Predicting actual consumer behaviour in retail banking

Chris Baumann, Suzan Burton, Greg Elliott

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contribution

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 behavior can be predicted, in particular by demographic factors such as age, income and a customer's residential location. Since 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 used from a customer's main bank. While overall satisfaction and affective attitude were found to be strong predictors of behavioral intentions, they were, together with service quality, not significantly associated with SOW.
Original languageEnglish
Title of host publicationDecision Science Institute
Subtitle of host publication2005 annual meeting proceedings
EditorsJayanth Jayaram
Place of PublicationAtlanta, US
PublisherDecision Sciences Institute
Pages23041-23047
Number of pages7
ISBN (Print)0966711807
Publication statusPublished - 2005
EventAnnual Meeting of the Decision Sciences Institute (36th : 2005) - San Francisco, CA
Duration: 19 Nov 200522 Nov 2005

Conference

ConferenceAnnual Meeting of the Decision Sciences Institute (36th : 2005)
CitySan Francisco, CA
Period19/11/0522/11/05

Keywords

  • share of wallet
  • customer loyalty
  • retail banking

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