Hybrid Segmentation in the Financial Services Market: Targeting Saving Consumers

Makgosa, Rina; Matenge, Tendy; Mburu, Paul T.

doi:10.1111/fcsr.12168

Cited by 5 publications

(4 citation statements)

References 31 publications

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“…Furthermore, findings from the study show that most respondents have a savings account compared to other types of accounts such as a cheque or credit card account, although the cheque account came second in terms of preferences. This finding disconfirms what was previously found by Makgosa et al (2016) with results showing that most Botswana did not have a culture of savings. If people do not save, there will not be a need to have a savings account.…”

Section: Discussionsupporting

confidence: 64%

A relationship marketing perspective on delight, its antecedents and outcomes in a banking context

Svotwa

Makanyeza²,

Roberts-Lombard³

et al. 2023

EBR

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Purpose This study aims to explore the influence of surprise and delight on the loyalty intentions of retail banking customers in an emerging market context. This study also considers the moderating effect of trust on these relationships. Design/methodology/approach Using convenience and purposive sampling methods, data collection was secured from 350 customers in the retail banking industry who are delighted with their banks. Findings This study found that for delightful experiences to occur, customers need to be surprised and see value in the product/service offered by the retail bank, coupled with the expertise of employees in delivering the service. Research limitations/implications The sample’s demographic profile was mostly skewed towards the younger generation (individuals 20–39 years of ages), meaning the results could be biased towards this group. Practical implications Retail banks need to create delightful experiences, as they are more memorable and leave a permanent mark in customers’ minds. Originality/value Limited studies have explored the relationship between delight, its antecedents and outcomes in a developing African market context, such as Botswana, hence the contribution of this study to literature.

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Section: Discussionsupporting

confidence: 64%

A relationship marketing perspective on delight, its antecedents and outcomes in a banking context

Svotwa

Makanyeza²,

Roberts-Lombard³

et al. 2023

EBR

View full text Add to dashboard Cite

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“…Opute and Madichie ( 2016) have examined the importance of association of accounting and marketing functions to develop marketing strategies for financial products and services in the UK. Makgosa et al (2016) demonstrated the usefulness of hybrid segmentation for effective marketing strategy. Motwani (2016) predicted the intention of senior professionals towards mobile banking.…”

Section: Literature Reviewmentioning

confidence: 96%

Marketing Strategy for Financial Services in Indian Financial Service Institutions

Sharma

Shrivastava

2021

FIIB Business Review

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Indian financial sector passed through various stages of development including pre-nationalization, post-nationalization and the recent one post-liberalization. In these stages, marketing was at hibernation mode, as the relationship between banking and marketing was not considered important. However, the recent developments in the Indian financial sector as well as changes in customer preferences towards financial services have aggravated a need for a stronger relationship between marketing and financial service institutions. This thought grew up after there was a realization of the sustainable structure. In light of the above development, authors have attempted to study and explore the marketing strategy of financial service institutions specifically for financial products and services to target retail customers. This exploratory research is carried out by interviewing around 285 employees (in sales and marketing in banks and NBFCs) in Delhi-NCR region through a structured questionnaire. A total of 24 factors were identified through the literature available on the topic (factors that affect the marketing strategy of financial services offered). Exploratory factor analysis was applied, and it was found that five most influential factors are devising a differential marketing strategy. This marketing strategy has been named as ‘PRISM’ (acronym of the strategies developed).

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“…Followed by that study, some researchers have recently utilized segment variables for the hybrid approach. For example, Liang and Pei-Ching (2015) categorize customers who use internet banking by their perceptions, behavior, loyalty, satisfaction and demographic characteristics whereas Makgosa et al (2016) base this approach on individual saving attitudes, behavior, psychographic and demographic factors.…”

Section: Theoretical Background 21 Market Segmentation In the Financial Marketmentioning

confidence: 99%

Segmentation of financial clients by attitudes and behavior

Phan

Rieger

Wang

2019

IJBM

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Purpose The purpose of this paper is to investigate segmentations by finance-related attitudes and behavior of financial consumers in Switzerland and Vietnam. Design/methodology/approach The authors replicated the questionnaire measuring attitudes toward financial affairs as used in the study of Fünfgeld and Wang (2009). In order to extract factors and identify profiles of financial customers, the authors applied the same techniques including factor analysis and a two-step cluster analysis (Ward and K-means) to both samples. Linear regressions were used to examine the impact of socio-demographic variables. Findings Factor analysis reveals surprisingly similar underlying dimensions of financial attitudes and behavior for participants in both countries. The five clusters based on these dimensions exhibit strikingly similar characteristics. The authors also find that socio-demographic variables such as gender, age and education significantly vary across groups. Research limitations/implications There are small differences in the composition of the revealed dimensions between the two countries, mainly a mixture of intuitive decisions and free-spending aspects. Future research may investigate more countries with comparable samples to further test the reliabilities and validities of the scales. Practical implications The findings suggest that the instruments as developed by Fünfgeld and Wang (2009) can be used not only in highly developed Western markets but also in non-Western and emerging markets. Such instruments can be very useful for offering financial advice based on market segmentation in a global market. Originality/value The study provides empirical evidence on universal segmentation variables that reflect financial consumers’ psychological traits and attitudes toward saving and spending. Furthermore, the study stresses the need for a broad use of those variables when studying consumer decision-making in international financial markets.

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Hybrid Segmentation in the Financial Services Market: Targeting Saving Consumers

Cited by 5 publications

References 31 publications

A relationship marketing perspective on delight, its antecedents and outcomes in a banking context

A relationship marketing perspective on delight, its antecedents and outcomes in a banking context

Marketing Strategy for Financial Services in Indian Financial Service Institutions

Segmentation of financial clients by attitudes and behavior

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