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.
|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