Banking behaviour after the lifecycle event of “moving in together”: An exploratory study of the role of marketing investments
AbstractThis 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.
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Bibliographic InfoPaper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 07/433.
Length: 43 pages
Date of creation: Jan 2007
Date of revision:
Marketing; Banking; Strategic planning; Ordered logit analysis.;
Other versions of this item:
- Lariviere, Bart & Van den Poel, Dirk, 2007. "Banking behaviour after the lifecycle event of "moving in together": An exploratory study of the role of marketing investments," European Journal of Operational Research, Elsevier, vol. 183(1), pages 345-369, November.
- NEP-ALL-2007-02-10 (All new papers)
- NEP-BAN-2007-02-10 (Banking)
- NEP-DCM-2007-02-10 (Discrete Choice Models)
- NEP-MKT-2007-02-10 (Marketing)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Fry, Joseph N, et al, 1973. "Customer Loyalty to Banks: A Longitudinal Study," The Journal of Business, University of Chicago Press, vol. 46(4), pages 517-25, October.
- 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.
- D. Van Den Poel & B. Larivière, 2003. "Customer Attrition Analysis For Financial Services Using Proportional Hazard Models," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/164, Ghent University, Faculty of Economics and Business Administration.
- Goldberg, Marvin E & Hartwick, Jon, 1990. " The Effects of Advertiser Reputation and Extremity of Advertising Claim on Advertising Effectiveness," Journal of Consumer Research, University of Chicago Press, vol. 17(2), pages 172-79, September.
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