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The determinant of customer profitability on the financial institution

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  • Chia-Chi Lee
  • Tyrone T. Lin
  • Chien-Jen Chen

Abstract

This paper aims to examine the influences of personal attributes of salaried customers, product transaction strategies, and sales personnel as three dimensions on the profitability contributed by customers in the wealth management business of the banking industry. The multiple regression analysis is performed for an empirical test. The results show that four variables, i.e. the quantity of the products held, purchasing frequency of investment products, level of financial advisers, and degree of customers' satisfaction have significantly positive influences on the profitability contributed by customers. This paper provides a reference for the financial industry to formulate the management strategies targeting at the optimal customers in wealth management.

Suggested Citation

  • Chia-Chi Lee & Tyrone T. Lin & Chien-Jen Chen, 2008. "The determinant of customer profitability on the financial institution," The Service Industries Journal, Taylor & Francis Journals, vol. 30(14), pages 2311-2328, November.
  • Handle: RePEc:taf:servic:v:30:y:2008:i:14:p:2311-2328
    DOI: 10.1080/02642060802629901
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    Cited by:

    1. Zhaoquan Jian & Ho Kwong Kwan & Qian Qiu & Zhi Qiang Liu & Frederick Hong-kit Yim, 2011. "Abusive supervision and frontline employees' service performance," The Service Industries Journal, Taylor & Francis Journals, vol. 32(5), pages 683-698, August.

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