Explaining customers’ financial service choice with loyalty and cross-buying behaviour
ISSN: 0887-6045
Article publication date: 24 October 2017
Issue publication date: 9 November 2017
Abstract
Purpose
This paper aims to examine the impact of the customer’s previous transaction behaviour (represented by loyalty and general cross-buying) on his/her choice of specific services offered by the same financial services provider.
Design/methodology/approach
This study uses a set of logistic regression models by incorporating panel data from a large bank. The database consists of 2,187 randomly selected customers, and it includes features related to individual loyalty and cross-buying behaviours, as well as demographic indicators, i.e. individual measures related to each customer and each service.
Findings
From the results obtained, a large variation in customer choice behaviour with regard to the studied banking services was observed. These results reveal which customer transactional behaviours drive cross-category financial services purchases.
Originality/value
In academic literature, little progress has been made in the study of individual and behavioural factors that affect customer choices by service category, especially within the banking sector. By understanding customer choices, the company will be able to meet customer needs in a more appropriate way, thereby increasing its competitiveness. Hence, the results from this study have both managerial and research implications, improving the strategy formulation of financial services companies.
Keywords
Acknowledgements
The support by the Consejería de Innovación, Ciencia y Empresa of the Junta de Andalucía (research grant program), Hasselt University and Cajamar is gratefully acknowledged, as well as the support provided by Dr. Johanna Gummerus and two anonymous reviewers for their insightful and constructive feedback on earlier versions of this manuscript.
Citation
Estrella-Ramón, A. (2017), "Explaining customers’ financial service choice with loyalty and cross-buying behaviour", Journal of Services Marketing, Vol. 31 No. 6, pp. 539-555. https://doi.org/10.1108/JSM-05-2015-0189
Publisher
:Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited