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 language | English |
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| Title of host publication | Decision Science Institute |
| Subtitle of host publication | 2005 annual meeting proceedings |
| Editors | Jayanth Jayaram |
| Place of Publication | Atlanta, US |
| Publisher | Decision Sciences Institute |
| Pages | 23041-23047 |
| Number of pages | 7 |
| ISBN (Print) | 0966711807 |
| Publication status | Published - 2005 |
| Event | Annual Meeting of the Decision Sciences Institute (36th : 2005) - San Francisco, CA Duration: 19 Nov 2005 → 22 Nov 2005 |
Conference
| Conference | Annual Meeting of the Decision Sciences Institute (36th : 2005) |
|---|---|
| City | San Francisco, CA |
| Period | 19/11/05 → 22/11/05 |
Keywords
- share of wallet
- customer loyalty
- retail banking