New Age Youth Banking Behavior an Explorative Study in the Indian Banking Sector

By Srivatsa, H. S.; Srinivasan, R. | Journal of Services Research, October-March 2008 | Go to article overview
Save to active project

New Age Youth Banking Behavior an Explorative Study in the Indian Banking Sector


Srivatsa, H. S., Srinivasan, R., Journal of Services Research


The banking scenario in India has witnessed a rapid growth coupled with intense competition. This sector has witnessed rapid technological deployments, intense price wars almost leading to commoditisation of the sector, product innovations, public sector loosing their market share to private banks and ultimately an intense to win over the customers. The study deploys the use of psychographics to study the Indian retail banking customers. This paper is a result of the research conducted by in the state of Karnataka in India and is empirical by nature. The various psychographic customer segments discovered are discussed in the forthcoming sections of this paper.

INTRODUCTION

There have been recent indications from the finance minister of India that Indian banks should go in for mergers in order to have a less number of larger and more efficient banks. For the retail banking scenario, it is also implicit that many banks are competing for the same customer segment and the combined resources being spent in terms of marketing and other efforts may exceed the profitability of the segment targeted at, by the banks put together. It has been observed that the challenges being faced by retail banking sectors have been in the usage of proper segmentation techniques based on customer psychographics.

Customer segmentation takes place at demographic level and at psychographic level. Psychographics in essence tries to study and profile people based on their attitudes, interests, lifestyles and values.

In India there has been a lacuna in terms of psychographic profiling of consumers. Many corporates are conducting such studies; but results are not available for the academic community. The psychographic variables of consumers are always changing and it becomes even more imperative for a continuous longitudinal study to keep track of changes and incorporate them.

Further, the entry of foreign banks that are armed with techniques to profile the customers based on psychographic attitudes may pose a tough competition for the Indian banks.

Some of the bank advertisements put out by large public sector banks in India act more or less like reminders to customers about their large and widespread networks, many products in their portfolio that are clearly a pure quantitative translation of banks strength rather than the real competitive advantage that can be derived out of strategic marketing techniques based on effective segmentation.

Hence it is imperative that psychographic study is conducted on banking customers in India for strategic marketing purposes.

The conceptual relationship between effective profiling and Strategic marketing can be best described in the Figure 1.

A LITERATURE REVIEW OF PSYCHOGRAPHIC APPLICATIONS

In the beginning, we shall introduce the concept of "Psychographics" with a classical definition by Demby (1994) who has coined the term "Psychographics".

Demby has provided a three level comprehensive definition of psychographics.

1. Generally, psychographics may be viewed as the practical application of behavioral and social sciences to marketing research.

2. More specifically, psychographics is a quantitative procedure that is indicated when demographic, socio-economic and user/non-user analysis are not sufficient to explain and predict consumer behavior

3. Most specifically, psychographics seeks to describe the human characteristics of consumers that may have bearing on their response to products, packaging, advertising and public relations efforts.

Such variables may span a spectrum from self -concept and lifestyle to attitudes, interests and opinions, as well as perceptions of products as well self concept and personality traits are used interchangeably.

People's activities, interests, opinions and attitudes, vary approximately as do their related values and this pattern fits the value-attitude-behavior hierarchy hypothesized by Homer and Kahle (1998).

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

New Age Youth Banking Behavior an Explorative Study in the Indian Banking Sector
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?