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Banking behaviour after the lifecycle event of “moving in together”: An exploratory study of the role of marketing investments

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  • B. LARIVIÈRE
  • D. VAN DEN POEL

Abstract

This study addresses an important issue for both managers and researchers: whether it is advantageous for financial services providers to invest in youth marketing. More specifically, the effectiveness of these investments is evaluated in terms of retention proneness once youngsters enter the lifecycle event of “moving in together”. The study identifies eight constructs of youth marketing and contrasts their impact against the best deal when youngsters decide to move in together and consequently experience the need to buy their first collectivized financial products, such as a joint account or a mortgage for their new home. Furthermore, the influence of the partner, prior patronage behaviour, customer demographics and psychographic variables are tested for. The findings of the study reveal that (i) individuals are likely to change their banking behaviour during crucial lifetime events such as moving in together, (ii) not all youth marketing investments are equally effective, while (iii) the best deal components (e.g. convenience, price conditions, etc.) have a major impact.

Suggested Citation

  • B. Larivière & D. Van Den Poel, 2007. "Banking behaviour after the lifecycle event of “moving in together”: An exploratory study of the role of marketing investments," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 07/433, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:07/433
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    References listed on IDEAS

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    1. Van den Poel, Dirk & Lariviere, Bart, 2004. "Customer attrition analysis for financial services using proportional hazard models," European Journal of Operational Research, Elsevier, vol. 157(1), pages 196-217, August.
    2. Mankila, Merja, 2004. "Retaining students in retail banking through price bundling: Evidence from the Swedish market," European Journal of Operational Research, Elsevier, vol. 155(2), pages 299-316, June.
    3. Goldberg, Marvin E & Hartwick, Jon, 1990. "The Effects of Advertiser Reputation and Extremity of Advertising Claim on Advertising Effectiveness," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(2), pages 172-179, September.
    4. Srinivasan, Narasimhan & Ratchford, Brian T, 1991. "An Empirical Test of a Model of External Search for Automobiles," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(2), pages 233-242, September.
    5. Fry, Joseph N & Shaw, David C & Haehling von Lanzenauer, C & Dipchand, Cecil R, 1973. "Customer Loyalty to Banks: A Longitudinal Study," The Journal of Business, University of Chicago Press, vol. 46(4), pages 517-525, October.
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    Cited by:

    1. Filippo Neri, 2020. "How to Identify Investor's types in real financial markets by means of agent based simulation," Papers 2101.03127, arXiv.org.
    2. v. Wangenheim, Florian & Wünderlich, Nancy V. & Schumann, Jan H., 2017. "Renew or cancel? Drivers of customer renewal decisions for IT-based service contracts," Journal of Business Research, Elsevier, vol. 79(C), pages 181-188.

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    Keywords

    Marketing; Banking; Strategic planning; Ordered logit analysis.;
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