Academic journal article E+M Ekonomie a Management

How Does a Retail Payment Account Consumer Changes over Time? Usage Rate Behavioral Segmentation from 2010 till 2016 in the Czech Republic

Academic journal article E+M Ekonomie a Management

How Does a Retail Payment Account Consumer Changes over Time? Usage Rate Behavioral Segmentation from 2010 till 2016 in the Czech Republic

Article excerpt

Introduction

Payment account (PA, in plural PAs), as the most common type of the sight deposit, represents a financial product with the highest market penetration in the European Union (EU). The Czech Republic is not an exception. Finclusion study (The World Bank, 2018) showed that PA account penetration is as high as 81% of all citizens over age 15 in the Czech Republic. EU survey declared the penetration higher by two percent points concerning the population over age 15 in the Czech Republic (TNS opinion & social, 2016). In spite of a minor methodology difference, such as the inclusion of any financial institution or mobile-money-service provider account, it is evident that most of the population possess one or more PAs. EU survey (Eurostat, 2018a) confirmed that most of Czech Republic population aged 16 to 74 actively uses e-banking channel for electronic transactions with a bank for payment or for looking up account information. EU banking regulator acknowledged PA as the most widespread and therefore important retail financial product for EU consumers (European Banking Authority, 2016). Banks benefit from PA core which is an important source of banks financing (Mejstrik, Pecena, & Teply, 2014) gaining importance after the crisis and the following regulation. Study (Centre for European Policy Studies & Van Dijk MC, 2009) reminded that PA is for the banks the "gateway" product with great importance in terms of establishing the relationship with a consumer as well as obtaining useful marketing data. Regarding PA consumers, both legislative bodies (European Parliament, 2014) as well as researches (Diniz, Birochi, & Pozzebon, 2012; Iqbal & Sami, 2017; Jones, 2008) saw PA not just as a basic need in economic life but also a mean of preventing socio-economic exclusion in a modern society.

Although, financial service markets are not highly segmented (Lees & Winchester, 2014), their consumers are. Effective consumer typologies should demonstrate that different segments have unique consumption-relevant attitudes and behaviors (Pires, Stanton, & Stanton, 2011). Therefore, it plays a key part in the CRM process. This fact along with those from the previous paragraph explains why PA consumer is being studied in many surveys. The scope of the paper is a consumer with PA access via e-banking and their segmentation. E-banking consumer-focused studies aim mostly on demographic status, socioeconomic status, attitudes and behavioral variables other than usage rate. Most of the studies published in the last ten years indexed in the major scientific databases (Web of Science, Scopus and ScienceDirect-Elsevier) are related to the issue of e-banking adoption itself (Adapa & Cooksey, 2013; Agarwal, Rastogi, & Mehrotra, 2009; Liebana-Cabanillas, Nogueras, Herrera, & Guillen, 2013; Rajaobelina, Brun, & Toufaily, 2013), or in overall electronic services adoption context e.g. (Fonseca, 2014; Zuccaro & Savard, 2010).

Only a few studies included behavioral segmentation usage rate point of view. However, it was to a very limited extent. They often lack the detail e.g. (Fonseca, 2014) distinguished only user/non-user status, (Zuccaro & Savard, 2010) did not distinguish the payment instrument. Another issue arises from the average or a single representative consumer approach e.g. in (Hanousek & Dvorak, 2009). The average consumer is not a correct approach in a differentiated demand environment with segments of a different size. Average consumer approach was not used even in publicly accessible retail banking studies such as (Capgemini, EFMA, & UniCredit, 2009) and other studies by Slovak Banking Association or Scott&Rose which are even more obsolete. The recentness is the problem of our two papers published in 2011 on the topic. Study (Van Dijk MC & Centre for European Policy Studies, 2012) suffered from a methodological issue since consumer profile usage rates were only estimations. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.