Banking on the youth: the case for finer segmentation of the youth market

Thomas Foscht (Lecturer in the Department of Marketing, University of Graz, Graz, Austria)
Cesar Maloles III (Professor in the Department of Marketing and Entrepreneurship, California State University, East Bay, Hayward, California, USA)
Judith Schloffer (Lecturer in the Department of Marketing, University of Graz, Graz, Austria)
Swee‐Lim Chia (Assistant Professor in the Department of Marketing, La Salle University, Philadelphia, Pennsylvania, USA)
Indrajit “Jay” Sinha (Associate Professor in the Fox School of Business and Management, Temple University, Philadelphia, Pennsylvania, USA)

Young Consumers

ISSN: 1747-3616

Publication date: 23 November 2010



The purpose of this paper is to examine the differences among the different subgroups of the youth market in the context of their financial interests and usage. The study examines what determined their choice of banks. It also looked at what factors influence their satisfaction, loyalty, and behavioral intentions with regard to their banking needs.


Using a multiple‐item survey instrument, 242 Austrian respondents were queried on what factors affect their choice of banks, their choice of financial services, usage patterns, satisfaction, loyalty, and behavioral intentions. Descriptive analysis, factor analysis and cluster analysis were employed in the study. Different tests such as chi‐square tests, discriminant analysis and ANOVA were used to validate the chosen cluster solution.


Differences were found among the four clusters in terms of their interest in financial services, their usage, and their likelihood of switching. In addition, determinants of satisfaction, loyalty, and behavioral intention were primarily affected by satisfaction with employees and services rendered. The results indicate that as young people reach certain milestones, their needs become more multifaceted. Consequently, banks should be aware of these changing needs.


This paper treats the youth market as a heterogeneous group rather than homogenous as many studies usually treat this age cohort. Moreover, given that many banks are trying to “grow” markets, the paper looks at how the determinant factors change from one stage to another. Financial institutions will benefit from the insight derived from this paper in crafting their marketing strategies. It indicates what seems to be important to each age group in increasing their satisfaction level.



Foscht, T., Maloles, C., Schloffer, J., Chia, S. and “Jay” Sinha, I. (2010), "Banking on the youth: the case for finer segmentation of the youth market", Young Consumers, Vol. 11 No. 4, pp. 264-276.

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