ABSTRACT
For a number of financial products, their nonprice characteristics may be as important as their price. In the case of stockbroking services, analysts’ advice and soft commissions feature prominently, in addition to commission rates. In retail banking, characteristics such as branch size, automatic teller machine (ATM) access and service charges are, among other factors, integral parts of the retail product offered to customers. If one wishes to assess competitive behaviour in financial markets, it is important to ‘price’ these characteristics and adjust the price of the product accordingly.
