Labasbas, Alexidaniel I.

Reaction Paper in Service Marketing (MARK 102)

BSBA — Marketing Management 1-1 Dr. Angelito R. Calingo

Consumer Behavior and Positioning

In the first place, "If you're a true warrior, competition doesn't scare you. It makes you

better." by Andrew Whitworth. In the business world, competition has always improved things for almost

everyone. Without competition, existence would be impossible. Truth be told, this is correlates to our

topic, "Consumer Behavior and Positioning." In the line of manner, by answering the question about

how I compare two competing Philippine service-based companies through the characteristics of

service marketing.

According to my understanding, our discussions take into account the situation of

Philippine service-based in the world of business. At this moment, I chose BDO Unibank, Inc., and

Metropolitan Bank & Trust Company. I can confidently say that, these two service-based companies

are among the most successful in the business world and in the Philippines.

Despite the global financial crisis, "The Philippine banking system has made impressive

strides in recent years; loans have quadrupled and deposits have nearly quadrupled since 2005, and

the number of ATMs and bank branches has increased." As stated by Kristine Romano, Nestor A.

Espenilla Jr., and Nestor Tan.

In terms of service marketing characteristics, however, there is a comparison between

BDO Unibank, Inc., and Metropolitan Bank & Trust Company. BDO Unibank, Inc., offers a

comprehensive range of industry-leading services to the retail and business markets. Similarly,

Metropolitan Bank & Trust Corporation provides a comprehensive range of services in personal
banking, business banking, investments, and services to Filipinos living abroad. Along with the usage

of tangible products, these two are equivalent in terms of credit cards, which allow you to borrow money

from a bank; as a result, credit cards increase your purchasing capacity and provide global accessibility.

Thus, there is no stock maintenance or keeping the two banks in balance. Another characteristic is

low-price sensitivity; credit cards from BDO Unibank, Inc., and Metropolitan Bank & Trust Company

boost your purchasing power and make outstanding shopping more convenient. When there is less

money in the bank, however, price sensitivity increases, especially for more expensive things. But the

thing is, low-price sensitivity suggests that loyal customers are also open to interesting marketing

information. On the other hand, there are certain similarities in the value creation process between their

services, but the service fees and interest rates are slightly different.

To summarize, I have a comprehension of how these two well-known banks function in

the business world, which gives me with a higher depth of understanding and deeper information,

particularly when it is applied to our subject matter. Moreover, the comparison of these two banking

firms helps to widen my knowledge, and the fact that I am familiar with their similarities is indeed very

helpful. Finally, I'd want to close with a quote from Colin Powell that came to mind while writing this

reaction paper; he said “The healthiest competition occurs when average people win by putting above

average effort.”

Reference:

• McKinsey & Company (2018) The Philippines growth dialogues: Kristine Romano, Nestor A.

Espenilla Jr., and Nestor Tan. Retrieved from

https://www.mckinsey.com/featured-insights/asia-pacific/the-philippines-growth-dialogues-

kristine-romano-nestor-a-espenilla-jr-and-nestor-tan