Banking behaviour after the lifecycle event of “moving in together”: An exploratory study of the role of marketing investments
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.
|Date of creation:||Jan 2007|
|Contact details of provider:|| Postal: Hoveniersberg 4, B-9000 Gent|
Phone: ++ 32 (0) 9 264 34 61
Fax: ++ 32 (0) 9 264 35 92
Web page: http://www.ugent.be/eb
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- 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.
- 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.
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- Srinivasan, Narasimhan & Ratchford, Brian T, 1991. " An Empirical Test of a Model of External Search for Automobiles," Journal of Consumer Research, Oxford University Press, vol. 18(2), pages 233-242, September.
- 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 517-525, October. Full references (including those not matched with items on IDEAS)
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