Academic literature on the topic 'Banking Psychographics'

Remarkable developments and innovation in the information and communication technology has led to significant paradigm shift in banking sector. Internet banking phenomenon has been widely accepted by the banks, as a convenient channel of service delivery owing to its multiple advantages. In spite of being beneficial to the users as well, the acceptance rate of this delivery channel is very slow among bank’s clients. In order to increase consumer internet banking, banks must take steps to leverage internet banking adoption among customers. Banks have to promote internet banking by segmenting their targeted customers and positioning them with suitable strategies. This study aims at segmenting the customers based on their usage of services and to identify the perceptions of consumer segments regarding the various attributes of online banking. Hierarchical cluster analysis, k-means cluster analysis was used to segment the respondents based on their usage of the internet banking service. The respondents were formed into three clusters viz, extensive users, moderate users and constrained users. A profile of each segment of user is made based on their demographic, psychographics and perception towards attributes of internet banking. Subject to their profile, usage patterns and their perception towards different attributes of internet banking, various recommendations were made to the service providers to formulate strategies targeting the specific type of users. This study would be facilitate the bankers to draft user focused strategies for increased usage of internet banking services.

The proliferation of internet technology and financial innovations has globally revolutionized the delivery of banking services. Internet banking offers substantial benefits, such as reduced transaction cost, convenience, and flexibility to the customers as well as to the banks. Despite the apparent advantages, prevalence of internet banking services is at its nascent stage. The study aims at determining the consumer psychology and user’s perception towards internet banking. Extensive study on prior research and available literature has been made and variables are identified to study the customer perception on internet banking adoption. Descriptive research was undertaken and primary data were collected through self-administered questionnaires, which yielded 602 valid responses. Influence of demographic variables and psychographic variables on the determinant was analyzed. The results revealed that demographic variables significantly influence consumer perception on internet banking adoption. Implications would help bank managers and policy formulators to build customer specific strategies to escalate usage of internet banking services.

Abstract: The background of this research is that the development of financial institutions is increasing rapidly and the products and services that compete in one market are increasingly diverse, therefore companies must have their own strategies in facing competition. One of the market segmentation strategies that must be considered by companies in marketing. The type of research used is the type of research used (field research) with a qualitative approach. The novelty of this research is that it focuses on my savings product and there is the development of a formulation of the problem of inhibiting and supporting factors of market segmentation where similar research has been carried out. The findings of this study are the segmentation strategy at Bank Muamalat KCP Madiun using geographic segmentation but there has been no significant change. The inhibiting factors for my savings product are not equipped with ATMs, the segmentation of the area is quite wide, namely to cities and villages so that customers who are far from making transactions at the bank, psychographics and personality of customers like that will choose products that are more flexible and have sophisticated technology in transactions. Supporters of my savings product can be reached by all walks of life, free of administration and affordable initial balance, wide geographical segmentation. the market segmentation carried out is still not detecting market changes where there is still little interest in using my savings product. Future research is expected to further examine what market segmentation strategies are in increasing the number of customers. Keywords: Market Segmentation, Tabunganku, Islamic Banking, Supporting Market Segmentation Abstrak: Penelitian ini dilatar belakangi karena suatu perkembangan lembaga keuangan yang semakin pesat serta produk dan jasa yang bersaing dalam satu pasar semakin beragam, oleh karena itu perusahaan tentunya memiliki strategi masingmasing dalam menghadapi persaingan. Salah satu yaitu strategi segmentasi pasar yang harus dipertimbangkan oleh perusahaan dalam melakukan pemasaranya. Jenis penelitian yang digunakan yaitu jenis penelitian yang digunakan adalah (field research) dengan pendekatan kualitatif. Kebaruan dari penelitian ini yaitu terfokus pada produk tabunganku dan ada pengembangan rumusan masalah faktor penghambat dan pendukung segmentasi pasar yang dimana penelitian serupa belum pernah dilakukan. Temuan Hasil dari penelitian ini yaitu strategi segmentasi pada Bank Muamalat KCP Madiun menggunakan segmentasi geografis tetapi belum juga ada perubahan signifikan. Faktor penghambat yaitu produk tabunganku tidak dilengkapi ATM, wilayah segmentasi yang cukup luas yaitu sampai kota dan desa sehingga nasabah yang rumahnya jauh enggan melakukan transaksi di Bank, psikografis dan kepribadian nasabah dengan seperti itu akan memilih produk yang lebih fleksibel dan memiliki teknologi yang canggih dalam bertransaksi. Pendukung produk tabunganku dapat dijangkau oleh semua kalang, bebas biaya administrasi dan saldo awal yang terjangkau, segmentasi geografis yang luas. Dampak segmentasi pasar yang dilakukan yaitu masih kurang mendeteksi perubahan pasar dimana masih sedikit minat nasabah dalam menggunakan produk tabunganku. Penelitian selanjutnya diharapkan meneliti lebih jauh apa strategi segmentasi pasar dalam meningkatkan jumlah nasabah. Kata Kunci: Segmentasi Pasar, Tabunganku, Perbankan Syariah, Pendukung Segmentasi Pasar

Purpose The purpose of this paper is to propose the study of the adoption and use of e-banking by adults over the age of 50, from the theoretical framework based on the unified theory of acceptance and use of technology. Design/methodology/approach After proving the validity of the model, the authors analyse the heterogeneity of these persons by using a structural model-based latent class segmentation called partial least squares prediction-oriented segmentation. Findings The results enable the identifying of four segments with different behaviours with respect to this electronic service. As implications of the results obtained, it is observed how sociodemographic characteristics do not explain their differences. However, the psychographic as well as the cognitive age, self-confidence and audacity are discriminating and explanatory criteria for the behaviour of the four segments. Originality/value From the academic point of view, this paper offers important contributions to the prior literature. First, although there is an extensive literature on the use of internet banking, the authors have nevertheless found a clear lack of research studies related to the specific group of older adults. There are not many works that exclusively deal with the elderly’s acceptation and use of technologies, and even less so in the case of internet banking services. Also, if the elderly are focussed, then it is discovered that there is a socially shared stereotype that sees them as inexpert and cut off from technology. This is, however, an unfair view that conceals a broad diversity of behaviours as has been proved for the different segments found.

Purpose – The purpose of this paper is to provide an insight into the determinants of the customers’ attitude and behavioural intention to use Internet banking services, paying special attention to the role of perceived risk, trust, enjoyment, website design and social influence. Design/methodology/approach – A research model grounded on the technology acceptance model (TAM) reflecting the effects of trust, perceived risk, perceived enjoyment, perceived website design and social influence on TAM constructs is proposed. The structural equation modelling technique is used to analyse a sample of 697 individual Internet banking users in India through an online survey. Findings – The results of data analysis confirm some of the hypotheses drawn from the literature. Consistent with some of the other studies, perceived usefulness, perceived ease of use, trust and perceived enjoyment are found to be immediate direct determinants of customers’ attitude towards using Internet banking. Attitude, perceived risk, perceived enjoyment and trust determine the customers’ behavioural intentions to use Internet banking. Although the direct effect of perceived website design is significant only on perceived ease of use, its indirect effects are significant on perceived usefulness, attitude and behavioural intentions. Furthermore, perceived enjoyment exerts both direct and indirect effects on perceived usefulness but exerts only direct effect on perceived ease of use. Research limitations/implications – Generalizability of the research is a practical limitation in consumer research studies and the present study is not an exception to that. The current study focused only on some technological, behavioural and attitudinal factors, and many customer-specific factors and other psychographic and behavioural factors such as cost, perceived value, service quality and satisfaction, which can provide more significant insight into the adoption process, are not a part of the scope of the study. Practical implications – This research specifies the implications in three perspectives, viz., theoretical, methodological and managerial. Furthermore, this study provides the practical recommendations to enhance customer trust and guidelines to reduce perceived risk. The most significant implication for the banking sector is that apart from offering useful and user-friendly services, they need to build a trusting relationship with customers. Originality/value – This study extends existing body of Internet banking literature by incorporating trust and risk perceptions. The effects of website design and perceived enjoyment on Internet banking acceptance have been examined and were found to be significant in the Indian context. In addition, it enables us to contribute to the current literature on the emerging Indian Internet banking services (IBS) market, which is largely under-researched.

Purpose – The main aim of this paper is to identify whether certain consumers behave irrationally when it comes to select banking products. This paper builds on one of the most significant banking products that is the credit card. Design/methodology/approach – This is an exploratory research paper. Therefore, only descriptive analysis on the differences between three credit card user groups such as the Islamic credit card users, conventional card users and users who decide to use both credit cards, conventional and Islamic, were presented. Findings – The demographic and psychographic factors for the three different groups differ. In addition, there are four factors that influence the credit card selection. The factors are insurance/takaful provided by the credit issuers, cost associated with the credit card, the reward points programme offered and the convenience factors. Furthermore, the study found that three of the factors except insurance/takaful are significantly different between three credit card groups. Research limitations/implications – This paper is limited to the context of Malaysia and the respondents are mostly from the same ethnic. Therefore, it could not be generalised in the context of other countries and further studies comparing different culture or ethnic could benefit and enrich the topic of study. Practical implications – The Islamic and conventional banks could focus on several factors influencing customers’ selection and could focus to improve certain lacking areas as perceived by the consumers. The ability to increase the perceptions of the consumers regarding their credit cards will enable their products to be chosen in the market. Originality/value – There was a significant amount of literature discussed in the Islamic banking selection factors. However, little attention being paid to the selection of a specific bank’s product. This study offers a study that looks into the selection of the credit card offered by the banks in respect to the irrational behaviours of the religious consumers in economic activities as compared to the conventional economists. This paper will contribute to the body of existing literature of banking selection.

PurposeThe lovemarks theory (love and respect) is fairly new to the marketing literature and is now gaining much attention among marketing scholars. The study examined how brand love and brand respect moderate the relationship between corporate social responsibility (CSR), trust (TRUS), satisfaction (SAT) and loyalty (LOY) among bank customers in an emerging/and or a developing country's context.Design/methodology/approachA quantitative survey approach was used. Data from a total of 769 banking customers, containing demographic and psychographic measures were used.FindingsThis study tested six (6) hypotheses. The results confirmed the moderating role of brand respect on the relationship between CSR and TRUS in the banking sector. Also, our results reveal that BLOV moderates the relationship between SAT and LOY. The rest of our hypotheses did not confirm any significant relationship between them.Research limitations/implicationsLike any academic exercise, this study also has some limitations. The hypotheses tested for brand love on bank customers' perceptions of CSR were based on a country study. The implication of brand love for CSR may be the same or vary in different country contexts.Practical implicationsThe study provides managers of banks and managers of financial institutions a better understanding of how love and respect could play a role in their loyalty program and how to incorporate these new constructs into the already known constructs such as satisfaction, trust and loyalty.Originality/valueThis study is unique because it quantitatively examined the relationships between well-researched constructs corporate social responsibility (CSR), trust (TRUS), satisfaction (SAT) on loyalty (LOY) as well as examining these constructs with a fairly new constructs brand love (BLOV) and respect (BRES) in a single study.

Purpose – This purpose of this paper is to investigate the status of Islamic banking in Lebanon, through addressing the perceptions of existing and potential clients. The study has two objectives: one is to identify and measure the factors that clients perceive as important in deciding to patronize an Islamic bank, and the other is to draw a client profile for Islamic banks operating in Lebanon. Design/methodology/approach – The literature review provided the theoretical framework this study builds on. A survey instrument was developed and the data were analyzed using SPSS (19.0). To draw the client profile, the researcher conducted cluster analysis followed by discriminant analysis. To identify and measure the Islamic bank selection criteria, the researcher used factor analysis followed by regression analysis. Findings – Findings show that clients consider five variables in deciding whether or not to patronize Islamic banks. These variables are trust in Islamic banks and their true compliance with Sharia, customers’ familiarity with Islamic modes of finance, cost of financing and other transactions, accessibility of Islamic banks, and the quality of service offered by those banks. The study was also able to delineate the significant attributes of IB clients, raising the issue of changing the target market segment. Research limitations/implications – This study employed a usable sample size of 199 questionnaires collected from one MENA region nation, Lebanon. It may be useful to probe the research questions of this study using a larger sample size collected from several MENA region nations, in order to reach a more validated conclusion. In addition, it may be equally useful to assess other demographic and psychographic variables as distinguishing factors among client clusters, for the purpose of reaching a deeper understanding of Islamic bank clientele in this region. Practical implications – It is suggested that Islamic banks consider the five factors identified in this study, while preparing their marketing strategy, for the purpose of increasing their market share in the non-GCC MENA region. It is also suggested that Islamic banks approach the so far neglected market segments, rather than sticking to their traditional clients. Originality/value – This paper is the first to investigate the status of Islamic banks in Lebanon. The findings of this study will help refocus the marketing strategies of Islamic banks in Lebanon. They may also apply to other developing non-GCC countries in the MENA region.

Post Liberalization, India has witnessed a good growth rate in economy. The GDP has grown by in the range of 7- 8 percentage annually. The job prospects in India have increased phenomenally due domestic business climate and the influx of foreign companies and their investments. India has become a service outsourcing hub due to the available talent and infrastructure. The economic boom has been a boon to many in terms increased job and business prospects and this in turn has led to consumption of financial services in India. The growing needs and wants for financial products like loans, credit cards, insurance, banking facilities, investment opportunities itself is an indicator of the financial confidence among the Indian population. The lifestyle of Indian consumers has undergone a huge change reflecting in the way how one lives, the food one consumes, the homes people live in, the kind of transport people use, entertainment and health. The number of banks has also increased over the last decade with many private and foreign banks setting up shop in India. (There are around 3000 registered banks operating in India. Source: RBI). With increased competition and a big banking customer base, many of the banks have resorted to intense competitive strategies to attract a customer into its fold. Most of the banks have similar offerings and very few banks have a differentiation approach. One of the reputed public sector banks had advertised with slogans like “We provide cars loans too”, especially when most of the banks were providing one. The similarity in offerings and services poses difficulty to any bank to differentiate its offerings from the rest. Instead a better way to differentiate is to provide products and services that the customer really appreciates. In order to understand the needs and wants of the customer better, attitudes, interests, opinions, and lifestyles of customer have to be studied. This particular technique is called “Psychographics”. In simple terms “Psychographics” means mental portraits of the customer. A review of literature reveals that banking customers have been studied based on them bank selection behavior, channel preferences and product preferences separately. But banking behavior is combination of the above-mentioned individual components plus the lifestyle of the customer that may influence his banking behavior. A customer does not choose a bank based on its proximity or due to its friendly staff but may also check if the bank offers internet banking or provides educational loans and many more aspects. Thus, an integrated approach is necessary to understand the customer better. In this research we have attempted an integrated approach (by combining bank selection, channel preferences and product preferences) to understand the customer by also including some lifestyle related aspects that may influence a customer’s total banking behavior. Based on preliminary observations, opinion from experts in the area and relevant literature review, the following objectives have been formulated for the study: 1. To identify the psychographic variables that are important for bank selection, channel preferences and product preferences for customers in the age group between 18 to 42 years, across two selected urban regions of Karnataka. 2. To obtain a general description of psychographics involving bank selection criteria, channel preferences, product preferences and usage, and lifestyle aspects that may be related to banking, of the two urban samples considered for the study. 3. To identify those psychographic variables that differentiate the two urban regions in their bank selection, channel preferences, and product preferences. (Bangalore is considered as Urban 1 and the grouping of Mysore, Mangalore, Hubli and Dharwad is considered as Urban 2 for this study). 4. To study the nature of relationship among psychographic variables belonging to bank selection, channel preferences, product preferences and lifestyles activities. To test the influence of lifestyle activities on banking, they are studied in the following ways: a) By studying the psychographics of bank selection, channel selection and product selection and usage without the inclusion of lifestyle activities and b) By including the lifestyle activities with psychographics of bank selection, channel selection and product selection and usage. 5. Influence of geographic region on segmentation of retail banking customers with respect to bank selection, channel selection and product selection. 6. To Test hypotheses relating to a) the factors influencing the banking selection, channel selection and product selection of the urban regions under consideration (relating to the similarity of psychographic segments of the two urban regions) and 2) hypotheses, relating to observations of certain specific psychographics exhibited by a) customers of the two urban regions, and b) customers from different demographics. 7. To construct a psychographic model of bank selection, channel selection and product selection Banking Customers of Karnataka in the age group of 18- 40 years were subjected to a personal interview with the instrument being a questionnaire contained 24 bank selection variables, 19 channel preference variables,17 product preference variables and 6 lifestyle variables. The variables were selected from the literature and also from discussions with experts in the area of banking that was assumed to be relevant in Indian context. The region of Karnataka was classified as Urban one (comprising of Bangalore) and Urban two (comprising of Hubli –Dharwad, Mangalore, and Mysore). A descriptive analysis was done area wise in order to get a general picture of the relevant variables. A Discriminant analysis was performed between urban one and urban two areas to get the dominant variables that discriminated between the two areas considered for the study. Hypotheses were formulated based on literature, observations from data analysis and general observations of the banking system and tested. A Factor analysis was conducted to get the dimensions of bank selection, channel preference, product preferences and lifestyles. Confirmatory factor analysis has been used to test the hypotheses and for modeling the factors responsible for the bank selection, channel selection and product selection across the different urban regions considered for the study.