Share of wallet in Australian retail banking an empirical study with implications for practice and research

Chris Baumann (), Gregory Elliott () and Suzan Burton ()
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Chris Baumann: Macquarie University, Postal: Macquarie University , Balaclava Road, North Ryde,, NSW 2109, Australia, http://businessandeconomics.mq.edu.au/contact_the_faculty/staff/alphabetical_list_of_staff/chris_baumann
Gregory Elliott: Macquarie University, Postal: Macquarie University , Balaclava Road, North Ryde,, NSW 2109, Australia, http://businessandeconomics.mq.edu.au/contact_the_faculty/staff/alphabetical_list_of_staff/greg_elliot
Suzan Burton: Macquarie University, Postal: Macquarie University , Balaclava Road, North Ryde,, NSW 2109, Australia, http://www.gsm.mq.edu.au/wps/wcm/connect/internet/root/faculty/directory/burtonsuzan

Journal of Financial Transformation, 2007, vol. 21, 32-38

Abstract: Previous research has investigated the determinants and consequences of customer loyalty, but in banking, a critical yet often neglected measure is the customer’s ‘share of wallet’ (SOW). Since some customers are more active in either investments or loans, the study, based on a survey of 1,951 retail banking customers, models SOW separately in terms of deposits and debts/loans. The results suggest that approximately 25% of the variance in share of wallet can be predicted, in particular by demographic factors such as age, income and a customer’s location. The typical customer with growth potential for deposits is found to be male, aged 35-65, has a high income and a university degree, and lives in a city area. In contrast, factors such as customer satisfaction, affective attitude and perceived service quality were not significant unique predictors of SOW. Implications for bankers and researchers are discussed.

Keywords: Share of Wallet; Customer Loyalty; Retail Banking; Demographic factors (search for similar items in EconPapers)
JEL-codes: M31 (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:ris:jofitr:0943

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