Article: Predicting Consumer Behavior in Retail Banking Journal: Journal of Business and Management (JBM) 2007 Vol.13 No.1 pp.79 - 96 Abstract: A critical measure largely neglected in previous loyalty studies is the customer's share of wallet (SOW), or the percentage of their business that they assign to one bank. Since banks generate different profits from savings, investment products and loans, this study, based on 1,951 retail banking customers, develops separate models predicting SOW for deposits, debts and loans; and percentages of accounts and credit cards used from a customer's main bank. The results suggest that about 25 to 65 percent of the variance in SOW can be predicted by demographic factors such as age, income and a customer's residential location. While overall satisfaction and affective attitude have generally been found to be strong predictors of behavioral intentions in the marketing literature, they were, together with service quality, not found to be unique predictors of SOW in this study. Inderscience Publishers - linking academia, business and industry through research

Title: Predicting Consumer Behavior in Retail Banking

Authors: Chris Baumann; Suzan Burton; Gregory Elliott

Addresses: Author address listing can be found in the "About the Authors" section at the end of the article.

Abstract: A critical measure largely neglected in previous loyalty studies is the customer's share of wallet (SOW), or the percentage of their business that they assign to one bank. Since banks generate different profits from savings, investment products and loans, this study, based on 1,951 retail banking customers, develops separate models predicting SOW for deposits, debts and loans; and percentages of accounts and credit cards used from a customer's main bank. The results suggest that about 25 to 65 percent of the variance in SOW can be predicted by demographic factors such as age, income and a customer's residential location. While overall satisfaction and affective attitude have generally been found to be strong predictors of behavioral intentions in the marketing literature, they were, together with service quality, not found to be unique predictors of SOW in this study.

Keywords: Consumer behavior; retail banking; share of wallet; demographic factors; customer loyalty.

DOI: 10.1504/JBM.2007.141151

Journal of Business and Management, 2007 Vol.13 No.1, pp.79 - 96

Published online: 05 Sep 2024 *

Title: Predicting Consumer Behavior in Retail Banking

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