Predicting actual consumer behaviour in retail banking

Chris Baumann; Suzan Burton; Greg Elliott

Predicting actual consumer behaviour in retail banking

Chris Baumann, Suzan Burton, Greg Elliott

Research output: Chapter in Book/Report/Conference proceeding › Conference proceeding contribution › peer-review

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
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

Cite this

@inproceedings{6d92c767563846ef88826130f604190d,

title = "Predicting actual consumer behaviour in retail banking",

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.",

keywords = "share of wallet, customer loyalty, retail banking",

author = "Chris Baumann and Suzan Burton and Greg Elliott",

year = "2005",

language = "English",

isbn = "0966711807",

pages = "23041--23047",

editor = "Jayanth Jayaram",

booktitle = "Decision Science Institute",

publisher = "Decision Sciences Institute",

note = "Annual Meeting of the Decision Sciences Institute (36th : 2005) ; Conference date: 19-11-2005 Through 22-11-2005",

}

TY - GEN

T1 - Predicting actual consumer behaviour in retail banking

AU - Baumann, Chris

AU - Burton, Suzan

AU - Elliott, Greg

PY - 2005

Y1 - 2005

N2 - 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.

AB - 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.

KW - share of wallet

KW - customer loyalty

KW - retail banking

M3 - Conference proceeding contribution

SN - 0966711807

SP - 23041

EP - 23047

BT - Decision Science Institute

A2 - Jayaram, Jayanth

PB - Decision Sciences Institute

CY - Atlanta, US

T2 - Annual Meeting of the Decision Sciences Institute (36th : 2005)

Y2 - 19 November 2005 through 22 November 2005

ER -

Predicting actual consumer behaviour in retail banking

Abstract

Conference

Keywords

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Cite this