales practices at banks. During the late 1990's and into the new century Paul created programs to detect predatory lending and misleading sales practices. In November 2007 he wrote and presented a paper Fair Lending Testing: Trends, Training and Best Practices at the Understanding Consumer Credit Symposium sponsored by the Joint Center for Housing at Harvard University. The paper is cited by Department of Housing and Urban Development as a source for methods used by financial institutions to detect discrimination and compliance with the law. In 2009 he prepared and presented a paper to the American Marketing Association Public Policy Conference titled Market Research for Detecting and Eliminating Racial Profiling in Consumer Lending.