Understanding drivers of consumer loyalty in the banking industry: A comparative study of generation z individuals exhibiting high vs. low financial literacy
The banking industry, which plays an essential role in any economy, is characterized by customers choosing a bank in early adulthood. For this reason, Generation Z is currently the emerging cohort of consumers in the banking industry, and understanding their behavior is paramount to a bank’s success...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Split, Faculty of Economics
2022-01-01
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| Series: | Management : Journal of Contemporary Management Issues |
| Subjects: | |
| Online Access: | https://hrcak.srce.hr/file/404700 |
| _version_ | 1811237795960717312 |
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| author | Goran Vlašić Kristijan Keleminić Roman Šubić |
| author_facet | Goran Vlašić Kristijan Keleminić Roman Šubić |
| author_sort | Goran Vlašić |
| collection | DOAJ |
| description | The banking industry, which plays an essential role in any economy, is characterized by customers choosing a bank in early adulthood. For this reason, Generation Z is currently the emerging cohort of consumers in the banking industry, and understanding their behavior is paramount to a bank’s success. In this paper, we (re)consider a model of the relationship between satisfaction and loyalty in the context of Generation Z, separately analyzing individuals with high financial literacy and those with low financial literacy. The results suggest that individuals with low financial literacy, as compared to individuals with high financial literacy, rely more heavily on subjective cues (such as customer feedback) when recommending to others and creating cognitive loyalty and that these customers tend to remain loyal primarily due to inertia. The findings have important implications for banks that need to segment their consumers according to their financial literacy (high vs. low), – as satisfaction, cognitive loyalty, willingness to recommend, and behavioral loyalty are driven by different mechanisms in the two segments. |
| first_indexed | 2024-04-12T12:30:38Z |
| format | Article |
| id | doaj.art-19ebfde94d604b0a80f3f6254282db87 |
| institution | Directory Open Access Journal |
| issn | 1331-0194 1846-3363 |
| language | English |
| last_indexed | 2024-04-12T12:30:38Z |
| publishDate | 2022-01-01 |
| publisher | University of Split, Faculty of Economics |
| record_format | Article |
| series | Management : Journal of Contemporary Management Issues |
| spelling | doaj.art-19ebfde94d604b0a80f3f6254282db872022-12-22T03:33:02ZengUniversity of Split, Faculty of EconomicsManagement : Journal of Contemporary Management Issues1331-01941846-33632022-01-01271213235Understanding drivers of consumer loyalty in the banking industry: A comparative study of generation z individuals exhibiting high vs. low financial literacyGoran Vlašić0Kristijan Keleminić1Roman Šubić2University of Zagreb, Faculty of Economics and BusinessInnovation InstituteCroatian National BankThe banking industry, which plays an essential role in any economy, is characterized by customers choosing a bank in early adulthood. For this reason, Generation Z is currently the emerging cohort of consumers in the banking industry, and understanding their behavior is paramount to a bank’s success. In this paper, we (re)consider a model of the relationship between satisfaction and loyalty in the context of Generation Z, separately analyzing individuals with high financial literacy and those with low financial literacy. The results suggest that individuals with low financial literacy, as compared to individuals with high financial literacy, rely more heavily on subjective cues (such as customer feedback) when recommending to others and creating cognitive loyalty and that these customers tend to remain loyal primarily due to inertia. The findings have important implications for banks that need to segment their consumers according to their financial literacy (high vs. low), – as satisfaction, cognitive loyalty, willingness to recommend, and behavioral loyalty are driven by different mechanisms in the two segments.https://hrcak.srce.hr/file/404700satisfactioncognitive loyaltywillingness to recommendbehavioral loyaltybankingfinancial literacy |
| spellingShingle | Goran Vlašić Kristijan Keleminić Roman Šubić Understanding drivers of consumer loyalty in the banking industry: A comparative study of generation z individuals exhibiting high vs. low financial literacy Management : Journal of Contemporary Management Issues satisfaction cognitive loyalty willingness to recommend behavioral loyalty banking financial literacy |
| title | Understanding drivers of consumer loyalty in the banking industry: A comparative study of generation z individuals exhibiting high vs. low financial literacy |
| title_full | Understanding drivers of consumer loyalty in the banking industry: A comparative study of generation z individuals exhibiting high vs. low financial literacy |
| title_fullStr | Understanding drivers of consumer loyalty in the banking industry: A comparative study of generation z individuals exhibiting high vs. low financial literacy |
| title_full_unstemmed | Understanding drivers of consumer loyalty in the banking industry: A comparative study of generation z individuals exhibiting high vs. low financial literacy |
| title_short | Understanding drivers of consumer loyalty in the banking industry: A comparative study of generation z individuals exhibiting high vs. low financial literacy |
| title_sort | understanding drivers of consumer loyalty in the banking industry a comparative study of generation z individuals exhibiting high vs low financial literacy |
| topic | satisfaction cognitive loyalty willingness to recommend behavioral loyalty banking financial literacy |
| url | https://hrcak.srce.hr/file/404700 |
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