Abstract
A critical measure largely neglected in previous loyalty studies is the customer's 'share of wallet' (SOW). This study, based on 1,924 retail banking customers, suggests that about 25-65% of the variance in customer loyalty in terms of actual behaviour can be predicted, in particular by demographic factors such as age, income and a customer's residential location. In recognition of the fact that banks generate different profits from savings/investment products and loans, the study develops separate models predicting SOW in terms of deposits, debts/loans; and percentages of accounts, loans and credit cards nsed from a customer's main bank. While satisfaction and attitude are strong predictors of behavioural intentions, they were, together with service quality, found not to be significantly associated with SOW.
Original language | English |
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Pages (from-to) | 299-301 |
Number of pages | 3 |
Journal | Proceedings of the Thirty-Fourth Annual Meeting of the Western Decision Sciences Institute (WDSI) |
Publication status | Published - 2005 |
Event | Annual Meeting of the Western Decision Sciences Institute (34th : 2005) - Vancouver, Canada Duration: 22 Mar 2005 → 26 Mar 2005 |